Компания На Форекс

What Is a Forex Broker?

A forex broker is a financial services company that provides traders access to a platform for buying and selling foreign currencies.

Forex is short for foreign exchange. Transactions in the forex market are always between a pair of two different currencies.

A forex broker may also known be as a retail forex broker or a currency trading broker.

Understanding the Forex Broker

The foreign exchange market is by necessity a global and hour market.

The clients of a forex broker include retail currency traders who use these platforms for speculation on the direction of currencies. Their clients also include large financial services firms that trade on behalf of investment banks and other customers.

Any individual forex broker firm will handle only a small portion of the volume of the overall foreign exchange market.

The Role of a Forex Broker

Most foreign exchange transactions are between pairs of the currencies of the 10 nations that make up the G The nations and their currencies include the U.S. dollar (USD), the Euro (EUR), the pound sterling (GBP), the Japanese yen (JPY), the Australian dollar (AUD), the New Zealand dollar (NZD), the Canadian dollar (CAD), and the Swiss franc (CHF).

Most brokers allow customers to trade in other currencies, including those of emerging markets.

Using a forex broker, a trader opens a trade by buying a currency pair and closes the trade by selling the same pair. For example, a trader who wants to exchange euros for U.S. dollars buys the EUR/USD pair. This amounts to buying euros using U.S. dollars.

To close the trade, the trader sells the pair, which is equivalent to buying U.S. dollars with euros.

If the exchange rate is higher when the trader closes the trade, the trader makes a profit. If not, the trader takes a loss.

Opening a Forex Account

Opening a forex trading account these days is quite simple and can be done online. Before trading, the forex broker will require a customer to deposit money into the new account as collateral.

Brokers also provide leverage to customers so they can trade larger amounts than they have on deposit. Depending on the country the trader is trading from, that leverage can be 30 to times the amount available in the trading account.

High leverage makes forex trading very risky and most traders lose money attempting it.

How Forex Brokers Make Money

Forex brokers are compensated two ways. The first is through the bid-ask spread of a currency pair.

For example, when the Euro-U.S. Dollar pair is priced as bid and ask, the spread between these two prices is , known as pips. When a retail client opens a position at the ask price and later closes it at the bid price, the forex broker will collect that spread amount.

Secondly, some brokers charge additional fees. Some charge a fee per transaction or a monthly fee for access to a particular software interface or fees for access to special trading products such as exotic options.

Competition among forex brokers is currently intense and most firms find they must eliminate as many fees as possible in order to attract retail customers. Many now offer free or very small trading fees beyond the spread.

Some forex brokers also make money through their own trading operations. This can be problematic if their trading creates a conflict of interest with their customers. Regulation has curtailed this practice.

Regulation of Forex Brokers

The industry is regulated by the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA).

Anyone considering opening a forex account can research the available brokers through the NFA website or through Investopedia's broker reviews.

About Foreign exchange company

A non-bank foreign exchange company also known as foreign exchange broker or simply forex broker is a company that offers currency exchange and international payments to private individuals and companies. The term is typically used for currency exchange companies that offer physical delivery rather than speculative trading. i.e. there is a physical delivery of currency to a bank account.

Foreign exchange companies are normally distinct from money transfer companies or remittance companies and bureaux de change as they typically perform high-value transfers unlike their money transfer counterparts that focus on high-volume low-value transfers generally by economic migrants back to their home country or to provide cash for travelers. The transactions offered by foreign exchange companies are usually either spot transactions or forward transactions.^[1]

Some foreign exchange companies, such as Moneycorp^[2] and Global Reach,^[3] offer foreign exchange options for business clients too. Given the increased regulation and capital requirements around foreign exchange products of this nature, the foreign exchange companies who offer these products do so through a separately regulated entity.

Companies by country[edit]

India[edit]

Foreign exchange markets in India have shown a steady increase in volumes as a result of increasing levels of foreign trade, driven by improvements in the communications systems and greater access to the international exchange markets.

The volume of transactions in these markets amounting to around USD 2 billion^[4] per day does not compete favorably with a well developed foreign exchange market of international repute but with the entry of online Foreign Exchange Companies the market is steadily growing.

