what is difference between trading fx with big bank and broker?
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Thread: what is difference between trading fx with big bank and broker?

  1. #1
    Dear fellow participant

    I am confused to select broker between trading using a fianancial institute like a Barclay Bank ,Saxo Bank or varengold in Germany and exchange directly with Banks or exchange with brokers like interbank fx,fxcm or somewhere else that is not a Bank. What is the difference between these. That one is going to benefit me as personal trader.

    I enjoy trading platform out of meta4 cuz it's easy to draw a chart and can change currency pair quickly but opening order is awful when the market moving.it is constantly requote. . .pleae advice me to select which one I must exchange with. . .Bank or Broker?

    Thank you all

  2. #2
    It depends upon what every broker/bank offers. The big banks (i.e. Goldman-Sachs, UBS, RBC Carlin, etc.) are more designed for institutional customers with millions of dollars that trade Forex as a Futures contract(most, actually, will not even allow you to open an account without a massive dollar amount).

    FOREX brokers mostly play into the retail trader and provide more compact solutions. Based on the degree of security you are searching for, a renowned retail broker should do you just loe.

    However, in my opinion, the best option is to get an account with a broker that's backed by a big bank (i.e. dbFX, CitiFX Pro, etc.). These brokers generally have less retail-friendly charts and platforms and stricter regulations, however, as demoned by the FXLQ meltdown, safety of having a massive institution behind your broker is vital.

    If this does not match your requirements, one of the larger retail brokers (i.e. FOREX.com, FXCM, CMS, Oanda) should do just fine. Safety, options, and features.

  3. #3
    Quote Originally Posted by ;
    It actually depends on what each broker/bank offers. The big banks (i.e. Goldman-Sachs, UBS, RBC Carlin, etc.) are more intended for institutional customers with millions of dollars that trade Forex as a foreign exchange contract(most, in fact, won't even let you open an account without a massive dollar amount). Actually, the huge banks encourage large institutional customers for, spot fx, forward, swaps, and other fx derivatives like options. These are OTC products which futures aren't.

    FOREX brokers mostly play to the retail trader and offer more compact solutions. Depending on the degree of security you are searching for, a renowned retail broker must do you just loe.

    However, in my opinion, the best option is to have an account with a broker that is backed by a huge bank (i.e. dbFX, CitiFX Pro, etc.). These brokers generally have less retail-friendly charts and platforms and more stringent regulations, however, as demoned by the FXLQ meltdown, security of having a massive institution behind your broker is essential. DBFX, CitiFX Pro, and ABN Amro's marketindex are white labels of additional retail brokers. DBFX whitelabels FXCM, CitiFX Pro whitelabels Saxo and ABN whitelabels Oanda. They all are divisions or subsidiaries of their actual banks. Meaning all of them are more secure then any retail broker. Also, these are their retail platforms and all of them have institutional platforms for institutional customers just like the banks you mentioned previously.

    If that doesn't match your requirements, among the larger retail brokers (i.e. FOREX.com, FXCM, CMS, Oanda) must do just fine. Sufficient security, options, and attributes.
    Safety of funds are the 1 thing you have to worry about with any broker much more so then almost any bank. I mean no one in REFCO including myself would have thought that they'd collapse.

    Hotspot, Oanda, and dbfx are good choices IMO. Hotspot and Oanda would be the top two I'd look at.

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