Risk Warning: Trading CFD products carries a high level of risk and may not be suitable for all investors. Most of retail investor accounts lose money when trading CFDs with this provider.
We want our clients to trade profitably.
We try not to limit any account type strategy unless it is enforced by other parties such as our liquidity provider
We hedge only when overall client exposure is skewed in one direction.
We make most of our money from the spreads .
We aim to build long-lasting relationships with our clients based on trust.
No. XBTFX has always aimed to be a broker that generates profit from charging clients a fair fees for trading across the world’s financial markets. It is not untrue that many brokers make profit from operating as a dealing desk and thus profiting from client losses. It is also true that on average dealing desk is considerably more profitable than just generating commissions as most traders looses money. However, we have also seen traders on average have become much more successful. The widespread of algorithmic trading has changed the landscape significantly. Thus, in general we don’t profit when client loose funds, on the contrary we wish the client to be successful so he can continue trading and generating fees.
Furthermore, our client positions tend to offset each other, for example Client X buys EURUSD 1 lot and Client Y sells EURUSD 1 lot. The net exposure for the broker on the Liquidity front is 0 and we just collect the fees for both trades. There are sometimes rare cases when a large one-sided exposure will take place, when such a thing happens, in order to protect our exposure to risk we hedge the underlying asset.
On average XBTFX has generated 70% of its revenue from commissions. The remaining 30% are spread through hedging, exchange fees and other offerings.
