Is forex brokerage a profitable business?

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how do forex brokers make money

Yes, forex brokers can make huge profits. We will tell you how do forex brokers make money. Forex is the largest market in the world with more than 6 trillion transactions per day. Forex brokerage firm is the key to enter into the market to make trades. Since you’re an access authority, you have the great opportunity to make millions. However, it is not as easy as most people think. It is a challenging business and needs a lot of things to be managed and promote properly. It is not just a website, a sign-up form, and a trading platform. There is a lot more behind the scene.

How much money forex Brokers Make?

Forex Brokers are classified into two Market Maker and ECN/STP

The income of these two kinds of brokers is completely different from each other. Both can make a lot of money the numbers depend on the total transaction through the firm. Roughly, brokers can gain 30-40% of profits. So if the trader loses trade through a market maker broker, indeed you are losing to the broker and the money you lose belongs to him. If you win, it is the broker who has to pay the profit you have made.

Therefore, trader’s losses are the main source of income for a market maker broker, because over 95% of the retail traders always lose and wipe out their accounts at least a few times before they give up or become profitable finally. So, a market maker broker makes a lot of money through the clients’ losses.

Moreover, the spread and swap are the additional income source for Brokers.


Although it’s clear from the forex brokerage people can make solid profits.

Who are all can start? Who knows how to start and promote it, and those have enough money to survive and promote the company as long as they have not become able to cover their expenses yet.

Overall its looks challenging, Joyful business seekers can succeed easily.

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