Currencies to trade on Internet
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Internet-savvy investors will, from today, be able to buy and sell foreign currencies on the information superhighway, thanks to an innovative service launched by Currency Management Corporation, the London- based dealer.
CMC offers the Internet service and the necessary software at no charge. It will make its money on the spread between its own buying and selling of foreign currencies.
The service, which will initially operate under an interim permit from the Securities and Futures Authority, builds on a project started by CMC earlier this year, when the firm started quoting prices for foreign currencies on the Internet. But, to buy or sell at the quoted prices, investors still needed to pick up the telephone and speak to CMC's offices in London.
From today, human contact can be avoided. All investors need do is log on to the site at http://www.forex-cmc.co.uk and click on one of the prices being quoted on the CMC Internet page. A dealing ticket pops up which allows the investor to place his order. The investor must fill in the amount of currency and whether it is a deal to buy or sell.
After clicking on the "confirm" pad, the transaction lands on a screen at CMC and within five seconds confirmation of the deal arrives on the investor's screen.
The dealing service will be open around the clock, and will offer prices in 27 currencies. Peter Cruddas, CMC's managing director, hopes to have 6,000 clients within a year.
CMC, which has been operating in London since 1989, has applied for full authorisation from the SFA for the service, but for now, transactions will not be covered by the Investors Compensation Scheme.
Mr Cruddas said the company would deal only with "professionals" - for instance, high-net-worth individuals or small banks and company treasurers.
Before being able to deal, clients will need to open an account with CMC and make an initial deposit. No money will be transferred over the Internet and the deposits will be held in a segregated account. CMC said it had dealt with the issue of security on the Internet by installing the same software used by many banks. The deals will be coded so that only CMC has access to them once they have been executed.
Mr Cruddas rejected suggestions the service could constitute a head-on competitive threat to banks, which make vast sums of money from broking foreign exchange deals. He insisted that CMC wanted to work in co-operation with potential competitors.
"We're inviting anybody who wants to distribute [their prices] through the Internet," he said.
Eventually, CMC intends to offer futures and options dealing, as well as market analysis. "The day will come when clients will not need to call us on the phone," he said.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments