Stockbroking Essentials for 2016

We have already witnessed a substantial amount of volatility in 2016 and if the past few months can serve as any indicator, the bears may very well dominate the remainder of this year. Those who are already involved within the markets or who may be considering an entrance into this malleable environment should be aware of some of the essential takeaway points to keep in mind. Which strategies should be embraced and are there any notable pitfalls to avoid? Let us briefly examine both of these topics in greater detail.

Modern Times Require Modern Platforms

High-speed Internet access and user-friendly trading systems have opened up the investment world to anyone with a will to succeed. It is still of paramount importance to appreciate that not all platforms offer the same level of efficiency, clarity and responsiveness. Traders who hope to enjoy a substantial edge over their competitors have therefore been taking advantage of the instruments that can only be found at CMC Markets. Unlimited conditional orders, highly advanced platform features and mobile-friendly applications are but a few of the metrics which have enabled this brokerage to offer the best return on investment throughout Australia. The concept of a second-best firm has no merit within the world of stockbrokers.

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One Eye on the News

Access to real-time news feeds can be either a benefit or a disadvantage. As any late-breaking stories circulate around the global economic community in a matter of minutes, staying ahead of this curve is now a necessity. Those who fail to monitor such events are bound to find themselves at the losing end of what would have otherwise been a profitable trade. This is another motivating factor which has drawn investors of all sizes towards the systems provided by CMC Markets.


A diversified portfolio can produce profits regardless of external market conditions. This is of particular importance when we have already observed that 2016 seems to be bordering on a bearish market. It is therefore deemed wise to spread one’s investments across a number of different sectors; some of these offering more liquidity than others. A few examples here include:

  • Currency pairs.
  • CFDs
  • Treasuries
  • Commodities
  • Warrants
  • Funds
  • ETFs

Although many will choose to adopt a more prudent stance, we should always recall that fortunes tend to be made when the markets are seen to be taking a downturn. This stance is perfectly illustrated in the expression “never buy when it is high”.

These flexible principles should always be used in synergy with more traditional methods such as hedging, the placement of automatic stop losses and chart analyses. Those who approach this year with the correct mindset should expect to enjoy superior levels of performance. When we combine the efficacious tools provided only through CMC Markets, it is clear that every (somewhat) dark cloud has a silver lining. Please browse through our site to learn more in regards to what is offered.

Finding forex brokers online

The purpose of the forex broker is not really restricted to providing you a trading platform which helps you trade with ease. Your broker is your connection with the markets. The broker is essentially responsible for providing you the cover that allows you to trade with margins. Needless to say, as a trader you need to exercise due discretion while you are actually in the process of selecting the online forex broker. And, what exactly are the factors that you need to keep in view? We will discover in the course of this post.

Factors that you need to consider while you are in the process of selecting a broker

Are you too confused about the right steps to take when it comes to selecting a forex broker? Don’t be—since we’re here to help.

Find out if the broker is regulated or not

There are a lot of unregulated brokers functioning in the market. You should be prudent enough to avoid them since there is every chance of them “vanishing in the air like a puff of smoke” after you have spent a substantial portion of your hard earned money. So, find out whether the broker is regulated or not. There are different regulatory bodies governing the currency markets of different countries. So, you should, at first, find out about the apex regulatory body governing the Foreign Exchange Market in your country (if don’t already know about it) and then find out if the forex broker consulted by you is regulated or not.Forex Trading System

For instance, if you are trading in the US, then you would want your forex broker to be registered with Commodity Futures Trading Commission (CFTC) or National Futures Association (NFA).


Does the forex broker offer you a reliable platform? Are the services of the broker backed by financial software which allows you to trade from anywhere you want? Or is the platform mostly “offline”? If yes, then you might as well end up facing major problems – simply owing to the fact that the forex market functions 24 hours a day. And, if your platform doesn’t work all the time then you could miss out on opening or closing a trade at the most opportune moment.

Margins or deposits

Let us tell you that the forex margins differ from broker to broker. If you are able to trade with low deposits then you can benefit by profiting from higher leverage.

