Roger Aitken
Roger Aitken

Overcoming The hurdles of setting up a Margin FX business

With continued volume growth in retail foreign exchange (FX) trading showing little sign of abating, banks and brokerages increasingly have to deploy and ramp up cutting-edge margin trading solutions to efficiently manage their retail FX customer positions, retain and win new business and stay on top. Roger Aitken canvasses leading margin FX vendors to gauge the current state of play.

First Published: e-Forex Magazine 39 / Retail e-FX Provider / April, 2010

As the retail FX trading customer base globally surges forward exponentially rate and volume growth for the segment in the U.S. alone is registering an estimated rise of more than 20% per annum, banks and brokerages are unsurprisingly attracted to offering up new services to satiate the demands of clients trading FX products on margin.The potential in this market appears vast. Today the retail FX market in the U.S. generates about $1 billion in revenues a year, and trading volume has been increasing on the back of small investors (retail) tapping the loosely regulated $3.2 trillion-a-day currency market. By end of 2006, average daily retail trade volume reached over $60bn (c.2% of the entire FX market).Efficient client servicing Yet with that tantalising growth comes a heavy burden on banks/broker systems, staff and processes to ensure efficient client servicing. A retail FX customer base is very different from the traditional institutional and corporate demand, with a far greater number of customers...continued

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