What are the benefits of using a forex broker?

The best forex brokers for new traders offer three key advantages. First, they are a trusted and regulated brand that offers a user-friendly online platform. Second, they typically offer a wide range of informational tools. Third, they often provide access to high-quality market research.

How do forex brokers make money?

There are 2 ways that brokers make money. They can charge a bid-ask spread and/or charge a commission on every trade. The bid-ask spread is the difference between what you can buy a currency pair for and what you can sell a currency pair for. You buy at the bid and sell at the ask.

Do you need a forex broker to trade forex?

If you wish to trade in the foreign exchange market as an individual, you’ll need a brokerage or trading account. The forex retail trader can speculate on currency pairs by placing orders through this account. The order can be a buy or a sell.

What is a forex broker?

A forex broker is a company that is licensed (or considered exempt) by a national regulator to grant you — as a retail or professional client — the ability to buy or sell foreign currencies, by way of an online trading platform or over the phone (known in the industry as voice broking).