[Ray G]

Now that's something I've never heard. I'm not saying it isn't true, just that I've never heard of that.

Brokers could indeed make plenty of money from spreads alone whenever you consider the volume of trades that they process. In a sense, they're practicing the same concept as scalpers, just shave a few pips off of every trade and they don't have to worry about the direction of the market, as long as people are trading.

But obviously there is something more to it or otherwise we wouldn't be having this discussion.

I think it probably has more to do with network congestion and the possiblity of causing slippage that would eventually affect the broker as well as the clients.