A market maker Forex broker provides pricing and execution by taking the opposite side of his clients trading orders. A market maker Forex Broker earns from the spread between the bid and offer price. Usually spreads offered by Market Makers are very high and that is why professional traders prefer other types of brokerage, and especially ECN Forex Brokers.

A dealing desk Forex broker uses a dealing-desk to provide its clients with pricing and execution. A no-dealing desk broker does not have a dealing desk and uses liquidity from external providers to execute trades.

IB is the abbreviation of Introducing Broker, sometimes known as an affiliate.

Traders need to connect to the bank network online to trade currency. A brokerage gives traders access to the market by holding the trader’s cash in an account. Sometimes, the brokerage will ‘leverage’ or lend against the money in the account to let a trader bid and hold more currency than the cash in the account can cover.

Forex broker is the English word for currency broker. Forex brokers can be equated with banks helping or allowing companies and individuals, foreign exchange.