How does Quotex earn money? | Explanation for traders


Learning how trading platforms like Quotex make an income is critical for both experienced traders and newbies in the uncertain world of online trading and binary options. The way Quotex makes money is unique and different from standard financial brokers. 

In this post, we will look at the mechanisms that generate Quotex’s revenue, as well as the distinctive methods that underpin its success. Here, we will look at how Quotex makes money and answer frequently asked questions about commissions, deposit fees, and withdrawal costs.

How Quotex makes money?

How does the broker earn money? – Earning model

Quotex serves as an intermediary, bringing together traders who want to speculate on the price fluctuations of different assets such as foreign currencies, commodities, or equities. Quotex matches a trader’s order to buy (go long) or sell (go short) a certain asset with other traders on the platform.

Quotex’s earnings strategy is based on the results of these binary options contracts. The broker does not collect a commission or charge a fee when a deal is executed. Instead, the broker profits from the disparity in outcomes between traders. Quotex’s profit is determined by the platform’s overall balance of winning and losing trades. 

➨ Sign up with Quotex for free now!

(Risk warning: Trading involves risks)

Example:

Let us consider an example. One trader goes long on the EUR/USD currency pair, while another goes short. If the long trader achieves a 95% return on their investment, the short trader incurs a loss of 100%. The difference of this 5% constitutes Quotex’s profit. In this scenario, the broker earns 5% of the trading volume generated by these two traders.

Scenario:

Imagine X, a trader has initiated a call option on EUR/USD with $1000 and has predicted a rise in the price of EUR/USD. Meanwhile, Y, a trader, has initiated a put option on EUR/USD with $1000 and has predicted a fall in the price of EUR/USD.

Now, `let us assume X’s prediction was correct, and he earned a 95% profit (i.e., $950) on his trade, and Y’s prediction was incorrect, and he lost 100% of the whole investment (i.e., $1000).

Quotex’s Profit: Y’s loss – X’s Profit: $1000 – $950 = $50

Does Quotex earn money through commissions?

Quotex does not make money from commissions. Unlike typical stockbrokers, who charge a percentage-based fee for each trade, Quotex‘s income strategy is based on trade outcomes rather than commission costs.

Are there deposit charges?

Quotex deposit methods

Quotex typically does not impose deposit charges on its users. The platform aims to make the process of funding your trading account as straightforward and cost-effective as possible. Traders can generally deposit funds into their Quotex accounts without incurring additional fees.

It is important to note that while Quotex itself does not charge deposit fees, some third-party payment processors or financial institutions may have their own fees or currency conversion charges when you deposit funds. Therefore, it’s advisable to check with your chosen payment method or financial institution to understand any potential charges associated with deposits.

Are there withdrawal charges?

Quotex typically refrains from applying withdrawal fees to its users. The platform is designed to offer a user-friendly and cost-efficient experience, not only when you’re funding your account but also when you’re withdrawing your funds. In most instances, traders can initiate withdrawals from their Quotex accounts without incurring any additional charges from the platform.

However, it’s crucial to bear in mind that while Quotex itself usually refrains from imposing withdrawal fees, there might be potential charges introduced by third-party payment processors or financial institutions involved in the withdrawal process. These charges might pertain to currency conversion, transfer fees, or other financial service-related costs.

Conclusion

To summarize, Quotex earns money by conducting trades between its users and benefitting from the differences in trading outcomes. Unlike typical brokers, Quotex’s business model is based on trading volume and favorable outcomes for its users. Furthermore, the lack of deposit and withdrawal fees makes Quotex a viable and cost-effective solution for traders interested in binary options and other comparable trading activities.

➨ Sign up with Quotex for free now!

(Risk warning: Trading involves risks)

About the author

Percival Knight
Percival Knight is an experienced Binary Options trader for more than ten years. Mainly, he trades 60-second trades at a very high hit rate. My favorite strategies is by using candlesticks and fake-breakouts

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