Forex brokers are financial institutions that provide traders with access to the foreign exchange market, where currencies are traded. Here's a detailed explanation of Forex brokers: Types of Forex Brokers 1. Dealing Desk (DD) Brokers: These brokers act as market makers, setting bid and ask prices for currencies. They profit from the spread between the two prices. 2. No Dealing Desk (NDD) Brokers: These brokers connect traders directly to the interbank market, where they can trade with other traders and liquidity providers. 3. Straight Through Processing (STP) Brokers: These brokers forward traders' orders directly to the liquidity providers, without intervening in the trade. 4. Electronic Communication Network (ECN) Brokers: These brokers connect traders directly to the interbank market, allowing them to trade with other traders and liquidity providers.