What Is a Forex Broker?

A broker is what you need if you want to trade in the Forex markets. By looking at the overall picture of the marketplace, we can easily understand the functions and roles that a broker plays, in the larger scheme of things. But what or who is a broker exactly? To better understand this, consider the following example: Let’s say you want to buy oranges, so you go to the market where they are sold. The oranges are the products that you want to buy, whilst the farmers are the sellers of oranges. For this matter, the market is the place where you can get them, because that is the place where sellers and buyers connect for oranges. So a Forex broker would be similar to a market stall, whilst there are of course other Forex brokers in the marketplace from which you can buy different products. This is similar to the forex markets. There are buyers and sellers of various currencies and they need a place where they can come together. While they can be miles apart, they need a mechanism that can facilitate the buying and selling those currencies and this is where a broker comes into the stage. In simple words, a Forex broker is a middleman, an intermediary between various traders who want to buy and sell foreign currencies.