Forex Broker + SUBSCRIBE
DEFINITION of ‘Forex Broker’
BREAKING DOWN ‘Forex Broker’
Forex brokers will allow customers to trade all major currency pairs; EUR/USD, GBP/USD, USD/JPY, and USD/CHF as well as the remaining g10 currencies and all the cross rates. Additionally, most brokers will allow customers to trade emerging market currencies. (Further reading: What are the most common currency pairs traded in the forex market?)
Before trading, a forex broker will require customers to deposit money into their account as collateral. However, through leverage, customers can trade larger amounts than what is deposited in their account.
It is valuable to do some research to find out whether a broker has an excellent reputation and has the functionality that you are looking for in a broker. Most major forex brokers will allow prospective clients to use a practice account so that they can get a good understanding of what the system is like. It is a wise idea to test out as many platforms as possible before deciding on which broker to use.
Furthermore, because the forex market is a 24-hour market, most quality forex brokers will provide 24-hour customer service. (Further reading: 5 Tips For Selecting A Forex Broker)