How FinPros makes money

Our main streams of revenue on our margin-traded instruments come in the form of spreads/commissions we weave into the market price. Trading cost, as you may know, is built into the pricing feeds by way of the Bid (Sell) and Ask (Buy) prices. The Ask price is always slightly higher than the Bid price. As a result, you always sell a little lower than the market price and buy a little higher.

Let’s say the best Bid price we get on the market for EURUSD is 1.15070 and the best Ask is 1.15072. On the Edge account we will be giving you a Bid of 1.15068 and an Ask of 1.15074. And on the Raw+ account we will give you what we get from the market (Bid 1.15070 /Ask 1.15072).

Does FinPros aim to profit from your losses?

No. FinPros gives you access to global markets with competitive transaction fees. It’s true, trading carries significant risk due to its speculative nature. It’s also true, the majority of speculative traders tend to lose. Be that as it may, we don’t aim to gain from trading losses you may suffer. In fact, we provide you with premium trading tools to help you make better decisions in your trading.

For the most part, our clients balance out the risk from each other’s positions. For instance, client A sells 3 lots of XAUUSD (Gold) and clients B, C and D buy 1 lot of XAUUSD each. The risk from these trades balances off and we are not exposed to any profits or losses from these positions. Our revenue came from the transaction costs these clients paid to open their trades.

At times though, the bulk of the trades on certain assets may be in the same direction. In which case, we offset the excess risk by hedging our exposure externally. If for instance, the majority of clients are long on XAUUSD (Gold), we will go long on gold as well. We do this to cover the amount we will pay in profits if the majority of our clients’ trades succeed.