Brokers, regulation and accounts
What a forex broker is
2 min
A forex broker is the company that gives you access to the market. Because forex is decentralized, you cannot trade it directly — the broker connects your orders to the wider network of liquidity providers (or acts as the counterparty itself).
What a broker provides
- A trading platform (web, desktop or mobile) to place and manage orders.
- Pricing — the bid and ask quotes you trade on.
- Leverage — the ability to control a position larger than your deposit.
- Account funding and withdrawals.
- Execution — turning your click into a filled order.
How brokers make money
Mainly through the spread (the gap between the buy and sell price) and sometimes a commission per trade. Some also earn from swap (overnight financing) charges. Understanding this tells you exactly what your trading costs are — and a cheaper-looking broker with poor execution can cost you more than a transparent one.
This content is for educational and informational purposes only and is not investment, financial, tax or legal advice. Trading and investing carry risk, including the possible loss of capital. Any performance shown by third-party tools is hypothetical and not a promise of future results. Do your own research and consider professional advice before making any decision.