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What is a forex broker?

What is a forex broker?

A forex broker is a firm that buys and sells currencies on behalf of retail traders, usually via a forex trading platform. Like stockbrokers, they charge a fee – though usually in the form of a spread instead of commission – in order to execute orders placed by their clients. However, a key difference is that forex brokers will place trades over-the-counter instead of on an exchange.
Traditionally, a lot of forex transactions have been made via a forex broker, but with the rise of online trading you can take advantage of forex price movements using derivatives like spread betting or CFD trading.

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