Quote from: fingnome on Today at 11:33:07 AM

Quote from: Wind_FURY on Today at 11:18:49 AM

Quote from: Z390 on September 30, 2023, 07:59:12 AM

Correct me if I am wrong as no one is the most perfect being in this world, brokers are supposed to be for forex traders? Am I wrong or right? Because I believe that comparing gambling with brokers makes no sense.

Now if we are talking about which one is more reliable my answer will be none, you want a loyal broker? You have to find one, because there are many fake brokers out there that want you use you and your money.

I believe you didn't understand. OP is debating that "Brokers" are not just "raking" in proftis through fees/commissions, but that they're also raking profits through the bids and the asks spreads, which is partly true, BUT how can they continue market-making if they keep losing money in the same market that they're market-making?

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It's not that different from gambling too as there are also many fake or bad casinos online this days, for example, the crazy 1xbit casino that scams their customers and are still in the business till today, crazy, isn't that crazy?

To round up my opinion, i believe that wherever there is money there will always be bad actors who will come as your solution by they came only yo take advantage of you, some people willingly stay away from every money making online because of bad actors, they are so scared of becoming their next victims.

Read OP's post again and try to get it from his/her actual context.

You bring up a valid point, and there seems to be a bit of a misunderstanding. My argument is not against brokers who are also dealers or engaged in market-making. I'm specifically discussing brokers like Robinhood, which, as you pointed out, don't engage in market-making themselves but sell order flow to other entities that do. This situation illustrates the variety within the brokerage industry, and it's crucial to delineate these differences to fully grasp the landscape and the various ways brokers can generate revenue beyond traditional fees and commissions.

Can you make a clear illustration about how a broker like RobinHood actually does their business, and explain how they are taking advantage of their users? Because what I know about RobinHood is they send their users' bids/asks to a market-maker which then it's the market-maker that's getting their commissions from RobinHood for their service.

In a different context, RobinHood might be more comparable to a internet casino. RobinHood = Directs users' actions to market-makers. Internet casinos = directs actions to providers.