What is an Intermediary in Forex?
Intermediary
Forex Trading Glossary
Quick Answer: An intermediary connects traders with liquidity, credit, or infrastructure—such as prime brokers, introducing brokers, or payment providers.
What is an Intermediary in Forex?
An intermediary facilitates transactions between buyers and sellers. In forex, intermediaries include prime brokers, introducing brokers, and payment providers that connect traders to the wider market.
Types of Intermediaries
- Prime brokers: Offer institutional credit lines and aggregated liquidity.
- Introducing brokers (IBs): Refer clients to a clearing broker in exchange for rebates.
- Payment processors: Handle deposits, withdrawals, and currency conversions securely.
Value Beyond Execution
Good intermediaries provide research, technology, and risk controls that enhance your trading business.
Working with Intermediaries
- Assess financial strength—they should segregate client funds and meet capital standards.
- Clarify fee structures including commissions, markups, and rebates.
- Ensure the intermediary’s technology stack integrates with your preferred platforms and workflow.
- Review conflict-of-interest policies, especially when multiple services sit under one umbrella.
Related Terms
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