Outsourcing FX: An International Trend That Makes Good Business Sense

Approximately 95% of medium sized and community banks in the U.S. outsource foreign exchange services to financial institutions. A similar trend is occurring on a global basis. Many have concluded that it’s best to outsource FX to companies that specialize in FX processing, products and services. There are two main reasons for this line of thought. First, it’s the FX specialist, not the bank, that’s making the initial and recurring resource investments. Secondly, the FX specialist assumes the responsibility for managing these resources and for much of the business risk.

Reasons for Outsourcing Foreign Exchange Services

Many businesses currently involved in foreign exchange (FX) either on the buy, sell, retail or wholesale side are succumbing to escalating costs and thinning profits. Despite tremendous growth in existing and emerging global FX markets, increased competition and direct costs are becoming disproportionate to profitability. With tapering profits and the cost of management, risk, compliance and technology constantly on the rise, institutions are reconsidering both the feasibility and necessity of offering FX products and services. As an alternative, institutions are now outsourcing FX to companies such as WSD NZ to improve balance sheets, increase profitability, introduce new revenue streams, maintain client confidentiality and share holder confidence.

(more…)

BRIC is an increasing popular acronym which refers to the nations of Brazil, Russia, India and China. These are the leading “emerging markets” that many feel are economies representing great investment potential. The combined population of the 4 countries is approximately 2.8 billion, or about 40% of the people on the planet. As a comparative example, China’s GDP which has grown about 10% a year for the last 20 years, is now about 1/5 the size of the United States, and while currently ranking 5th, will soon be the second largest. And that’s just China. Brazil, Russia and India were ranked in 2007 as 10, 11, and 12. With GDP growth last year between 5 and 9 percent, it’s no surprise these countries are popular with investors. Will the BRIC’s dominate the business world in the near future? Is your money more likely to grow if invested in BRIC Nation industries?

Of course, 2008 has been a particularly difficult year for investors. The S&P 500 index is down over 30% YTD. Three Exchange Traded Funds, (ETF’s) that track the BRIC nation markets, Claymore/BNY, (EEB), SPDR S&P BRIC 40 (BIK) and MSCI BRIC Index (BKF) are all down more than 50%. As of this writing it is widely accepted that a world wide economic slowdown is occurring. As is always the case, no one rings a bell and announces that markets have bottomed and you should immediately commit funds. However, at some point when the turnaround begins, it is possible that superior gains can be made in the BRIC nation markets.

(more…)

WSD has a FREE demo platform that offers continual streaming price quotes, news service, charting and accountancy package. Why not try it out through the link above?

The WSD advantage:

As a regulated, audited and professional Forex provider WSD is the ideal partner to trade the markets with.

We have tight spreads with prices that remain firm regardless of market conditions.
During normal trading hours the price quoted is good for up to 50 Lots and as we have no dealer intervention - you can be assured that this is the market price.

There is no start up fee or commission to be charged whatsoever. That means you receive all the benefits a professional trader should be offered without the charges that normally accompany price / news / chart / accountancy packages from other brokers.

(more…)

Already established in the US, Thailand and Dubai with a culturally diverse workforce WSD can communicate in any client’s language, which is just one example of the importance the company places on investing in its own infrastructure. But it’s not stopping there.

(more…)