With this understanding we can now turn to the rewarding method at Easy-Forex.
In order to ensure it's wining against their clients, Easy Forex rewards their employees and people working for it outside the company, according to the amount deposited minus the withdrawals of their clients.
To demonstrate this method lets take an example.
1. An Easy-Forex agent convinces a person to open an account at Easy-Forex to trade the account by himself or to authorize an account manager to trade the account for him
2. The customer deposits $100,000
3. The agent is rewarded a certain percentage from this deposition. For the discussion let's assume 10%. That is, the agent is rewarded $10,000.
4. The customer trades the money in the account or someone else does it for him and after a while he withdraws the money. At this stage there are three possibilities:
a. The account is balanced. That is the account holds $100,000 that the customer withdraws. In this case the agent that brought this customer needs to pay Easy-Forex back the $10,000 he received for the deposted amount.
b. The account is drained. That is the customer lost all the money in the account. In this case the agent does not need to pay back Easy-Forex anything. In this case Easy Forex gets the reminder minus the money given to the agent.
c. The account gained relative to the opening time. Say, the account balance is now $200,000 and the customer withdraw all this money. In this case the agent needs to pay Easy-Forex the $10,000 they gave him and another $10,000 out of his own pocket.
What happens in practice is that they don’t charge the agent immediately. The agent's balance at Easy-Forex becomes now –$20,000, and next month he needs to recruit $200,000 before making any money. From any point of view this money comes from this agent pocket.
What Easy-Forex is telling their agent is that they are partners in the company: They tell them you will make money from the customers you bring only if the company will make money from the client, but you (the agent) will lose money from this customer if we, the company, will lose from him.
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