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Business model of RoboForex online forex broker

There are two typical Forex Broker models:

  • Forex broker - Straight Through Processing (STP)

    In this model, a Forex Broker is an intermediary between its clients and liquidity providers. Clients’ orders in the STP model are automatically sent to a liquidity provider, and a Forex Broker gets a commission and a part of the spread. In this model, a Forex Broker Company is interested in increasing the trade volume, as it profits by receiving commission for each deal. There is no conflict of interest between the Forex Broker doing STP and its client.

  • Forex broker - Market Maker

    This model implies that a client buys and sells through a Forex Broker. In fact, the Forex Broker, at the same time, is a counterparty of a deal. If clients get profit, a broker bears a loss, and vice versa. Most of the clients of a Forex Broker have no experience at the Forex exchange market, subsequently a significant number of clients suffer early losses with their initial deposits.

Models, which are used by the RoboForex group:

STP-model of RoboForex (CY) Ltd

For all trading accounts, RoboForex (CY) Ltd applies the STP technology through Bridge, which provides a direct access to a liquidity provider.

RoboForex Ltd Hybrid forex broker business model

For all cent accounts, RoboForex Ltd serves as a market maker, i.e. the other party of the transaction. This is due to the terms of the liquidity provider, which do not allow transactions fewer than some specific volume.

For all standard and ECN accounts, RoboForex applies the STP technology through a bridge connected to a liquidity provider. All transactions that exceed 0.01 lot (1,000 units) are sent to the bridge and then to the liquidity provider. RoboForex receives a part of the spread from each transaction.