How are forex brokers compensated?
Forex brokers generally make money in three ways: profiting off the spread markup, charging a fixed commission per traded lot, or capturing the spread differential through financing (overnight swaps). Market makers may also profit from the losses of counterparty trades.
Answer
Forex brokers generally make money in three ways: profiting off the spread markup, charging a fixed commission per traded lot, or capturing the spread differential through financing (overnight swaps). Market makers may also profit from the losses of counterparty trades.
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