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Spotlight on... FX trading

In our increasingly globalised economy, travel, employment and business commitments can often evolve into assignments or contracts around the world, potentially leading to foreign investment opportunities, an overseas property purchase, overseas educational or other family needs.

Fortunately, the increased accessibility of international financial markets now means that individuals can regularly transact in currencies other than their domestic currency.

When operating in more than one currency, the key concern is managing exposure to foreign exchange fluctuations. The ability of a bank to hold multiple currency accounts within one location and provide a wide range of services can be indispensable for international clients, particularly with regards to cross-currency transactions and foreign currency risk management.

Foreign exchange rates can respond quickly to many different factors or surprises due to the extremely liquid nature of the 24-hour foreign exchange markets. Currencies are also traded as speculative investments with experts trading according to how they think the market will move.  These trades in themselves will, of course, affect exchange rates.

Fairbairn Private Bank provides a comprehensive range of foreign exchange facilities, making use of highly sophisticated price and market information systems within our treasury operations, which allows us to instantly quote foreign exchange rates for all major currency pairs.  The bank can also provide an advisory service to clients with respect to market views and anticipated exchange rate movements.

 Why use Fairbairn Private Bank for FX trading:

  • Foreign exchange facilities available in all major currencies
  • Instant exchange rate quotations available in all major currencies
  • Instructions can be given over the telephone and transactions can be executed immediately, provided cleared funds are available
  • Competitive pricing
  • No commission charged.

The risks of FX trading:

  • Currency speculation can be tempting, particularly with the current volatility in financial markets, however, trading currency involves serious risks. If a client wishes to speculate, it is vital they have a sound understanding of why currencies behave in the way they do
  • Currency movements cannot be reliably forecast as they are influenced by such a wide range of macro-economic and geopolitical issues
  • Foreign exchange risk is directly related to the volatility of the domestic currency and this can affect the value of a client’s assets and liabilities accordingly
  • The price of, value of, or income from your investments can fall as well as rise and you may not get back the original amount invested.
  • Past performance is not necessarily a guide to future performance.
  • Exchange rate changes may affect the value of your investments.

To find out more about this service and explore other options available, please contact your relationship manager directly or our client services team on +44 (0) 1624 645000.