Are Investment Banks Brokers?

I was looking at the broker financials at ctfc.gov and saw many of those large name investment banks like Barclay, BNP paribas, deutsche bank etc. Being listed probably means they handle forex services. but what kind of trading do you do with them? I can't imagine a huge bank like that setting up retail fx brokerage services like gains or ibfx.

Do they just handle stuff like forex future contracts and accounts for holding onto large amounts of foreign currencies but not for trading purposes? or do they actually do retail forex?

Thanks for the wiki, I've looked through that.

So specifically to forex, they would still handle all types of instruments from spot to futures, except that maybe you need perhaps a million account minimum.

I am wondering if they provide margin service and brokers your orders with the interbank market?

Some of the investment banks run through some of the retail firms, some offer their own products. DB seems to use FXCM, another big bank uses Oanda. Some of the others have their own limited offerings to get their foot in the door with high-value clients, and in case they want to really get into it down the road with individual low to mid value investors.

I suspect the service they give out is consummate with the amount on deposit. I can't see a big bank giving much consideration to a 10,000 dollar account, but if you decide to trade a few million in the forex, they probably give you a little bit more attention.

trading with banks is a different business all together. you must have a substantial amount of cash as well as credit. (banks understand credit and leverage to be virtually the same thing) Banks also do not consider an ECN to be free. you must pay prime brokerage fees if you wish to trade a between banks otherwise you are at the mercy of the orders of one bank which can result in huge spreads at the wrong time.

Banks are starting to get on board with retail forex by offering services to STP brokers. It makes more sense for them as they can bring in the volume but dont have to deal with the head aches that come with retail pykers.

the primary job of an investment bank is to manage risk. so obviously having FCM's pump volume through their fx desk but at the same time handle all of the risk and the head aches is a win/win for them. its free money

Ha, yeah - just a bit.