Every trader wants to earn profits. The first step is to sign up with a chosen broker. Then, you need to learn the platform and trading strategies. And after some time you can start trading on a live account. At some point, you will probably ask a question about the ways the brokers make their business profitable. Where do their incomes come from? Let’s get into this topic today.
Fees and commissions on Binomo
The most obvious way the brokers earn money is through the fees and commissions on the platform. Before you sign up with any broker, you have to check the rules thoroughly. You do not want to be surprised by some hidden fees. What are the commissions on Binomo you have to be aware of?
Binomo is one of the leading platforms and it has a user-friendly approach. You will not encounter a trading fee here. This is a commission that some brokers take when you open and close a transaction.
Furthermore, there is no fee when you experience a loss of money. Binomo does not want to get enriched on you.
There is, however, a small commission when you earn profit from your trade.
Binomo does not take any money for opening or closing your account. You have to deposit a specific amount, but you will then be able to spend it on trading.
As for withdrawals, there is a small commission you can avoid paying. It is enough when the profit is twice as high as the deposit. If you, however, did not gain any profit or it is a tiny amount, you will pay a 10% withdrawal fee.
Another fee you pay only under some circumstances is a subscription fee. It is charged only when there is no activity in your account for 30 successive days. It will be repeated every month if your account remains unused. You can read more in our article explaining fees and commissions on Binomo.
Trading financial derivatives has become extremely popular. One of the reasons is that there is no commission added to every transaction. How the brokers earn money when you trade using their platform? I will explain it on the example.
Your task, as a trader, is to speculate on the future price of the asset. If you are trading the EURUSD currency pair, you must decide whether you will have to pay more or fewer dollars for one euro in the future. And the exchange rate changes constantly.
Let’s assume 200 traders are investing in the EURUSD pair. 100 forecasts a fall in the prices and the other 100 a raise. They all open trading positions that last an hour and they all invest $100. So there is $20,000 contributed to the market.
After an hour the price for the EURUSD is higher than earlier. The payout rate was 82%. This means that 100 traders win $82 and now they have $182 in their account. Together it gives $18,200. The remaining $1,800 goes to the brokers as a profit.
In real life, there are no such equal divisions. But then many more traders open positions every hour. There are also many more currency pairs available on the Binomo platform. So in a day, there is plenty of transactions made and plenty of money that stays with the brokers.
Binomo is a platform that does not seek to profit from the loss of its clients. But in the trading world money has to come in and go out. The golden rule for the traders is to protect your account first. Once you are able to keep the account balance at a stable level, you can start thinking about how to make more money.
Learn the platform well. Try new strategies on the Binomo practice account. It is a free account which you can use as long as you need to. Treat it as a training field for your trading.
I would be happy to hear from you. Leave a comment in the comments section below.
Wish you high profits!