So how do we make money? A question we are asked all the time. On this page we will explain how it is we make money from our clients trading with us.
First we need to understand how it is the Forex broker make their money. Below i have attached a screenshot from the Meta Trader 4 platform.
First we need to understand how it is the Forex broker make their money. Below i have attached a screenshot from the Meta Trader 4 platform.
We can see here we have 2 prices for the EURUSD, one being the Sell price of a currency (1.06089) and the Buy price of a currency (1.06169), to gain the difference in these prices we must subtract the sell price from the buy price, as we do this we notice we are left with a value of 0.00080. As forex traders we don’t count the last number as the point we trade by is the 2nd in, meaning we have a difference of 8 pips(points)
Now this difference is called the spread, this is how a broker makes their money, so lets say for example you as a trader wanted to place a buy order on the EURUSD. Due to the spread this means you would not be entered at 1.06169, you would be entered at 8 pips below at 1.06089. This means from you entering a trade the broker has made 8 pips worth of profit. For example, say you were trading £1 per pip (point), this means the broker has now made £8 from you entering this trade, this is the full cost you as a trader are charged for entering and exiting a trade.
Now the spread will always be there, whether you go directly to the broker, via our referral link, the spread will always be the same regardless of the way you join the broker, however the way the broker see this is that without us FHT Academy, you may not have chosen this broker, may not have used them, so the broker pays us a percentage of the spread as a thank you for the refferal.
We have partnered up with the brokers we use and trust. The broker pays us up to 10% of this spread. meaning we would make up to 80p from you entering this trade. Now you may be asking why this is beneficial for us?
So here at FHT Academy it is our goal to help you get your foot in the door with Forex Trading and help you trade profitable and consistently. so as we help you understand the markets and trading, you continue to trade, which continues to benefit us and the broker, and obviously yourself. Something i get asked a lot is, What if a trader looses all their money?
With this in mind we must look at the bigger picture, if a client looses their money, they will no longer place trades, which means the broker and ourself will no longer make money, so this explains our motive in order to helping people trade consistently.
Now this difference is called the spread, this is how a broker makes their money, so lets say for example you as a trader wanted to place a buy order on the EURUSD. Due to the spread this means you would not be entered at 1.06169, you would be entered at 8 pips below at 1.06089. This means from you entering a trade the broker has made 8 pips worth of profit. For example, say you were trading £1 per pip (point), this means the broker has now made £8 from you entering this trade, this is the full cost you as a trader are charged for entering and exiting a trade.
Now the spread will always be there, whether you go directly to the broker, via our referral link, the spread will always be the same regardless of the way you join the broker, however the way the broker see this is that without us FHT Academy, you may not have chosen this broker, may not have used them, so the broker pays us a percentage of the spread as a thank you for the refferal.
We have partnered up with the brokers we use and trust. The broker pays us up to 10% of this spread. meaning we would make up to 80p from you entering this trade. Now you may be asking why this is beneficial for us?
So here at FHT Academy it is our goal to help you get your foot in the door with Forex Trading and help you trade profitable and consistently. so as we help you understand the markets and trading, you continue to trade, which continues to benefit us and the broker, and obviously yourself. Something i get asked a lot is, What if a trader looses all their money?
With this in mind we must look at the bigger picture, if a client looses their money, they will no longer place trades, which means the broker and ourself will no longer make money, so this explains our motive in order to helping people trade consistently.