Foreign exchange (FX) trading

Inattention to FX transactions can detract from investment performance. Russell Investments' agency FX programme helps clients manage costs, improve transparency and minimise counterparty risk.

Acting on your behalf, we:

  • Reduce costs by netting your transactions and trading as an agent
  • Improve transparency by time stamping every transaction and showing the cost of execution
  • Align our interests with yours by acting as a fiduciary
  • Manage counterparty risk by trading with over 20 banks

You can take advantage of our foreign currency trading services whether you handle currency needs internally or delegate them to your investment managers.

Fiduciary approach to foreign exchange trading

To help reduce foreign exchange transaction costs, some investors use a third party to manage currency trading. Historically, that’s been a principal, such as an investment bank, who fills the order from the principal’s own account. More recently, some investors use an agent who acts on the investor’s behalf, getting rates from several providers and selecting the best one.

But some investors use an agent who is also a fiduciary. That’s important because investors are worried about regulators who have become much less patient with those who don’t manage all their costs—including costs to trade foreign exchange—effectively. Investors can manage this regulatory risk by delegating responsibility to a currency trading agent who is also a fiduciary.

We also offer these currency management services:

Currency overlay

Currency volatility in an international portfolio can sometimes swamp the return from the main asset. We can help investors design a cost effective currency risk management programme to reduce uncompensated risk. View details into our currency overlay service

RFX Network

For those investors who want to enjoy the benefits of Russell Investments' foreign exchange trading programme but manage trading themselves. Learn more about our online RFX platform

Any opinion expressed is that of Russell Investments, is not a statement of fact, is subject to change and does not constitute investment advice.

The value of investments and the income from them can fall as well as rise and is not guaranteed. You may not get back the amount originally invested.

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