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Front Page > Forum Central (F1) > David's Corner > Lesson of the Day

 
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Old 11-15-2009, 02:44 PM   #11 (permalink)
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hey stalker,

forex market makers can make money in a variety of ways. some examples:

1. they can run their own dealing desk and take the other side of the trade. in this scenario, they profit from losing clients.

2. they can immediately offset with bigger banks. forex firms that do not have a dealing desk are most likely doing this.

3. if you buy a pair that has a higher interest rate than the currency you are shorting, you can earn interest. many forex brokers take a piece of this interest.

4. forex market makers naturally have access to order flow of their customers. they can use this to their advantage when trading the forex market themselves.

it is important to find a forex broker you can trust. you can see david's review of fxcm, as well as my recent review of forexyard.

hope that helps.
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