Why do brokers stop working so early?
- Posted:
- 3+ months ago by alextheman
- Topics:
- working
Answers (2)
A lot of different businesses have what could be called brokers. A broker is anybody who arranges a deal between a buyer and a seller. An auctioneer is a broker, and he might be so busy that he needs his own airplane to get around. A stock broker sends your order to an exchange, and the transfer is turned over to Cede & Co. which is a clearinghouse.
en.wikipedia.org/wiki/Cede_and_Company
That company is a subsidiary of Depository Trust Company, which is owned by The Federal Reserve. You may study the banking system and formulate your own opinions about why they do things the way they do.
We think about it in the brokers greatest interest for you to be trading valuably. Bear in mind that every time you make a profitable trade they get commission, to simplify it every time you take a trade the broker takes a pip or a fraction of the spread. If you are a very excellent trader who makes regular, consistent profits in the market, each time you take a trade, that broker makes a commission either directly or by adding a small bit onto your spread.