FX as an Asset Class: Boost your Performance in Forex Trading

Peg Reed, Interbank FX

Risk Disclaimer

Trading in the off exchange retail foreign currency market is one of the

riskiest forms of investment available in the financial markets and suitable

for sophisticated individuals and institutions. The possibility exists that you

could sustain a substantial loss of funds and therefore you should not

invest money that you cannot afford to lose. Nothing in this presentation is

a recommendation to buy or sell currencies and Interbank FX is not liable

for any loss or damage, including without limitation, any loss of profit which

may arise directly or indirectly from the use of Interbank FX tools or

reliance on such information.

Retail FX Market Opportunities

– FX remains the largest and most liquid market in the world

– Due to recent downturn of the global economy, investors are seeking volatility in alternative markets

– Increasingly electronic: 57% and 61% of all FX trading in Americas and Europe conducted electronically in 2006

Relatively untapped, rapidly growing retail FX market• Low penetration of retail FX with only 2% of overall

FX volume• Growing legitimacy as an asset class• Asia-Pacific leads the market with 38% of retail FX

trading volumes followed by Europe (31%) and Americas (26%)

Key growth drivers • Increase in cross-border transactions and demand for

currency hedging• Increase in internationally diversified portfolios• Acceptance of currency as a stand-alone investment• Efficiencies created by electronic trading have

reduced trading costs • Increased oversight of retail FX by the CFTC in the

United States has helped attract individual investors

Key trendsFX average daily volume

Average daily retail FX volume

CAGR +5%

CAGR +12%($ in billions)

($ in billions)

My Journey with FX• Ms. Reed’s experience in the foreign

exchange (FX) market spans 30 years on Wall Street with a number of financial organizations.

• Global client relationship manager and currency trader for Bank of America, Standard Charter Bank, Barclays Bank, and American International Group

• Helped launch Hotspot Fxi, an ECN utilized by the wholesale Forex community

• As Head of Sales for Lava Trading Ms. Reed worked to ensure customer focused solutions so clients would participate on Lava’s ECN product

• Peg is the Managing Director of Global Partnerships for Interbank FX

Retail FX and Leading Global Banks• Foreign exchange trading used to be

exclusive to investment banks, hedge fund managers and corporations

• The retail FX markets have a large variety of market participants compared to other capital markets. Also, unlike other markets, global FX is not limited to the systemic risk of one nation.

• How can FX add value to an investment portfolio?

- > Diversify your portfolio– Stocks and bonds even when varied by

country or industry tend to move in synch

– Fund managers often say “If the ups and downs are independent of other investments then it is an asset class”

– Reduces overall volatility of returns and drawdown periods

• Increased participation of the largest global banks in the retail FX market

– Citibank– Deutsche Bank – Credit Swiss– Goldman Sachs– UBS

Company founded by Todd Crosland

20022002 20032003 20042004 20052005 20062006 20072007 20082008 20092009

Revenue growth of 89% reaching $63 millionMonthly trading volume hits $80 billion notional value8 new currency pairs addedIncreased global liquidity providers to six world class firms

First Private-label partner

IBFX begins commercial operations as a registered FCM

Interbank FX LLC formed as a Utah limited liability corporation

Best Foreign Exchange Broker

Achieves 480%+ revenue growth for the year

Reaches $1MM in revenueCash flow positive

Emerging Elite, 2006

Revenue growth of 152%, reaching $15 million

Money AM 2008 Best Online FX ProviderShares Best FX Broker 2008Global Finance Best Retail Online FX Trading System

Revenue growth of 120%, reaching $33 million

20012001

35,000 customer accounts

Interbank FX’s Journey…

Spectrum acquires minority stake in IBFXLaunch of next-generation multi-bank order routing systemUnveils IBFX University

Interbank FX Corporate Quick Facts

Registered FCM, NFA Member

As of May 2009, adjusted net capital in excess of

38 million

Approximately 30,000 customers in 140 countries

Established Multi-bank liquidity

Multiple trading platforms

Sophisticated IT solutions

Revenue growth of 92%

EBITDA margins in excess of 50%

Over 80% of customer accounts from direct

marketing

Milestones

• Annual revenue growth of over 3,200% since 2004• Compound annual revenue growth for the last four

years of over 480 percent• Over 30,000 customer accounts• Supports trading volume of $80 billion per month• Notional one-day trading volume of more than $11

billion (June 30, 2008)• Current Net Capital in excess of $38 million• 2009 Inc. 500 – Fastest growing FX company

Presenter

Presentation Notes

Interbank FX received numerous awards in 2007.

• Multi-bank Liquidity Feed• 100% automated order execution • Smart routing to leading banks• Streaming Dow Jones news feed• Anonymous Order Execution• Competitive spreads (spreads are not fixed and will fluctuate with market volatility)• Award-winning “customer centric model”• Extensive online education• An array of free trading tools• Standard, mini, micro and nano lots

Why Customers Trade with Interbank FX

Benefit From Interbank FX’s Multi-bank Liquidity Feed

“…this business model highlights the underlyingcommitment that you can provide to provide your

customers with the best tools, education and executionpossible…”

Interbank FX Offers: • Competitive Pricing from multiple leading global

banks• Access to daily reports and rebates • No management fees, start up costs or licensing

fees • Award winning “customer centric model”• Anonymous Order Execution • 100% automated execution • Smart routing to providers• Competitive Spreads* • *Spreads are not fixed and will fluctuate

with news or other high/low volume conditions.

FREE Trading Tools

• Real-time News: Dow Jones Select News Feed• International Economic Calendar• Patterns Recognition Systems (PRS)• Power Stats (Basic & Advanced)• Daily Pivots • Candlestick Pattern Recognition (CPR)• Instrument Monitor • MACD Traditional • Waves• Quick Scripts• Mini Monitor • Partial Close Expert Advisor

Fully Branded Online University

Free, comprehensive forex education website customized to address all your clients Assembled with essentially one objective in mind: the need to provide those interested in currency trading a place where they can learn foreign exchange trading conceptsDesigned to provide content to a broad range of tradersCourse content includes the following sections:

– Introduction to the Forex Market– Technical Analysis– Fundamental Analysis– Trading Strategies– Platform Trainings– Programming– Market Analysis– Guest Courses

Thank youfor your time and interest in

If you have further questions,please visit our booth or visit our website

www.interbankfx.com