What is the size of trade that you are allowed to trade with?

Once again, the trade size varies from broker to broker. A standard lot consists of 100,000 trading units of a currency. There are some brokers that offer you fractions of lots.

Online presence

One of the best ways to investigate the credentials of the broker will be to ensure that you are actually going through the online forums in a bid to find out what the forex traders have to say about the quality of services offered by brokers.

Do keep these points in view in order to be duly guided.

Author Bio: Sam Payn, a well-known industry blogger, is enthusiastic about sharing valuable tips on Forex – his newfound love. Many of his blogs focus on the need to choose the right online forex broker.

A look at the Forex Market in Indonesia

On December, 2015, the Forex exchange reserves in Indonesia had touched a whopping 105,900 USD million that was tipped as the largest figure since July 2015. The Foreign Exchange Market in Indonesia has successfully been promoted as one of the potent ways to earn money fast. Investors in the country have been looking for quick money and the Forex market promised them fast money for sure. Let us take a look at the forex market in Indonesia.

The Forex Market in Indonesia

It’s the local futures brokers who have played a crucial role in promoting the forex market in Indonesia. A forex broker Indonesia typically offers services both online and offline and is also backed by either a representative office or master IB. The leading trading brokers in the country offer local telephone numbers for their dealing desk.
The Indonesian traders can hypothetically be divided into two main categories. There is one segment which is absolutely comfortable dealing with the risks associated with the forex broker or the products and is in favor of regulated solutions led by FSA. Indonesian investors are also known to rely heavily on Singapore and Australian regulated brokers. Then there is that other section of investors that prefers low cost solutions. They just want to trade fast and not face any hassles during the initial period.

The Indonesian currency market: A Few Facts (Past and Present)

The capital market of the country is fairly developed. It was the Dutch Colonial government that supervised this market way back in the year 1912 but had been shut down during the World Wars. The Capital Market Supervisory Agency had been established to take care of the functionalities of the Foreign Exchange Market as it was reopened in 1977. The particular sector had been privatized in the year 1992 with a new ownership at the helm of things. The privatization of the company was a direct result of the improvement of the economy.

The stocks featuring in the Indonesian market include traditional commodities like energy and industrial materials. The banks and other financial institutions enjoy the largest share in the market – standing at 25.23%. The Industrial Materials, Consumer Goods and Energy have 20.03%, 14.71% and 13.72% shares respectively.
Very interestingly, the Forex market has flourished in Indonesia, despite the fact that the country has people living below $2 per day. Perhaps the success of the forex industry is attributable to the presence of strong private and government sectors in the country.

How should you select a Forex broker in Indonesia?

Today, if you are on the lookout for a reliable forex broker in Indonesia, make sure you are making a selection only after conducting thorough research on the background of the broker. There is no dearth of forex brokers functioning in Indonesia. However, not all of them will offer you equal quality of services. So, it is imperative on your end to ensure that you are doing your research properly before opting for a service.
Hope we have been able to help you. Good luck!

Various Advantages Of Trading Online

Many beginners will find it hard to believe but there was a time when it was not easy to trade. All the trades necessarily had to go through a stockbroker where brokers would take orders from the traders, make their own suggestions and then handle everything when it came to the actual buying and selling of various assets. Thanks to the advent of Internet, these days it is possible for anyone to open an account for trading online for almost all the asset classes.

The Ease Of Trading Online

Online trading has made it very easy for beginners as well as experienced traders to trade in currencies, stocks, CFDs, commonalities and various other asset classes. In addition to ease of trading, there are a number of other benefits of trading online.

Close-up of a financial report with the silhouettes of business people in the background

Close-up of a financial report with the silhouettes of business people in the background

One of the biggest benefits of online trading is lower cost of trading. Most of the traditional brokers usually charge a substantial fee for each trade. On the other hand, online brokerage firms usually charge flat fees for transactions and these flat fees are very inexpensive as compared to the charges by the traditional brokers.

