Foreign Exchange Broker / Forex Broker
A foreign exchange broker is an organization that buys and sells currencies on behalf of clients. They use their access to the foreign exchange market to trade between “currency pairs” (e.g. between USD and EUR) using funds provided by clients.
There are two main types of foreign exchange brokers — those that provide a trading platform for FX and currency speculators, and those that provide a retail platform so individuals and businesses can exchange money into a different currency for use overseas. Both types of brokers typically make money by charging a commission of the funds they exchange, or a fixed fee.
The second type of retail forex brokers, also known as money transfer providers, are becoming a popular alternative to sending money abroad through a bank. Businesses that offer low-cost currency exchange services include Transferwise, WorldRemit, OFX, InstaReM and MoneyGram.
Customers can access foreign exchange broker services through a website, via a dedicated app and sometimes over the phone.
Money Transfer Glossary
When it comes to exchanging money, paying for your transfer, understanding exchange rates and more, it’s important to understand what all the details mean. But don't worry. We’ve got you covered with our complete Monito glossary and guide to the most frequent terms you’ll come across when you send or receive money internationally.
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