Discount Forex brokers attract traders with low spreads, zero fees, and attractive bonuses. But if trading is cheaper, how do these brokers actually make money? The answer is a mix of traditional revenue streams and smart business models.
1. Spread Markups — The Core Revenue Source
Even “low-spread” brokers add a small markup to the raw spread they receive from liquidity providers. For example:
-
Raw spread from provider: 0.0–0.2 pips
-
Broker markup: 0.5–1 pip
That tiny markup earns brokers money on every trade without the trader noticing it directly.
2. Commissions on ECN Accounts
ECN brokers often charge a fixed commission per lot, such as $3–$7 per side.
This creates a predictable revenue stream while keeping spreads very low.
3. Swap Fees (Rollover Fees)
If you hold positions overnight, your broker charges (or pays) swap fees.
Most traders pay swaps, which creates continuous income for brokers—especially on popular pairs like EURUSD, XAUUSD, or GBPJPY.
4. Cashback Partnerships & White Labels
Many discount brokers partner with affiliates or comparison platforms (like yours).
The broker pays a referral fee, but earns it back through long-term trading volume.
5. Bonus Turnover Requirements
Deposit bonuses sound like gifts—but they generate profit for brokers because:
-
Traders need to reach a high turnover before withdrawing,
-
More turnover = more spread or commission revenue.
6. Copy Trading & Additional Services
Brokers often offer:
-
VPS hosting
-
Copy trading fees
-
Premium indicators
These small add-ons create additional recurring income.
7. The Bottom Line
Discount brokers don’t lose money by offering low fees.
Instead, they use volume, markups, and service-based income to remain profitable.
Conclusion:
A discount broker can offer exceptional prices and still earn consistently — as long as traders stay active and generate volume.
Check out our website https://brokerdiscount24.com/broker-deals/ to find the right deal for you.