Around 25% of currency transfers/payments in India are made via non-bank Foreign Exchange Companies.^[5] Most of these companies use the USP of better exchange rates than the banks. They are regulated by the Foreign Exchange Dealer's Association of India (FEDAI) and any transaction in foreign exchange is governed by the Foreign Exchange Management Act (FEMA)

Uganda[edit]

Main article: List of foreign exchange bureaus in Uganda

Australia[edit]

The Australian foreign exchange market has grown considerably to be the highly liquid, globally integrated market that it is today.^[6] The foreign exchange market in Australia is regulated by the Australian Securities and Investments Commission (ASIC). In , the local market was the eleventh largest in the world and the AUD/USD was the sixth most traded currency pair globally.^[7]

United Kingdom[edit]

The UK non-bank foreign exchange market is one of the most advanced and competitive around the world. In , it was estimated that 14% of currency transfers/international payments processed in the UK were made via non-bank Foreign Exchange Companies.^[8] In , the share of Britain’s biggest banks in the market supplying UK companies' daily foreign currency needs fell for a second year running. The biggest non-bank provider in the UK was U.S.-headquartered Western Union whose market share rose to percent from percent.^[9]

UK foreign exchange companies are regulated by the Financial Conduct Authority (FCA). They are usually authorised by the FCA as either an Electronic Money Institution or Authorised Payment Institution.

The selling points of UK foreign exchange companies are usually price and service. For individuals and SMEs, they will usually offer better exchange rates and cheaper payment fees than a customer's bank. Many foreign exchange companies will provide clients with a dedicated account manager too. Something that is generally not possible for individuals and SMEs with a bank.

Recently reported net profit/loss of well-known UK originated foreign exchange companies (taken from companies house):

United Arab Emirates[edit]

As per the world bank report, the money exchange business in the UAE has shown steady growth in as remittances rose nearly five per cent to $29 billion.^[10] Most of the GCC states have announced major plans for converting their countries into world-class business hubs. This will further enhance exchange business in the eunic-brussels.eu money transfer business in the UAE continued to grow last year as exchange companies reported up to 10 to 15 per cent increase in transactions in compared to the previous year. New development around the UAE is also set to give a boost to the tourism sector, which would, in turn, increase demand for currency exchange services^[11]

Two major Foreign Exchange companies in UAE

Singapore[edit]

In Singapore, foreign exchange companies are governed by the Monetary Authority of Singapore under the Money-Changing and Remittance Businesses Act^[12] which sets out the criteria for license application^[13] as well as guidelines when it comes to the prevention of money laundering and countering the financing of terrorism.^[14] As of June , there are money changing businesses and remittance companies in Singapore.^[15]

See also[edit]

Notes[edit]

References[edit]

The first thing Christopher Terry wants you to know is that he’s a working-class guy from the Bronx.

The second?

Baby-faced Terry, with his slicked-back hair and slight paunch, wants you to know that he’s a top-notch trader in “everything under the sun,” from equities to options to foreign exchange.

“If you’re a forex trader, act like it,” he says, extending his arm in a classic New York City boroughs gesture.

That said, it was Terry’s earlier effort in Amway, the world’s largest multilevel marketing (MLM) company, that gave him the idea for his current venture: iMarketsLive, an MLM — or what he calls “networking marketing” — company that purports to teach participants how to trade forex, a market so risky that even the world’s greatest money managers often utterly fail at it.

“I didn’t make any money in Amway. I made zero. But it created a mindset of wealth,” says Terry, 53, who says his girlfriend got him into Amway in

After neither Amway nor the girlfriend worked out, he says, he moved on to day trading in the mid-’90s. Terry also says he was one of the original SOES bandits — a group of individual investors who exploited Nasdaq’s Small Order Execution System for day trading, which helped launch electronic communication networks (ECNs) — before he moved on to forex after stock markets crashed following the terror attacks of September 11,

“I thought, ‘How can I mix and match something?’ Why not create a network marketing model and marry the two?” Terry explains all of this in an hour-long YouTube interview with Troy Dooly, an adviser to iMarketsLive’s board of directors and executives.

Terry did not return a request for additional comment.

