Multi-asset bank Swissquote, is expanding its FX trading instruments with the launch of USDBRL, USDCNY, and USDINR pairs on its platform today. The pairs will be available in minimum increments of 1000 base currency. According to a representative of the firm, the additions are based on meeting demand from clients that wanted to trade the currencies. Specifically, the INR and CNY are at historic levels with the USDCNY trading near its all-time low of 6.1185. Conversely, the rupee has experienced continued weakness, with the USDINR breaking above 60.00 recently, having moved higher by over 50% from its 2008 lows.
The launch marks a continued move among brokers to add currencies from emerging markets to diversify their product offerings and appeal to a greater base of clients. Similarly, last week saw the launch of CNH crosses denominated in the JPY, EUR, and AUD by Easy-Forex. For brokers, launching emerging markets currencies can be difficult to low volumes, difficulties in hedging, wide spreads, and limited market hours. However, in recent years, the demand for the currencies has led to additional liquidity providers beginning to offer the product which has brought tighter spreads and improved market data solutions for traders. Examples include FCStone adding USDINR liquidity last year, as well as the CME and ICE expanding their BRIC instruments in 2012 and 2013.
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