trading directly with a bank

Discussion in 'Forex Brokers' started by gnostic4, Mar 26, 2008.

  1. gnostic4


    does any body trade FX directly with a bank, ie UBS, JPmorgan etc.
    if so what are the capital rquirements fo doing so.
  2. I trade with german bank varengold . I like it. they have leverage 100;1 and also automatic dealing desk.
  3. to trade with a bank you need alot of capital plus a million. you need to fill trading requirements, pass a long due dilligence(2week process) and they can still reject you as a client.
  4. Daal


    what kinda spread can you get on the interbank market directly
  5. its usually around 1-2 pips on the majors but it usually is variable.
    The best way to set this up is through a broker that already has a relationship with a bank and will allow you to trade on the feed. they will charge you commission.


    To get a direct prime brokerage relationship with a tier 1 bank where you are dealing on credit lines on their platform, you are going to need signifigant capital, a little less than 10 million US to be safe, and you are going to have to do atleast a hundred million a day in volume to make them happy and make you seem worthwhile. You are responsible for your own swaps, and your credit lines would allow you to trade FX Spot as well as forwards and options if you desire. It is rare to find an individual trader who is prime broking directly with a tier 1 bank who makes markets in the "interbank market"
  7. I've been trading some forex with IB. You pay a commission (0.2 pips) but get the bid/ask from the best of several banks that quote. And one important advantage over trading with a single bank is that you can get price improvement. I had one limit order this week for AUD and it was filled 3 pips better! That won't happen when your broker/bank is a market maker.
  8. stptrader


    best way to access bank liquidity is to go through a PB like FC Stone. You'll pay around $12 per mio but the credit screening process is far easier. You could wait months to get credit from a tier 1 name, if at all.