Broker

A forex broker is the company that stands between you and the currency market. Since retail traders can't access the interbank market directly (you'd need millions in capital and direct bank relationships), brokers aggregate liquidity and provide a platform for you to trade.

Brokers make money in several ways: through spreads (the difference between bid and ask prices), commissions on trades, overnight swap fees, and sometimes through taking the opposite side of your trade (if they're a market maker). The business model matters because it affects your trading costs and whether the broker has a financial incentive for you to lose.

Regulation is the single most important factor when choosing a broker. Regulated brokers must segregate client funds, maintain capital reserves, and submit to regular audits. If an unregulated broker goes bust or refuses to process your withdrawal, you have virtually no recourse. Stick with brokers regulated by the FCA, ASIC, CySEC, or similar tier-1 authorities.