World's Best Foreign Exchange Banks 2008

By Platt, Gordon | Global Finance, January 2008 | Go to article overview

World's Best Foreign Exchange Banks 2008

Platt, Gordon, Global Finance

Global Finance selects the leaders in the world's biggest financial market.

The 54 central banks and monetary authorities that took a measure of the foreign exchange market last year under the auspices of the Bank for International Settlements discovered an unprecedented rise in activity. Average daily turnover totaled $3.2 trillion, an increase of 71% at current exchange rates from the previous global survey done three years earlier.

A significant increase in the foreign exchange activity of hedge funds was one reason for the surge, as the search for alpha, or excess returns, led them to the FX market. Trading foreign currencies as an asset class became popular in part because the market moves up and down independently of smaller markets, such as stocks and bonds.

Of course, the search for higher returns in overseas stock markets by investors of all descriptions also contributed to the rise in FX trading and hedging of positions. A third major factor in the rise of turnover in traditional foreign exchange markets was an increase in the level of algorithmic trading by high-speed computers.

Trading between large banks, either for themselves or their customers, accounts for more than half of the trading in the FX market. The best foreign exchange banks are those institutions that provide fast, reliable and cost-effective services to global businesses and investors, as well as advice and innovative products to meet the specific needs of their increasingly diverse range of customers.

Global Finance selected Deutsche Bank as the global winner. We also chose the leading foreign exchange banks in 82 countries and regions, as well as the best online trading systems, both bank-owned and independent, and the best bank for foreign exchange research, as well as separate awards for fundamental research, technical research, currency forecasts and strategy and hedging.

With input from industry analysts, corporate executives and technology experts, Global Finance selected the winners based on objective and subjective factors. Our criteria included transaction volume, market share, global coverage, customer service, competitive pricing and innovative products and technology.



Deutsche Bank is the world's largest provider of liquidity to the foreign exchange markets.The bank is a major market maker in foreign exchange swaps, and it handled record volumes efficiently during the turbulent financial markets of the second half of 2007.

Not only is the bank the biggest in terms of spot foreign exchange trading, but it also is the most innovative in developing currency risk-management techniques using derivative products. Deutsche Bank offers cash flow and balance-sheet foreign exchange hedging for corporations. It also offers deal-contingent forwards for cross-border mergers and acquisitions. Deutsche Bank was the first bank to develop target-profit forwards, or TPFs, which enable clients to terminate hedging once a predetermined profit has been attained.

Meanwhile, global investors are showing increased interest in the bank's currency asset products. Deutsche Bank recently implemented live streaming prices for foreign exchange indexes, non-deliverable forwards, currency baskets, precious metals and currency exchange-traded funds.

The bank is a leader in foreign exchange prime brokerage. Its FXSelect platform offers actively managed currency alpha products. Investors may chose from more than 70 currency managers with investment styles that range from totally discretionary to systematic. Notional investment in Deutsche Bank's currency indexes tripled last year to about $6 billion.




Citi, the largest US bank by assets, is the leading foreign exchange bank in North America. Its currency business is growing faster than the general market. The bank's currency options volume, in particular, has increased strongly in the past year. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Cite this article

Cited article

Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)


1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25,

Cited article

World's Best Foreign Exchange Banks 2008


Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25,

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.