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 forex market with ACM?
Once you have undertaken a position, ACM will proceed in one
of the following manners:
1) STP (Straight Through Processing): The majority of our trading volume goes directly to our
multiple liquidity providers. This means that when you are
trading with ACM your trades are automatically laid off
with our liquidity partner banks. These liquidity providers
are, in the case of ACM the largest banks participating
in the foreign exchange market. 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 2-3 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 2-3 pips to its
client it means that its liquidity providers are offering ACM
less than 2-3 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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