What is a Forex Broker?

Source: Investopedia 2020-06-02

Forex brokers are firms that provide traders with access to a platform that allows them to buy and sell foreign currencies. Transactions in this market are always between a pair of two different currencies, so forex traders either buy or sell the particular pair they want to trade.

Forex brokers may also known be as a retail forex broker, or currency trading brokers. Most forex broker firms handle only a very small portion of the volume of the overall foreign exchange market. Retail currency traders use these brokers to gain access to the 24-hour currency market for purposes of speculation. Forex broker services are also provided for institutional clients by larger firms such as investment banks.

KEY TAKEAWAYS

· Forex brokers allow traders access to the foreign exchange market for currencies.

· Most brokers service retail clients, though larger banking firms service institutional clients as well.

· Forex brokers allow clients to trade with very substantial leverage.

· Forex brokers make money primarily on the bid-ask spread, but may have other ways to do so as well.

forex

forex brokers

trader

forex markets

currency trading

What is a Forex Broker?

Subscribe to Our Newsletter!

Subscribe to Our Newsletter!