Frances Maguire
Frances Maguire

Banking on numbers: Making strategic moves into Retail FX

The spotlight is now on the retail FX sector, which could bring new revenue streams for those banks quick enough to respond. Frances Maguire investigates

Electronic trading is opening up FX trading to retail investors. More efficient trading systems allow retail investors to trade amounts up to 50 to 100 times their margins. Up until last year, when Deutsche Bank and ABN Amro entered the market, retail platforms and non-bank currency trading platforms dominated the retail FX market. But this now looks set to change, as more banks are understood to be looking very seriously at entering this space, either through white-labelling partnerships with existing currency platforms to accelerate their time to market or through buying off-the-shelf retail trading platforms, such as the recently launched RealStream Margin, developed by Cognotec. It is understood that Lehman Brothers is now one of the four banks and dealers bidding for the 35% stake in online currency platform FXCM, once held by the now defunct Refco. Justyn Trenner, CEO and principal of ClientKnowledge, and author of a Retail FX report published in February, says banks need to consider more than just...continued

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