Forex brokers

If all the currencies traders at one broker will constantly win would the broker go bankrupt?I think that the anwser is yes,so by taking in that there are dozen and dozen succesfull forex brokers out there that most of the traders mainly fail.Whats you’re opinion?

This is another one that could take a while to answer, but I am going to try and give you a simple response.

In order to do that we will assume that the broker we are talking about is running straight forward and running all trades through the interbank market.

If they were doing that they theoretically would not go broke because they are making money off of the spread. Whether or not you win or lose is of no consequence to them. The rates you see flashing across your screen are the prices that the banks are quoting the brokers adjusted for spread. So the broker is just a middle man between you and the bank skimming his profit off of the spread and providing you with a platform and charting service.

Now, for the way I understand most brokers do it? They know that 95% of traders loose their accounts, so do you really think that they post all of their newbie traders trades to the interbank market? That’s for you to decide. But if they were doing this and 100% of their traders started winning every trade they probably would go out of business.

None-the-less, as a new trader, you have much more important things to worry about than how the broker is doing. You need to do things like, figure out how you are going to make a profit.

Happy Pipping.

This assumes that all traders are going to trade the same way,
they don’t, there are always losers who balance up the winners.

The key is to find a reputable broker.

I found this article which expains The Forex Market