To open a ThinkMarkets AU account, please read and sign the below document.
Join thousands of traders who choose a mobile-first broker for trading the markets.
Get $50,000 of virtual funds and prove your skills in real market conditions.
By understanding the participants of the market you will be in a better situation to appreciate why and how price may be affected by events.
By understanding the participants of the market you will be in a better situation to appreciate why and how price may be affected by events. In doing so you will also gain confidence that there will always be buyers and sellers of currency, regardless of the price it is traded (unlike an individual stock, such as Enron).
The Interbank Market consists of the largest Commercial Banks and Securities Dealers, and seeing as it accounts for approximately 40-50% of all FX transactions, it is firmly at the top of the list.
Being at the top, they enjoy razor sharp spreads due to trading the heaviest volumes.
Try to control the money supply, inflation, and interest rates, using their substantial Foreign Exchange reserves to stabilise their domestic market.
This means they too play an important part on the FX markets.
These are firms who typically manage large accounts on behalf of clients. For example, an investment manager bearing an international equity portfolio who needs to purchase and sell several pairs of Foreign currency to pay for foreign security purchases.
That said these firms also participate for speculative reasons, and manage clients’ money to profit from the market fluctuations and trends.
Retail traders trade indirectly through brokers or banks. They do not expect to take physical delivery of any currency and are considered to be a purely speculative market.
FX brokers who offer FX and International payments to private individuals and companies. What makes them different is they do not offer currency trading for speculative purposes, as clients are expected to take physical delivery of a currency into the bank account.
The interesting thing to note here is that the higher up the list you are, the thinner the spread is! Seeing as ThinkMarkets are a NDD Broker (Non-Dealing Desk) we can provide you a short-cut to the interbank price feed, and provide you interbank spreads.
Risk Warning: Derivative products are leveraged products and can result in losses that exceed initial deposits. Please ensure you fully understand the risks and take care to manage your exposure and seek independent advice if necessary. It's important for you to consider relevant legal documents (Product Disclosure Statement and Financial Services Guide) before you decide whether or not to acquire any of our products.
TF Global Markets (Aust) Limited is the holder of Australian Financial Services Licence (AFSL) number 424700. Registered address: Level 18, 357 Collins St, Melbourne VIC 3000 Australia. ABN: 69158361561.
This AFSL authorises us to provide our services to people or businesses that are located in Australia.
The information on this site is not directed to residents of the United States, Canada and Japan and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
© 2019 This website is owned and operated by ThinkMarkets Group.