RESIDENTS are now able to trade currency in the Foreign Exchange Market (FOREX) for the first time, through a partnership forged by Directrade.

The local company made the announcement this week, saying the move would enable its customers online access to a market that was previously "the exclusive territory of major banks, large hedge funds and global corporations".

The opportunity was made possible through the recent partnering of Directrade ? operated by Emerald Financial Group ? and America-based IFX Commerce Bank & Trust Company.

"We are happy to bring this new opportunity to investors who are interested in self directing a portion of their portfolio," said David Bolden, president and CEO of the Emerald Financial Group.

"FOREX is the only market operating 24 hours a day, allowing savvy investors to react immediately to news that might impact their open currency positions. This is what distinguishes foreign exchange markets from global stock markets."

Launched in September of 1999, Directrade is Bermuda's only online brokerage firm which offers offshore, online Internet trading services to individuals, trusts and corporations.

According to Mr. Bolden, the American firm will serve as a clearing agent for Directrade clients, having agreed to confirm, match and settle FOREX trade transactions through a subsidiary company, IFX Commerce Foreign Exchange.

"(The company is) the only US margin trading institution that offers clients the protection associated with a major bank and the security that comes with being insured by the Federal Deposit Insurance Corporation ? all unused margin is insured up to $100,000," a spokesperson said, in explaining the process.

"Online investors can deposit funds into their trading accounts in one of 13 different local currencies using Directrade, with competitive margin requirements and flexible transaction sizes. FOREX trading allows an investor to trade whether the markets are moving up or down, and it is easy to get in or out of a currency position regardless of trade size.

"Standard leverage rates are 100 to 1, meaning that $100 USD controls a position of $10,000 of USD against another currency."

Mr. Bolden stressed, however, that inexperienced traders should exercise the new opportunity with caution.

"The FOREX market isn't for everyone," he said. "It's best suited to experienced investors who are familiar with this type of market and who are looking to trade in a new environment, perhaps someone who is already used to trading securities.

"Foreign exchange trading is not simply speculative, but an interesting and challenging investment opportunity that should be part of a well diversified investment portfolio."

He added that all online transactions are subject to fees which ensure that clients have access to inter-bank spreads on all currency pairs.

For more information on Directrade's whole range of products and services, visit www.directrade.bm or telephone 295-0300.