Thread: When a Consumer makes profit, does this mean the broker loses capital?

Originally Posted by ;

What about the Futures market in which the market is centralised? I suppose the exact same applies as you still have to trade via a broker instead of performing a direct deal with an opposing party.

Futures has it's own set of issues, I prefer spot through a bucketshop to be honest, they fill pretty much everything you throw at them. Sure they have got their drawbacks but that is only the price of doing business, the benefits outweigh the downsides for me!

Still learning the ropes in which the futures are concerned and it is actually tough. For starters, liquidity isn't the same as the Fx spot market. And on the entire counter-party and Fx brokers, was not the recent laws aimed at making the process more transparent and leverage decreased to safeguard customer attention?
Either way, you'd think that the brokers would list out where they receive the quotes from..but that's me along with a zillion other traders going *sigh*

It depends on the broker.

By way of instance, if you exchange on LMAX, you do not contrary to the broker, but directly with other people or associations, for example with banks or even Hedge funds.

Yet there are other Brokers, which of course I don't name for fairness reasons, which trade directly with or contrary to the client. So your profit is their loss and vice versa. They basically say hello client, I'm gonna wager that you lose money that's actually true in many cases since just few traders are profitable on the long term. So this notion can be really rewarding for a broker because most people lose money in the forex market.