A forex broker is a firm or individual who offers trading services to people who want to buy and sell currencies. A forex broker generally provides a trading platform to execute trades online, and may include customized trading software for the client to use. Unlike other financial brokers who charge a fee to execute a trade, most forex brokers make their money off the bid-ask spread.
Being able to see both sides of the market — bid and ask — the broker will sell and buy at a price that allows the brokerage to pocket the difference on the trade. Forex brokers are also known as a currency trading broker, retail forex broker and fx broker. Retail forex brokers vary widely in quality. Some criteria that can be useful in researching and comparing forex brokers includes: Many forex brokers offer free demo accounts to prospective clients, so traders can shop around to find a broker that meets all their needs.
Definition - What does Forex Broker mean? ForexDictionary explains Forex Broker Retail forex brokers vary widely in quality. Although leverage is a double-edged sword, many traders prefer having the option of greater leverage — whether they use it or not.
Being unable to enter or exit a position in a timely manner can quickly become an issue in the time-sensitive world of forex. Like any other customer, forex traders want to be able to get answers when they have questions.
Intuitive platforms and software: The easier it is to make and manage trades, the better. Find out whether or not you should be trading currency. The Forex Market Explained Infographic - The forex market is the world's largest market, but it is often misunderstood. Find out how it works and how you can get involved. Sign up for ForexDictionary's Free Newsletter!
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