Customer numbers soar on dbFX as retail foreign exchange grows as an asset class of choice for investors
- Customer numbers more than double in 2008 as investors flock to retail FX
- EUR / USD made up 41 per cent of all trades, an annual rise of 105 per cent
dbFX.com, the online retail foreign exchange (FX) trading platform of Deutsche Bank, reported a surge in customer numbers in 2008 as foreign exchange grew as an asset class of choice for investors amid the financial crisis.
dbFX.com saw customer numbers increase by over 250 per cent, as investors looked to FX as an alternative, and uncorrelated, asset class to equities and bonds. Volumes also notably increased from 2007, as investors took advantage of significant volatility in the market.
From a currency perspective, the EUR/USD was the most popular currency pair on the platform accounting for 41 per cent of all trades, versus 20 per cent of volume the previous year. The group of currencies representing carry trades were only 24 per cent of volume in 2008 versus 36 per cent in 2007, as the carry trade - the dominant trading strategy in 2007 - lost popularity with investors who moved out of leveraged currencies as global interest rates fell last year.
Betsy Waters, Global Director of dbFX.com, commented: “Retail FX’s popularity as an asset class truly soared in 2008 from a customer and trading perspective. Our more than doubling of customer numbers can be partly attributed to today’s uncertain economic environment with investors wanting the safety of knowing their capital is with a provider which is backed by a larger, well-recognised institution such as Deutsche Bank, the world’s leading FX bank*. Our success can also be attributed to the institutional-quality research and superior service we offer our customers on a daily basis.
“Looking ahead, we’re very bullish about the long term prospects for retail FX. As active traders become disenchanted with the equity markets they will turn to the FX markets for trading opportunities. In many countries, retail traders can only buy and hold equities, while FX markets offer the ability to buy and sell currencies based on your market views.
“Ultimately, FX is proven to be uncorrelated to bond and equity markets so it’s no surprise that retail investors are looking to FX, which is a proven asset class with institutional investors as a means of generating returns.”
Launched in 2006, dbFX.com is available in multiple languages, has 34 currency pairs and is accessible in more than 70 countries around the world. It brings the benefits of Deutsche Bank’s award winning expertise in foreign exchange to clients, with Deutsche Bank ranked the No. 1 Foreign Exchange Bank in 2008 by Euromoney magazine for the fourth year running*.
The platform can be accessed at: www.dbfx.com
* Euromoney Foreign Exchange poll 2008
Key facts and figures
Top three traded currency pairs listed in order of trading volumes (highest to lowest):
UK & Europe: EUR/USD; GBP/USD; USD/JPY
United States: EUR/USD; USD/JPY; GBP/USD
Middle East: EUR/USD; GBP/USD; USD/JPY
Combined: EUR/USD; GBP/USD; USD/JPY
March and October were the most traded months for dbFX and the markets overall in 2008.
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About Deutsche Bank
Deutsche Bank is a leading global investment bank with a strong and profitable private clients franchise. A leader in Germany and Europe, the bank is continuously growing in North America, Asia and key emerging markets. With 81,308 employees in 75 countries, Deutsche Bank offers unparalleled financial services throughout the world. The bank competes to be the leading global provider of financial solutions for demanding clients creating exceptional value for its shareholders and people.