All financial transactions on the market are conducted through a system of institutions: central banks, commercial banks, dealers, brokers. Each Forex participant has a certain trade volume on the currency market. For example, central banks have the largest turnover: their trading volume exceeds hundreds of millions of US dollars a day. Commercial banks and dealers have a much smaller daily turnover. For brokers it is estimated at 25-50 million US dollars, which is only 2% of the total Forex trading volume.
Central banks of the countries of the world
Central banks manage the flow of money and credit using certain instruments, as defined by law. Central bank key functions are money emission, monetary and foreign exchange policy, etc. For instance, the central bank's exchange market intervention may reduce or increase the rate of the national currency.
Commercial banks
Commercial banks are financial institutions, which have the right to take deposits from individuals and entities, to place money in their interests with an obligation to pay the owner back, and to open and maintain bank accounts. In every country there are several large commercial banks that can influence exchange rates. In 2006, Deutsche Bank turnover was 19.26% of the Forex turnover.
Brokers
A broker is a legalentity or an individual who works as a mediator and facilitates foreign currency transactions, linking the seller of goods, securities or currencies with the buyer. A broker works on behalf of a customer and at his expense and can provide additional customer services. A broker receives a commission for executing customer orders.
Dealers
Dealers are companies or individuals operating in the market at their own expense and on their own behalf, which are engaged in the sale of currency and other assets.
0 comentários:
Post a Comment