How Do You Become A Foreign Currency Trading Dealer?
“I’m Roger Groh and today we’re going to talk about how to become a foreign currency dealer. Well in different countries the term dealer has different legal terms. But for intents and purposes, anybody can be a dealer. If you go and want to trade with CitiBank or DeutchBank or one of the Japanese banks, once you bought something or once you sold something, I’m not sure if you meet the technical term, but effectively you’re a dealer. So anybody could be a dealer. Now whoever you buy or sell with is going to want to know that you can really perform on your end what you’re obligated to do. So if you issued a piece of paper saying I will give to you a million dollars in a week, you’ve got to be able to do it. And the person on the other end is going to want to qualify you. Some more often than not, it’s a credit quality issue because they’re going to want to know can you perform. Now this year we’ve seen many banks not do it. I never in my whole life would of thought that Bear Sterns, Lehm
