How brokers make money with binary options?

This article gives a brief overview of how brokers profit - How Do Binary Options Brokers Make Money?

Is it real? brokers make money from my loses? this is what I read about it on binary site: bit.ly/1og1YKO

There are basically two ways how a binary options broker make money. The first way is to take away the money invested by traders on lost trades. The second is to charge a commission on a contract purchased by the broker.

In both cases the losing trader will lose the initial investment. The two ways differ from each other from the fact that the money lost will be cashed in by either the broker itself or by another trader in case the broker functions on an exchange-trading model

It is likely as personal trader that join and using pamm account of brokers.
Its different with cassino.

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Is there no spread and leverage in binary option trading??

I guess that we should focus on How we traders can make money with binary option brokers, since there are a lot of arguments over it but I think we should focus our goals.

Hi. How do you propose to concentrate and focus on making money?

To be honest, I have no idea how binary options brokers make money and I really don’t care, the main thing for me is that they allow to trade and withdraw easily, and since everything is good with that so far, I’m going to continue on

Well I cannot speak for other brokers but from nadex fees page they make money for just people placing trades. For example if your contract size is 50 they get $1 per contract up to 50. So lets say 100 people place a trade like that they make $5000 and also 1 dollar for closing the trade to i believe so thats $5100. But I do know if other brokers are using the i play the opposite side of your trade everytime scheme.

This is how “brokers” make money in binary options
http://forums.babypips.com/binary-options-and-futures/85172-im-going-steal-everything-you-have-post806559.html#post806559

Are you trying to say that brokers make money on unprofitable deals? That’s nothing new for me.

There is another way brokers can make some money, but probably not much in the grand scheme of things.

I am sure that many banks would be interested in knowing the proportion of traders who are bullish/bearish on various timescales, and how much capital they have invested in their trades. Of course, being banks they already have a lot of data, but never enough. So I am sure they buy trading statistics in real time from various brokers.

if you can trade spot forex with a reputable broker - stay like that. Even if we take all scam away - binary options have one huge killing inferiority to forex - time restriction. Do you need that? - no. Stay in forex.

In my own understand BINARY OPTIONS are market makers and they also trade forex with other institutios so they make money by using the money u deposited in their platform to trade and they always wish that u fail at the end of the day. That’s why it is very hard to find a good BINARY OPTIONS

I think that binary options are scam

Hi.

No idea why I only saw your message now i.e. seems as though you sent it late last night. My sincere apologies.

I shall send you a message tomorrow if that’s alright? Sorry. Just have “home stuff” to take care of right now and just rushed through some posts on the forums.

Everything is legit though i.e. one of my main reasons for attempting to do this is so as to ensure that there is at least ONE legit broker in South Africa and whose sole purpose for existence is to NOT screw every poor soul, that needs money more than ever now, out of their money.

There are other reasons too. But I have been horrified at the number of scams and pyramid schemes that have popped up here this year.

But as noted: apologies for only seeing your message now and will respond in more detail tomorrow during the course of the day.

Have a great evening.

Thanks again for contacting me.

Regards,

Dale.

Binary options brokers obtain pricing structures from their liquidity providers. A lot of traders don’t know the fact that the pricing of the binary options that they are trading in is marked up slightly from those who are already in the market. A certain portion of the payout is retained by the broker as their commission.

Noo! Its totally different things

There is a scheme which lets all the binary brokers make money. If we speak of scamming brokers, then they attract traders which attract people via channels with free trading signals. A trader register an account and get a personal link which lets him to earn more money if someone will register by this link. He/she creates a chat with free trading signals and make people to register by this link, hence he/she gains money and broker also gets more money because of users’ losses. If we spek of legal vrokers, then they make money the same way. You lose and they have money accroding to the sum which you lost.