Archive for the "Finance" Category
We are proud to announce that all clients of our company can trade cryptocurrencies with more beneficial spreads. From now on, the spreads are lowered on the following cryptocurrencies:
BCHUSD from 12 to 2
Litecoin from 2 to 0.7
Ethereum from 8 to 2
Ripple from 0.01 to 0.005
The lower spreads on cryptocurrecies enable our clients to reduce the cost of trading operations when working with the digital money.
Since the euro is one of the main Forex instruments, it is crucial to know to what extent this estimable currency is influential.
At present, the euro is an official currency for the majority of EU nations. 7 countries out of 27 are even planning to replace their national currency with the euro in 2014-2015. Denmark, Sweden and Great Britain do not seem to be willing to join the euro area so far. There can be various reasons for it, but they are mostly psychological rather than economic.
The euro reaches out far beyond the Eurozone borders. Vatican, Monaco and San Marino concluded formal agreements with the EU to adopt the euro as an official currency. The euro also serves as an official currency in Andorra, Montenegro, the Republic of Kosovo and two British-administered areas on Cyprus, even though they adopted the single European currency unilaterally.
What is more, the euro is used in some countries of Africa and Pacific Island countries.
Change of interest rates may lead to ambiguous reaction of traders and have some consequences for a national currency. On the one hand, interest rates change should be in direct proportion to the change of exchange rates; on the other hand, every rule has an exception.
Let’s examine the information in details.
It is beneficial for investors to put money in a country at high rates of return, making demand for national currency grow and currency rates rise. However, such system does not always work.
Firstly, it is expensive for entrepreneurs to take out a loan, so they are forced to set higher prices for their goods. Undoubtedly, national currency devalues.
Secondly, during the financial crisis most investors are afraid of investing as unjustified risk may lead to considerable loss. So investors prefer either to wait till it is over or to buy currencies with the lowest interest rates. It inevitably leads to drop in price of the national currencies with high interest rates.
Thus, any changes on the foreign exchange market as well as the change of interest rates have direct and indirect influence on the exchange rate. In order to interpret the economic events correctly, it is necessary to be well-informed about major events, read articles, look through the specialized forums, and analyze the situation on the foreign exchange market.
It is at least imprudent to start trading on Forex not making strict rules and getting wise to the trading basics. Look before you leap – or so much time and nerves will be spent to no purpose. Before being flush with money right and left it is better to get insight into capital or money management.
1. Look for alternatives
- Look for beneficial investment objects, fish for information and keep in touch with professionals. Do you want to earn profit? Make efforts! Learn opinions, ratings, brokerage companies’ websites. The opportunities of a modern trader are wide enough and in order to embrace them you should know about them first.
2. Start from scratch
- Stock exchange investors use the averaged investment method which means the security papers purchase for the same amount of money in equal time frames. It helps to set limits and avoid serious financial slips. There are cent accounts on Forex, serving as a safe point for start.
And certainly, you should not rush to open a real account – have practice on demo accounts first.
3. Do not put your last money at stake
- Any investments are related to risk somehow, that is why the market environment is variable. Do not play with money which you cannot afford to spend. Remember why you came to Forex. Not for blowing off all your capital for sure.
4. Remember: the higher profit – the higher risk
Risk and profit are proportionally related to each other. It should be taken into consideration when forming an investment portfolio.
- Running trading on Forex, think well about the leverage usage provided by broker. Leverage will advance your financial options, and in case of success you will benefit from the whole amount deposited, but in case you lose – you risk blowing off all your funds.
5. Diversify risks and observe the fixed limits
- To continue the previous point, it should be emphasized that for reducing risks it is reasonable to use different investment tools. Moreover, the experts recommend applying not over 50% of funds available and involve 5-10% of them in one trade.
- In a currency market it is important not that how much you earn, but how much you manage to save while you trade. Apply “Stop loss” and “Take profit” instruments to protect your capital.
6. Develop your own strategy
It is better to have a bad strategy rather than none. In addition, all your decisions should be conscious; you have to comprehend market changes and your actions. If the events do not follow your scenario it is better to stand back for awhile. It is also essential to determine your opportunities and goals: what amounts you are ready to invest, how much you are ready to put at stake, and if there is a place for adventurism in your plan?
- To sum up – a piece of advice. Never invest the money you borrowed. It is always risky. Do not put money being influenced by emotions or giving way to somebody’s opinion. Also remember that excessive self-confidence will bring you no use. Always be aware of your rights and duties.
Added by InstaForex Staff
Everybody faced with the need to transfer funds to the relative, business partner, friend or pay for Internet purchase. As for me by the nature of my activity I have to transfer my funds from one bank account or electronic wallet to the other. I have to replenish my account very often, as well as withdraw my profit. Of course it is possible to use old method – bank wire to transfer funds from one account to the other, however I don’t like the idea to pay them big commission for transfer and wait several days until confirmation that funds were credited to my account is received. Anyway after examining banks’ schemes on funds transfer I made a conclusion that it is more reasonable to use payments systems. Great, that a lot of new systems were created last years.
I want to share my experience of payment systems usage with you.
