We found 11 online brokers that are appropriate for Trading Currency Overlay Investment Platforms.
Currency overlay is an investment strategy or technique run by professional investors who deal with the entire currency exposure of large clients, usually multinational corporations, endowments, pension funds and other corporate entities. The currency exposure refers to the variation in foreign currency prices against the domestic money. The price variations are primarily caused by speculations in the market made on the basis of the country's central bank policy, political stability, inflation and economic outlook of that particular country. This speculation results in the fluctuations in foreign exchange rates. To minimise the risks posed by fluctuations in currency rates and to utilise the fluctuations for an optimal share of foreign currency investments, the Forex overlays are created.
Currency overlay involves the creation of an extensive base of foreign currency exchanges that are used by a brokerage firm to manage the client's portfolio. In this process, the number of currencies traded for each client is usually doubled. The Forex trader who has entered this service is known as a currency manager. Currency managers usually implement complex foreign exchange trading strategies and take partial ownership in a number of trading platforms. They use the data provided by the Forex markets to exploit the opportunities offered by fluctuating exchange rates and make appropriate investment decisions.
Currency overlay is a specialised form of investment risk management strategy usually implemented by investment specialist firms. Since the exchange rate movements are unexpected at times, most of the traders who make use of this service lose a considerable portion of their money. Currency overlay services are usually offered by specialist firms who provide services on behalf of the client investors. These firms usually have a group of professional Forex traders who have mastered the art of making investment decisions and who are ready to face any type of market condition that comes up. The trading decisions of the currency overlays are implemented by the manager on behalf of the investor.
Currency overlay is a Forex trading technique or system conducted by professional traders who deal with the currency exposures of big clients, usually large institutional investors like pension funds, endowments, corporate entities and hospitals. This money is traded on your behalf to give you a profit. Your main aim is to buy at a low price and sell at a high price, thus leveraging the difference to your advantage. Basically, what this technique does is make your broker richer. The trader pays the foreign exchange rate, which in turn pays the broker, until such time that the excess money is returned to him or her.
Basically, foreign exchange market players hire Forex brokers or dealers to take care of their currency exposure. These brokers or dealers then invest your money on various investment portfolios. One of the investments is for the foreign exchange market, where you make money buying and selling the currency. Currency overlay on the other hand is basically an expense that is incurred by the foreign exchange market players.
Understanding a currency overlay is a very important part of Forex trading. A currency overlay is a protective strategy which has been developed to offset the negative financial effect on an individual investment portfolio from either exchange rate movements or overall volatility when trading in foreign assets which are typically denoted in a foreign currency. The foreign exchange market is arguably the largest financial market in the world, with more than $5 trillion exchanged between different currencies every day. A currency overlay is a protective strategy which is designed to diversify your investment in foreign currencies.
A currency overlay is a financial tool which allows you to benefit from the natural fluctuations of the exchange rate between two currencies, while effectively shielding your portfolio from currency risk and volatility. This type of protection is achieved by using a method called the active currency overlay. This form of protection was actually invented by a pair of FX investors who were frustrated with the way their FX strategies always resulted in losses even though the prevailing exchange rate between the two currencies was always high. Thus, they developed a method to protect their portfolios from fluctuating rates of exchange by shifting their investments to other currencies, which were less affected by the exchange rate.
A currency overlay is designed primarily to mitigate the foreign currency impact on an individual investor's investment portfolio by offsetting the foreign exchange rate fluctuations or increased volatility when trading in foreign assets which are typically denominated in another country's currency. Since the free market serves as the major clearinghouse for the trading of currencies, it has been called upon many times to serve as a premier source of real asset allocation. Why is this? Because it offers a relatively low-risk way of diversifying an investor's portfolio. This is done by offsetting the foreign currency risk through the use of a currency overlay. The resulting effect of this technique is to create what is known as 'Forex hedging'.
It's not just about the money though there are other benefits to using a currency overlay as part of an investor's overall foreign currency risk management strategy. One of these benefits is the creation of what is called 'liquidity'. In simpler terms, it means that trades are easier to execute and settle because there is a consistent supply of buyers and sellers. By allowing investors to settle their transactions instantaneously rather than waiting for weeks, months, or even years, this technique can increase efficiency by orders of magnitude.
