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 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.
Your broker gains when you lose. They’re your counterpart, they take the opposite side of your trades.
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
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.
maybe you have bought into the industry myth, Aisha? what you’re saying there is totally mistaken, regarding spot forex “brokers”
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
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.
I think it was Tom Hougaard who said that brokers are offering every tool and information possible to help clients win and keep trading.
I guess I gotta go back to school, huh?
i wouldn’t bother
this post tells you what you need (i hope!!) -
Well, you’re right. But in the real sense of it, the brokers we call brokers ain’t brokers at all.
Nice rhymes, yeah.
The broker you are trading with gets the money and pay it to the profit maker.