Today, most back-office positions are located away from the company headquarters. Many are located in cities where commercial leases are inexpensive, labor costs are low, and an adequate labor pool is available. The back office is the portion of a company made up of administration and support personnel, who are not client-facing. The rise of leveraged trading in recent decades has also enabled more and moreindividual retail tradersto enter the world of forex. While retail FX traders might not be responsible for as much of the world’s volume, they act in a similar way to trading institutions – identifying when a currency might be in for a significant price move and trading accordingly. However, global forex trading is dominated by just ten banks, who are responsible for around two-thirds of the world’s volume.

What is Forex back office

Before you sign-up for their services, you need to make sure they’re really offering comprehensive back-office functionality. Back office forex software needs to make it easier for you to run your brokerage. That means it should increase productivity and streamline complex processes.

The office group-building exercise of your dreams (or nightmares)

Customers’ interaction with the front line staff is decreasing, bringing back office to the forefront, forcing it to regulate its processes. Hedging against risk consists of taking positions in financial instruments, often derivatives, the value of which varies inversely with the value of the assets exposed to risk. Hedging is therefore effective when the risk is realised in order to reduce its effects; if the risk is not realised, the hedge will only have generated a cost. In our survey of back-office managers, we found that only 14% had automated tracking of work against SLAs. That’s a very small percentage of organizations who can confidently state whether they met their turnaround time promises to their customers.

What is Forex back office

The legislation also requires a study of how telework during the pandemic impacted agencies’ missions and customer services. BDSwiss is one of the leading financial institutions specializing in Forex/CFDs trading… BDSwiss is one of the leading financial institutions specializing in Forex/CFDs trading.

Open position and trade management

A record of broker-wise details of deals put through and brokerage paid, should be maintained. The Deal Slips should be serially numbered and controlled separately to ensure that each deal slip has been properly accounted for. With effect from 1st April, 2003, all Government Securities transactions are being settled compulsorily through Clear­ing Corporation of India Ltd. only. Securities for settlement by the banks outside the NDS-CCIL system are not being entertained by Reserve Bank of India since that date.

This costs side of the business can be classified under Operations tasks. Such as formulating strategies, procuring material and resources, performance improvement, and other tasks that come under paperwork. In this evolving digital era, customers are reaching organisations more digitally than ever.

This is EXACTLY what FX back office offers you the chance to do.

We’ll go into how forex trading works in more detail in the How to trade course. With so many trades happening each second, currency prices are always on the move – which brings lots of opportunity for traders. Because you are buying one currency while selling another at the same time, you can speculate on both upward and downward market moves.

We also offer the full CySEC questionnaire within our Client Cabinet incase your marketing or compliance department missed anything. Based on this experience we have developed functionality that will allow you to predict and avoid any slipups. Unlimited level-based partners program that rewards not only direct IBs with commission but a much broader span. A specifically designed page showing all rewards that provides the friendliest UI on the market. We have developed a unique User Interface for the platforms shown below and continue to expand our list.

What is Forex back office

Maintenance and the process of storing general customer information should be simple in a proper back office. A user should be able to quickly update a new client profile and the user interface should be simple with a structured presentation of customer trading experience, statistics, and other important details. Know Your Client is a crucial component for preventing money laundering and complying with Forex regulations. It allows you to confirm the identity of your clients by uploading and saving documents. This is the reason why many companies are now preferring outsourcing of back-office in offshore lands to reduce costs. With technological advancement, remote working, freelancing, this has been made possible with the additional perks of rent saving, cost-effective remote hiring process and increased productivity.

He mentioned the word “disinflation” as characterizing the present U.S. economic conditions. Most agreed that in the final assessment, Powell was not nearly as hawkish as he had been in recent FOMC press conferences and left the door open to a Fed “pivot” sooner rather than later. Local investment firm Arif Habib Limited calculated that the reserves are at their lowest since February 2014 and now only cover 18 days worth of imports, the lowest the import cover has been since 1998. Reserves held by commercial banks stood at $5.65 billion, taking total liquid reserves in the country to $8.74 billion, SBP added. The country is locked in negotiations with the International Monetary Fund to release much-needed money under a stalled bailout programme.