One other advantage is that it can help to create what is known as 'passive' hedge funds. A passive currency overlay strategy makes use of hedging techniques that do not require the active participation of the investor. These strategies make use of positions that are not actively managed, but rather sit in the background as an added bonus. The primary motivation behind this is that it does not require the management of portfolio holdings. However, for hedgers who prefer to have a hand in the management of their portfolio, this can be a great bonus.
We've collected thousands of datapoints and written a guide to help you find the best Currency Overlay for you. Our aim is that this information helps you choose a trustworthy, reputable and professional broker who can satisfy your trading needs online. We have compiled a list of what we consider the best Currency Overlay Investment Platforms below.
There are a number of important factors to consider when picking an online Currency Overlay Investment Platforms trading brokerage.
Our team have listed brokers that match your criteria for you below. All brokerage data has been summarised into a comparison table. Scroll down.
We compare these features to make it easier for you to make a more informed choice.
Here are the top Currency Overlay Investment Platforms.
Compare Currency Overlay Investment Platforms min deposits, regulation, headquarters, benefits, funding methods and fees side by side.
All brokers below are Currency Overlay Investment Platforms. Learn more about what they offer below.
You can scroll left and right on the comparison table below to see more Currency Overlay Investment Platforms that accept Currency Overlay Investment Platforms clients
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IC Markets
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eToro
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Roboforex
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AvaTrade
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XM
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XTB
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Pepperstone
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FP Markets
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Trading212
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Plus500
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EasyMarkets
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Regulation | Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA), Cyprus Securities and Exchange Commission (CySEC) | Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC), Markets In Financial Instruments Directive (MiFID), Australian Securities and Investments Commission (ASIC) | Cyprus Securities and Exchange Commission (CySEC) | Central Bank of Ireland, Australian Securities and Investments Commission (ASIC), ASIC (406684), Financial Services Authority (FSA), South African Financial Sector Conduct Authority (FSCA), Financial Stability Board (FSB), The Financial Services Agency (JAPAN FSA), Financial Futures Association of Japan (FFAJ), Abu Dhabi Global Markets (ADGM), Financial Regulatory Services Authority (FRSA), Polish Financial Supervision Authority (KNF), Israel Securities Association (ISA), British Virgin Islands Financial Services Commission (BVI), BVI (SIBA/L/13/1049) | Financial Services Commission (FSC), Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC) | Financial Conduct Authority (FCA), FCA number FRN 522157, Cyprus Securities and Exchange Commission (CySEC), CySEC Licence Number: 169/12, Comisión Nacional del Mercado de Valores, Komisja Nadzoru Finansowego, Belize International Financial Services Commission (IFSC) under license number IFSC/60/413/TS/19, Polish Securities and Exchange Commission (KPWiG), Dubai Financial Services Authority (DFSA), Dubai International Financial Center (DIFC),Financial Sector Conduct Authority (FSCA), XTB AFRICA (PTY) LTD licensed to operate in South Africa | Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC), Federal Financial Supervisory Authority (BaFin), Dubai Financial Services Authority (DFSA), Capital Markets Authority of Kenya (CMA), Pepperstone Markets Limited is incorporated in The Bahamas (number 177174 B), Licensed by the Securities Commission of the Bahamas (SCB) number SIA-F217 | Australian Securities and