Broker
The firm standing between you and the market: execution, custody and costs in one relationship.
A broker executes your trades, holds your money and sets your costs. Licence first, costs second, platform third: that order decides your results.
A broker is the regulated firm that executes your trades, holds your funds and quotes your prices. Brokers differ on the three things that decide your results: execution model, all-in costs and regulator strength. Choosing one is the highest-leverage decision a trader makes, because every future trade inherits it.
How It Works
- Quotes prices and fills orders against venues
- Holds client funds under regulator rules
- Earns through spreads, commissions or both
Trading Tips
Verify the licence on the regulator register yourself
Compare all-in costs on your pairs, not headlines
Test withdrawals small before trusting large
Broker Example
Say two brokers quote EUR/USD at 0.8 and 1.5 pips with identical platforms. A trader doing 50 lots monthly pays roughly $350 more at the wider one every month, $4,200 a year, for the same fills. The broker choice was the trade.
How Traders Use Broker
Shortlist by licence, compare by measured all-in cost on your exact pairs, then trial with minimum deposit. Re-audit yearly: brokers change pricing, ownership and regulators more often than traders check.
Related Terms
Put Your Knowledge Into Practice
Compare regulated brokers and find the best one for your trading style.