5 Ways Forex Brokers Make Profits

[Suba]

The goal of an established forex brokerage company is to make a profit. Basically all types of businesses benefit from revenue minus costs, so do forex companies incur costs for hiring workers, office equipment, electricity and water costs, machinery, software and office buildings. To be able to cover the costs incurred, the company needs to obtain revenue.

As a trader we need to know how forex brokers get revenue, which will be described below.
1. Spreads
The spread is the difference between the bid price and the ask price and is charged to the trader when he opens a position, generally the spread ranges from 0.1 pips to more than 1 pips. We also need to know the fixed spread and variable spread.

2. Service fee
Service fee is a service fee that must be paid by traders when opening any position. Usually the broker will also charge fees on accounts that have been inactive for a long time.

3. Flowers
Forex brokers will earn interest from the currency borrowed by traders used for short selling.

4. Sales of API licenses
If a trader uses an external trading robot, it must be connected to an API (application programming interface), so that the broker can make money by selling API licenses and also selling robot trading services.

5. Referral System
Give commissions to users, if they invite new users.

 

[Asahi]

It’s a relieving matter that you can start trading Forex with only a handful amount of dollars are you may get it as a welcome bonus by opening accounts with few brokers. I know Eurotrader as a regulated trading broker. They make sure instant support to traders and allow traders with a whopping 111% deposit bonus.

 

[Dita Walczak]

You have to use indicators like RSI, stokistics etc to view the market technically. Bollinger bands and moving average seem to be good indicators. These are the mostly used indicators around the world. They will help you view the market technically. Eurotrader provides traders all trading indicators and allow you to apply all trading strategies on their platform.

 

[FXOchartist]

Of course as company establihsed for profit, including brokers. In forex world there are thousands company broker offer trading service for traders, however not all them is legitimate company and many scam broker just want to stealth the money. Here choosing broker is important, and grateful so far using FXOpen boker gives good trading condition and service.

 

[Mary Frederick]

Big capital is a big responsibility. Freshers shouldn’t start trading with big capital because they are more prone to going bust and losing capital. Even if they start with big capital, they should try to trade with lowered trading leverage. Eurotrader offers a 111% deposit bonus that must bring satisfaction in you. The broker ensures high security of funding.

 

[Ivo Zetticci]

Generally, people mostly trade EURUSD, GBPUSD, EURJPY and CADJPY. But to trade to trade with narrow spread-charging brokers. FXOpulence offers more than 28 trading pairs including cryptocurrencies and they charge narrow trading spread.