Posted on 07 August 2009
Tags: 24-hour reporting., brokers, capital market products, currency spreads, currency trading, customizable risk management, DBFX, dbFX clients, Deutsche Bank’s expertise in FX market, Deutsche Bank’s online margin forex trading platform, economic developments, FCMs, financial institutions, financial services, first international investment bank, forex reports, forex service providers, forex trading systems, FSA, global forex market, Hedge funds, hedging capabilities, high frequency traders, History of dbfx, individuals, Introducing Broker Program, largest foreign exchange liquidity provider, leverage, money managers, online retail FX services, price quotes, Real-time streaming prices, retail market, self-directed traders, Services of dbfx, small banks, Trading Platform, trading platform of dbFX, United Kingdom, web-based charts
dbFX is a name given to a Deutsche Bank’s online margin forex trading platform for individuals and small institutions. As the world’s largest foreign exchange liquidity provider and leading provider of financial services, dbFX has decided to bring Deutsche Bank’s expertise in FX trading to the retail market.
History
In May 2006 dbFX was launched in response to the growing global forex market and also due to the increasing client demand for streamlined access to capital market products. Initially it was offered to clients across Europe, the Americas and Asia Pacific, later on in October 2007, dbFX became the first international investment bank on providing online retail FX services to the Middle East.
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Posted on 31 July 2009
Tags: assets under management, AUM, bank account, banking firms, Banks, bid and ask prices, brokers, central banks, CFTC, commercial turnover, currencies, Currency exchange, currency trading, foreign exchange market, Foreign Exchange Market Participants, foreign exchange transactions, forex, FX, Hedge funds, Hedge funds as speculators, inflation, inter-bank market, interest rates, international payments, intervention by central banks, Investment Management Firmscurrency overlay operations, large hedge funds, large multi-national corporations, market makers, money supply, Money Transfer/Remittance Companies, NFA, Non-bank Foreign Exchange Companies, Retail Foreign Exchange Brokers, retail FX-metal market makers, smaller investment banks, speculative trading, spreads
Unlike a stock market, where it is required that all participants have access to the same prices, the foreign exchange market has been divided into levels of access. The inter-bank market is at the top, which is constituted of the largest investment banking firms. Within the inter-bank market, spreads, which are the difference between the bid and ask prices, are razor sharp and often the players outside the inner circle do not know about them.
The difference that is present in between the bid and ask prices widens (from 0-1 pip to 1-2 pips for some currencies such as the EUR). This happens due to volume. If a trader can provide a guarantee of large numbers of transactions for large amounts, then they can possibly demand a smaller difference between the bid and ask price, and it is known as a better spread. The size of the “line” i.e. the amount of money with which they are trading, determine the levels of access that make up the foreign exchange market. The top-tier inter-bank market accounts for 53% of all transactions. After that often there are smaller investment banks, that are followed by large multi-national corporations, large hedge funds, and even some of the retail FX-metal market makers.
Banks
Every day both the majority of commercial turnover and large amounts of speculative trading is provided by the interbank market. Daily billions of dollars are being traded by a large bank. On behalf of customers some of this trading is undertaken, but much is conducted by proprietary desks, trading for the bank’s own account. Nowadays, however, much of this business has moved on to more efficient electronic systems.
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Posted on 31 July 2009
Tags: Bank for International Settlements, brokers, central banks, Chicago Mercantile Exchange, corporations, currencies, currency futures, currency speculators, currency trading, daily turnover, dealers, derivatives, Euromoney's annual FX Poll, exchange-traded FX, foreign exchange, foreign exchange market, foreign exchange market volume, foreign exchange trading, forex, fund management assets, FX, FX futures volume, global foreign exchange, global turnover, governments, Large banks, large international banks, London foreign exchange market, Market size and liquidity, market-maker, minimum trading size, most active traders account, most liquid financial markets, New York foreign exchange market, OTC market, other financial institutions, retail broker, retail traders, Tokyo foreign exchange market, Trade, trade of currencies, trading of FX derivative products, traditional transactions, UK
At present, one of the largest and most liquid financial markets in the world is the foreign exchange market. Large banks, central banks, currency speculators, corporations, governments, and other financial institutions are all included among its traders. There is a continuous growth in the average daily volume in the global foreign exchange and related markets.
It has been reported by the Bank for International Settlements that the daily turnover has been over US$ 3.2 trillion in April 2007 . Since then, we can see continuous growth in the market. According to Euromoney’s annual FX Poll, between 2007 and 2008 volumes grew a further 41% .
London as Global Center for Foreign Exchange
Out of the $3.98 trillion daily global turnover, in London trading has been accounted for around $1.36 trillion, or we can say that it is 34.1% of the total, and this makes London by far the global center for foreign exchange. In second place it is New York, as trading in New York is accounted for 16.6% and on third places we have Tokyo where the trading has been accounted for 6.0%. Moreover, $2.1 trillion was traded in derivatives in addition to “traditional” turnover.
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