📖 Financial Lexicon Term
What is Broker?
A financial intermediary that executes buy and sell orders on behalf of traders. Forex brokers provide access to the interbank market and charge fees through spreads or commissions.
Detailed Explanation
Forex and CFD brokers act as custodians and gateways, connecting retail participants to institutional liquidity pools (major banks and funds). Brokers are responsible for trade execution, capital clearing, margin maintenance, and compliance audits.
💡 Practical Trading Example
IC Markets and Pepperstone are examples of regulated forex brokers that route retail trader orders to prime liquidity providers.