How Forex Brokers Make Money? ☝
★ How do forex brokers make money?
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How do forex brokers make money? Have you ever wondered how your CFD broker or spread betting provider makes money?
These brokers typically have big infrastructure costs, technology costs, staff costs, marketing costs..etc yet they still seem to make decent profits. How do they do it?
The first one is the spread - this will be in pips if we're talking forex. With major pairs the bid-offer spread will be quite tight but spreads will widen for the more exotic pairs.
Number 2 is overnight financing that the broker will charge you for holding positions overnight. You will be charged a small fee for each day that you hold onto the trade. The longer you hold an open trade, the more you will be charged.
TRADER vs DEALER vs BROKER