It’s known that the broker makes money from spreads and/or commissions on their clients’ trading activities, but what about swaps? I’ve seen that swaps are sometimes positive or negative, having positive or negative effects on the trader’s portfolios. But… who really benefits, or get affected by swaps, the trader, the broker or the liquidity provider? An answer would be appreciated.
A swap is like any other asset. The trader has profit or loss potential. The broker makes a commission. The market maker makes the spread.