How do Forex trading websites make their money if they don#039;t take commission? -

To know more about Forex Trading please feel free to visit http://learnmoreon.com/forextrading legitimate ways: spreads semi legitimate ways: running stops bucketing orders illegal ways: delayed price quoting stealing They are dealers, not brokers. This means that they are taking the other side of the trade. They make money because they don t have the same prices on the bid and offer sides. They might offer a currency at xxx55 and bid for it at xxx52. So, all the customers who are buying FROM them are paying 3 PIPs more than the customers who are selling TO them are getting. The prices are set to attract equal numbers of buyers and sellers, so the dealer is in a neutral position and and makes a small amount on each trade, which adds up on high volume. If they get it wrong, they can initiate a deal with a bank to get them back to neutral. That s why the prices change so much. The dealer is adjusting to attract more interest on one side or the other to stay neutral. They make money through quot;Spreadsquot; , that is their commission. It is the difference between the Buy and the Sell price. http://forexpinoy.blogspot.com/ You might find your answer here: http://forex.lem4.com Good luck! Although you didn t ask, I ll tell you anyway: it s better to trade foreign currencies through a commodities broker that DOES charge a commission and offers you a bid/ask arrangement across the board in whatever vehicle you trade. Foreign currencies are no different from soybeans or emini s. Ever wonder why you re asking the question? Promotion. Forex is heavily promoted. You probably get tons of junk in your snailmail pushing the products. But you don t have to buy a product just because there are so many sellers out there. they get paid for passing the orders through to bigger brokers or order flows