Foreign exchange (FX) trading
Inattention to FX transactions can detract from investment performance. Russell Investments' agency FX program helps clients manage costs, improve transparency and minimize 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 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 program to reduce uncompensated risk. View details into our currency overlay service
For those investors who want to enjoy the benefits of Russell's foreign exchange trading program but manage trading themselves. Watch our video demo to learn more about our online RFX platform
We use the latest developments in investment and index construction research for better currency risk management. Learn about our approach to managing currency risk
Please remember that all investments carry some level of risk, including the potential loss of principal invested. They do not typically grow at an even rate of return and may experience negative growth. As with any type of portfolio structuring, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns.
Implementation services are offered by Russell Investments Implementation Services, LLC., a SEC registered investment adviser and broker-dealer member FINRA / SIPC.