Broker Risks?

[davep83]

Hi all

My first post here, love the site it very informative. I fairly new to forex.

I was just sitting here reading up on some brokers and was just wondering if no dealing desk brokers don’t actually place any trades in the market, and simply act as a middleman passing your order through to the bank, then what risk do they have losing money and failing as a company.

I mean if they simple take their commission out of the spread, they make many guaranteed (as long as they have enough client and their clients continue to trade).

I may be missing something, but it seems to me that it is pretty risk free for them or am I terribly wrong

Thanks All

Dave

 

[Adamus]

General opinion I've heard around here is that being a broker is far less risky than being a trader. Have a look for a thread just this week or last about Goldman Sachs and how they turned in a profit every day last quarter.