Investments Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC) | Financial Conduct Authority (FCA), Financial Supervision Commission (FSC) | Plus500UK Ltd authorized & regulated by the FCA (#509909), Plus500CY Ltd authorized & regulated by CySEC (#250/14), Plus500AU Pty Ltd (ACN 153301681), ASIC in Australia AFSL #417727, FMA in New Zealand, FSP #486026 and Authorised Financial Services Provider in South Africa FSP #47546, Plus500SEY Ltd is authorised and regulated by the Seychelles Financial Services Authority (Licence No. SD039), Plus500SG Pte Ltd (UEN 201422211Z) holds a capital markets services license from the Monetary Authority of Singapore (MAS) for dealing in capital markets products (License No. CMS100648-1), PLUS500AU (PTY) LTD is regulated by the FSCA (Financial Sector Conduct Authority), Plus500 adheres to MiFID rules | Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA), British Virgin Islands Financial Services Commission (BVI) |
Min Deposit | 200 | 10 | 1 | 100 | 5 | No minimum deposit | 200 | 100 | 1 | 100 | 100 |
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Used By | 180,000+ | 27,000,000+ | 10,000+ | 300,000+ | 3,500,000+ | 250,000+ | 89,000+ | 10,000+ | 15,000,000+ | 15,500+ | 142,500+ |
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Platforms | MT4, MT5, Mirror Trader, ZuluTrade, Web Trader, cTrader, Mac | Web Trader, Tablet & Mobile apps | MT4, MT5, Mac, Web Trader, cTrader, Tablet & Mobile apps | Web Trader, MT4, MT5, AvaTradeGo, AvaOptions, DupliTrade, ZuluTrade, Mobile Apps, ZuluTrade, DupliTrade, MQL5 | MT4, MT5, Mac, Web Trader, Tablet & Mobile apps | MT4, Mirror Trader, Web Trader, Tablet & Mobile apps | MT4, MT5, TradingView, DupliTrade, myFXbook, Mac, Web Trader, cTrader, Tablet & Mobile apps | MT4, MT5, IRESS, Mac, Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | MT4, MT5, Web Trader, Tablet & Mobile apps |
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Up with easymarkets |
Risk Warning | Losses can exceed deposits | 78% of retail investor accounts lose money when trading CFDs with this provider. | Losses can exceed deposits | 71% of retail investor accounts lose money when trading CFDs with this provider | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.59% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. | 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. | 74-89 % of retail investor accounts lose money when trading CFDs | Losses can exceed deposits | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. | 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. | Your capital is at risk |
Demo |
IC Markets Demo |
eToro Demo |
Roboforex Demo |
AvaTrade Demo |
XM Demo |
XTB Demo |
Pepperstone Demo |
FP Markets Demo |
Trading 212 Demo |
Plus500 Demo |
easyMarkets Demo |
Excluded Countries | AF, GN, SL, BW, IR, SY, MM, IQ, TG, KH, LS, YE, CI , LR, ZW, CU, LY, TZ, CG, ML, BO, LR, NE, AO, GM, NG, AG, GH, KR, KG, GN, SN, NA | ZA, ID, IR, KP, BE, CA, JP, SY, TR, IL, BY, AL, MD, MK, RS, GN, CD, SD, SA, ZW, ET, GH, TZ, LY, UG, ZM, BW, RW, TN, SO, NA, TG, SL, LR, GM, DJ, CI, PK, BN, TW, WS, NP, SG, VI, TM, TJ, UZ, LK, TT, HT, MM, BT, MH, MV, KZ, GD, FJ, BB, BM, BS, AG, AI, AW, LB, SV, PY, HN, GT, PR, NI, VG, AN, | US, JP | BE, BR, KP, NZ, TR, US, CA, SG | US, CA, IL, KR, IR, MM, CU, SD, SY | US, IN, PK, BD, NG , ID, BE, AU | AF, AS, AQ, AR, AM, AZ, BY, BE, BZ, BT, BA, BI, CM, CA, CF, TD, CG, CI, ER, GF, PF, GP, GU, GN, GW, GY, HT, VA, IR, IQ, JP, KZ, LB, LR, LY, ML, MQ, YT, MZ, MM, NZ, NI, KP, PS, PR, RE, KN, LC, VC, WS, SO, GS, KR, SS, SD, SR, SY, TJ, TN, TM, TC, US, UY, VU, VG, EH, YE, ZW | US, JP, NZ | US, CA | MY, BE, US, CA, CN, ID, PH, TG, NG, DO, MA, ZW, PR, TZ, TN, UG, BW, AO, AE | US, IL, BC, MB, QC, ON, AF, BY, BI, KH, KY, TD, KM, CG, CU, CD, GQ, ER, FJ, GN, GW, HT, IR, IQ, LA, LY, MZ, MM, NI, KP, PW, PA, RU, SO, SS, SD, SY, TT, TM, VU, VE, YE |
You can compare Currency Overlay Investment Platforms ratings, min deposits what the the broker offers, funding methods, platforms, spread types, customer support options, regulation and account types side by side.
We also have an indepth Top Currency Overlay Investment Platforms for 2022 article further below. You can see it now by clicking here
We have listed top Currency Overlay Investment Platforms below.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results.
Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.