DB’s forex platform grows 25pc in Saudi
Dubai, September 29, 2010
Deutsche Bank’s (DB) online margin forex trading platform dbFX has seen customer numbers in Saudi Arabia increase by 25 percent from 2009, as the country’s investors diversify their portfolios by investing in forex.
The increasing sophistication and need to diversify Saudi Arabia’s small institutional and family office portfolios is leading to a growing adoption of forex as an asset class in addition to traditional equity and fixed income assets.
Forex trading offers significant advantages over stock and futures trading, including 24 hour trading, superior liquidity, tight spreads and convenient access to margin as well as low-correlation to bond and equity markets over the long term, a statement said.
In addition to this, the dbFX platform provides investors with access to advanced trading and risk management tools and customised solutions such as managed accounts which offer investors a means to access and leverage the benefits of forex, but without having to trade themselves, it added.
The continued growth and development of the Saudi investment market, and the constant improvements in technology, are largely responsible for the recent surge of forex users in the Kingdom, and with increasing access to platforms like dbFX, investors are continuing to better understand the diversification and potential rewards forex can offer within an investment portfolio.
Deutsche Bank was the first investment bank to launch an Arabic language forex trading platform when it launched dbFX in the Middle East in October 2007.
The Middle East has quickly established itself as one of dbFX’s fastest growing regions, with the service being adopted rapidly by individual forex traders and smaller institutions such as family offices.
Since the launch of dbFX in the Middle East, forex has fast become an established alternative asset class for sophisticated retail investors, alongside equities and bonds.
The forex market is the largest financial market in the world, with a daily average turnover of over $1 trillion, 30 times larger than the combined volume of all US equity markets.
The liquidity of this market, especially that of the major currencies, also helps ensure price stability allowing traders to almost always open or close a position at a fair market price.
dbFX.com is available in multiple languages including Arabic, has 34 currency pairs and is accessible in more than 82 countries around the world. – TradeArabia News Service
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