Forex is a common abbreviation for “foreign exchange.” According to a report issued every three years by the Bank of International Settlements, the average daily dollar volume in the Forex market was $5.3 trillion in 2013. Compare this amount to the NASDAQ dollar volume on June 16, 2014 of $57 billion. For individual investors trading Forex in IRAs, there are three parties that need to be involved:
Futures Commission Merchant (FCM)
An FCM can be considered the “bank”, they are the counterparty to your transactions, and they are also the ones that execute your trades. It is important to make sure you do your due diligence on which FCM you decide to choose since different FCMs offer different benefits.
Introducing Broker (IB)
An IB is the person that introduces you to the FCM. The IB can negotiate certain terms with an FCM so it is also important you chose an IB that works best with you.
Custodian
This is where Midland Trust comes in. We handle the paperwork and walk you through the whole process of opening up accounts and moving the funds from a bank account to a trading account.
This whole process can be a little confusing, so if you have any questions about trading forex in IRAs, please feel free to give Midland a call at (239) 333-1032, or email us at [email protected] You may also visit www.MidlandTrust.com for more information.
