Forex Broker Fees To Consider

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To answer the question of how forex brokers make money, we have to understand the business models of forex brokers and what this means for each account style. We go over the types of forex brokers and the three key ways a forex broker makes 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?

It would help if you understood how forex brokers make money so you can choose the right forex broker for you.

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

To become a consistently profitable forex trader, you must 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.


How Do Forex Brokers Make Money?

Forex trading is a multi-billion dollar industry, and brokers are crucial in connecting buyers and sellers. Understanding how brokers make money helps you to choose the right broker for your trading needs and goals. This guide covers the different types of forex brokers, including ECN and market makers, and how they make money through spreads, commissions, and other fees such as deposit/withdrawal fees, inactivity fees, and premium features.