Will Forex Broker Loss?

[Kojo Sam]

Many of my friends ask if we profit the forex broker will lose and vice versa? because I have not been able to answer so I threw it on this forum, how do you explain?

Forex brokers are an essential component of successful trading. They provide you with the trading platforms and tools required to trade the markets and usually are the first ones to reach out to in times of trouble.

 

[tray59]

I don't think that a forex broker stand any way to loss in the forex market because they don't trade even when they trade their trading system must be so professional

 

[Imran_Noori]

Many of my friends ask if we profit the forex broker will lose and vice versa? because I have not been able to answer so I threw it on this forum, how do you explain?

The forex broker will never loss, they take the loss of one and give it to others as profit and they take their commissions in between and maybe other extra money, it is working like a system.

 

[UsmanAmoyo]

Th broker is an exchange platform that would make money from the spread that they offered on the currency pair. The broker never loses because they are always on the profit .

Technically speaking, that's the fact.
Spreads and commission is how the brokers book their profits.
Anytime they need more profits they just widen their spreads or increase their commission

 

[GIFTMICHAEL]

They don't lose. I believe before you even place a trade , a certain commission will be deducted from your traded balance as their fee. Whatever happens in the market may not be their business.

 

[tray59]

I don't think that brokers will in anyway loss because from what I see once they charge the spread they gain so they don't trade with us then how on earth do you think they will loss

 

[Ofonime6]

Forex broker will never loss at all to be sincere so I think that if you are a broker you earn from the spread which is been charge by you and I dont think brokers will in anywhere loss they have their own ways of making money

 

[Monster Masterpiece]

There is practice from broker that may let them lose for 100 % welcome bonus up to 500 $ because some brokers offers such deposit bonus but you have to wager the bonus 5 times means trade with bonus until make 1000 $ trading whitin less than one month in pairs and stocks and in this case broker is paying from its pocket money and lose.

 

[Floura]

Forex brokers are always looking for a way to earn money, I don't think forex brokers will like to take a lose, if you are a trader you'll understand what I mean.

 

[ghxstvecna]

Forex brokers lose money in two ways. When forex brokers trade against you a client, they have a higher risk of losing money than the client.

 

[Lynaia]

Directly they don't loss any money but indirectly you might be thinking they loss money. Forex broker are like intermediary between trader and the liquidity providers (LPs). They trade with both the traders and the LPs
Directly they don't loss any money but indirectly you might be thinking they loss money. Forex broker are like intermediary between trader and the liquidity providers (LPs). They trade with both the traders and the LPs

 

[Ofonime6]

Why do we say that brokers can loss I dont see any truth in this what I know is that brokers dont do trading if they trade definately they will trade professionally, so I think that brokers dont have any good reason to loss because they are the ones that manage our account

 

[tyrim88]

Brokers are like bankers in forex trading - they provide services and charge you a commission for them. So the more accounts they have, Just like the traditional banks, the more money they make. Withdrawals, deposits, are some of the things commissions are being charged for

That is true,as a brooker they are banking on the number of investors they are managing on their platform,they usually get their commission from the profit their investor have with them.

 

[Monster Masterpiece]

That is true,as a brooker they are banking on the number of investors they are managing on their platform,they usually get their commission from the profit their investor have with them.

For some brokers there is a signup bonus means for example you deposit 100 $ and get 100 % bonus for first deposit or 50 % bonus, if many people meet bonus requirement and withdraw it, broker will run out of funds as in reality he gets 100 $ but offers you a 100 $ non withdrawable bonus until you make forex trading with it with certain requirements.

 

[tyrim88]

For some brokers there is a signup bonus means for example you deposit 100 $ and get 100 % bonus for first deposit or 50 % bonus, if many people meet bonus requirement and withdraw it, broker will run out of funds as in reality he gets 100 $ but offers you a 100 $ non withdrawable bonus until you make forex trading with it with certain requirements.

That is just the fact,and most brookers have been making use of these strategy to get investors into their platforms,and i would say its a very good one,i was offered similar package by a brooker.

 

[eenya00]

Many of my friends ask if we profit the forex broker will lose and vice versa? because I have not been able to answer so I threw it on this forum, how do you explain?

I believe a forex broker can lose money especially those that are independent and not affiliated with any trading body, as they can not bear the risk associated with forex trading.

 

[tray59]

Why do we say that brokers can loss I dont see any truth in this what I know is that brokers dont do trading if they trade definately they will trade professionally, so I think that brokers dont have any good reason to loss because they are the ones that manage our account

Broker can never loss to be sincere so I think that instead for broker s to loss they will rather make their profit through spread it's one of the way which brokers use to make money,if they trade and loss I think that is their personal issues we need to keep using their platforms and allow the broker to charge their spread it's a commission we are paying to them let's not dig deep weather they loss or not because they don't specify that they trade in the first place

 

[Smiles20]

You can understand that they also make some kind of investment decisions on their own and also pay taxes and workers. It is very difficult but then it is possible if they do not do their calculations correctly.