A Forex Broker

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A Forex Broker. A Forex (foreign exchange) broker is a financial services company that holds your money in their account and gives you the ability to use that money to buy and sell currencies, so that you can potentially profit from the trades. Forex is short for foreign exchange.

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If you're a US resident and wish to start Forex trading, you should choose a broker that is regulated by CFTC and NFA to protect your capital. A broker is a place where buyers and sellers go to buy and sell instruments, such as currencies. On that note, a broker is a trading platform where you can open and start an account.

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A forex broker, also known as a retail forex broker or currency trading broker, is an intermediary who buys and sells currency pairs for a commission.

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Forex brokers essentially work as the middle-man between a forex trader and the interbanks, or network of banks, to enable you to buy and sell foreign currencies. A forex broker works as an intermediary between you and the interbank system. A Forex broker who uses a dealing desk and is registered as a Retail Foreign Exchange Dealer and Futures Commission Merchant (or equivalent in another country) can offset trades.

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