Forex Broker Fees To Consider

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To answer the question of how do forex brokers make money, we have to understand the business models of forex brokers and what this means for each style of account. We go over the types of forex brokers and then the three key ways a forex broker makes their money. Quickly jump to each topic using the shortcuts below:

    1. ECN Brokers v Market Makers – Types of forex brokers
    2. Spreads – The difference between a currency pair’s bid price and ask price
    3. Commissions – A set fee charged by ECN forex brokers based on volume
    4. Other Fees – Deposit/withdrawal fees, inactivity, and premium features

Why Understand How Forex Brokers Make Money?

To choose the right forex broker for you, it’s imperative that you’re able to understand how forex brokers make money.

While most forex brokers have a few common charges that you’re going to need to become familiar with, we dive a little deeper to help you fully understand the relationship between forex trader and forex broker.

To become a consistently profitable forex trader, you’re going to have to understand where your money is going. We’re here to help you choose the best forex broker and trading account type, for your own trading style.