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How does a forex broker make money?

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Henry Latourrette
6257
Henry Latourrette 2014.09.28 19:56 

I've been looking online and actually I found nothing clear explaining how the business model works. 

So, I wonder if any of you guys could actually make a better and reasonable explanation on how they really profit on the broker side.

Rozana Sustar
2274
Rozana Sustar 2014.09.28 20:47  

They profit from commission and spread. The amount of pips is taken from each trade you make.

And they also make from swap... 

Henry Latourrette
6257
Henry Latourrette 2014.09.30 01:14  
Matija14:

They profit from commission and spread. The amount of pips is taken from each trade you make.

And they also make from swap... 

Matija14, thanks for your reply. 

So, this is how I'm thinking that it works:

- you place a Sell order for the EURUSD, 1 lot at 1.26100. Then they match that order with someone who is buying 1 lot at 1.26110. So they keep 1 lot of the difference: 0.00010 = 10$ supossing 1 regular lot worth 100.000 currency units. 

Am I correct?

Supposing this is a Dealing-desk broker, at which moment do they send the money into the interbank market - or any bigger market?
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