The Forex brokerage is invaluable transaction resource for the retail trader. The importance of the Forex brokerage for this sector of traders is growing as this segment of the market grows in both size and importance.

There are two main types of retail FX brokers offering the opportunity for speculative currency trading: brokers and dealers or market makers. The Forex brokerage serves as an agent of the customer in the broader Forex market, by seeking the best price in the market for a retail order and dealing on behalf of the retail customer. The Forex brokerage will charge a commission or mark-up in addition to the price obtained in the market.

Dealers or market makers, by contrast, typically act as principal in the transaction versus the retail customer, and quote a price they are willing to deal at—the customer has the choice whether or not to trade at that price.