Trade and Forex Service: Better Management of your Finance
The ‘One world, one global community’ slogan certainly applies to the business world. With improved, 24/7 connectivity, businesses are able to transact with each other no matter their geographical locations. It is possible largely due to the proliferation of the Internet all over the world.
Providing strong support to businesses in their global endeavours are banks and financial institutions in India. Banks offer a variety of cash and wealth management services to companies. Chief among these are forex services and international trade finance.
What are trade and forex services?
The forex market is a global currency trading market. It sees fluctuations every single day, and some days are more favourable for trade than others. It is estimated to have a global volume of $5.4 trillion. Any activity that sees the exchange of one currency for another — whether you exchange Rs 20,000 for USD, or a bank exchanges 100 mn USD for GBP with another bank — is considered to be a part of forex services in the market.
Forex services may be used by anybody, from multibillion corporations to individual investors. Brokers/banks are needed to monitor the forex market because exchange rates change quite quickly in a matter of minutes. The best way to get the most out of this market is to take advantage of your bank’s forex services.
Meanwhile, the bank also offers invaluable support in international trade finance. It includes the handling of FDI and FCGPR (reporting guidelines, APR submissions, regulatory submissions, transaction based advisory, etc.) International trade finance services also include various functionalities under overseas direct investment (regulatory submissions, forex remittance and equity transactions, among others). Thus, your overseas business finance is ably handled so as to fetch maximum profit for your enterprise.
How does it benefit you?
Timing is everything when trading on the forex markets. Your bank has its finger on the market’s pulse, and it is prudent to enlist the help of the bank’s forex services department when trading on forex. The bank can advise on the best times to sell, so you end up making a good profit from the exchange. There are several investors and companies today that are making a fortune purely on the basis of the right moves in forex markets. Based on the outcomes of the forex market, you can then allocate resources for trade finance globally.
Meanwhile, the bank benefits from the exchange by taking a percentage commission on the transaction. It offers a certain leverage (it is a ratio) to trade, and acting on this leverage helps you take a position that results in huge profits. The bank’s profits are reliant on the volumes of your trade.
