There are 3 ways forex brokers can make more money
- Charge more commission
- Get more traders
- Get traders to trade more
There are only 3 ways that a broker can make more money:
charge more commission
The first way is that they can charge more commission – or “increase the spread” – but this market is so competitive that this is virtually impossible. If anything, brokers are falling over each other to give the lowest spread – and this is eating into their profit.
But FX United has managed to charge perhaps a little more than other brokers because they have created a group of "raving fans" as clients - and we would not defect to another broker, because nobody else on the planet offers a commission sharing arrangement like FX United!
get more traders
The second way is to get more traders – more traders equals more trades which equals more commission!
Since 2013, FX United has been harnessing the potential of multi-level marketing to attract new customers. It is powerful when your friends or colleagues tell you that something is good - and when people find out just how good FX United is, they want to tell everyone about it ... and FX United rewards you for doing just that.
get traders to trade more
This is the true genius of FX United! It is one thing to get more traders, but if they trade very little, or worse yet, lose all their money and don't trade at all, then the broker has achieved nothing.
Enter CGAT! FX United set up an automated trader which sits there all day and makes trades – hundreds of them a month for each person – and it generates bucket loads of commission for the broker !
Most trading robots eventually lose money. But FX United found that while it’s really hard to program a robot trader to make consistent large profits – in fact virtually its virtually impossible – it is actually not that hard to make an automated trader which just covers the commission. This involves lots and lots of tiny profits.
It is called “skimming” – and it works. In fact FX United is so confident that its automated trader works that if your account loses money at the end of the month, they just top it up – so that your original principal is effectively capital guaranteed by FX United.