Is there any cases where brokers lose when there clients make profit ?

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Suppose that all clients act legally.

Is there any cases where brokers lose when there clients make profit ?

 

If it (a broker) is a bucket shop or does anything similar to that, yes, they can. One nice quote :

And bucket shops are very similar to today’s on line forex broker. Clients are not really buying or selling. They are going against the broker that may once in a while cover his position.
Nureddin:
Suppose that all clients act legally. Is there any cases where brokers lose when there clients make profit ?
 
mladen:
If it (a broker) is a bucket shop or does anything similar to that, yes, they can. One nice quote :

Bucketshops!!!!! I hate scammers, because I was once scammed before. Those bucketshops would do everything and anything to beat their clients.

 
Nureddin:
Suppose that all clients act legally. Is there any cases where brokers lose when there clients make profit ?

No, I don't think so. Broker make profit from the spread and any broker don't lose money for their client win. But there are some scam broker who cheat with their client to earn more profit.

 
Jefftimothy:
No, I don't think so. Broker make profit from the spread and any broker don't lose money for their client win. But there are some scam broker who cheat with their client to earn more profit.

Yes I am agree with Broker do not loose because they trade in spreads and if their clients are winning money they must not loose.

http://www.forex-metal.com/affiliate/46199/2

 
Nureddin:
Suppose that all clients act legally. Is there any cases where brokers lose when there clients make profit ?

Don't think so. If trader made a huge profit, there is a risk, the broker can't let it withdraw because doesn't have such money, but now they all hedge the orders, so that can't actually happen.

 

A real broker charges commission on each trade you make. Your money is bought or sold by another trader somewhere else in the world. It's an open market.

A bucket shop ''broker'' increases the spread instead of charging commission. Your money and all other traders money is pooled together (bucket), and the one with +pips gets to take out from the bucket of cash.

 

Thanks

Thanks a lot to all those who contributed in answering my question.

 

These brokers are known as 'dealing desk' or 'market makers'. They take the opposite of your trade positions. That means if you lose, they will win, and vice versa.

If you want to trade confidently in the market, your first priority is to get a reputable broker that practices Straight-Through-Processing.

STP brokers DO NOT trade against you. They passed your trade positions directly to the banks who are the liquidity providers.

When you read the reasons why you should trade with them, make sure it's an STP broker and driven by a focus onunprecedented fund safety.

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