According to monetary experts, the forex market is the a fast expanding one, and includes numerous players like governments, investment houses, corporations, currency speculators, individual businessmen, thrift banks, commercial and universal banks. The average volume of this market is expanding at a much faster rate than expected by analysts as many markets open and government regulations imposed are loosened.
While there are many factors in choosing the right brokerage, one thing to consider is whether they have a referral program where you can earn additional compensation by merely referring valued clients. In this system, there are three players namely, the original client, the broker, and the referred client. The original and referred clients will engage the services of the broker and the original one gets commission from the latter for his referral. Thus, he can earn more money by simply referring other clients to the broker.
One must be careful in choosing the broker as this might ruin business standing with the referred client. He should determine whether the broker has good experience, resources, client base, and online forex technology able to cope up with ever changing market demands. The institutional pricings and quality executions must also be considered, and explained carefully to the referred client or his agents. The original client guarantees to the referred one that the broker has enough resources and tools to handle a growing market, and it is committed in delivering the highest service and quality product to help both clients. On the other hand, the broker gives compensation to the referring client.

Mention Thai finance companies and most investors head for the hills, their perception fixed by the memory of the closure of 56 of their number. But some finance companies are not only doing fine, they are planning to upgrade to full bank status.

National Finance recently announced that it has become the first of the finance houses to apply for a restricted banking license in Thailand. Pakit lamopas, executive vice president in charge of the bank project at National Finance, explains the motive for the move: ‘As a finance company, we already compete with banks on many fronts, but we suffer from handicaps because we do not have access to some businesses, like import/export companies. Our cost of capital is also higher because we have to offer more interest on deposits as people’s perception is that the larger banks are more secure. Going for a license, we don’t lose.”

The application process involves sending a preliminary letter to the Bank of Thailand (BoT) explaining how the finance company plans to meet the requirements to gain the license — merging with five other finance companies, maintaining a capital adequacy ratio (CAR) of 15% for two years (after which time the ratio may fall to the typical bank requirement of 8.5%) and having a capital base of Bt lO billion ($251 million).

National Finance’s preliminary application was accepted in June 1999. In mid- September it submitted a detailed plan to the BoT which, if accepted, goes to the minister of finance for final approval.