What a broker is and how it earns

The broker is the gateway through which you reach the market. You do not connect to the banks directly; you open an account with a broker, and it routes your orders, shows you prices and holds your money.

How a broker earns from you

• The spread — the primary source: the gap between the buy and sell price stays with it.
• Commission — a fixed charge per lot on raw-spread accounts.
• Overnight financing — what is deducted on trades held overnight.
• Other fees — withdrawal, inactivity, currency conversion.