How to trade in the Interbank directly?

I've been wanting to find out for quite some time: Any examples of commissions from the big banks to trade through EBS Prime?

And also, are the spreads on pairs such as EURJPY coming closer interbank than the Globex futures? TIA.
 
Has anyone tried Citibank?

http://www.citibank.com.hk/

click on investments,
Foreign Exchange Services (Get Details)
Foreign Exchange Margin Trading (Get Details)


Foreign Exchange Margin Trading
Citibank Foreign Exchange Margin Trading is designed for experienced investors in foreign currency investment.



* Offer up to 15 times the amount of your deposits
* Designated Treasury Portfolio Consultant who looks after your account and provides up-to-date market information
* Minimum collateral deposit of US$20,000 with minimum transaction amount of US$100,000 or equivalent
* Trade in 8 major currencies including USD, AUD, CAD, CHF, EUR, GBP, NZD and JPY with 28 cross currency combinations
* Innovative online trading tool - FX Margin-Online
* Order watching services

The risk of loss in foreign exchange margin trading can be substantial. Investors may sustain losses in excess of their original margin funds. Placing contingent orders, such as "stop loss" or "stop limit" orders, will not necessarily limit losses to the intended amounts. Market conditions may make it impossible to execute such orders. Investors may be called upon at short notice to deposit additional margin funds. If the required funds are not provided within the prescribed time, their position will be liquidated. Investors will remain liable for any resulting deficit in their account. Investors should therefore carefully consider whether such trading is suitable in the light of their own financial position, investment objectives and risk profile.
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I didn't know Citi offered such a small minimum account size for entry, but I can't see any of myriad posters on this board who are seeking a minimum of 1% margin be willing to deal on more than 6%.
 
How ironic, isn't it? I say that because most retail forex traders, except the most skilled / experienced ones, would be better off, in terms of probability of becoming consistently profitable, with account leverage externally capped at 15:1 or even less.

Averaging P&L of just 10 pips a day, or 200 pips a month in Euro at 15:1 produces returns of approx. 1.25% a day, 25% a month (not compounded) and 300% - 1,355% a year, depending on compounding frequency (from never to monthly).

Most traders, if they possess the right mindset, are capable of getting to a point where they net at least 200 pips every single month. As long as they don't handicap themselves by folly such as excessive leverage... anything beyond single digits per currency position, in my book.
 
I totally agree. Nobody needs more than 2% margin in my opinion, yet it is one of the main things people mention in the search for a broker.
 
Hi,

Anybody here trade with interbank directly? Can you point me to some readings or references on how exactly currency trading is transacted? What is the minimum amount? I understand that you basically need to rollover your position everyday if you wish to trade longer term by engaging in swaps like spot/next etc.
 
Quote from riskarb:

... with UBS FX. I've never had an issue with the fills. Mirrors my EBS quotes perfectly.

I never stated it was INTERbank. They are but one member of the interbank otc system. I'd feel more comfortable with UBS' credit than some ECN matching engine like COES.
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riskarb,

Do you work at a bank such that you have access to EBS? My partner and I have been looking for an interbank/open platform for some time (tried COES..but there were issues) now onto IB's IdealPro. Our system REQUIRES there to be multiple bid/ask quotes from multiple parties.

If you know of any could you let me know. Min deposits are not a problem so long as we can get access to an API for a few months to confirm that the platform is appropriate.

Thanks,
Granville
 
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