How Binary Option Brokers make money?

Closingbell · December 2017

Hi Traders,

It's a general misconception that binary option brokers only want you to lose your money. For a legit broker high trading volume is more important than emptying few accounts. No matter what, Binary Option Brokers make money, but from the actual spread which they split with liquidity providers. I'm not saying that all brokers are legit, but I feel it would be beneficial to post a video here to demonstrate how IQ Option makes money.

So, here is the video to demonstrate how IQ Option makes money:

https://youtu.be/3i08vaWQTcg

Hope it helps.

Samuhn74 · April 2020

In fact, most of the adequate brokers earn their commissions thanks to the financial operations of their clients - they take money for deposit and withdrawal of funds, and thanks to the large trading turnover they get excellent profits, which allow companies to exist for a long time. Plus, I recently paid attention to the fact that almost all brokers (again, normal companies) implement some additional services, such as signals or paid copying of transactions, which allows them to attract the attention of traders who are interested in the passive format, and the brokerage companies themselves increase their profits, and legally and absolutely justified. Maybe, there are some other formats of getting profit, but I have heard only about it.

Granithris · May 2020

I have once heard that brokers earn from the trading turnover of their clients, I really do not fully understand how it works, but in general - the more clients a brokerage company has and the larger amounts they use, the more a broker earns. In addition, the profit of the brokerage company depends on how profitable the clients trade - that is, how much they themselves receive from the counterparties - so much commission they bring to the company - well, of course, not the entire amount, but only a certain percentage - usually this is indicated on the platform itself, depending on the percentage of payments on each individual asset. It is clear that the broker earns from his clients, it is normal and correct, the main thing is that the service corresponds to your investments.

raymond8qz · June 2020

In fact, most of the adequate brokers earn their commissions thanks to the financial operations of their clients - they take money for deposit and withdrawal of funds, and thanks to the large trading turnover they get excellent profits, which allow companies to exist for a long time.

You're right on that one. It also depends on each specific broker.

How Binary Option Brokers make money?

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