“It’s fresh, it’s something new,” Dooly says to Terry as the two chat in the latter’s Las Vegas condo. Multiple computer screens flash before them, including one from iMarketsLive screaming “Design your own lifestyle” and another with squiggly lines that appears to be a trading chart.

iMarketsLive is definitely different. The MLM world is full of people hawking everything from anti-aging potions and scented candles to diet shakes and leggings in a business structure that is often alleged to be a pyramid scheme. That’s because, according to critics, the only way to make money in most of these businesses is not to sell their pricey products to the public but to convince others to join in and do the same thing — in other words, by recruitment.

Critics say that appears to be what iMarketsLive does too.

Dig further into iMarketsLive’s past, and you’ll soon find some uncomfortable facts.

The company has been banned from offering financial services and products in Belgium and has been the subject of warnings by France and Spain, according to a release from the Financial Services and Markets Authority, Belgium’s financial regulator, which says, “The system proposed by International Markets Live exhibits features characteristic of a pyramid scheme.”

In the U.S., the forex-trading MLM company also has come in for its share of complaints to the Federal Trade Commission, according to consumer advocacy nonprofit Truth in Advertising, which recently posted several of them on its website. “[I] wanted to learn to trade but all guys on top wanted was marketing. [I] realised its an pyramid scheme . . . alot of people contacted me on instagram and said same thing,” reads one complaint. Adds another: “I decided to unsubscribed and block them from my bank which apparently had the company in the list of scams.”

Terry claims the company is far from being a pyramid scheme. “I don’t have a pyramiding structure. It’s like a matrix. We’re all working together synergistically,” he says in the YouTube video — a popular promotional tool of the MLM movement.

In , million people in the U.S. were involved in direct selling with MLM companies, according to the industry’s lobbying group, the Direct Selling Association, which says retail sales in the U.S. were $ billion that year. Both numbers have fallen since

Since then, however, a raft of much smaller MLM companies have proliferated. iMarketsLive, which Terry calls a “virtual company,” is one of them. Although it lists New York City as its headquarters, iMarketsLive is actually run out of Terry’s Las Vegas pad, with tech support from people in Russia, China, and Pakistan, he says.

It may have been only a matter of time before the worlds of high finance and MLM connected like this. After all, for years hedge funds, private equity firms, and moguls like Carl Icahn and Warren Buffett have been taking stakes in the bigger MLM companies, like Herbalife and Pampered Chef, a Berkshire Hathaway company whose products are pots and pans.

Dooly even compares Terry to Buffett. “I kind of see the same mindset here,” he suggests.

So why not flip it around and let MLM participants try their hand at investing or trading? And if you’re the type of dreamer drawn to MLM companies, why not dream big? The $5 trillion forex market is certainly dream-worthy.

It appears only two other MLM companies are focusing on this market. One of them, Wealth Generators, sued iMarketsLive in in a Utah federal court, alleging it had stolen confidential information and intellectual property. Wealth Generators also alleged that its rival bribed its leaders to join iMarketsLive.

Another potential rival — Copy Profit Success Global, which plans to offer its own trading tools — was sued by iMarketsLive in June in a Nevada federal court.

Newcomers to iMarketsLive are told Terry has made $85 million, according to consumer complaints filed with the FTC. His pitch in the YouTube interview is that any other working-class guy can make it too — probably on his lunch hour, from his iPhone.

“They tell prospects that it’s a ground-floor opportunity because for the first time ever, you can make money off the product and not by recruiting,” according to the FTC complaint, which continues,
“it’s not true at all. . . . they are selling people the fake dream that the big bucks come from trading, not recruiting.” The FTC declined to comment for this article.

iMarketsLive isn’t a broker, however, so people who join have to hire their own forex broker to actually trade, which Terry says means that neither he nor the company has to get regulatory clearance from the National Futures Association. “I wanted our company to be clean,” Terry says. “Clean, clean, clean.”

Apparently, it wasn’t clean enough.

In a notice to users Institutional Investor has obtained, iMarketsLive said that FXCM, a broker it had been recommending, was locking customers’ accounts because they were using an unregulated expert adviser — which, in this case, was an iMarketsLive product called FX Signals Live.

That product allowed people to passively mirror Terry’s trades. “Your money can work for you 24 hours a day” whether you’re “sleeping, partying, working, or all three,” Terry says in the video. “Let’s just say [you don’t] want to learn. Just put your money to work. That’s it.”

