Forex brokers tend to offer special treatment to institutional clients, how institutional clients are defined？What are the benefits？

There are many types of traders in the market, and if you are interested in trading online, it is important to know the different types of market participants to understand the overall market dynamics, which will also help you understand your position and how to take advantage of certain market conditions。

In addition to retail traders, foreign exchange trading is also dominated by institutional traders, who, although in smaller numbers, actually have a fairly strong presence in the market.。

Institutional Client Definition

Simply put, an institutional client is an entity that can invest a large amount of money in a variety of financial instruments by gathering funds from a large number of investors.。In other words, institutional clients are entities that invest large amounts of money for themselves or on behalf of others, and each institutional client has specific investment objectives, so their trading methods and the assets they invest in can vary greatly。

What institutional clients have in common is that they are not individuals, but entities. They can take many forms, but the following are some of the most common forms:

• Bank
  Mutual Funds
  hedge fund
  Pension Fund
  sovereign wealth fund
  insurance company
  Endowment Fund
  broker-dealer
  Enterprise

In short, institutional clients are entities with millions or even billions of dollars invested in certain assets, the main difference between them and retail traders, who usually have much less initial capital available for investment。However, the definition of large individual investors is a bit tricky, and they are often seen as a gray area between retail and institutional investors because they may have large sums of money to invest but do not necessarily work the same way as institutional clients.。

Characteristics of Institutional Clients

In essence, institutional investors must have the following characteristics.

• Is a legal entity, not an individual。
  Professionally and manage assets according to client's interests and objectives。
  Ability to manage large amounts of money and thus have a greater impact on the market。
  More complex than retail traders because they usually have a team of experienced portfolio managers to manage funds and have better infrastructure to trade faster。

The Impact of Institutional Clients in the Market

Institutional clients are often referred to as "market makers" because of their enormous influence on the price dynamics of various financial markets.。Institutional investors typically hold large amounts of money and are often involved in important market events, which give them the ability to influence the market to some extent through their actions, such as supply and demand in the market, and cause sudden price movements in stocks, currency pairs or other assets.。

Benefits of Being an Institutional Client

Compared to retail traders, institutional clients usually have greater advantages because they work as professionals and manage larger funds. Some of the advantages are as follows:

• Greater access to information and additional services: Institutional investors may have access to research, data and analysis not readily available to retail investors, and some brokers also offer special services to institutional clients, ranging from loan servicing to greater leverage。
  More security options: Some securities are only available to investors who meet certain criteria。Because of its size, most institutional investors can get any security they want.。
  Fewer restrictions: Institutional investors are considered professionals who know exactly what they are doing, so they can usually negotiate better fees and are less restricted when trading。

Risks of becoming an institutional client

Being an institutional client of an online brokerage firm does bring various benefits, but it is not completely safe. Here are some problems that institutional clients may encounter:

• Due to the lack of qualified and experienced appraisers, there is a risk of non-compliance with the legal rights of shareholders, in addition to which this may be due to a lack of improvement in the dividend payment policy。
  There are problems with the management structure of the organization: institutional investors never work alone, so it may be more difficult to manage the portfolio and determine the standard quality of the company。
  Higher taxes: Institutional investors have greater tax reporting responsibilities than retail traders, who simply report their capital gains after selling assets。
  Liquidity: Institutional investors must understand that their actions can have a huge impact on the market, so they need to be more cautious and precise when making decisions。
  Diversification: Managing large amounts of money is no easy task and requires portfolio diversification and balance to manage risk without reducing returns。

How Forex Brokers Treat Institutional Clients

Forex brokers typically target the retail market, but that doesn't mean they can't offer special offers to institutional clients.。Such forex brokers typically accept institutional clients such as legal entities and large-cap investors, one of which is ADSS, formerly considered ADS securities。

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ADSS is a legitimate Forex and CFD broker as it is regulated by 3 countries: Ministry of Economic Development (Dubai) 1190047, FCA (UK) 577453 and SFC (Hong Kong) AXC847。Choosing a broker that is regulated by a reputable regulator is crucial as its regulated status helps ensure the trust and competence of the firm。

ADSS was founded in Abu Dhabi in 2011 and is the leading international broker in the UAE region。As one of the world's largest and most respected online brokers, ADSS accepts clients from all regions and accepts trading accounts in multiple currencies.。

The various awards ADSS has received are a testament to the company's reputation and reliability.。Last year, ADSS won 3 major categories in the 2021 Global Forex Awards, namely Best Forex Trading Innovation - Global, Best Forex Trading Platform - Middle East and Trusted Forex Broker - Middle East.。

ADSS provides its customers with a high-quality trading platform MetaTrader 4, which is very popular among traders. The platform can provide customers with one-click trading solutions and includes customization of in-depth market analysis。

In addition, ADSS offers only three types of live accounts: spread betting, standard and ECN, which can be opened by depositing $200 using multiple payment methods (including credit cards, wire transfers, Skrill, debit cards, etc.)。

In terms of trading tools, ADSS is one of the best as it offers its clients a wide range of financial assets, including 61 forex pairs, nine commodities, 28 indices, four bonds, four cryptocurrencies and hundreds of stock CFDs, including shares of Saudi Arabian companies.。

However, ADSS does not offer any bonuses to its traders.。But clients can participate in partner programs, such as referring friends, introducing brokers and fund managers for passive income。

ADSS also provides customers with multilingual support 24 / 7 through live chat, email or a global phone hotline。

ADSS is a leading broker with operations in the Middle East, the UK and other financial markets around the world.。Since 2010, the broker has received various prestigious awards for providing high-quality services and trading experiences suitable for all types of traders, including retail and institutional。

Here are some of the best features for institutional clients:

• Wide range of instruments: ADSS provides access to a wide range of assets, including more than 65 currency pairs, precious metals and CFDs on indices, commodities, Treasuries and equities。
  Deep Liquidity: Brokers work with over 30 top liquidity providers to optimize your trading value。With ADSS, you get deep liquidity with low latency and high flexibility。
  24 / 5 Customer Support: ADSS provides institutional multilingual customer support available 24 / 7 on weekdays via email, phone, fax, online chat and feedback form。
  Complex Margin Solutions: Advanced platforms allow traders to easily manage risk and leverage, with the option to trade on a case-by-case basis using the Net Open Position (NOP) line。
  Powerful trading platform: ADSS partners with leading trading platform company MetaQuotes to provide traders with the best trading conditions。The MT4 platform provides fast trade execution and connects you to some of the best liquidity providers in the market.。
  White Label Opportunity: ADSS allows brokers to repackage their services under their own brand name, which allows them to monitor client transactions and provide excellent back-office support。

Conclusion

All in all, institutional clients are still an important part of the investment community, and they may reap various benefits from managing such a large amount of money, but they also have to face many risks and difficulties, with several brokerage firms accepting institutional clients such as ADSS.。As mentioned above, the broker offers excellent trading features and extraordinary investment opportunities for institutional clients, especially in terms of pricing, liquidity and support。