The situation around Covid-19 has had a sweeping impact on the whole world and especially Europe. The virus which emerged in Wuhan in December 2019 disrupted the regular operation of businesses and enterprises. A lot of people were left without jobs, the financial situation in numerous countries deteriorated notably. The United Kingdom, France, Italy, Spain – this is only a small portion of the countries that suffered from the virus. Continue Reading →
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Mathematics plays an integral role in life and the capital markets. The ebbs and flows of market sentiment generate trends and then periods of consolidation. As consolidation occurs, the movements of price action are drawn to specific points, which can be measured using mathematics. Continue Reading →
After months of uncertainty due to the United States and China trade war, the Australian Dollar has been in a peculiar state. Very few people were considering it the stable currency it once was due to its direct connection to the trade routes between these two large countries.
Australia does indeed contribute quite a lot to the trade relations of the United States and China, mainly through the export of services as well as goods such as the energy sector, but the latest tariffs were simply too much for the country to handle.
As relations are heated up more and more, Australian investors are seeing less and less potential in the local markets simply due to outgoing investments rather than Foreign Direct Investment.
Deficit and surplus
It’s said that most of the funds that were funneling through from China are now staying within its borders as the government’s plan to outlast the US in this economic tussle.
Some of the largest growing Australian industries have come to a crashing halt due to decreased stock prices, fewer avenues to access foreign markets as well as a direct decrease in consumer spending due to inflation rates that AUD had to go through within the last week.
The most important industries which are currently recognized as energy and mining, are slowly starting to slow down as manufacturing stalls in both China and the United States, therefore the country is trying to now rely on its vast list of pokies from their online gaming websites.
The gaming industry was thrust into a position of great responsibility as it’s starting to commit around 40% of its annual revenue, which it largely gets from foreign markets to the local economy. Billions of dollars are spent to retain positions within the government and continue operations as a hope to help the industry survive. Dozens of Australian brands have started to move to places like Macau or Malta, therefore limiting an inflow of foreign currencies such as the USD, EUR, and even the Chinese Yuan.
All of this quickly correlated to a surplus of AUD with these companies, and the decrease of demand on the currency. The massive selloffs of company shares also facilitated cashouts in AUD and conversion to USD immediately, thus hurting the currency even more.
Will the world survive this trade war?
The US-China trade war has sparked controversy after controversy due to its heated longevity. There seems to be no end in sight unless one of the players gives ground. And considering how both of them are major world economic powers, that’s definitely nowhere near to happening.
Such uncertainties are leading local market experts to believe that there will be a world economic recession in the nearest future, particularly in 2020 which will make the 2008 crisis seem like a momentary correction.
Because of this, people are even more predisposed to selling their assets in favor of holding on to cash which they will keep in the banks in order to combat inflation, but the reality is that. Selling off these assets and adding supply to an already surplus market is going to be like pouring gasoline on a raging fire.
The banks won’t be able to help too much with staying above inflation during a recession, but it will still be better than losing 70% through assets like stocks.
The primary focus in Australia is quickly switching to currencies and real estate, as they’ve proven to be safe havens in the past.
Whether or not this will be a good decision from Australian investors remains to be seen, but there’s no real alternative to be seen at this point.
The Australian Financial Complaints Authority has just been given the go-ahead from the Australian Securities and Investments Commission to fully disclose any and all disputes that have been happening with local investment companies.
This means that the AFCA will be gathering data on the frequency of customer complaints with Australian investment firms, and the fields in which they’re most concentrated in.
This will be done in order to give the consumers the general scope of the situation. For example, if the consumer sees in the data that most refund requests remain unanswered, they can immediately get the ASIC involved before they even file the request.
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The United States Federal Reserve convened this week on their decision to lower the national interest rates by a quarter of a percent. This discussion has been going on for at least a year now, as President Donald Trump was always campaigning for the cut.
The opinions of experts on the matter are pretty much cut right in the middle. Some fear that this was a desperate attempt to avoid an upcoming recession, while others believe that it was a decision made to boost the economy in the future.
Slowing economic growth has been a constant occurrence in the world, but many say that there’s only so much a country’s economy can experience this growth until it comes to a complete stand-still.
But it’s been said that countries are like sharks if they stop moving they are going to eventually die due to poor economic circulation.
What will the rate cut entail?
The federal interest rate cut is likely to tumble the USD a little bit in the mid-term. Although it actually helped it appreciate a little bit for the short term, having such a sentiment come from such an important financial institution in the US is sure to ruffle some feathers with speculators.
