Retail FX Market: the Next Frontier

Report Summary

Retail FX Market: the Next Frontier

By the end of 2006, average daily trade volume in the retail FX market reached over US$60 billion, a 500% increase from 2001.

Sang Lee
Co-Founder and Managing Partner
Other Author: 
Sang Lee

Boston, MA, July 16, 2007 – A new Impact Report from Aite Group, LLC highlights key trends in the retail FX market, profiles some of the leading FX firms, and projects potential market growth and drivers.

After a slow start in the mid- to late-1990s, the retail FX market has grown rapidly over the last couple of years. However, the success of retail FX firms depends on their ability to develop and support reliable and comprehensive front-to-back office operations. In 2001, an estimated average daily trade volume in the retail market stood at US$10 billion, presenting 0.8% of the overall FX market. By end of 2006, average daily trade volume reached over US$60 billion representing over 2% of the entire market, signaling plenty of room for future growth. Now, a number of leading global retail FX firms have brought to market products and offerings that will further enhance access and acceptance of the retail FX space.

"The potential growth of the retail FX market appears limitless at this point with potential key competition still missing from the competitive landscape," says Sang Lee, Managing Partner at Aite Group and author of the report. "One thing is certain: FX has indeed arrived as a legitimate asset lass in the retail market, as more and more retail clients embrace it as a way to diversify their portfolios and obtain higher returns than typically gained from more traditional asst classes."

This 49-page Impact Report contains 27 figures and tables, and profiles the following retail FX firms: CMC Markets, dbFX, FXCM, FXDD, FX Solutions, GAIN Capital, GFT, and Saxo Bank. Clients of Aite Group's Wealth Management service can download the report.

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