24Options say they DON'T profit from losing traders

arif9m9arif9m9 Posts: 33

A
If I was to make profits of 10k every month, and withdraw it every month, would I be hurting the company?
withdraw that 10k every month*

Ted Green
no, sir.

A
But you only make money when traders lose...

Ted Green
That's incorrect, sir.
“24option's profits are made from the volume of trades we send to Richfield who is the Market Maker.”

A
That doesn't even make any sense

Ted Green
I'm not sure which part does not make sense, sir.
Traders create trades on the platform.
24Option aggregates the trading information into metadata
software development, analysis and market making companies buy this data in order to improve their products and create new products.

A
That's just as fake as your name lol

Ted Green
I don't at all follow, sir.



Thoughts?

Comments

  • OkaneOkane Posts: 1,279 admin
    Yes, their money comes from the losses (mainly). Of course, even when you win, you don't get a 100% return
    which means they are making money even when you win. Hence the expression "we make money on the volume" which
    is basically what I just explained.
    Now, is this worrying? Yes and no. If the broker is so big (many clients) and the highest investment per trade
    is around 200K (it is if you have platinum/diamond account with 24O) it means they have funds to cover big earnings too.
    They are required by CySEC to have enough funds to be able to pay clients. If the broker is new however, small, unregulated
    then it wouldn't be safe to trade such high amounts of cash and rely on getting 10K out each month.
  • utopia1961utopia1961 Posts: 4
    so if you are making profits of £1000 a month for example. would a options company eventually block your account?
  • OkaneOkane Posts: 1,279 admin

    so if you are making profits of £1000 a month for example. would a options company eventually block your account?

    Some brokers do, yes.
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