Since we do not charge commissions or any administration fees the question of how ACM clears a profit eventually arises.
What happens to my position once I have
entered the market with ACM?
Once you have undertaken a position, ACM will proceed
in one of the following manners:
1) STP (Straight Through Processing)
90 % of the time, our trading volumes go directly
to one of our major liquidity providers. This means
that when you are trading with ACM your trades are
automatically processed with our processing partner
bank. These liquidity providers are, in the case
of ACM, Major Swiss Banks. This, among other benefits,
guarantees you correct pricing and constant liquidity
at all times.
2) ACM also builds up an overall
position (deal book) of all its customers' transactions
in different currencies and in different directions.
ACM can therefore also “match” client
orders and positions between themselves.
3) ACM can also build up its market
position and gradually hedge any risk that position
exposes them to with institutional counter-parties.
In that respect ACM operates very much like the
dealing and treasury department of a large institutional
bank.
So how does ACM clear a profit while offering
a spread of only 3 pips?
- Simply, ACM acts like a wholesaler. As you would
go to a supermarket to get better prices than at
your local grocery shop, ACM works very much in
the same way. ACM regroups, thousands of clients
therefore creating a huge amount of trading capital
and volume. With this trading capital and volume,
ACM is able to negotiate excellent interbank conditions
with its liquidity providers. The result is that
if ACM can offer 3 pips to its client it means that
its liquidity providers are offering ACM less than
3 pips. These conditions are achievable only by
guarantying Billions in monthly volumes to our counter
parties.
- ACM has, by its policy, decided to attract a
greater amount of clients wishing to take advantage
of ACM’s exceptional trading conditions. ACM
therefore prefers to earn less per each individual
transaction and to compensate by a larger market
share and higher volumes.
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