I was speaking with Pepperstone about their fees for Commodities.
They said it is a ‘spread’ only product meaning there is no commission. So i asked them how many PIPs they add to it and they said they don’t add any.
I was confused because in forex, no dealing brokers will usually make money by charging a commission or widening the spread (usually by 1 pip).
So i’m trying to workout how Pepperstone make money with commodities (and by extension Crytocurrency, index and currency CFDs).
Does Pepperstone act like a market maker in this situation where they don’t add pips to the spread since its their own spread?