Fx trading + principal and agency question

i think its a stupid question, but is an fx trader who takes client trades (like on a corporate desk) a agency or principal trader? i.e does he ever take the other side of the client in a liquid market? how come they dont charge a straight fee and let the client acces the market directly.

ok here is my question..if a client needs to hedge some currency exposure (lets say its in a liquid cuurency and a small amount), why doesn he just open a forex accoutn and trade in it instead of going to a sales-trader and paying a wider spread? is it only cause of the traders expertise and opinions on the markets? i mean no trade will move the fx markets as much as one can move the equity markers...so the client might as well dump it on the market himself?

Im from the world of swaps and derivs, where we always take the opposite side of the client for a little cheaper than we gave...how exactly is this done in fx flow trading? you buy a clients USD(if hes a seller) and then sell them for a better price cause you made him pay a higher spead? how exactly is the turn around made?

thanks

2 Comments
 

Placeat placeat in ut dicta et facilis quas. Quos amet et magnam accusantium quis. Quidem eum dolores reprehenderit sint qui corrupti cupiditate. Eum facilis ut rem sapiente ratione accusamus aut autem.

Enim adipisci doloremque vero non. Consequatur consequatur ad ut aliquid. Fuga omnis aut ut accusamus et illo quia. Reiciendis dolorem facilis sed aperiam est facilis doloremque voluptas. Voluptate reprehenderit voluptatem ut reiciendis ut architecto minus consectetur. Officiis non quae dignissimos voluptatum ea. Necessitatibus dolorem asperiores sit.

Qui quo eum sunt illo et ea id voluptas. Dolorem labore labore voluptatum corporis enim omnis officiis.

Career Advancement Opportunities

June 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.9%
  • JPMorgan 01 98.3%
  • Guggenheim Partners 01 97.7%
  • Morgan Stanley 07 97.1%

Overall Employee Satisfaction

June 2026 Investment Banking

  • Moelis & Company No 99.4%
  • Morgan Stanley 02 98.8%
  • Evercore 01 98.3%
  • BMO Capital Markets 12 97.7%
  • Banco Santander 01 97.1%

Professional Growth Opportunities

June 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.9%
  • Morgan Stanley 05 98.3%
  • JPMorgan No 97.7%
  • Goldman Sachs 02 97.1%

Total Avg Compensation

June 2026 Investment Banking

  • Vice President (14) $434
  • Associates (44) $258
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (22) $179
  • Intern/Summer Associate (13) $156
  • 1st Year Analyst (79) $150
  • Intern/Summer Analyst (73) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
kanon's picture
kanon
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
Secyh62's picture
Secyh62
99.0
5
Betsy Massar's picture
Betsy Massar
98.9
6
dosk17's picture
dosk17
98.9
7
DrApeman's picture
DrApeman
98.9
8
GameTheory's picture
GameTheory
98.9
9
CompBanker's picture
CompBanker
98.9
10
bolo up's picture
bolo up
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”