If you are a large organisation that handles large funds of money for employees then one thing you may want to look into is getting an institutional trader to handle your Forex needs. While you ca experiment with brokers and hedge funds via private investors and representatives, the advantage of choosing a company with institutional specialists is that they are able to manage all types of funds and take advantage of the larger pip rates and spread in the retail market.
As a private investor you often do not have access to these special spreads since you do not trade in the larger volumes or amounts. For this reason, it may be time to consider a company that practices Institutional Forex so that you can start to take advantage of the larger spreads for your company as well.
In order to take advantage of these practices you o not have to be a large company, simply willing to work with a company such as Citi that is. This is because they will trade on your behalf as an institution allowing even a SME to see large dividends on a smaller investor within a smaller time frame.
This is just one reason that institutional trading is successful; another is because a broker can get the edge over the trading market simply by being a part of a larger network. For example, when working with institutional traders they can see where most of the orders within their own system are being placed.
This is a large tip-off to where the big money is heading allowing them to see where the trade is solid and where it may be shaky. Technically not considered insider information since they are simply studying an algorithm; this allows them to make safer trades following the general consensus.
The above reasons are just two reasons why a business can profit from getting involved in institutional trading, but there are many more. However, you will only reap these benefits if you choose to trade with a known and respected Forex trader that already has an established place in the market.
For this reason, it is a great idea to go with a company such as CitiFX Pro that already offers an institutional trading programme with services and solutions designed to meet the needs of every business and organisation regardless of their physical size.
By David Forex blogger