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How do Banks & Forex Firms Make Money Dealing FX? 💱

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How do banks/FX firms make money dealing FX? http://www.financial-spread-betting.com/course/technical-analysis.html PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! And actually the question should be how do banks and bureaus make big money from exchange rates? How do banks earn profit on spot trading in the forex market? How do banks trade in forex market? Banks do make big money from exchange rates. A dealer is someone who is in the middle of order flow and this is a different game. This is how these banks and fx firms make their money as opposed to speculation. How do banks earn profit on spot trading in the forex market? Let's say USD/JPY is trading at 113. Say someone makes an order for 1 billion dollars worth of Yen. In the interbank market we've got a bid price of 112.999 and an ask price of 113.001. (i.e. really tight). But the bank might quote you 113.25. This is the dealer's cut. The FX dealer also has some room for speculation as more client orders come in. Related Video How Forex Brokers Make Money? ☝ https://www.youtube.com/watch?v=WdTajNRJ4Qg
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Text Comments (23)
ashwin (9 hours ago)
Thank you
John Anderson (7 days ago)
Explained very well but why would an investor go to a bank or fx firm and pay that kind of spread, what are the benefits? Im not questioning the idea im genuinely interested to know, thanks
John Anderson (6 days ago)
+UKspreadbetting Ah that makes sense, thanks for the response
UKspreadbetting (6 days ago)
Why? Suppose you need to exchange GBP50,000 into EUR and you only have sterling in your account? Or suppose your bank supports multi-currencies - you have one account with GBP50,000 and another with EUR1000. Suppose, you want to convert some of the GBP into EUR because you live in Spain, what do you do? Many call the bank and ask for a quote to convert an amount into, say, the EURO at the prevailing exchange rate. The bank will be happy to provide this service as they can get say, a 2% interchange fee on the deal!
Tony Hughes (12 days ago)
Very informative, thank you.
richard wharton (12 days ago)
Great trading channel
GTBG Nation (12 days ago)
Do you have a training platform sir, or just a kind youtuber?
GTBG Nation (11 days ago)
UKspreadbetting thank you- and thanks for your efforts
UKspreadbetting (12 days ago)
At the present all we offer is available on this youtube channel and website.
Adi tironci (12 days ago)
With that amount how many pips can this pair move in 5 seconds,,, and if someone sell on the same time 1.298.000.000 there are no movement
K.B SINN (12 days ago)
Traders add no value to society .
johnny walker (12 days ago)
K.B SINN worth as much other profession nowadays. Traders work for companies in finance dept, can predict crashes, changes in prices. unless you are working for environmental focused company, chances are you add no value to society as well
Mr Strange (12 days ago)
Neither does your comment.
bill nixon (13 days ago)
Thanx again, Do you think you could do a vid on the London fix with an example like you have just shown? Thanx Bill
UKspreadbetting (12 days ago)
Please clarify? London fix?
Manoo42 (13 days ago)
Worthless, what we actually wanted to know is the detail of how they make money out of trading FX i.e the only part of interest to traders...
mk private (11 days ago)
+johnny walker yeah....I just don't get them. You see nobody asking (even worse, DEMANDING) someone how to become a pilot, surgeon, precision welder, special forces soldier etc - but yet there are armies of people roaming around believing that becoming a consistently profitable trader takes any less time. I guess it explains why at least 90% of retail traders lose money: 90% of them are lazy.
johnny walker (12 days ago)
mk private amen. These people want everything handed in a spoon to them
mk private (12 days ago)
@Manoo42: easy there lad.......Mark is working like a donkey produce high quality content for the widest audience possible. For free. If something is not to you liking then just click away. Commenting "worthless" is utterly disrespectful. As a footnote: if you are here to have someone "tell you" how to make money trading.....do yourself a favor. READ. LEARN. TRY. FAIL. DO IT AGAIN. WORK AT IT. DEDICATE YOURSELF. etc etc etc....Until you di all that, and are looking to improve your results....you may want to avoid being a troll online. Good luck & happy trading (if you ever actually get to that)
UKspreadbetting (12 days ago)
See How Forex Brokers Make Money? ☝ https://www.youtube.com/watch?v=WdTajNRJ4Qg
Natural Trader (13 days ago)
Thank you so much for the lesson!!! You’re videos are stellar!
Babatunde Omodara (13 days ago)
Great work, thanks for a job well done.

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