Posted tagged ‘broker’

Emerging Market Stock Funds Healthier than Ever

July 24, 2009

Improving sentiment in the state of the US export market is having a great effect on emerging markets.  Investors are pouring into the emerging market, and last week saw the best figures since mid June.

Nations such as China, Peru and Sri Lanka saw some of the best results in funds while the BRIC nations are showing growing signs of strength thanks to the slow recovery of established economies.

Emerging market equity funds drew around £1.6 billion last week alone and since the start of the year investors have been flowing around £20 billion into emerging market stock funds.


Oil Price Jump on Tuesday was thanks to Rogue Trades?

July 3, 2009

We even reported the jump in oil prices on Tuesday.  We thought it was mainly down to the Nigerian militia attacks, and sure enough the situation in Nigeria is being linked to the push up in oil prices.  However….

… turns out that the sudden jump in the price of a barrel on Tuesday was mainly down to a man called Steve Perkins.  The man, who works (or should we say worked) at London oil broker PVM carried out a series of rogue trades which caused the oil price to jump sharply.

By the time the contracts (which were Futures) were sold, the price had fallen…meaning PVM lost a total of $10 million.  The incident is being investigated fully by the FSA.

What really makes this story intriguing is that Steve decided to make the trades at around 2AM London time.  At 2AM most people are fast asleep (well on average on a Tuesday) and trading is generally very thin.  Therefore, the system the company has in place to detect oddities was able to easily point back the trades, which all came from one source,  to him.

Anti-Money Laundering Regulations in the Spotlight

July 1, 2009

Money Laundering.  When you hear the term as a child, you might imagine wads of cash in a washing machine.  But then you become an adult and you might realise just how important this is in the financial services sector.

If you type Foreign Exchange, overseas mortgages, share dealing or any trade or money transfer type into google, you will get literally hundreds of results for online brokers and services.  They are all involved in the movement of money and currencies  -in the case of the Forex market this is happening at every minute of the day across seas and continents.  So how do you know the money is ‘clean’ (in other words not obtained through criminal acts)?

Well, all financial services must comply with anti-money laundering regulations.  If a company is not compliant with these, do not touch them with a barge pole.  Or at least, find out why or go to the FSA (or main country regulating body) and ask them.

We all want our money to be in safe hands.  An area which is constantly under the spotlight for money laundering is the money transfer area – Western Union and their competition are always having to keep a close eye on clients and transactions.  Make sure you use a legitimiate service.

Learn to Trade the Financial Markets

June 16, 2009

Investment trading is no longer an exclusive marketplace for suited City traders and investment bankers. You and I can take part! In fact, almost anyone can! Ok, so we have much to consider but it doesn’t require a massive budget and swathes of cash to start investing in a global market. And it doesn’t have to involve leafing around the FT pretending we know what the endless lists actually mean.

All you need is to consider some basics:

1. How much can you afford to invest?

2. How much can you afford to lose?

3. What markets interest you – currency, general shares, Futures, Metals?

4. What kind of trade interests you – shares dealing, Forex, Spread Betting, CFDs?

Once you start finding out about these markets and trade types, it becomes so interesting. They are all exciting, constantly changing and allow for huge returns. But careful: make sure you do some basic research before jumping in. And then choose a decent broker. A good broker will make you aware of the risks but it is not their job to look after you or take responsibility for your poor choices or a massive loss!

You stand to make a really healthy increase in your overall wealth levels if you are a successful trader. If you want to test out the markets, all good traders offer ‘demo’ accounts, which allow you to trade with virtual funds. There’s no better way to find out what kind of trader you are.