Forex brokers earn revenue through various mechanisms, each with its own advantages and challenges. The most common sources include spreads, commissions, and overnight fees. The chosen model influences how the broker interacts with the market and manages risk.
Some brokers act as intermediaries, passing trades directly to liquidity providers, while others internalize trades. Hybrid approaches are also common, allowing brokers to balance profitability and risk. Each model requires careful monitoring to ensure fairness and regulatory compliance.
Beyond direct trading revenue, brokers may also generate income from value-added services such as advanced analytics, educational tools, or premium account features. A diversified revenue structure often provides greater financial stability.