Who gains for my losses?

[Peter_John]

I faced a question from some people that I am losing in Forex and as I am losing, someone must gain. Then, who is this gainer?

[tommor]

The broker gets the money which you lose, plus the spread, and they use this to pay their clients who win. Of course, the broker’s gains are greater than their clients’ winnings, otherwise they would close the doors of their business.

[MatthaelFx]

Your broker gains when you lose. They’re your counterpart, they take the opposite side of your trades.

[Aisha1981]

I do not agree with this statement.
as far as I know thing you are mentioning are market makers.
Brokers typically do not take the opposite sides for your trades. Brokers are intermediaries that facilitate trades between buyer and seller in financial market .
Brokers earn money through various means, such as transaction fees, spreads, and commissions.
market makers are entities that may take the opposite side of your trade. Market makers provide liquidity by standing ready to buy or sell securities at publicly quoted prices.
B book brokers are usually market makers that sis why its important to chooses a broker carefully

[Pipsteroid]

@Aisha1981

Brokers are intermediaries that facilitate trades between buyer and seller in financial market .
Brokers earn money through various means, such as transaction fees, spreads, and commissions.

Very, very few spot forex brokers aren’t counterparties.

And you can’t tell which are, anyway.

Most people are fooled by the language they use, claiming to be “ECN” or “NDD” or “STP”.

It’s all nonsense.

Market Makers vs ECN's

i understand sorry my response was unhelpful what i’m trying to explain (very tactfully and i hope now more helpfully!) is that your question is actually based on a mistaken premise, i.e. you are assuming (as many people do) that they’re two different things the reality is that they are often not, or at least that it isn’t possible for a retail trader reliably to distinguish between them in any ways other than how and by whom they’re regulated “ecn” stands for “electronic communications net…

Text correction: dealing desk or non-dealing desk?

they do which is exactly what all the counterparty market-makers want them to think, of course and many of the conversations in this forum tacitly assume that when people are “trading” with these “brokers,” they’re actually dealing in currencies rather than just having a side-bet on the price-movements of currencies! indeed - but you can’t really blame people for imagining that, when the whole industry is set up to encourage them to believe it? all you can do is annoy and irrit…

Dealing desk Brokers

so do most NDD brokers anyone wanting clarification of this need look no further than at why FXCM were recently kicked out of the US and are no longer allowed to trade there don’t be fooled by these combinations of letters like “NDD” and “STP” and “ECN” which are there solely to fool and confuse the inexperienced from the point of view of protecting your funds and reducing the chances of your broker trading against you, these confusing terms don’t necessarily signify anything helpful or info…

[flamingoproxy]

@Aisha1981

Brokers typically do not take the opposite sides for your trades

maybe you have bought into the industry myth, Aisha? what you’re saying there is totally mistaken, regarding spot forex “brokers”

@Aisha1981

Brokers are intermediaries that facilitate trades between buyer and seller in financial market .
Brokers earn money through various means, such as transaction fees, spreads, and commissions.

that is entirely true, but forex “brokers” are NOT brokers at all, in that (or in any other honest or reasonable or non-misleading) sense of the word

it’s absolutely astonishing that they’re legally allowed to call themselves “brokers” and advertise as “brokers” when they’re simply not

you are far from alone! it’s a hugely misleading situation which has (at least) thousands of people fooled

this is all explained in the Babypips School of Pipsology

[dushimes]

@Aisha1981

Brokers typically do not take the opposite sides for your trades. Brokers are intermediaries that facilitate trades between buyer and seller in financial market .
Brokers earn money through various means, such as transaction fees, spreads, and commissions.

That’s what I thought. Their money comes from commission, spreads, fees, etc. If my broker wins from my losses, that would mean they lose from my wins. I think they’re impartial, no?

They don’t really care if you win or lose. They just want you to trade, and keep trading, so you pay them the spread.

The forex contracts are constantly rotating between the clients. If I win, I’m taking from another client.

Right?

I think it was Tom Hougaard who said that brokers are offering every tool and information possible to help clients win and keep trading.

@flamingoproxy

this is all explained in the Babypips School of Pipsology

I guess I gotta go back to school, huh?

[flamingoproxy]

@dushimes

That’s what I thought. Their money comes from commission, spreads, fees, etc. If my broker wins from my losses, that would mean they lose from my wins. I think they’re impartial, no?

no

@dushimes

I guess I gotta go back to school, huh?

i wouldn’t bother

this post tells you what you need (i hope!!) -

Dealing desk Brokers

so do most NDD brokers anyone wanting clarification of this need look no further than at why FXCM were recently kicked out of the US and are no longer allowed to trade there don’t be fooled by these combinations of letters like “NDD” and “STP” and “ECN” which are there solely to fool and confuse the inexperienced from the point of view of protecting your funds and reducing the chances of your broker trading against you, these confusing terms don’t necessarily signify anything helpful or info…

[MatthaelFx]

Well, you’re right. But in the real sense of it, the brokers we call brokers ain’t brokers at all.

Nice rhymes, yeah.

There’s not need explaining, @flamingoproxy and @Pipsteroid already did justice to that.

[IbrahimAliFX]

@Peter_John

I faced a question from some people that I am losing in Forex and as I am losing, someone must gain. Then, who is this gainer?

The broker you are trading with gets the money and pay it to the profit maker.