A Forex broker, act as a medium of foreign currency exchange. Banks and various financial institutions serve as Forex broker for their clients. These institutions execute different Forex trading activities, in-accordance with the requirement of their clients. Forex brokers play a major role in Over-The-Counter (OTC) trading of foreign currencies. Different derivative instruments like Futures contract and Options contract are used for trading Forex in the OTC market.

Forex brokers provide online and telephone brokerage services to their clients. Registered Forex brokers allow their customers to personally execute trade in foreign exchange market, through their trading platforms. A customer or a client has to open an account with a Forex broker, with a minimum specified amount, for trading in FX market.

Some Forex brokers also provide market information and research inputs to their customers; so that customers could form a logical decision before trading in a particular currency. Forex brokers provide trading platforms not only for individual customers but also for various corporate entities. Few established brokers also handle huge Forex exposures of non-financial corporate organizations.