Collective selection:How do foreign exchange brokers make money?

foreign exchangeBrokers can be said to be in theForeign exchange transactionsAs intermediaries in the market who act as intermediaries between the supply and demand of foreign exchange and collect commissions from them, their main purpose is to earn commissions. The specific content is as follows:

1Spread: refers to the difference between the buying price and the selling price, while the foreign exchange market adopts a floating spread, which means that the spread will not remain unchanged and will fluctuate due to market changes. This is the main source of income for foreign exchange brokers, and the spread varies among different foreign exchange trading products. When investors enter the market and engage in trading, they need to pay a spread fee to the foreign exchange broker, which is usually automatically deducted by the system at the moment of placing the order. Under normal circumstances, every foreign exchange broker incurs a spread fee, it's just a matter of how much.

2Handling fee: This is also one of the transaction costs for investors. However, currently, most brokers charge a handling fee on a spread basis. Generally speaking, there is no handling fee charged for opening an account, and there is no handling fee charged for deposit and withdrawal, unless the amount paid is too low, a certain handling fee will be charged, but the proportion is also relatively low. It depends on the platform you choose.

3Overnight interest: When investors hold positions overnight, they will generate a certain amount of overnight interest, which is relatively rare.Collective selectionplatformwww.xuanhot.comFocusing on providing regulatory inquiry services for foreign exchange traders for global investors, if you want to know whether the trading platform is legitimate, whether the regulation is reliable, and if you want to share the experience of other investors, you can find it on the foreign exchange selection platform. Huixuan is the touchstone for foreign exchange traders, helping each investor choose the most accurate wealth platform.