Hjalmar Schröder and Hans-Jörg
Hjalmar Schröder and Hans-Jörg

Retail e-FX: the next big currency market revolution?

Hjalmar Schröder and Hans-Jörg Sollberger discuss the opportunities that retail FX margin trading platforms offer to both hedgers and speculators and its future growth prospects.

First Published: e-Forex Magazine 31 / Leader / April, 2008

By Hjalmar Schröder, Managing Director, Global Head of FX Electronic Trading and Risk Management and Hans-Jörg Sollberger, Director, FX e-Commerce at UBS Investment Bank Extensive media coverage of the retail FX market has generated considerable interest in currencies across a broad public. Heightened awareness of the opportunities that retail FX margin trading platforms offer to both hedgers and speculators, and the growth of their customer base beyond real retail users, are supporting an estimated 30% annual growth rate in retail FX volumes. The current average daily volume on retail FX platforms is estimated to be in excess of $60 billion. At first glance this seems just a fraction of a global FX market, the estimated volume of which is around $3.2 trillion a day1. More than half of that global figure is however accounted for by FX Swaps and about half of the remainder is interbank trading. By this reckoning, then, retail FX...continued

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