Non Derivative Forex Trading

[shanmugapradeep]

Hello,

Contract for Difference (CFD) is a derivative product, which means we do not own any assets directly; instead, the value of the CFD product is derived from underlying assets. Therefore, CFD trades are not real currency exchanges.

Is there any forex trading that is not a derivative, allowing us to own real assets (currencies)? If so, which forex broker offers non-derivative forex trading?

Another question: Is spot forex derivative or non-derivative?

 

[Enivid]

Is there any forex trading that is not a derivative, allowing us to own real assets (currencies)?

Any US Forex broker allows spot Forex trading, which isn't a derivative trading . However, retail spot trading doesn't imply delivery of the bought currency. You get paid swaps (overnight rollover fees) based on the currencies you buy or sell.

If so, which forex broker offers non-derivative forex trading?

See above. Also a lot of brokers allow keeping multi-currency accounts with them where you can convert currencies between those accounts. This is basically direct currency exchange albeit without leverage.

Another question: Is spot forex derivative or non-derivative?

Spot is not derivative.

PS: Not sure why you are getting so fixated on derivative vs. non-derivative. This should have little to do with your ability to earn profit from currency trading.

 

[fargana]

Hello,

Contract for Difference (CFD) is a derivative product, which means we do not own any assets directly; instead, the value of the CFD product is derived from underlying assets. Therefore, CFD trades are not real currency exchanges.

Is there any forex trading that is not a derivative, allowing us to own real assets (currencies)? If so, which forex broker offers non-derivative forex trading?

Another question: Is spot forex derivative or non-derivative?

Yes, spot forex trading allows traders to directly own the underlying currencies being traded, making it a non-derivative form of forex trading. Spot forex involves the exchange of one currency for another at the current market price, with settlement typically occurring within two business days (T+2). Most local banks offer spot forex trading, allowing traders to buy and sell currencies for delivery in the spot market. Not sure about FX brokers though