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What is a Forex Broker?
A Forex broker is a financial service company that provides
traders access to a platform for buying and selling currencies in
the foreign exchange market.Since individual traders cannot
directly access the interbank market (where banks and large
institutions trade currencies), brokers act as intermediaries
between traders and the global market.
When you place a trade-for example, buying EUR/USD-your
broker executes that trade on your behalf, connecting your order
to the global liquidity pool.
How Brokers Work
Brokers provide a trading platform (like MetaTrader 4, MetaTrader
5, or cTrader) where you can view live prices, analyze charts, and
open or close positions. They also offer leverage, allowing you to
control a large trade size with a smaller amount of money.
For example: If your broker gives 1:100 leverage, it means with
$100, you can control a position worth $10,000.
