Dealer
A firm or person who trades from their own account, quoting prices and taking the other side of…
In plain English
A firm or person who trades from their own account, quoting prices and taking the other side of customers' trades.
A dealer buys and sells for itself, unlike a pure broker that only passes orders along. Dealers make money from the spread between their buy and sell prices, and sometimes from positioning.
Many retail forex brokers act as dealers, also called market makers. That is legal and common, but it means your broker may be your counterparty.
Keep this word for good
Your free Private Swap Lounge saves the terms you’ve learned and quizzes you on them. Portal under construction. Expected delivery date is December 01, 2026.