"Paying the spread" in FX

Discussion in 'Trading' started by cal990, Dec 9, 2007.

  1. cal990


    I've heard a lot and read a lot on various FCM market maker websites that the only costs a trader has with them are the spreads. That the FCM gets compensated as one enters a trade and subsequently "pays the spread". I just wanted to clarify though that this "payment" really is only a paper loss for the trader right? Once the price overcomes the initial spread you've broken even to begin with. So how EXACTLY does the FCM actually make money off these trades in the end?? Apart from the usual account charges, some of which are hidden ones they may spring upon your account? Granted there are many FX trades that go bad - as per the stats. But otherwise, if you're a good trader, then is it really the case that they'll soon enough end up resorting to trading against you and manipulating the prices you see, and all these other unscrupulous tactics?