I see many confused people about this question and did not find any reasonable answer in forum. So i will tell you how you broker earn.
Let's see how these broker earn.Broker have following tactics to earn money.
Through Spreads
Hedge trading
Banning profitable traders
Through Counter Trading
Through bid and offer price
Spread: Spread is charged by a broker to start every trade even that is buying or selling.
Hedge trading:It reduces the risk but forex trade provide it with insurance policy or option trading.
Banning Profitable trader:Most scam broker ban profitable trader.They see if your trades make good profit they will ban you.
Through Counter trading:It form of international trade in which exporter agree to take payment in form of goods or services.So broker keep their balance reserved and use that.
Bid Price and offer price:The price at which a broker buy a quantity of specific trade or stock and then sell it with profit.
Let's see how these broker earn.Broker have following tactics to earn money.
Through Spreads
Hedge trading
Banning profitable traders
Through Counter Trading
Through bid and offer price
Spread: Spread is charged by a broker to start every trade even that is buying or selling.
Hedge trading:It reduces the risk but forex trade provide it with insurance policy or option trading.
Banning Profitable trader:Most scam broker ban profitable trader.They see if your trades make good profit they will ban you.
Through Counter trading:It form of international trade in which exporter agree to take payment in form of goods or services.So broker keep their balance reserved and use that.
Bid Price and offer price:The price at which a broker buy a quantity of specific trade or stock and then sell it with profit.
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