How the broker pay

 

Dear friends:

I want to know how many people win in the forex market. and how the broker pay the money. did they have the worry about "loosing money"

regards

 
ztdep:
Dear friends:

I want to know how many people win in the forex market. and how the broker pay the money. did they have the worry about "loosing money"

regards

As a general rule 95% of people do not profit trading Forex. So roughly 5% of people actually win. How the broker pays depends on who you use. Everyone worries about losing money, it's human nature.

 

No brokers had not fear of loosin g money they are dealing with thousands of client. They make money from spread which is charges on each trade we are going to deal with market. More is that many people loose their money in market . Broker use this money to give pay others.

 
Master Forex IB:
No brokers had not fear of loosin g money they are dealing with thousands of client. They make money from spread which is charges on each trade we are going to deal with market. More is that many people loose their money in market . Broker use this money to give pay others.

What is this part : "More is that many people loose their money in market . Broker use this money to give pay others" exactly supposed to mean?

 
ztdep:
Dear friends:

I want to know how many people win in the forex market. and how the broker pay the money. did they have the worry about "loosing money"

regards

Well, not much. There are a lot of novices, a lot of "I heard you can make money here, cool!" and serious traders, but with lack of skills/discipline/experience etc.. But of course there are who make money, but don't expect it to be an easy-peasy time spending..

Brokers don't exactly pay from their pocket, they are just providers of the service and money you "win" are the money someone else "lose". So it isn't the broker who pays, but rather the market and all the fish in the sea. Hope it helps to understand

 
ztdep:
Dear friends:

I want to know how many people win in the forex market. and how the broker pay the money. did they have the worry about "loosing money"

regards
MaksymGra:
Brokers don't exactly pay from their pocket, they are just providers of the service and money you "win" are the money someone else "lose". So it isn't the broker who pays, but rather the market and all the fish in the sea. Hope it helps to understand

It's the one who lose to pay those who wins as MaksymGra said, so brokers don't pay with their own money but just transferring the money from the losers' account to the winners' account. However, if the broker is having a dealing desk and take the opposite side of the traders' orders, then these brokers are involve in trading like you and me, they are going to lose if you win. But with the technology we have nowadays. we have a lot of Non Dealing Desk brokers. Therefore most brokers don't pay with their own money.

 
Anthony.T:
It's the one who lose to pay those who wins as MaksymGra said, so brokers don't pay with their own money but just transferring the money from the losers' account to the winners' account. However, if the broker is having a dealing desk and take the opposite side of the traders' orders, then these brokers are involve in trading like you and me, they are going to lose if you win. But with the technology we have nowadays. we have a lot of Non Dealing Desk brokers. Therefore most brokers don't pay with their own money.

I would say it is "the best case scenario" for you as a trader, when broker don't pay their own money or "profit" your loses...

 

Am just wondering, what language are you guys talking here? Sounds pretty messed up.

As far as brokers and loosing money are concerned, there is no need to worry because the broker doesn't gain when you loose and vice versa, because they use liquidity providers( ie. major banks and financial institutions). So there is no need to be afraid, just go ahead and trade.

PAT

 
Price Action Trading:
Am just wondering, what language are you guys talking here? Sounds pretty messed up.

As far as brokers and loosing money are concerned, there is no need to worry because the broker doesn't gain when you loose and vice versa, because they use liquidity providers( ie. major banks and financial institutions). So there is no need to be afraid, just go ahead and trade.

PAT

Not so in the case of bucket shop brokers

 
Price Action Trading:
Am just wondering, what language are you guys talking here? Sounds pretty messed up.

As far as brokers and loosing money are concerned, there is no need to worry because the broker doesn't gain when you loose and vice versa, because they use liquidity providers( ie. major banks and financial institutions). So there is no need to be afraid, just go ahead and trade.

PAT

Truly agree with you mate. I still don't understand why fellow traders concern on these kind of issues...

 

About bucket shops (and bucket shop brokers) : Bucket shop (stock market) - Wikipedia, the free encyclopedia and how they operate. And they are not as rare as we would like it to be

Reason: