What are Forex Brokers?
Forex Broker is a broker that offers access to trade Forex Currency Pairs. Where Forex, FX or Currency Market is a global decentralized foreign exchange for currencies trading that determines the exchange rate and provides liquidity.
Forex trading is electronical trading where transactions performed via networks connecting the participants and traders from around the world 24/5 across the financial sessions at every time zone.
- The Forex Trading is the largest and the most liquid instrument worldwide with average volume of around $2.4 trillion per day. That is done because the currencies need to be exchanged in order to enable conversion and assist in international businesses.
- The currencies are always traded in pairs, thus there is no absolute but a relative value through the market price of the particular currency.
- The main participants of Forex are international banks that work through financial institutions, the banks that are turned into the financial firms with involved large quantities of forex exchange known as dealers. All together it creates an interbank market that operates very large amounts daily.
- Retail traders need a Forex Broker to access Forex trading – it is recommended to choose among Regulated Broker with top-tier license for money safety and safe access to trade markets
- Typically exchanges are traded in an over-the-counter model where brokers negotiate one with another. Therefore, there are two types of FX Brokers the one operating as an agent by seeking the best price in the market for a retail order via STP Trading or the dealers that are principals in the transaction and quote the price to deal with.
|🏦 Spread||Depending on currency pair, Average EUR USD - 1.1 pips|
|📉Positions||Sell and Buy|
|💰Contract size||Micro Lot, Standard Lot (Depending on the broker)|
Best Forex Brokers
Here we made a selection of Top Forex Brokers by category that are Regulated Best Brokers for Forex with some of the best-offered trading conditions and transparent conditions.
- BDSwiss – Best Overall Forex Broker 2022
- BlackBull Markets – Lowest Spread Forex Broker 2022
- FP Markets – Best Forex Broker for Beginners 2022
- Pepperstone – Best MT5 Forex Broker 2022
- HFM – Best MT4 Forex Broker 2022
How do Forex Brokers make money?
Forex Brokers building its trading fees into a spread or commission charge which trader pays for every open transaction or trade.
Broker that has Currency pairs in its instrument range allow Forex Trading, while a number of currency pairs will depend on a particular offering.
There is no best Forex Broker, however the best one is definitely the reliable firm with good regulation and reputation, fair trading conditions and good customer service. Check IG Trading or Interactive Brokers.