At present, there are two main channels for China investors to invest in the foreign exchange market. One is to make a firm offer for foreign exchange opened by domestic banks, and the other is to directly open an account abroad for foreign exchange margin business through the domestic agent of overseas dealers.
Due to many factors, such as the large spread of foreign exchange firm offer (which can be understood as high transaction cost) and no leverage, the general rate of return is difficult to meet except for the large fluctuation of exchange rate. Foreign exchange margin business is sought after by many investors, because it can be traded in two directions, both long and short, and because of its leverage ratio, it can be made small or wide. At present, businesses opened in mature foreign exchange trading markets are basically in the form of foreign exchange deposits, rather than foreign exchange firm offers. The main reason why China's financial institutions have not carried out margin trading and securities lending business is that they are not prepared.
At present, the foreign exchange margin business has not been fully opened in China. However, at present, the state does not interfere with citizens' overseas investment, so at present, foreign mainstream platforms generally find agents in China to do customer development and service for them.