Does the IB Broker profit from trader's losses?

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05 Feb 2022, 13:42 76 Views
Hello Master Forex Masters, I was shocked to discover that the YouTuber promoting Binomo Binary Option is using a promo account that looks real but is actually a demo. It's so easy for the YouTuber to profit, turns out it's all just a scam. Every trader who loses, the YouTuber gets 70%.
Will Introducing Brokers or those who introduce clients to the broker using a referral code also earn money from traders who lose?

2 Answer

E
erik tri cahyo 08 Feb 2022, 14:29
To Hamid Awaluddin,

Yes, that's correct that the Introducing Broker (IB) will obtain a commission from every transaction that has been made by their client. If in forex brokers, usually the commission is calculated based on the lots that have been transacted by their clients. It doesn't matter if the client experiences a loss or profit, the IB will still get a commission from the number of lots that have been traded by the client. So the IB will still get their share even if the client makes a profit. As for the case you mentioned above, we cannot provide further comments because we do not quite understand how the commission calculation mechanism works in binary option IB brokers.
J
Jojo 23 Feb 2022, 16:18
It seems that IB binary only charges a registration fee, not dependent on client transactions. But I don't really know for sure, since binary options are like gambling.

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