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Indicators - Statistical Study (What are your favorite to earn money?) 6 replies
Noob question about brokerages and fees 14 replies
if tou want to earn money for christmas period look for it... 2 replies
Brokerages vs Account Size / consistant wins 0 replies
Swiss v US brokerages 4 replies
DislikedDepends on the type of brokerage. I've never worked for one, but this is my understanding. 1. They earn off commissions. 2. They earn by trading against their clients. e.g. If you're a small account or regularly losing etc, they won't actually put your position out into "the market", but rather they will take the opposite side to your trade, thus profiting while you lose. Obviously there's a conflict of interest on number 2, but that's why it's important to choose a reputable broker.Ignored
DislikedAs title described, how does a brokerage earn money. i found an article online which says that in actual fact they do not earn off spread. now that doesnt make sense to me. link to the article : http://www.tradingmarkets.com/recent...ey-839961.html and given the fact that forex is meant to be a "zero sum game", when i make money thru trading and submit a withdrawal from my brokerage, whose money am i actually withdrawing? the market participants(other traders that lost) or the broker's.Ignored
Disliked{quote} Thanks for the insight... So whose money am i actually earning or withdrawing if im profitable? Correct me if im wrong, but the way i see it, a brokerage is merely a more sophisticated and advanced money changer which dazzle us with live prices and chart movements. When we go to a moneychanger to exchange currencies to our advantage, the moneychanger is the one that actually forks out the loss. thus is it correct to say the same applies to the brokerage industry and in actual fact the im not trading the market, but my broker?Ignored
Disliked{quote} If your broker operates in a market maker model then yes you would be correct, you are NOT trading the "market" and really trading against the broker, i.e. you lose they win and they win you lose. But if your broker operates in an "ECN" model, you COULD BE trading on the "market".Ignored
Disliked{quote} They also earn the spread on the swap rates as well as the interest on the deposit on their "segregated account" with all of our deposits (that's another reason why they don't want you to withdraw). And I suspect that they also earn some kind of kickbacks on those payment processing method that they insist on you using.Ignored
DislikedI'm also curious about whether fx brokerages business is that good money. The number of of fx brokerages which are around and with new ones appearing now and then seems far exceed the brokerages which deal with stocks and futures. You even have companies which help you start a fx brokerage by providing all the backend engine and front end platform. I have read/heard for many years fx brokers trade against you and they all hope you lose so they can win. I suspect as the fx industry matures and with intense competition, this business model is not...Ignored
DislikedHi all they have many ways actually they can make a lots of money 1-commission from both clients and liquidity provider . 2- spreed from both clients and liquidity provider . 3-interest from client money hold at there custody and positions taken by client . so they can make good money all have a nice dayIgnored
Disliked{quote} hi orabi, i think the gist of my question is where is my profits coming from actually. is it truely direct from the market or brokers (irregardless of whether the broker is an ecn or market maker model) whose money am i gaining if i make a withdrawal. For those that have never read your brokers terms and conditions i would suggest u all to do so cause some points i found alarming. as shown below.. using other clients money in the pool to pay out profits? say if SNB happened again and this time everyone was on the winning end, guess they...Ignored
Disliked{quote} hi orabi, i think the gist of my question is where is my profits coming from actually. is it truely direct from the market or brokers (irregardless of whether the broker is an ecn or market maker model) whose money am i gaining if i make a withdrawal. For those that have never read your brokers terms and conditions i would suggest u all to do so cause some points i found alarming. as shown below.. using other clients money in the pool to pay out profits? say if SNB happened again and this time everyone was on the winning end, guess they...Ignored
Disliked{quote} This is interesting, I never thought about it until now Suppose a brokerage has 3 customers each deposit $1000 A - $1000 B - $1000 C- $1000 Total - $3000 in broker bank account After 2 months of tradings - A - $950 B - $1100 C - $800 Total - $2850 belong to the customers, $150 broker profit in MM model Plus interest $10 from the bank for the deposit Suppose it is an ECN model, the broker would have income from commission. And the P/L of each trader is from the market; the broker pays you from the market or take money from you to pay the...Ignored