Forex in General

Question

If I am profiting so much from my broker, how do they gain their profit from? From the other user like me that loss?
For example Meta Trader, any of the graph is actually real based on current market situation?
I am experiencing how much I can earn/profit from marketing and trading forex but I would gladly see the other side of it. Any proof that broker goes bankrupt and all the investors money evaporate?

Any other information would be helpful.

In my experience of using forex services for money transfers, the bid / ask spread is very opaque. You get the spread that the broker offers, not some kind of cross-broker spread. The broker's spread will be better or worse than what others offer. This is likely part of how they make their money. — Eric, Commented Aug 18, 2015 at 13:00
@Eric It depends on the type of broker. There are brokers that only take a commission and who pass your order directly through to whatever market maker is offering the best price at that moment. — David Schwartz, Commented Oct 26, 2016 at 7:46
@DavidSchwartz I have compared quotes between XE Trade, US Forex and Transferwise. The quotes were all requested within minutes of each other, but all were different in ways that were not clear. — Eric, Commented Oct 27, 2016 at 20:21
@Eric DO you mean that for the same exchange e.g. USDCHF, all three parties' rate quoted differently? — 4 Leave Cover, Commented Oct 28, 2016 at 2:43

MD-Tech · Accepted Answer · 2015-08-17 08:12:03Z

4

This kind of broker usually makes their profit off the spread and a process called "netting off" rather than one winner paid off by one loser.
They are all based on real, out of the market data.
Following the unpegging of CHF earlier in the year and the fall in EUR/CHF several brokerages did cease trading. See 1 for some of the detail.Business Insider

answered Aug 17, 2015 at 8:12

MD-Tech

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1. To simplify my understanding, from the broker perspective, "netting off" meaning that they might just monitoring the TOTAL profit / loss from the system?
– 4 Leave Cover
Commented Aug 17, 2015 at 8:22
2. If I am able to trace the source of this broker data, I might able to predict the charts am I right? 3. Thank you for this info.
– 4 Leave Cover
Commented Aug 17, 2015 at 8:25
2

for netting off processes see money.stackexchange.com/questions/48720/…. The source of the broker data in the market and you can TRY to predict the charts but much bigger players than you have tried (and continue to try) and lose vast amounts of money.
– MD-Tech
Commented Aug 17, 2015 at 8:47

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