What is a Forex Broker?

An online Forex broker is a brokerage firm that conducts transactions between a consumer and seller, and it gets a commission once the order is in progress or performed. In other words, it works as an intermediary between the buyer & seller and charges a commission for its services as a revenue.

In general, a broker is an independent agency that is widely used in some industries. The primary responsibility of a broker is to assemble buyers and sellers so that they can work with one another using the broker itself as an intermediary.

Forex brokers also provide a lot of market information about prices, products, and market conditions. The broker may represent the seller or buyer, but it is not possible to represent both of them at the same time. At present, brokers have important roles in buying/selling stocks, bonds, futures, forex, and other financial services.

Mostly, rich people can only afford the services of a broker to access the market. However, the internet has made possible for the online broker (discount broker), which allows investors to operate at a lower cost, although they do not offer any personalized advice.

It is also important to choose the broker that presents the best conditions and better fit the investor's requirements, and for this, the buyer or seller need to dedicate the time to make the right decision.

Important functions of Forex Broker:

1. Intervene with buying/selling assets and managing securities.
2. Placing IPO of companies in the market. When a company wants to bring its IPO in the market or interested in going public it needs to contact the broker, who is in charge of finding a buyer for its distribution.
3. To inform and advise the client and the company.

Benefits of Forex Broker:

1. There are many benefits of a forex broker. First, they know the market and usually establish industry relations that allows them to offer market access that many investors can not have their own.
2. Brokers have resources and tools to reach the largest possible base of buyers and sellers.
3. Another benefit of using a broker is the cost because they can be cheaper as in the case of Forex, where there are companies that allow opening low initial capital accounts and charging relatively low commissions compared in other financial markets.