When you search the web it is littered with adverts for all types of FX services. Forex is one of the most heavily traded markets in the world, but there are many different service providers offering many different products.
A while ago I wrote a piece on the Huffington Post about how FinTech is disrupting Foreign Exchange for the better.
But if you just need to know the difference between a Forex and currency broker. Here’s a quick breakdown of what the two different types of service provider offer:
What is a Forex Broker?
A Forex broker is for those that want to speculate or gamble on the FX market.
Forex brokers generally lets a customer buy and sell currency pairs on margin and acts more like a dealer between them and the customer. These fall under the category of spread betting, CFDs or spot FX.
There are thousands of Forex brokers offering this sort of account. There are also varying degrees of regulation and client protection. We show a list of some of the most established, well-capitalised brokers that have a good reputation and are also regulated by the FCA.
You can compare the top ten Forex brokers in the UK here.
What is a Currency Broker?
A currency broker converts money from one currency to another and provides international payment services.
Currency brokers are useful for individuals who make large or regular conversions and international payments. The exchange rates they offer a far better the banks and fees are normally worked into the rates.
For businesses they can help increase profits and reduce costs by effective managing foreign exchange exposure through forwards, hedging options and futures. Many also provide advisory services and rate forecasts.
Compare the best currency brokers for large international currency transfers here.
Richard is the founder of the Good Money Guide (formerly Good Broker Guide), one of the original investment comparison sites established in 2015. With a career spanning two decades as a broker, he brings extensive expertise and knowledge to the financial landscape.
Having worked as a broker at Investors Intelligence and a multi-asset derivatives broker at MF Global (Man Financial), Richard has acquired substantial experience in the industry. His career began as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson), following internships on the NYMEX oil trading floor in New York and London IPE in 2001 and 2000.
Richard’s contributions and expertise have been recognized by respected publications such as The Sunday Times, BusinessInsider, Yahoo Finance, BusinessNews.org.uk, Master Investor, Wealth Briefing, iNews, and The FT, among many others.
Under Richard’s leadership, the Good Money Guide has evolved into a valuable destination for comprehensive information and expert guidance, specialising in trading, investment, and currency exchange. His commitment to delivering high-quality insights has solidified the Good Money Guide’s standing as a well-respected resource for both customers and industry colleagues.
You can contact Richard at richard@goodmoneyguide.com
