What are Forex Brokers?

Forex is a term used to refer to the foreign exchange market. This is essentially the marketplace where the currencies of different countries are traded.

There is no exchange for trading currency the way there are exchanges for buying and selling stocks.

Instead, forex brokers serve as the liaison between the forex investor and the banks that actually trade currencies. 

What are Forex Brokers?

Image source: Pixabay

In today’s world, most forex brokers operate websites that serve as online trading portals for their customers. These portals offer statistics and information feeds that allow investors to develop trading strategies. When ready to make the trade, the investor submits the order through the web portal and the forex brokers makes the trade happen. 

Regulation of Forex Brokers

There are two bodies that regulate forex brokers in the United States. 

These are the National Futures Association and the U.S. Commodity Futures Trading Commission. Before dealing with any forex brokers you should ensure that they are certified with these two bodies. 

AdvisoryHQ (AHQ) Disclaimer:

Reasonable efforts have been made by AdvisoryHQ to present accurate information, however all info is presented without warranty. Review AdvisoryHQ’s Terms for details. Also review each firm’s site for the most updated data, rates and info.

Note: Firms and products, including the one(s) reviewed above, may be AdvisoryHQ's affiliates. Click to view AdvisoryHQ's advertiser disclosures.