Let’s start with the most popular and simple system – Web Money. As a person who values my time I was attracted by the simplicity and speed of registration. There are neither extra forms and documents, nor notarized ID copies. It turns out that while registration I can write anything I want in the field “passport data”. Nobody checks anything. I really like this oversight because the transfer can be made absolutely anonymous.
Now let’s move directly to transfers. Web Money offers its clients the opportunity to transfer funds in the main currencies from and to any accounts without limits. Commission for transfer is fixed – 0,8% of transaction amount. It is not worth speaking about the speed because all main players on payment systems’ market execute transaction instantly. The only disadvantage is the necessarity to download special clients’ terminal WM Keeper. Also I want to mention one limit – it is impossible to replenish wallet via credit card.
At PayPal web-site it is said that this payment system gives opportunity to accept and send payments at web-sites, auction, via e-mail or cell phone with Internet access. However this is accessible only for citizens of The New World and in some parts of The Old World. It should be mentioned that this is American system, it is rather old and conservative. For instance, if you have opened an account and didn’t verify it with credit card you can not withdraw funds from it. In PayPal number of your account is your e-mail address. Addresses used when transfer can be deleted or added. For transaction they take 1% of transaction amount.
It is possible to transfer any sum, recipient of payment can be a person who does not have PayPal account. E-mail is sent to the recipient, who follows link of the payment system and at company’s web-site makes payment confirmation. Replenishing of the PayPal account is made via credit card or bank wire in order to verify that you are a real person.
This system is different from others. Making a transaction you are buying precious metals (Gold, silver, platinum). Your money is on your account in grams or kilograms of precious metals. Withdrawing funds you made inverse operation. It should be mentioned that while your funds are at E-Gold account the real price of your investment may rise or fall. The transfer between wallet WM and E-Gold is rather simple, that gives more opportunities for management of your own funds. Advantages of this system are the following:
- democratic approach;
- anonymous and simple registration;
- partnership relations with other payment systems;
- juridical liberality.
Commission something about 1 %, the system takes not more than 50 US cents.
Moneybookers allows client who has e-mail to send and receive money on-line using e-mail. As the system is English, you have to remember that all the transactions of your money are regulated by the Great Britain legislation. Currency of the account you can choose while registration. Advantages: there is no need to setup special software, all operations with account and funds can be carried out at Moneybookers website.
For getting access to my account I needed to enter only e-mail, password and image verification. As soon as I transferred some money my recipient received an e-mail about money has been transferred to his account. Following the link pointed in e-mail recipient enter the system and immediately money enters his account. Since the moment payment is considered as finished. If recipient do not claim the payment during 14 days, money is transferred to my account back. So everything is simple. Ohh, yehh… Transaction fee is taken off from sender. It is 1 % of payment amount, but no more than 0.5 euro.
History of Liberty Reserve is connected with the rules toughening of E-Gold system usage since 2007 in order that exculpate accusation of USA authorities about money laundering. It is manifested particularly in blocking enter the account through the public proxy and frozen accounts of some HYIPs. In HYIP traders’ community active search for alternative payment instruments began. All of them wanted to find payment system that meets the requirements of anonymity, reversibility of transactions and independence from threatening American justice.
In my opinion Liberty Reserve meets all these requirements. I have an impression that location of the main office in Costa Rica but not in the USA is the pride for the owners of this system. Anyway at the page with comparative description of Liberty Reserve and other payment systems the fact of Liberty Reserve activity independent from the USA justice was pointed out especially.
From users’ point of view there is no claims to this payment system. And from the non-users’ point of view I can point out the seriousness in accounts defense.
As disadvantage I would say impossibility of depositing and withdrawal funds from/to banks and credit card. All deposit/withdrawal transactions are available through exchangers. The list of exchangers are given at Liberty Reserve website.
In the end the latest of my experience of using payment systems. I was lucky to try this system in practice ahead of the game. This system allows sending money from the credit card Visa or Master Card to the virtual account in LiqPay system, tied to the mobile number and vice-versa. After that money can be transferred to another mobile, withdrew from LiqPay system to your credit card back and left in the account and used it later. LiqPay is useful if you want to transfer money to the person you know only mobile number of. It does not matter whether this person is registered in the system or not. Short message will be sent to him with offer to receive money at the LiqPay website. Enter the website he/she can transfer it to his/her credit card or send it to another mobile.
Moreover I tried this system to pay for goods in Internet. And it really solves the problem of micro payments in Internet. Min amount for transaction is 0.01 USD, max – 2500 USD.
In my opinion LiqPay has a good future.
Opportunity of withdrawing funds to the credit card, speed of transactions executing and possibility of micro transaction executing proves my optimism.
Resuming above I can note that every payment system has its advantages and disadvantages. Somebody is concerned about anonymity and liberality of control; somebody prefers 100 % of protection and reliability. I always value time and comfort. In due time I used all these systems and once banking system. So my choice as follower of the intraday trading on Forex – WebMoney and LiqPay. But everybody decides him/herself. Choice of payments system is huge.
The article is added by Alexey Badianov,
InstaForex specialist in finance