Another main benefit of online trading is that it gives you complete control over your investments and portfolio. When one could trade only through traditional brokers, one had to often stick to the advice given by the brokers. However, online trading ensures that you have complete control over your financial future and do not need to trust the impulses of a stranger. You can do all the research online and make your own trading decisions based on your research.

Quick And Smooth Trades

Another big benefit of online trading is in its near instant nature. Earlier, it used to take a lot of time to execute a trade depending on the type of asset class. On the other hand, online trading usually takes only a few seconds. In most of the cases, it takes only microseconds to execute a transaction. In simple terms, there is almost no lag between the order put in by an investor and the actual transaction.

Online trading also offers a lot of flexibility. Before the advent of online trading, investors had to buy assets in particular lot sizes. However, trading online has removed the requirement of a minimum trade allotment. This has added flexibility and liquidity to the market as investors can invest even a small sum of money to test the waters before putting in a substantial amount of money.

Online trading brokers offer investors a number of tools to make it easy for them to research and make online trades. For instance, investors these days have access to real-time price charts, a variety of calculators, a variety of graphs and various other indicators to make trading decisions in an easy manner.

In Conclusion

Overall, these are some of the main benefits of online trading. However, it is also important to keep in mind that while online trading is convenient, it also has some drawbacks. Therefore, one should be careful while trading online and manage money smartly to become a successful trader.

A Year’s Review of Forex Trading

To many observers, 2015 was relatively lacklustre one in terms of the financial markets. The S&P 500 is basically flat compared to a year ago, as it the yield to on 10-year Treasury bonds. The world of Forex trading is a complex one of sometimes arcane cause and effect. For those involved in Forex trading, there are a number of stories that can influence their trading decisions.

Time is money concept

Image Credit: investopedia

US Interest Rates

The Fed has finally agreed to a small raise in the US interest rates, the first such increase in seven years. To the casual saver this will result in a very minor increase in the return on CD’s and Money Market accounts. The bigger effect is likely to be a stronger US dollar. This may provide an uptick in foreign travel by US tourists looking for slightly better value for their vacation dollar. The long-term effect on the Forex market is yet to be determined.

Falling Oil Prices

The cost of a barrel of oil is about half of what it was at this time in 2014. This results in more money in consumers’ pockets. On the negative side, those heavily invested in the energy sector are suffering and income to oil producing countries is falling. Those working in the energy sector are also facing a very uncertain future.

Falling US Unemployment

Unemployment in the US is at 5.5%. To those who have been the victims of long-term unemployment, this is welcomed news. It also signals a problem for employers, especially those whose workforce consists primarily of low wageworkers. As the labour market tightens these companies are being forced to increase wages, and since most of these companies are multi-nationals the effect is felt in the US and abroad.

At the same time the underground economy in the US is rising, with some estimates having it at $2 trillion. The underground economy was once used to refer to illegal activities. Now those working in the shadows are just as likely to be in service industries and other legitimate concerns. While the underground economy has long existed in other parts of the world, it is relatively new in the US. Some estimate that the loss in tax revenue alone is about $500 billion.

In a world economy that is increasingly interconnected, it is easy for Forex traders to make assumptions based on stories such as those above. However the need for careful analysis is important. For example, the tighter US labour market has spawned articles that state that this will be good for the strength of the US dollar along with an almost equal number who state the opposite.
One of the best sources for accurate analysis in terms of how financial news is likely to affect the Forex market comes from highly rated and reputable Forex brokers, such as CMC Markets, which is rated in the top 10 of brokerage firms by

How to make money with Forex affiliate programs

Forex are one of the highest paid programs in the affiliate marketing niche. The fact that you can stand to make upwards of $200 per referred client makes it one of the marketing niches that you cannot ignore. However, there is a lot more to forex affiliate programs that you can think of. Here are some ways to help you get started promoting a program.

