Many of TradeFreedom’s clients have commercial interests in foreign exchange markets. As global currency markets have become more volatile and international trade is increasing, most medium and large companies are in some way exposed to currency movements. Before 1992, non-European currencies were considered the most risky but following the ERM collapse nearly all currency exposures constitute a potential minefield.

Whether your company has income or outgoings in foreign currencies, you are incurring substantial risks. This has resulted in many of Europe’s largest companies developing full internal trading operations with substantial expertise and advanced technology. The most professional of these internal departments are actually similar to full-scale brokers, and companies like Daimler-Benz and Ikea are important participants in the world’s financial markets.

The costs associated with such operations are, however, prohibitive for most medium-sized companies. Therefore expertise is needed from external sources such as banks or specialised brokers. In today’s environment, many banks are cutting down on their operations and services related to foreign exchange trading, leading to less than satisfactory advisory and pricing services for many commercial clients.

This means that a lot of companies do not cover their risks adequately and fail to benefit from the positive opportunities arising from commercial exposures. This is unfortunate given the fact that there is an increasing number of strategies that can be tailor-made to cover very individual risk scenarios as well as to help generate additional income from the necessary evil of currency exposure.

The TradeFreedom Internet Trading system is ideal for commercial traders. The communication between dealer and client can be undertaken while looking at the same charts of the relevant markets. The commercial client can follow the interbank prices throughout the day and be in continuous contact with our dealing team if necessary.

Over the years, we have advised on a great variety of commercial currency risk exposures and can often add valuable advice to the quick pricing and access to trading.