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    Thread: How do brokers make money? (4)

    1. #1
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      Default How do brokers make money? (4)

      Quote Originally Posted by Humza     
      Its strange because i have not found any broker who change spread according to the lot size as that would really be cheating as if a higher spread is given on small lots than most people will leave the broker but really i have never seen such thing there are many broker who regularly change spread but never seen a broker having different for different lot size.
      Really ? are you sure ?

      I have seen some of them even though I haven't trade in huge lot.

      But they apply it on different types of account.

      Here's for example the things that I read:

      Standard account:
      Minimum transaction size : 0,1 lot
      Spread: 0,3 pips

      Mini Account:
      Minimum transaction size: 0,1 lot
      Spread: 0,3 pips

      Micro Account:
      Minimum transaction size: 0,01 lot
      Spread: 3 pips.


    2. The following 2 users say Thank You to Bao Long for this useful post.

      Black Mamba (10-04-2013), Humza (10-04-2013)

    3. #2
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      Default

      Quote Originally Posted by Bao Long     
      Really ? are you sure ?

      I have seen some of them even though I haven't trade in huge lot.

      But they apply it on different types of account.

      Here's for example the things that I read:

      Standard account:
      Minimum transaction size : 0,1 lot
      Spread: 0,3 pips

      Mini Account:
      Minimum transaction size: 0,1 lot
      Spread: 0,3 pips

      Micro Account:
      Minimum transaction size: 0,01 lot
      Spread: 3 pips.
      Oh ya actually what i meant was they don't change it suddenly once we open a account we are aware of a range so that is what the spread is it wont change depending on the size but yes you right that many broker have these different type of accounts but than again don't you think this thing make you love Instaforex even more as they treat everyone equally.


    4. The Following User Says Thank You to Humza For This Useful Post:

      Bao Long (10-04-2013)

    5. #3
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      Default

      In forex trading and for the brokers, whether a trader makes a profits or loss, there spreads will be charged. In fact as soon as you are opening the position is spread is going first. So they even make profits before you the client.


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      Default

      Broker is the media to trade with each other. They earn little percentage from the traders. In some case, they also cheat with us by demo trading.


    7. #5
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      yes i agree with the house broker apply multiple tactics on the traders they earn from spread they trade against your own money,they have hidden fees,they earn from the firms banks while transactions/transfer of the trader money.


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      Default

      brokers make money from our spread mate, the spread of the order
      and they will sometimes trade against our order mate
      to take our money, and to make their profit
      that's what i know in trading
      .....INSTAFOREX & FORUM.MT5


    9. #7
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      Brokers only make profit from their clients actually when we peoples invest money there and start trading then broker cut out some spread from their every trade activity so by this way brokers earn.Some brokers also charge some extra commission in big lots.


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      Well I think brokers will get earnings from the spread from each transaction made from their client..
      And that was clear the main earnings for brokers is coming from the spread..


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      I don't know much about it but I heard from the someone I knew well in Forex is that broker earn profit from spread that we success close the deal, let say we trade 1 lot and the spread for EU is 3 so the broker get $3 from our trade. Just imagine there is 1000 client who trade 1 lot for eur usd, it about $3000 for one time.


    12. #10
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      it is very good subject is How do brokers make money used platform broker related house and i thing bast insta broker but used other broker or other trader man tine please broker market regular invest or regular income used do brokers make money source.


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