After FXCM locked the accounts, iMarketsLive suggested people move them offshore to an unregulated broker. “If you are interested in moving to another broker to reduce your risk of your account being blocked by FXCM or any U.S.-regulated broker, then we can suggest the following brokers that accept U.S. clients,” it added, before listing them.

iMarketsLive says it has since discontinued FX Signals Live. However, it still has other means to entice prospects, like the IML Harmonic Scanner, which it says “automatically draws and labels different harmonic patterns in the forex market” and appears to be some type of chart-based technical analysis.

Terry says he will continue to “flood the market” with “high-quality product,” and taunts finance professionals. “I’m not saying I’m calling BS on the trading industry, but I am,” he said in the Dooly interview.

But Truth in Advertising asks, “How much better are the trading tools that iMarketsLive offers than the services that a broker provides? If the company’s products are inferior by comparison, you may have a tough time selling the products. And if the ‘opportunity’ side of the business is less about selling products than about recruitment, well, that’s one of the hallmarks of a pyramid scheme.”

Moreover, forex trading is often highly leveraged and, partly as a result, risky. It also has a low cost of entry, which is why Terry says he chose that market for his venture. “Forex gives the individuals who don’t have a lot of money a low barrier to enter,” says Terry. “You could start a forex account for 50 bucks, where on these other markets it’s a thousand, two thousand, five thousand. But forex allows people to come in at a very, very low price.”

But Truth in Advertising executive director Bonnie Patten points out, “The underlying product is an incredibly risky endeavor in which most unsophisticated consumers have a higher risk of losing greater amounts of money because of the leverage.”

iMarketsLive, a private company, does not disclose its revenues or number of participants, but Patten says TIA believes it had a surge in growth in recent years when it brought on Alex Morton, a man with a checkered past of his own.

with a shock of black hair, a hip beard, and a toothpaste-ad grin, Morton gained MLM fame for his high-pressure tactics recruiting college-age youth for an MLM company called Vemma Nutrition Co., before the FTC alleged it was a pyramid scheme in in a federal court in Arizona.

“College doesn’t guarantee anything but students loans,” thenyear-old Morton, who helped launched Vemma’s college drive, said in what became a widely circulated Las Vegas recruiting session in promoting what he called a “young-people’s revolution.” He cautioned these youths to avoid ending up like their parents, in dead-end jobs and deeply in debt.

Morton’s videos became what TIA calls a “star witness” against Vemma at the preliminary injunction hearing, as they showed him making “inappropriate income claims.” Vemma agreed to a $ million settlement in December

By then Morton had joined iMarketsLive as executive vice president in sales, which Terry trumpeted in the YouTube video. “He is the most incredible individual out there,” Terry said. “He has come in with some phenomenal ideas. He’s raised the bar.” (Morton did not respond to a request for comment.)

According to TIA, which has tracked his behavior, Morton was simply back at what he does best. “Morton regularly posts videos promoting his lifestyle with the promise that hard work in network marketing will yield the same results for others,” TIA claimed. (He is also a plaintiff in a lawsuit brought by disgruntled distributors in Jeunesse Global, another MLM, which he briefly joined after leaving Vemma.

Indeed, Morton could be seen on his Facebook page — where he has , followers — extolling the high life that joining the MLM ranks confers. Weeks after the consumer group posted a string of his misleading income claims, all of them had been taken down.

That didn’t stop Morton. By July 23, he was back on Facebook with another message for his followers: “Many of you are letting your EGO block you from your own BLESSINGS. And when I say blessings, in this case I’m talking about you having a shot at actually becoming WEALTHY.”

These days Morton even has his own website, eunic-brussels.eu, where he talks in the third person about his Vemma experience — without naming the company or its battle with the FTC. “At the age of 24, he became the youngest $1 million earner in that company’s history. In mid, he partnered with his second company and has now earned over $ million by his 26th birthday,” the website states. A highly produced video, depicting Morton exiting a Rolls-Royce and stepping onto a private jet, encourages viewers to believe that the only thing stopping them from similar wealth is their own mindset.

The FTC would disagree. What Morton’s website and video do not mention is that while he reaped gains, the FTC alleged that most of Vemma’s participants lost money — the result, the regulator claimed, of an all-too-common structure of MLM firms that sees participants rewarded more handsomely for recruiting new distributors than for actually selling product.

Which at least one regulator, and multiple online reviewers, claim is a characteristic of iMarketsLive.