The rate cuts are going to allow US consumers to have better access to state and commercial loans, which could potentially translate either into better and more investments in the future, or overall better consumer spending in the United States.
As statistics show, consumer spending has been going on the low-end for the past couple of years while companies have miraculously been growing without an end in sight.
This is nothing but an economic bubble in the making. Soon enough the USD’s strength would have reached trade deficits to a point where the government wouldn’t be able to retain it anymore, and the population would simply not have enough funds to access most of the country’s goods.
Companies would lose a large majority of their customer base and fail to maintain the growth pattern that investors have started to become accustomed to. Such a sudden change in the economic reality would introduce something similar to 2008, from which the world is still recovering.
The Forex industry is incredibly easy to get into, but what is the most exciting is the fact that if you keep working in it, working on developing your skills, you will eventually become successful. There are many opportunities that the Forex industry provides for all kinds of people. Students who find themselves to be much better at trading than they thought they would be sometimes drop out and devote their full time to working on the markets. People who have been professionals for most of their life and find themselves successful in the markets at 50 quits and keep trading like there is nothing else. And in the case of those who start working in Forex trading South Africa industry, some of them find themselves to be extremely successful.
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The thing with Forex is that anyone can end up being successful in it, as long as they work hard enough and learn enough. Such is the case of the people who we are going to be discussing now. These people come from South Africa and became some of the most successful traders in the country simply by allowing themselves to enjoy the opportunities that the industry provides. Some of them started trading on loans from their friends, others took no deposit bonuses not much different from the XM $30 no deposit bonus, while others simply took the money they had and invested in the industry. Exploring their cases and understanding where the most successful Forex traders in South Africa come from, might provide us with a hint or two on how to ourselves become one of them.
Sandile Shezi was a very lucky man long before he had anything to do with becoming part of the list of successful Forex traders in South Africa. Originally from a poor district within South Africa, Sandile used to go to a local school, where he studied just like the other children did. He did not have anything special about him other than the drive to no longer be living in squalor. The school he went to required tuition to be paid regularly. One time Sandile took the tuition that he had to pay for the entire year of study and invested it elsewhere. Specifically, he chose to try his luck on the Forex markets. What followed was a pure stroke of luck. Investing the money, he saw a return that enabled him to change his life and both pay off the tuition and continue trading on the Forex markets.
This is a very cinematic story, yes. It is as is fate had the turn of luck in store for him, and there was nothing but a life-changing event waiting for him. But while it is a magnificent story, it is important to remember that this was a stupid idea. There is no single situation where it is wise to take the last money you own, the money that you need in order to go to school and spend it on a market that you have no guarantee of gaining returns from. Even Thankfully, Sandile got way lucky, and now the 26-year-old operates as a full-time Forex trader and is one of the richest Forex traders in South Africa who actually made money from Forex. He currently owns the Global Forex institute. There he teaches young people who want to become traders on how to trade on the markets, the concepts of Forex and other important details about the market that are useful in operating in the Forex industry, such as what makes a good Forex broker to trade with, in South Africa. He is not alone in his mission to educate young South Africans though, and he has had a lot of help over the years. Specifically, he has had some of the most from one of the most successful South African Forex millionaires and traders, George van der Riet.
George van der Riet
George is just like most other success stories that end up being told within the Forex and investment industries. He was an average man with the big dream of being rich one day. So George, after graduating from school in Capetown, decided it was time to move out of his native land and go on to the UK, see the world. There George grabbed another degree in Finance and ended up working
for several investment companies around the UK as a manager for Foreign Exchange markets. In his years of trading for companies with large capital access she quickly learned how to be a good trader and how to be a good entrepreneur. While he liked trading, he was tired of doing it for other people, so soon enough George quit and moved back to South Africa in order to become one of the best Forex traders in South Africa.
When he arrived, he was immediately seen as a good investment to have as part of your company. While he got some really good offers from companies, George decided that the best thing to do in order to become one of the top Forex traders in SA was to start his own company that would concentrate on investing in Forex. He did so in 2010, barely within a year of his return to his homeland. This is also when he found Sandile and realized that there was a great future for this stroke of luck millionnaire. They started working together and soon enough Sandile managed to become one of the top Forex trading SA millionaires and a good friend to George. Today they operate the Global Forex INstitute together.
