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How EXACTLY are the brokers compensated?


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  • 2 years later...

I think a good broker mostly earns with spread as that is a legitimate way but a scam or wrong broker will try to get things with slippage and hidden charges. I am lucky that I am trading with a regulated broker OctaFX, it earns only with low spread that is also just 0.2 pips and there is no hidden charges while they have swap free account option so even that’s not charged if we don’t want to pay it.

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  • 4 weeks later...

A broker that is good and legitimate will earn from spread and at maximum commission of swap and it’s not with their choice but something is necessary because there is no other legitimate way. I am also trading with OctaFX and they charge low spread of just 0.2 pips and no commission at all with their swap free option so that really makes a great case for us to work with them and they are not greedy to want more but happy with charging so low spread.

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  • 1 year later...
On 4/24/2012 at 3:57 PM, Ramon Ramirez said:

How EXACTLY are the brokers compensated? Just by spread,slippage and swap? How do they finance our high leverages and manage to give us such a sweet deal??? And what are their financial interest in spot forex?

Unfortunately, there aren’t too many brokers who are willing to compensate regardless of anything they do. This is where we need to be strong minded. It’s not easy world where you can walk over and expert to get justice, it’s something that got to be earned. Initially, I found it too hard to imagine how to fight for something like that, but with addition for experts like WInchargeback into the fight, it all worked beautifully. So, if you are also trying out getting justice than click here!

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  • 4 months later...

Brokers compensate through commissions and are as often as possible under extraordinary weight to do in that capacity. There are clear things a broker should swear off: lying, bending and hard-offer procedures; regardless, some exploitative lead is more subtle, however no more commendable. As binary options trader I like lxmarkets.com as it is a main options broker. You can in a flash deposit and withdraw your cash. It has quick payout framework with alluring rate.

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  • 2 weeks later...

Through commissions a broker is compensated. A trader trade through a broker trading platform. Trader buy or sell foreign currencies. The exchange rate is determined earlier. Broker compensate the commission from this exchange rate. Maximum broker in the market keep more compensation and provide less profit. So that trader how much earn is not impact in their business. Because they are getting less from their broker. The best lowest spreads provider in the market is TryMarkets.

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The spread and the commissions paid by the trader on different assets class during forex trading provides income to the broker. This accounts for the differences in the spreads observed among different brokers, as each broker determines its own spread.

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  • 3 months later...

A legitimate way of a broker‘s earning is through spread and the commission of swap. But many traders complain about slippage and hidden charge which is given by the scam broker. It’s been 2 years I‘m trading with AAFX which is a regulated broker. It is giving me low spread as 0 pips, swap free trading accounts, on hidden charge etc. it also secure my money up to 20 k. I am happy to trade with it.

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