
The only way to trade any Forex pair is through a Forex broker. These brokers are an integral part of the Forex trading universe. So what these companies do? You can view them as the middlemen who will play o position on your behalf. These brokers vary from small companies to very large ones with billions of dollar transactions.
A bit of history
Forex brokers used to contact business over the phone. If you wanted to place a trade, you would call the broker and give instructions of what to buy or sell. Nowadays, all brokers use state of the art cloud systems where a trader can trade almost everything with a click of a button. This gives you the option to gain access to reputable brokers and place trade on various financial markets, including commodities, derivatives, insurance, equities, mutual funds, etc. The trades still go through your broker who earns a commission for placing the trades on your behalf.
This technological change gave the option for individuals to access the markets. Brokers, in turn, are now able to aggregate each individual trade and consolidate these trades. These trades are then mostly run by big financial institutions.