Website Promotion

If you run a website or a blog, forex partnership can be a great way to monetize your websites. Placing banners, or text links within your content or by sending a promotional or introductory email to your mailing list, the possibilities are endless. However, markets should note that it is not as simple as throwing in some banners and text links on your website and expecting visits to convert to clicks and eventually to depositing clients. Marketers need to make use of smart marketing tactics in order to achieve good, if not great results.

The type of website that you manage also plays an important role when it comes to success with forex affiliation. Ideally, a financial website tends to offer a higher rate of conversion of visitors into depositing clients. But other niche websites such as economics, gambling, online games and so on can also be used to promote forex or Revenue share?

Most programs allow you to choose between a onetime compensation, known as CPA or a recurring commission also known as revenue share. While there is no straight forward answer as to what is more lucrative, marketers need to understand their website demographics and thus choose one of the two commission plans. Some forex brokers also offer a hybrid plan which includes a CPA and a revenue share. If you notice that your website has a steady stream of traffic but visitors tend to bounce off, then using banners that are linked to a CPA plan can be more effective.

Text links embedded deep within content are proven to be more effective in terms of linking to a revenue share plan. However, no matter what, marketers are encouraged to experiment with the banners, text links and the commission plans in order to choose the more ideal revenue share plan.

Broker Promotions

Forex broker promotions can play an important role as well including the messaging that is on the banners. Most new traders tend to prefer forex brokers that offer additional bonuses that can help in increasing their trading equity. Therefore, utilizing banners that speak about forex broker promotions can be an effective way for marketers to promote the forex brokers that can also entice website visitors to click on the banners in order to learn more.

Forex Affiliate Programs – Why are they lucrative?

At the outset, forex affiliation is very lucrative thanks to the basic fundamental psychology of the human mind, which is to make money. By allowing the retail trader access to the financial markets, it is quite easy for just about anyone who has the capital to deposit funds and start trading. When choosing anaffiliate program, it is important that you as a marketer should pay close attention to the forex broker that you are promoting. With high paying CPA’s and revenue share plans, a seasoned marketer should be able to further monetize their websites or marketing plans making use of forex affiliate programs.

5 Interesting Facts about International Currency Transfers

International currency transfers are nothing but Forex or foreign exchangetrading. You may have seen numerous Forex trading centers by the way side or on your computer screen. However, this market is not at a modern day phenomenon only. Its origin can be traced back to ancient times.

Interesting Fact 1: Ancient history of Foreign Exchange

Its roots can be traced back to the ancient times, to be specific during Biblical times through Talmudic writings. The closest form of today’s international currency transfer originated in the 15thcentury when the textile merchants needed currency exchange. For facilitating trade of currency, Medici family opened banks at multiple foreign locations and traders could exchange currencies through special account books called “nostro”.

Interesting Fact 2: Origination of Forex

First ever active Forex originated in the seventeenth and eighteenth century when exchange used to take place between agents as well as merchants. The leading participant in currency trading in the USA around 1850 was the firm named Alexander Brown & Sons. Another thirty years later, around 1880s,another person named J.M. do Espírito Santo de Silva was allowed to get involved in foreign exchange trading business. 1880 is an important year for the trading world because gold standard was introduced in that year. In fact, that’s the reason why this year is considered by many as the most credible signal of the beginning of modern day foreign exchange.currencyweathervan_1817597b

Interesting Fact 3: International Currency Transfersin Modern Times

It was in June 1973 that telex and telephones were replaced by the computer monitors for currency trading quotes by Reuters. Especially when internet was unavailable, in the mid-1980s, Reuters came up with a special kind of electronic Forex trading known as “Reuters Dealing”, which was a closed network chat system on real time basis.

International currency transfers in the mid-1990s used to take place exclusively through corporations and banks that were capable of pulling together a minimum liquidity of anything from US$40 to US$50 million. Retail traders were able to trade Forex only during the introduction of online trading platforms.

