I hear (and I have reported in my Euromoney column www.euromoneyfix.com) that Citi has struck a deal with Saxo. It will announce it's entering the retail space next week. It shows how important retail FX has become and I'd imagibne it will be welcomed by the NFA.
E trade UK white labeled SAXO's forex platform -- or so it was a few years ago -- and see what happened to E trade. Birds of feather, I suppose. I also suppose that, if this report is true, CITI must be worse off even than current conjecture.
"E trade UK white labeled SAXO's forex platform -- or so it was a few years ago -- and see what happened to E trade. Birds of feather, I suppose. I also suppose that, if this report is true, CITI must be worse off even than current conjecture." I totally disagree with that. Where would you rather put your margin? With Citi or one of the numerous bucket shops that exist? Retail has grown in importance, but managing the accounts is possibly beyond most banks. Deutsche, UBS, RBS and ABN Amro have all done similar things.
Shit based on what has happened to Citi as of late, I wouldn't want my money anywhere near them for any reason.
I just hope it will be an ECN platform (however unlikely). The world doesn't need yet another dealing desk broker..
How about... gee, I dunno... none of the above. Those are not the available options for retail forex, as you know very well. What a meaningless question to ask, especially for someone in your position.
Saxo is not an ECN platform, it is a dealing desk. But I can't imaging Citi white labeling a platform from such a small outfit, but then again, there is DBFx. Penson currently white labels this platform, but this I would expect from a house as small as them. BTW, Citi is one of the larger currency players out there. If you ever had a chance to work with EBS, you would see their name probably more than anyone else from the US side.
i just wish these big banks that enter the retail side of things come out with there own platform and there own spreads instead of white labeling and giving more business to these bucketshop retail brokers.
I personally think Saxo is a reputable company. It's carved out a really succesful role and is probably worth in excess of $1.2 billion. Small in comparison with the likes of Citi, but huge in comparison with most US outfits. In Europe, we have not seen the same issue with all the shysters entering the market and the competition is healthy enoug that the dealing desk thing is not the issue it is in the US.
http://www.elitetrader.com/br/?action=view&R_FirmID=197 I first heard that Saxo was a bucket shop elsewhere, not here on ET.