The forex market as we know today was traditionally the dominion of the large banks and institutions that make up the interbank exchange, where these financial giants trade currencies among themselves. This wholesale operation actually makes up majority of the transactions made on the market, with rest, including retail trading, making up their own niche spots in the market.
The retail side of forex trading has experienced
tremendous growth these past few years, helped along by electronic trading and
an ever-increasing number of brokers. This last point is especially important,
since without brokers, anyone who would want to get into the market would need an
impossible large amount of money to even begin trading.
While a large number of retail brokers are internet-based,
many of these companies still keep a human component to their operations. If
you’ve ever interacted with someone representing a forex company, it’s likelythat they’re either a) an introducing broker or b) a financial consultant.
What’s the difference between the two?
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