Retail FX Platforms: Helping clients through volatile markets

Shaken confidence in global markets and various banks in particular has led to a lack of liquidity - at times even in the major currencies. For example, there were times in late September when spreads widened considerably in the interbank market even for the largest currency pairs such as EURUSD, reflecting a low appetite for risk and general nervousness in the market.

First Published: e-Forex Magazine 34 / Debate / January, 2009

However, such episodes were brief and better spreads returned to major currencies, albeit perhaps not yet to standards enjoyed before the crisis. The same cannot be said for some of the smaller pairs, where the flight from liquidity appears to have  become a more permanent feature.  According to those we have interviewed, Retail FX appears to have stood up to the crisis well,  demonstrating the continued resiliency of this very profitable sector, as well perhaps the effectiveness of new regulatory and capital risk to exposure ratio requirements in major jurisdictions. Recent volatility has clearly affected some clients very positively, whilst others like those depending on trading on very tight spreads are "are definitely through the looking glass right now," according to one commentator.We spoke to Alain Broyon, CEO of Dukascopy – SWFX Swiss FX Marketplace, Ross Ditlove, CEO of MB Trading, James Pieron, CEO of  JDFX,  Vladimir Kisyov, Head of Marketing and Sales at Deltastock,...continued

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