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  1. #21
    Specialist Member marvel's Avatar
    Quote Originally Posted by jaheen100 View Post
    Most are paid on the broker or origination fees they charge. Just apply at any firm. You will get hired or not! Yes there is good money in it if leads are provided.
    You mean the people who are working for particular broker earn based on lead generation, but the broker itself earn based the volume of the trades made by its customers. The bigger the volume the greater the brokers reward. That is a key elements of their advertising strategy.

  2. #22
    Active Member
    A broker can earn money by many ways. Comission, spread (bid/ask), VPS, loan (since they had a lot of money from trader),... Some brokers recommend trader create trades by rebates money. I think broker like trading bridge, where small capital trader must use them for trading with market.

  3. #23
    Veteran Member Dan21's Avatar
    The brokers earn their money different ways that’s true. They have more than one way to generate profits but the most important for them is collecting customers order flow. If they have more customers with different positions, let say puts and calls, equally distributed they earn the spread on them too.

  4. #24
    Rookie Member opdax's Avatar
    Uhh, willy I'm not sure if you are just pulling the wool over someone's eyes or what , but you are DEAD wrong. The house has no incentive to make bets against themselves...it's as if they would be trading with demo money.


    Again, people , understand this point : You are not trading on an open market. You are trading with a broker, who operates a software that has its own risk management team and will pull assets if they are losing to much money on them.

    THE BROKER ONLY MAKES MONEY WHEN YOU LOSE! That's it. nothing more. there is no complicated investing strategy that they are following. They divert the loses to those that are winning. JUST like in any market (like when trading stock) , there are more people who are losing than winning, so hopefully (for them so they don't go out of business) they can cover their massive overhead (this is the only thing you are corret about willy) and pay out the winnings from those that lose.

    Quote Originally Posted by willyw View Post
    hchandra, you are right.

  5. #25
    Administrator Martin Kay's Avatar
    I think some of the guys here are refering to Forex Brokers. in any case, Binary Options providers could be firms/brands/labels/etc but not brokers. A broker is not keeping the investments inside the house but moving it forward, than takes commission of any trade being done. Technically speaking - yes, the broker (firm/brand/etc) wants you to lose. and why wouldn't it - it's you or him. So in theory, BO firms wants you lose. But really??? do ALL brokers want to you lose?? Do we really want only frustrated traders? I don't think so. I've said it already a million times around this website and forum - some (ok, a lot of) brokers suck. These brokers want you to lose, they don't think for the long run. They want money now, and the only way they get traders deposit more is by shady selling tactics. This sucks, and it stains the whole industry.

  6. #26
    Rookie Member
    Shady selling tactics really sucks and most of the brokers too, but not the whole industry that’s true! There are brokers that know very well that long term relationships with their clients are more profitable and better for both sides, than aggressive tactics which will only destroy the relationship between them and the clients. There are brokers which are honestly paying to their wining customers. They know that they will profit independently of the traders that are really good and profitable. If we trade with such brokers or let say providers, we could be safe, so we have to find them and trade with them, no other way.

  7. #27
    Legendry Member willyw's Avatar
    Quote Originally Posted by opdax View Post
    Uhh, willy I'm not sure if you are just pulling the wool over someone's eyes or what , but you are DEAD wrong. The house has no incentive to make bets against themselves...it's as if they would be trading with demo money.


    Again, people , understand this point : You are not trading on an open market. You are trading with a broker, who operates a software that has its own risk management team and will pull assets if they are losing to much money on them.

    THE BROKER ONLY MAKES MONEY WHEN YOU LOSE! That's it. nothing more. there is no complicated investing strategy that they are following. They divert the loses to those that are winning. JUST like in any market (like when trading stock) , there are more people who are losing than winning, so hopefully (for them so they don't go out of business) they can cover their massive overhead (this is the only thing you are corret about willy) and pay out the winnings from those that lose.
    edited:
    opdax, what is wrong with me agreeing with what hchandra says. Does that offend you?
    This a forum for discussion so we don't debate who is right or who is wrong. Everyone has the freedom to express their views.
    Last edited by willyw; 02-17-2014 at 01:59 PM.

  8. #28
    Specialist Member pinoyoptions's Avatar
    Quote Originally Posted by willyw View Post
    I don't think I am wrong and I am in the market long enough to know all the hanky-panky brokers operates as I myself have been involve in operations in the front and back desk including dealing room so I know very well.
    opdax, we are here for discussion so let's not debate who is right or wrong.
    What Martin, says is very truth, too.
    SirWilly is one of my favorite respected Pro's here in bots ,

    SirWill, I always remember the story of The sucker, The nice guy, The Shark.. Most of us (BOTS STUDENT) are still belongs to the three stage. You are one of the most experience professional trader here in bot's, Your technical analysis are truly valuable.. Never seen such in depth analysis in any forum.

  9. #29
    Junior Member Daniel W's Avatar
    I agree with Opdax, brokers make money when traders lose money, and most of the traders lose money
    Most of the times, the simple answer is the right answer... philosophy shit

  10. #30
    Administrator Martin Kay's Avatar
    Please find me comments here - http://forums.binaryoptionsthatsuck....-noob-question

    @philldot - I agree with everything you say. Yet you should always watch your back. That counts for Forex, CFD's, Spot Option, Binary Options, Poker, Casino whatever.

    @Willy - I think opdax is a real passionate guy. I don't think his comments were made to offend anyone, however he might have expressed in a way that seems like it. We had a similar discussion on another thread - see link above - were we agreed there's a difference between Forex brokers and Binary Options brokers. They all make money from higher volumes, agreed. The difference is most Forex brokers (not market makers) profit from the spreads or/and fees. the bigger volumes - the more profits. Binary Options brokers operate different- it's in house platform. You can think of it this way - the broker is trading against you (only when it comes to real big sums trades however), or simply wanting you to lose you position. Assuming you need 55% ITM's to earn profit, there's always a 5% spread, so the higher the volumes - the more profits. Assuming there are more losers than winner - even more profits.

    The philosophical aspect Daniel W is talking about, is whether brokers "want you to lose" or "prefer you lose". If they want you to lose - there's no problem for them to change payouts, strike price, manipulate expires, close your account or slow down your platform. Many more shady ways could be discussed. However "prefer you to lose" means eventually brokers wants more volume, so they want you to win from time to time, or preferring you won't whip your account in 1 hour of trading. Assuming there are more losers than winners - a reliable broker needs to have winners to make continuous profit out of higher volumes.

    Yes, this is a forum discussion. We aim to find a better truth. Whether it's philosophical, wrong or straight forward, that's what we're doing - discussing. Ultimately, there's 1 thing to remember- and opdax said so before - Binary Options is not a charity organization. Brokers and traders are here to profit. It's our job as community to point out the bad, the crooks, the ones that suck.

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