What is a forex broker?

A forex broker is a financial services company that provides traders access to a platform for buying and selling foreign currencies. Forex is short for foreign exchange. Transactions in the forex market are always between a pair of two different currencies. A forex broker may also known be as a retail forex broker or a currency trading broker.

Do forex brokers use multiple banks?

Many forex brokers use multiple banks for pricing, and they'll offer you the best one available. A forex broker is a link between a trader and the network of banks that have access to forex liquidity. Forex brokers give you access to foreign exchange trading and leverage to trade with.

How do I know if a forex broker is regulated?

All U.S. forex brokers must register with the National Futures Association (NFA), a self-regulating government body intended to provide transparency. Go to the NFA website to verify the broker’s compliance and look for complaints or disciplinary actions that could affect your final decision.

Do you need a trusted forex broker?

To trade forex, a trader needs an online broker and trading with a trusted forex broker plays a massive part of a traders’ success in the market. As a currency trader or investor, different traders will have different and specific needs which will related to which platform, tool, or research requirements they may have.