In the foreign exchange markettraders and speculators buy and sell various currencies based on whether they think the currency mkney appreciate or lose make money from swaps forex. No matter the gains or losses sustained by individual traders, forex brokers make money on commissions and fees, some of them hidden. Understanding how forex brokers make money can help you in choosing the right broker. Forex brokers typically operate on the over-the-counteror OTC, market. This is a market that is not subject to the same regulations as other financial exchanges, and the forex broker may not be subject to many of the rules that govern securities transactions. Make sure that you investigate the counterparty and his capitalization before you proceed. Be vigilant in choosing a reliable forex broker. In return for executing buy or sell orders, the forex broker will charge a commission per trade or a spread.
