What kind of commissions can you earn by trading forex?

MoneyTec Forums Brokers What kind of commissions can you earn by trading forex?

This topic contains 5 replies, has 5 voices, and was last updated by  FXGuru 5 months ago.

Viewing 6 posts - 1 through 6 (of 6 total)
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  • #1032

    webkriti
    Participant
    • 4

    Forex trading has gained a great deal of prominence in the last couple of years. In the forex market, the investors interested in trading futures, options and stocks, engage in trading through a broker. Thus, a broker not only accepts the order on behalf of the trader (investor) but also executes the same as per his/her specific instructions. However, once the client (investor) has bought and sold the trading instrument, the broker charges a certain amount of commission for offering his/her service and support to the client.

    Thus, the forex market is essentially a principal driven market and therefore has no commissions. The Forex firms basically function as dealers and unlike the brokers it is the dealers who bear markets risks by assisting an investor in executing his trade/transactions. Thus, dealers don’t charge any commission and instead earn money via the spread received as a result of the bidding and asking price. In the case of forex, an investor/trader cannot make any attempts for buying financial instruments on the bidding or selling price, which is possible in an exchange driven market. Also, the moment the price surpasses the spread costs, no extra commissions is payable on the same. The entire money gained by the investor, automatically becomes his/her profit.

     

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    #1302

    kued11
    Member
    • 14

    Profit

    Broker’s fee/commission

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    #1549

    FXGuru
    Participant
    • 115

    I don’t think every broker charges commission, as there is spread that is taken upfront. I believe that is a fairly understandable thing, I don’t see anything wrong with any broker charging fees for their service. I just want to have one that I can trust even with having to pay something for the service, as that is very much acceptable with good service.

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    #1653

    profitmaniak
    Participant
    • 17

    As a trader, I have earned through rebates. In fact, it is very common nowadays. You mostly get 50% of the rebates. I have been trading for last 8/9 years.

    Most of this time is through Instaforex, I made something like 10-15k from rebates but that was the ONLY good part with this broker, as rest of the service was very average, and that’s when I am in my best mood.

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    #1681

    viceboy
    Participant
    • 9

    I am not able to understand the question properly. It seems you are asking about individual and their earning thing, but then in post, you seem to be pointing out on what brokers may earn. So, it is all too hard to answer like that. I don’t earn commission by trading instead I pay as we all do by spread/commission. And for a broker, they earn via spread or the commission.

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    #2116

    FXGuru
    Participant
    • 115

    I trade with FreshForex and through them, I find it all so much simpler with their Affiliate program, where one can get upto 20 USD per lot size trade commission and many more such stuff, it just allows one to perform in BEST possible way and able to generate good and consistent amount of money!

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