What is a bank forex?
Such a concept as “bank Forex” began to be used not so long ago. Banks in currency trading are the main suppliers of liquidity. They noticed the interest of individuals to Forex and saw in this the prospects for business. At present, banks with great activity are developing this direction …
Not so long ago, it was not possible for a private trader to earn honestly on currency trading in our country. The main cause of failure was not honest brokers – dealing centers (DCs) who practiced “kitchen forex”.
In the bulk of DC in Russia, customer transactions are not output to the real market, as a result of this offsetting customer transactions occurs within the company. On the real market, the trading positions of the clients are deduced only by the largest DCs and then not completely.
The main mass is not interested in earning their clients at the auction, because their income is even the smallest loss of the client.
In our country, the Forex market is not regulated, it is not possible to bring the DC to account for this trade. On the one hand, no one deceives the client, since the LC clearly fulfills its instructions, but due to the deterioration of the terms of trade (requotes or slippage), the customer remains at a loss, because the important role is played by the execution of operations when opening and closing positions.
What is a bank forex?
In this regard, Forex in our country has acquired a not very good reputation. Often, DC customers who understand this method of doing business, compare it to a casino, and stop trading.
However, there is also a civilized way, thanks to which the broker earns in the currency market, while he does not need to promise new traders gold mountains. This is the way the banks have chosen.
The bank helps its clients in trading in securities, this is similar to the standard scheme of brokers’ work, fulfilling client’s orders, however, he takes the commission for his help. The size of the commission is 1-2 points (not a very large premium to the spread). The bank has its advantage in ensuring that their client successfully trades forex online.
Usually well-prepared clients come to the bank’s forex who understand the full risk of this market and are aware of the dangers.
The withdrawal of funds is carried out without problems, and quotations always correspond to quotations of the forex market. Banking Forex online constantly increases the number of its customers …