IFC Markets: CySEC RegulatedEXNESS: low spreads – just excellent! 1 trillion daily trading in forex investment bank exchange is done by retail accounts, retail trading has grown steadily in the past years as Forex came to be considered an asset class.
The driving force behind retail trading is a desire to make money, exactly the same driving force behind investment bank trading. While retail traders and investment bank traders have the use of many of the same tools, the investment banker has several big advantages. The Investment Bank Trader Investment banking offers a big salary but also big responsibility. There are countless stories of traders crashing and burning after a successful run. Nevertheless, being a trader at a large financial institution does have perks.
Aside from having larger position limits than any retail trader would have — tens of millions of dollars instead of tens of thousands, the investment banker has access to client flow information, which can help shape trading decisions. Now, with the euro at 1. 250 million at the current rate of 102. 20 million after the pair rises.
Another perk that the investment trader has that a retail trader does not is the ability to take a loss. A bank trader would not be fired because of losing money under these circumstances. In contrast, an event like this could wipe out a retail trader. The Retail Trader The retail trader has come a long way since the mid-1990’s when retail Forex trading really began to take off. Prior to that, anyone trading currencies for his own account had many things working against him, from not having an independent price data source, to being ripped off by the early brokers, and to not having access to the same kind of information that bank traders have.