The FX broker makes a deal with different liquidity providers. They then have two ways to make money. They can show you the BEST BID/OFFER in their system and then charge you a commission normally expressed per $100K. That's typical for institutional accounts called ELIGIBLE CONTRACT PARTICIPANT (ECP). For retail FX, it is more common to pay a wider spread. The broker will take the inside market and show you a higher offer and lower bid. The different between them is their profit. Your question used the term "manipulate" which implies they are doing something wrong. This is where their Profit comes from. In return they offer you a platform to trade on and are responsible for all counter-party risk after the trade. 1245
i see, its like they have the right to do so, but its like up to them if they will abuse it to earn extra from it, I hope i got it right, so it all falls on how honest a broker is.. there is so much i guess i still don't understand about how brokers really work thanks for sharing 1245
Really????? Being a broker that simple? I think not many trader notice about this. Thank you for sharing.