How do we make money?
We make money when you trade — not when you lose. Spreads and commissions on flow we route to top-of-book liquidity. Here's exactly how it works.
Our Mission
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.
Where your trade actually goes
Every trade placed on any XBTFX platform routes through our proprietary liquidity bridge. We're not a dealing desk — we don't run a matching engine. The bridge nets opposing flow and routes the rest straight to top-of-book liquidity.
Does XBTFX aim to profit from client losses?
No. XBTFX has always aimed to be a broker that generates profit from charging clients 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 a dealing desk is considerably more profitable than just generating commissions, as most traders lose money. However, we have also seen traders on average become much more successful. The widespread adoption of algorithmic trading has changed the landscape significantly. Thus, in general we don't profit when clients lose funds — on the contrary, we wish the client to be successful so they 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 ourselves from risk, we hedge the underlying asset.
On average XBTFX has generated 70% of its revenue from commissions. The remaining 30% comes from spreads, hedging, exchange fees and other offerings.
