FOREX: Trading 100+ million (multiple times intraday) at interbank conditions

[MTM]

Hello!

I´m currently wondering where you can trade 100 or more million units (with MAX (!) 4% margin) multiple times intraday at interbank conditions. Currenex would be the first choice I guess, but how can you get into it as a private customer? I have read that FXCM offers Currenex, but obviously they just got a shaby platform called PropFX - which is "powered by Currenex technology" - where they claim to have a daily volume of $500 - 1000 million. This can´t be the place to trade 300 million five times a day, at least not if you want to get the trade executed within a minimum of 3 pips off market prices.

Currenx has about 100 billion a day. I´m really keen on this plattform. Main questions/criteria would be:

- Which margin(s) can you get for e.g. a 10 million USD account? I wouldn´t accept more than 4%.

- a 100+ million trade shouldn´t be executed at more than 2 pips off interbank marketprice. Is this possible with Currenex considering liquidity?

BTW: Does there apply the 2 day rule with Currenex? It wouldn´t be fine if you have to close a trade after 2 days when you speculate on a 1 month move.

Thanks!

[usa25]

the retail side fxcm/refcofx same thing

offer a cut down version of that product - suitable for 100k to 5 mio

you would need to go to refco to get currenex where you are limited by the size showing per currency

ie 3133 30by 15 you need to clear out the bank bids etc then see what comes back or alternatively request a quote

this is an execution system there is no risk control built in so its possible for you to lose more than your money on deposit

if you can depsoit 5 mio or more go to deutesche or dresdner direct cause all you are doing is paying refco to trade with them anyway

currenex is the system company refco is the distributor of it in competition with fxall

hope this helps

[MTM]

But how can you open a trading account at Deutsche bank. Which system are you then trading with? Currenenx or similiar? Or do you have to call them if you want to place such trades...

[usa25]

currenex
you need to call a broker at refco and say you want to pay no more than 20 bucks per million traded

deutshce bank or dresdner start at prime brokerage area or treasury area - ie you are hitting in 100 mio a clip they will get it set up for you pretty quick, just be sure you have the funds available to do this because if you waste their time they wont be happy

bear stearns would be another - i just forget the guys name now - but same thing call the prime brokerage area and start their

me i have used them all - retail brokers suck - the quality of the people and the rules they have in my view are rip offs - they justify it by saying its retail.

currenex is bit better but its not very functional its a execution only system which if your experience is low will not suit you

dealing direct with a bank dealing desk will give you better flow information and order execution - as well as better entry and exit due to them adhering to ebs pricing

if you require any more information you wud have to email me because i could not really reveal any further information here, other wise call bear or deutsche

gl with your trading

[zonsb]

BTW: Does there apply the 2 day rule with Currenex? It wouldn´t be fine if you have to close a trade after 2 days when you speculate on a 1 month move.


Did you learn the answer to your question?

Also, do banks, not "retail" market makers, debit and credit rollovers at 5pm EST, or none at all?

zonsb

[Nonpiker]

Just realize with a bank almost all are going to require you to take care of all your tom/next deals and pnl pieces. Not a big deal for the benefits but just trying to make you aware.

You should probably get around 3% margin requirements. When you say +100 plus no more than 2 pips off market price, this may not be reasonable depending on what times and what you are dealing in. In liquid currencies at liquid times its possible, in illiquid pairs and off hours there is just no way.

[Gamma_Jammer]

I have to say, if I had to make this choice right now, what I would do is pick a decent bank, agree a set of spreads (size dependant if necessary) and trade almost entirely over the phone. If you're dealing in decent size you should get good customer service, and if you show them some limit orders from time to time and generally get to know them a bit they'll (if they're any good) look after your stops and try and keep you in.

Plus, as USA25 has correctly stated, you will get flow information that can be valuable (even if you can't always put an exact figure on how much it's worth).

Generally, the better you treat people the better you get treated in forex. It is, and always has been, very much a relationship game. And this is despite the increasing commoditisation of pricing and disintermediation of counterparties.

My $0.02

Good luck

GJ

[Nonpiker]

GJ is totally right. You can not put a price on the info received. If you are flipping 100's daily you are a top notch customer to your sales coverage and the info and perks passed on should reflect that.