Best Back Office Trading Software Providers

However, trading members of the stock exchanges shall not be involved in the settlement process for any RBI regulated entity. All stock exchange trades of banks have to be settled either directly with clearing corporation/clearing house or else through a clearing member custodian. Trading on the stock exchanges operates parallel to the present system of trading in government securities. The trades concluded on the exchanges will be cleared by their respective clearing corporations/clearing houses. As a part of its routine, back office checks all the deals prepared by the dealers and verify particulars of direct deals done in the interbank market with Telex/Reuters Printout. The Back office functions for various transactions in respect of forex, money market and securities market are given below.

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It helps with customer research and registration by focusing on the requirements of the financial regulator as well as international regulations overseeing the trading activity. Other than receiving and processing payments, tradesmen may be able to do business with their consumers. These include things like moving money from one account to another, depositing and withdrawing money, and creating a new account. The back office arrange­ment should be such that trading on the NDS/ OTC market and on the stock exchanges can be tracked easily for settlement, recon­ciliation and management reporting. Back Office should, there­fore, install enabling IT infrastructure and adequate risk manage­ment systems.

Requirements of the Middle Office

The lender had set several conditions for resuming the bailout, including a market-determined exchange rate for the local currency and an easing of fuel subsidies. The central bank recently removed a cap on exchange rates and the government raised fuel prices by 16%. From the financial point of view, your finance department can create reports in seconds, saving hours and hours of the day and allowing them to research into better providers and suppliers in order to save money for your company.

The middle office tracks and processes all of the deals made by the front office before being reconciled by the back office. Finance and accounting function is the most crucial aspect with payment processing being the fundamental part of the workplace. While every department plays a pivotal role, they’re all backed up by the backend department. 15.3X average year-over-year decrease in operational costs, vs. a -1.5% for traditional back offices. Modern back offices continue to use CRM and BPM/workflow systems but are adding in cloud-based solutions that leverage APIs to integrate with existing systems more easily. A rip and replace of old systems is costly, time-consuming, and disruptive.

Risk management

I hope this glossary will help you better understand what Back Office means. If a regulatory compliance manager fails to do their work properly, it will be impossible for an office to function. For example, the fines and penalties that a company would have to pay for breaching regulations can be exorbitant. On top of that, regulatory breaching regulations can lead to a complete shutdown of the office. Clients and customers generally have no idea about who is making sure everything that a company is doing is within the legal scope of the concerned jurisdiction and international laws.

RPA can also be used to capture data from these systems without actually integrating with them. Nonetheless, many consider this a temporary band-aid until organizations can update their core legacy systems. Read the blog, Focus Your Back-Office on the Customer vs. the Transaction, to learn how a UK BPO is moving from a transaction to a customer-oriented work environment, improving efficiencies and the customer experience. Traditional back offices are also very transaction-oriented vs. customer-oriented as noted by Aberdeen.

An FX firm’s customer relationship management must include more than just basic information about your customers and their activities. Information about your client’s whole trading history, along with his forex back-office software interactions with your company, payment details, and other relevant data must also be included. Keeping track of your clients is one of the most important components of running a successful FX brokerage.


These historically have been paper-intensive, people-intensive support functions. But with the advent of digital technologies – document scanning, workflow systems, and more recently solutions like robotic process automation – more of the work is digitized and automated. This article provides a high-level overview of back-office operations, answering the most common questions asked about back-office.

Who trades currencies?

A good and efficient Forex CRM is the backbone of a forex brokerage business operations. While managing multiple introducing brokers, money managers, partners, and other affiliates at a time, handling interest allocation or partner commissions can be very much tricky or difficult. Multi-tier Partner Management is a system that permits Forex companies to achieve the goal of extending the business reach to a larger customer base. Back Office means the section of an office that deals with administrative tasks. The term Back Office comes from the fact that companies of the past would have separate office areas for the front, middle and Back Office staff.