A Forex broker is a financial service company that provides traders access to a platform for buying and selling foreign currencies.
 

STP (Straight Through Processing) brokers send client orders directly to liquidity providers, while ECN (Electronic Communication Network) brokers facilitate trades between clients and liquidity providers within a network, providing greater transparency and potentially better prices.

Forex brokers make money through spreads (the difference between the buy and sell price), commissions on trades, and sometimes through additional fees such as overnight financing or account maintenance fees.
 

Key factors include regulatory status, trading platform, spreads and fees, customer service, account types, and additional features like educational resources and trading tools.

Yes, reputable Forex brokers are regulated by financial authorities such as the U.S. Commodity Futures Trading Commission (CFTC), the UK Financial Conduct Authority (FCA), and others, depending on the country of operation.

Leverage allows traders to control a larger position with a smaller amount of money. For example, with 50:1 leverage, you can trade $50,000 with only $1,000 in your account.

Spreads are the difference between the bid (buy) and ask (sell) prices of a currency pair. Brokers often charge a spread as their fee for executing trades.

To open an account, you typically need to provide personal information, financial details, and proof of identity. This process can usually be completed online.

A demo account is a practice account funded with virtual money that allows you to trade Forex without risking real money, helping you to learn and test trading strategies.

Yes, many Forex brokers offer mobile trading platforms or apps that allow you to trade on the go using your smartphone or tablet.

A margin call occurs when your account equity falls below the required margin level, prompting the broker to request additional funds or close positions to limit potential losses.

Common trading platforms include MetaTrader 4 (MT4), MetaTrader 5 (MT5), and proprietary platforms developed by the brokers themselves, each offering different features and tools.

An overnight fee, also known as a swap, is a fee charged by brokers for holding positions overnight. It is based on the interest rate differential between the two currencies in a pair.

Most brokers offer various methods for deposits and withdrawals, including bank transfers, credit/debit cards, and electronic payment systems like PayPal and Skrill.

Yes, if you use leverage, it is possible to lose more than your initial deposit. However, many brokers offer negative balance protection to prevent this from happening.