The telephone is still the primary vehicle for initiating buy-side foreign exchange (FX) trades and will be for some time to come, according to a new report from Meridien Research.
The report, 'Online FX Trading: Channeling the Deal', reveals relationships will continue to be a key driver in the FX marketplace. Online systems need to provide value-added services to move clients from telephone-based initiation to online marketplaces.
David Potterton, research director, Meridien Research, says that as corporate treasurers and other financial professionals become more comfortable with using the Internet for financial services, an online approach to FX trading increasingly makes sense.
But he says: "Today, a vast majority of FX trades are initiated using the telephone and the adoption rate of online system use is slow. We believe the best strategic option for sell-side banks is a multichannel approach that allows their clients to choose the most appropriate channel for their needs."