What are currency brokers?

Currency brokers are a group of specialists who focus on the purchase and sale of currencies and the ability to transfer money abroad. Unlike other brokers, this group specializes in currencies only, and this allows them to have a deep understanding of the global currency market.

What is a forex broker?

Forex Brokers are companies that are licensed by a regulatory agency (for U.S. traders, by the CFTC and NFA) to grant you the ability to buy or sell currencies through an online trading platform. Currency pairs are based on the price of one currency (the counter currency) for a specific quantity of units of the other (the base currency).

Are currency brokers cheaper than banks?

Currency brokers are far cheaper than banks for foreign exchange and international money transfers. A bank can charge an exchange rate mark up of up to 5%, while most established currency brokers aim to charge up to 1%. However, most currency brokers only display exchange rates on their website rather than the mark-up.

Are currency brokers regulated in the UK?

All financial service businesses in the UK have to be regulated by the FCA, and currency brokers are no different. You can check to see if a currency broker is regulated on the FCA register here. Being regulated by the FCA means that the broker has been vetted and adheres to certain compliance and client fund safety rules.