Interesting Fact 4: An over Trillion Dollar Market

Reports say that the daily volume of trade in the international currency transfers market is over US$5.3 trillion. It is 2013 data. The next data will be revealed through a Triennial survey by the Bank of International Settlements (BIS). In the 2010 data, it can be seen that the forex market volume per day was US$3.98 trillion. This means there has been a 33 per cent increase in the traded volume in just 3 years time. This increase is that more significant because the jump has occurred on such a gigantic monetary traded volume of US$3.98 trillion.

Interesting Fact 5: Which Currency pair is known as “Cable”? Why?

The currency pair of British £ and US $ is known as “cable”.There is an interesting aspect associated with the GBP-USD currency pair. Before the advent of global communication satellite or fiber optic technology, London Stock Exchange and New York Stock Exchange were connected through giant steel cables that were laid below the Atlantic. That’s how GBP-USD currency pair got its name – “cable”.

These are the 5 interesting facts associated with international currency transfers.

Forex Brokers: A few facts explored

The popularity of forex is only increasing with each passing day. However, traders still lack the basic knowledge about the trade before they start trading with real money. If you have just initiated your trading career, then it is essential on your part to acquaint yourself with the basics of forex trading before you start investing real money in the trade. And, when it comes to basics, one cannot help but learn about forex brokers. Today, we will be discussing broker forex trading – what it means and how you should choose a forex broker.


Forex broker- What it means

The introducing broker serves as the intermediary between the interbank and you. The interbank, on the other hand, refers to a network of banks that trade with each other. The brokers have relations with these interbanks and when you actually sign up with a broker, you will be well advised regarding the best currency pairs to trade with.

The choice of a broker cannot really make or break your trading fortunes, however it might as well affect your winning chances in a fair measure. Let us explain how. A broker with the right trading platform will be able to offer you all the necessary tools to help you make the right trading decision. Here are a few points that should be factored when you are actually in the process of selecting a broker. Read on to find out.

Which trading platform is the broker using?

It is very important to take special note of the platform used by the broker when you are about to hire the same. A trading platform should be ideally easy to use and be backed by all the right tools, like trading charts and calendars, to help you make the right trading decision. If a broker is using a trading platform which does not have the following capabilities, you should ideally stay away from it.

It is important to consider the type of spreads offered by the broker while selecting the same. Is the broker offering you fixed or variable spreads? When it comes to fixed spreads, the fees charged on each of the trades will not really vary with the market conditions. However, if you’re opting for variable spreads, the fees will fluctuate on the basis of market volatility.

You should be sagacious enough to check the performance record of the forex broker thoroughly before you’re actually availing the services of the same. Authentic brokers are usually members of NFA or CFTC. You should check the registration details of the broker before zeroing in on services. You might as well be too eager to rope in a popular broker, with positive reputation in the market. However, the advice would be not to settle for the services without checking the background!

Do keep these tips in view while you’re in the process of selecting a broker. It would be a major mistake if you’re not acquainting with the correct ways of selecting the forex broker. Refrain from committing such mistakes.

US Fed Rate – A Persisting Dilemma

dollar_1999092bFinancial pundits have been forecasting US Fed rate hike for quite sometime now. However, many internal and external factors have resisted the Federal Reserve from hiking it from the persisting 0.250 per cent. Though the market expected the fed rate to increase in September 2015, it didn’t because the central bank was worried about derailment of resurging U.S. growth due to instability in Chinese economy and economic slowdown. If the minutes of September 16-17 discussions by the board members of Federal Reserve are taken seriously, it might take 9 years to increase the concerned rate.

Why US Fed failed to increase Fed Rate in September 2015?

One of the reasons that restricted board of Federal Reserve from increasing Fed Rate in September 2015 is the dismal job growth data. Per official figures, in September 2015 just 142,000 jobs were added, which is 64,000 jobs lesser than analysts’ expectation. Another figure published by US Labor Department is the “zero” rise in average pay. More alarming is the fact that thousands of workers left their jobs and the participation rate of workers fell to a dismal low, last seen in 1970s. In fact, slow down in Chinese economy also held the board back from increase interest rate.

