What is Broker? - Definition & Explanation

Definition

A company that provides access to the forex market for retail traders.

Broker Explained

A forex broker is a financial services company that provides traders with access to the foreign exchange market, offering trading platforms, liquidity, and execution services. Reputable brokers are regulated by financial authorities (FCA, ASIC, CySEC, etc.).

Related Terms

ECN (Electronic Communication Network)

A system that matches buy and sell orders directly between market participants.

Spread

The difference between the bid and ask price, representing the broker's primary cost to the trader.

Commission

A fee charged by a broker per trade, separate from the spread.

Broker - Frequently Asked Questions

Brokers earn from spreads, commissions, swap/rollover fees, and sometimes from trading against clients.

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