Broker
A broker operates as a financial intermediary, facilitating transactions between two parties without directly participating in the trade itself. In the context of forex, a broker may be an individual or a firm that executes currency buy and sell orders on behalf of their clients, serving as the intermediary between retail traders and larger banks. Their primary role is to match buyers with sellers, earning a commission for their services, which can be charged to either the initiating party or both parties involved in the transaction. Unlike principals, who trade on their own behalf, brokers act solely on commission, emphasizing their role as agents facilitating market operations rather than engaging in market positions themselves.