To top it, US Consumer prices fell by 0.2 per cent during September. In fact, inflation rate has been steadily falling since May 2015, signaling persistent sluggish pace of inflation. This persistent fall is exactly opposite of Fed’s stated target of 2 per cent. All these phenomenon including slowing economy of China, falling inflation (both globally as well as domestically), and market disruptions are again making it difficult for Federal Reserve to increase the interest rate, which is stuck to the current near-zero level (0.25 per cent) since 2008 (the year US economy was in deep recession).

What analysts are Predicting about Fed Rate Hike?

On the expectation of US Fed holding interest rate hike till 2015-end, gold buying is witnessing rally since mid-September. Strength of dollar is also weakening. US Dollar has fallen significantly with respect to other currencies such as Euro in the recent past. Last week, Euro was up against US Dollar by 2.3 per cent, which is a striking phenomenon as Euro fell sharply in the past touching a 12 years low earlier in 2015. These phenomenons gave overall market all the reasons to park its money in the yellow metal for hedging risk.

Colin Hamilton, head of commodities research at Macquarie, said that they conducted a poll in their base metals summit survey earlier this week and found out that most of the audience is expecting a Fed rate hike only after December 2015.

Gold_industryJessica Fung, analyst of metals and mining at BMO Capital Markets, said during a press meet that overall market is currently expecting Fed rate hike around March 2016. She went on to explain that expectation of US Dollar drive gold price and pricing of the futures market is indicating towards a steeper gold price rise in latter part of the year. The momentum of gold price hike is expected to go on along 2016. Along with this increase in price of yellow metal, interest rate increase is expected to be during March 2016.



Brief History of the Foreign Exchange Market

With the global nature of forex trading, it is crucial to first study some of the significant historical events related to currencies and currency exchange before investing. In this article, you will learn the international monetary system and how it influenced the current forex platform.

The Gold Standard System

The establishment of the gold monetary system in 1875 is an important historical milestone in the foreign exchange market. Without a standard system in place, countries would often use gold and silver for payments. The primary concern in using this system is that the value is influenced by the external supply and demand. For instance, a discovery of a new gold mine will result in lower prices.

The basis of the gold standard was that the government of each country will guarantee the conversion of currency into a particular vGold Pricesalue in gold. Hence, governments require a considerable amount of gold reserve to meet the demand for the trade. In the 19th century, primary economic countries agreed the value of a currency to an ounce of gold. Eventually, the exchange rate was based on the price difference of gold between two currencies. This was the first international standard for currency exchange.

But when the First World War broke out, the gold standard gradually demised. Because of political turmoil with Germany, most countries in Europe needed to complete important military projects. Many of these projects require substantial financing, that the gold reserves was not enough to guarantee all the excess currency that the governments were producing.

Even though the gold standard was revived after the war, many countries had dropped the system completely at the beginning of the Second World War. But still, gold continues to be the ultimate form of money.

Bretton Woods System

The Allied countries believed that there is a need to establish a new monetary system to replace the gold standard system. In 1944, the representatives from the Allied nations gathered at Bretton Woods in New Hampshire to come up with a new system that they have referred as the Bretton Woods System of international monetary standard.

Aside from establishing a method of fixed exchange rates, the convention at the Bretton Woods also recognized the US Dollar as the replacement of gold standard to become a main reserve currency. It also created three international finance organizations to manage the global economic activity – the General Agreement on Tariffs and Trade (GATT), International Monetary Fund (IMF), and the International Bank for Reconstruction and Development.

The US dollar became the only currency that is guaranteed by gold, which turned out to be the main reason that this system failed. The United States had to implement a series of balance deficits to sustain its gold reserve. In 1970s, the US gold reserves dwindled that they cannot cover all the US dollars that other central banks hold.

As a result, US President Richard Nixon closed the gold reserves, and he announced that it will no longer exchange gold for the dollars. This marked the demise of the Bretton Woods system.

Floating Exchange Rates

With the failure of the Bretton Woods System, international economies had to use floating foreign exchange rates as agreed during a convention in Jamaica in 1976. This resulted in the permanent establishment of the gold standard.

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