Forex Broker

A forex broker provides traders with access to the foreign exchange market, which operates as a decentralised, over-the-counter market for buying and selling currencies. Unlike stock exchanges, forex trading does not happen on a single centralised venue — instead, brokers act as intermediaries, routing orders to liquidity providers or taking the other side of the trade themselves. The broker charges for this service through the spread, a commission, or both.

Brokers differ substantially in their execution model. An ECN broker connects traders directly to interbank liquidity, offering tight spreads with a separate commission. An STP broker routes orders straight to liquidity providers without a dealing desk. A market maker broker internalises trades and quotes its own bid/ask prices. Each model has implications for spread costs, order execution quality, and potential conflicts of interest. The distinction is often summarised as the difference between A-Book and B-Book execution.

For affiliate marketers and introducing brokers, the choice of which broker to promote or refer clients to matters significantly. Broker regulation, spreads, platform support, and the quality of the IB rebate or CPA programme all affect both client satisfaction and partner earnings. Regulated brokers operating under MiFID II, ASIC, or FCA require affiliates to comply with specific disclosure and marketing rules.

Forex brokers are the primary client for forex-specific affiliate programs. Introducing brokers refer traders to a single broker and earn ongoing rebates per lot traded. Affiliates typically earn a CPA per first-time depositor or a spread-based commission on referred trader volume. Understanding broker types is essential for affiliates who need to match the right broker to the right audience segment.