While the Global Forex Institute is incredibly popular with the locals, it is not the only institution currently seeking to educate young South Africans in the Forex industry The African Forex Institute was founded by Ref Wayne, the main competitor to the title of one of the youngest Forex traders in South Africa. Ref became a millionaire when he started trading Forex at the age of 22 and has since decided to turn his skill with the markets into something that would be useful for the rest of Africa as well. He founded the institute and teaches about Forex, while also writing guides, books and releasing online courses for those who are interested in the industry.
His story is not as glamorous or as cinematic as the one Sandile tells, but it is one of success nevertheless. The story that is interesting comes after that man became regarded as one of the top 10 richest Forex traders in South Africa. He operates several ventures now, with one of his most recent and impressive ventures being the creator of one of the first African Cryptocurrencies called Pip coin. With this invention, he gives back to the community, while also doing good for himself. He says that unemployment within the country is one of the main reasons that drive him to be the entrepreneur that he is today, sharing the success he has with the rest of the country.
Forex trading in South Africa – a growing industry
The industry is quickly growing around the African continent, and it is something to be very excited about. hundreds and thousands of people are going on the internet to try their hand at Forex trading in South Africa. It promises a way for many to make money that they never thought they would be able to make, and it provides an opportunity to many to become something they never thought they would be able to be: one of the successful Forex Traders in South Africa who have managed to make millions on the markets.
The FCA (Financial Conduct Authority), BoE (Bank of England) and the CFTC ( Commodity Futures Trading Commission) have come to an agreement that no matter the outcome of Brexit, the derivatives markets between the United Kingdom and the United States will remain intact and will not face any regulatory uncertainties under any circumstances.
Because of the massive debate on how the UK is going to leave the EU, most countries have been trying to figure out the market relationships between them and the UK. However, it seems that the United States are the only ones that came to a conclusive decision, and the decision is quite simple. Nothing is going to change. All US-based trading venues, Central Counter Parties (CCPs) and companies will be able to continue their operations on the UK Island without any interference.
The main topic of discussion
The most discussed matter about the whole ordeal was, whether or not the UK will be content with the CFTC’s regulatory framework, now that they will no longer be under the jurisdiction of the European Commission’s regulation. The sole reason why the CFTC was able to operate in the region unhindered, was the direct correlation between themselves and the European Commission. It was deemed that both regulators had the same frameworks. After the announcement of Brexit, it was imperative to determine whether or not the UK would retain the European Commission’s regulatory traits, and it seems that they will indeed.
Andrew Bailey The Chief Executive of the FCA commented on the agreement, saying that cooperation with international partners has always been and always will be in the interests of the FCA. The CFTC and UK’s regulator have a long history of combining efforts to regulate the trading process. Bailey also added that the cooperation brings nothing but benefit to both of the regulators as it becomes easier to share knowledge and keep a consistent regulatory framework.
Exchange of Information
Speaking of learning from each other. Both sides have recognized the importance of clear and fast communication, because of which an update to the Memorandum of Understanding (MoU) will be held. With this update, the FCA will formally recognize all of the CCPs operating under the CFTC regulatory framework.
Mark Carney, the Governor of the Bank of England, highlighted the fact that both the UK and the USA, as owners of the largest and most diverse derivatives markets, are responsible to keep it intact and free-flowing. Therefore this agreement was paramount in order to keep previous agreements still operational. Namely the accommodation of US regulated firms on the EU territory.
Playtech is one of the biggest developers of online gambling software and land-based gambling industries in the world. The company was founded in 1999 in Estonia and over the years gained an amazing reputation and fame. In the last few years, the company has reported nothing but growth, which resulted in the higher prices of their stock shares. With Playtech’s forecast on one side and more expensive shares on the other, is it safe to invest your time and money in it? Continue Reading →
For those reading this from the US, you might need some clarification – this is about soccer. Football is the most popular sport around the world, with every country having some form of football league through which local teams compete. However, there are some very prolific football leagues, teams and even players who exemplify the sport and make it the spectacle it is.
As any marketer knows, you get to people’s hearts by hitting at what they love. Since the people love football, it is understandable why forex brokers would want to associate themselves with the sport. In such deals, the FX brokers get the right to use the football team or player’s images to promote their content, while the other party gets a new sponsor. These relationships have given us some very significant sponsorship deals of late, some worth noting more than others.
This is a question some traders will be asking themselves in light of the upcoming changes in financial regulations in the Forex and binary options markets. Under the new regulations, bonuses previously offered by the brokers will no longer be allowed, leaving traders to work with whatever they have. To begin with, let’s admit we love free things, and some of the bonuses offered by brokers were pretty tempting. Continue Reading →