A foreign exchange broker, also known as an FX broker or a forex broker, buys and sells currencies on behalf of clients while charging a commission for the service. Foreign exchange brokers are ‘middlemen’ who match the currency buy and sell orders from their clients to other clients orders. A foreign exchange broker will guarantee that trades will be actually settled, avoiding the need for buyers and sellers to check each other’s creditworthiness. Thanks to a wide range of connections with liquidity providers (mostly banks) and dealers, a foreign exchange broker will usually get preferential exchange rates that can be passed on to clients at low spreads.