FXCM rolls out offshore Chinese yuan trading to global client base

China has become the focus of the majority of FX firms over recent years, and despite the difficult entry barriers, many have succeeded, resulting in demand for Chinese currency

China is often viewed by many FX industry participants as a treasure trove with a very securely locked door. Indeed, there is a very large potential client base on mainland China which is very keen on FX trading, yet the nation’s government prevents any access to this by companies from the free world.

Novel and somewhat successful methods of bypassing the obstacles which obscure the way into China have been adopted by most FX firms, however, resulting in very large volumes being conducted within Western FX brokerages by Chinese traders.

So much so that FXCM (NYSE:FXCM) is now set to offer offshore renminbi (CNH) trading to its international client base, alluding to the desirability of trading China’s Hong Kong-based offshore currency which has come about partly as a result of the immense level of business referred to major international FX firms via representative offices in China.

CNH is bound by less stringent capital control laws than the mainland Chinese CNY, but indeed the growth of the Chinese client base among overseas firms has bolstered the value of it as a viable asset to trade against other currencies.

FXCM today stated that the deployment of USD/CNH trading to all clients on all platforms has taken place, with the exception of its Japanese audience.

The company’s clients in all other regions will now have the opportunity to trade their opinion on the world’s second-largest economy. “We are excited to offer the USD/CNH across different platforms as this will allow clients to take advantage of growing international markets,” said Drew Niv, CEO of FXCM in a corporate statement. “FXCM is continuously working to diversify its product offering to the global trading community.”

Clients will be able to trade the USD/CNH, alongside other major FX pairs in the US, European, Asian, and Australian markets. Traders will also be able to trade the USD/CNH in 1k lot sizes and take advantage of FXCM’s renowned No Dealing Desk Execution on the pair. FXCM NDD offers no re-quotes, giving traders fast and efficient trade execution, competitive pricing, no commissions², and a comprehensive suite of educational services.

For more on the global Forex industry see the LeapRate-Dow Jones Forex Industry Report.

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