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Profits, where do they come from?

Since I'm new, this question have been bugging me for a while now and I don't seem to get a clear answer.

Lets say you are a very successful trader and make $10000 profit each month and withdraw it every month. How does the broker manage to pay you, where does the money come from? Can you honestly depend on drawing an income from the broker each month?

Comments

  • TripackTripack Posts: 28
    Prifits will come from their other customer's deposits.
    Have a look at: http://en.m.wikipedia.org/wiki/Binary_option#Business_model
  • lotzofbotzlotzofbotz Posts: 1,552 ✭✭✭✭
    edited December 2014
    Yup most traders lose money, this is why a broker being well capitalized like a Markets World or 24option is important. They know their reputation is important and will pay the few winners they have even though they are large in size because of the simple fact is most lose money trading. Now that changes when you get a smaller broker like Titan Trade/Lbinary/NRGbinary that are not as well capitalized and have RETARDS managing them. Then you get complaints on withdrawals and the like... So be very careful in who you choose to do business with!
  • BlycanBlycan Posts: 10
    Thanks a lot, that clears up some doubts about continuing binary or going traditional
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