Easy Forex

Gold Investments

Gold has been used for investments for a very long time. It has a high value and is an independent resource. It is not subject to individual countries or trading markets. It is not connected to companies or governments. For these reasons, investment in gold can usually help an investor to avoid some problems that can happen in the economic environment.

Gold investment can mean investing in gold bars, gold coins, and even gold jewelry. Many different sorts of gold accounts are available in the investment world.

Gold markets

The gold market is a worldwide market. London and New York are the two biggest market places for gold in the world. Gold markets operate like other investment markets, similar to the stock exchange. Buying and selling happens every day with prices influenced by economic conditions within the markets.

The price of gold

Like any other market resource, the price of gold is decided by supply and demand. Gold has always been a valuable resource. People will often store supplies of gold during times of economic inflation. Political fighting and wars will also make people store gold. Storing gold makes supply short and demand strong – the price goes up.

Making profit from gold

Some investors believe they can make profit from gold when the price is rising. If they buy, the price will go higher and they can sell for a profit.

Another way a trader can invest is to sell gold when they believe that gold prices will go down. They can sell gold in some markets (like in the Forex market), without “having” the gold, and buy it back later-on. If they are right, they would make a profit.

Other investors think that it is better to buy gold even when the price of gold is going down. They believe that the price will rise again later on, and then they will make bigger profit when it does rise.

Gold and market risk

Gold is subject to market risk just like other currencies and goods in the market. Usually, gold has less volatility (movements up and down in value) than currencies. However, gold has been quite volatile during the past years.

As an investment, gold has different properties from other investments. Investor interest in the gold market is traditionally strong which makes liquidity in the market high compared to some other forms of trading. High liquidity means that there is a better chance of finding a buyer when you want to sell, and finding a seller when you want to buy.

In the gold market, people can invest in coins and bars, jewelry, futures and options, exchange traded funds, even gold certificates. Gold can be traded more quickly and at more narrow spreads than many other trading goods.

Gold and the Forex market

In the Forex market, gold can be a protection against the US dollar. If the US dollar increases in value, the gold price decreases; if the US dollar decreases, gold increases. With this knowledge, investors can use gold trading as a way of balancing their profit and loss against the US dollar.

Market conditions change but, in the long term, gold keeps its purchasing power. Its value, in terms of the real goods and services that it can buy, has remained firm. The purchasing power of many currencies has generally decreased because of the impact of rising prices for goods and services.

As a result, some investors buy gold to balance the effects of inflation and currency value changes. In Forex trading, buying and selling gold is usually done by investors not for the long run, but rather for speculation reasons. In the Forex market one can buy gold (XAU) and sell it after a few hours, trying to profit from the small fluctuations (moves) in the gold price.

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How do I transfer funds with UKForex?

Dealing with us is simple. You register on the website and then log in. When logged in you can get quotes, add beneficiary details and book deals/funds transfers. After you register, a UKForex representative will call you to discuss your transfer(s) and make sure the system is set up correctly for your needs. You will also be able to ask any questions you may have about the service and process at this time. You can lock in rates prior to us having your funds for currencies if we can receive funds overnight or you leave a small deposit. If it will take longer for funds to reach us, it is better to send the funds to us prior to booking the exchange rate. Once we have the funds, you will be advised and can then lock in the exchange rate.

Please note we do not support transfers in Indian Rupees, Indonesian Rupiah, Phillipine Peso, Thai Baht, Pakastini Rupee, Iraqi Dinar (and a number of other currencies) at this stage.

Benefits of using UKForex

No bank queues

One of the great things about our service is that you can complete an international transfer without leaving your office or home. We give you a variety of ways to get your funds to us so we can send the international transfer as quickly as possible.

Unbeatable rates & low fees ? Yes please!

Not only do we take the hassle out of your international transfers but we do it with low (or often no!) fees. We charge a maximum fee of GBP£ 7 for payments, and will waive the fee altogether on transactions that exceed GBP£ 3000 per beneficiary. Click here for more details on fees.

Exchange rates - a simple guarantee. We will not be beaten!

There is no need to shop around, our rates will be good straight up.

Security of your money

The safety of your money is an important consideration when deciding which provider you use to send money internationally. UKForex offers a safe and regulated alternative to the banks for transferring funds. Our business effectively transits money from customer to beneficiary via leading financial institutions. We do not pay out client transfers until clients have paid UKForex which means we have no settlement risk on transfers. As we do not carry any overnight market risk, unlike some other providers, we do not suffer losses resulting from exchange rate movements and so you can feel comfortable that your transfer will reach the recipient on time, every time. Your funds are held in accounts with major financial institutions and are only released once your outward payment has been sent. UKForex is a trusted provider to thousands of customers world-wide who have enjoyed the benefits of excellent rates and low fees without compromising on service.

Home Equity Line Of Credit

Home Equity Line of Credit is abbreviated as HELOC. This refers to a loan in which the lender agrees to lend a maximum amount within an agreed period. This differs from standard loans or a reverse mortgage because the borrower is not advanced the entire sum up front, but uses the line of credit to borrow sums totaling no more than the amount.

A Home Equity Line of Credit in many ways is similar to a credit card. At closing you are assigned a specified credit limit that you may borrow up to (this is not a check).

A draw period usually lasts anywhere from 5 to 25 years and allows you to borrow HELOC funds whenever you feel the need; you're only required to pay back the amount you use plus interest.

What's nice about the home equity line of credit is that often, you are only required to pay the interest until the end of the draw period. At the end of the draw period, you'll have to do one of the following:

* Pay back the full principal HELOC amount borrowed
* Pay a Home Equity Line of Credit balloon payment
* Pay based on a loan amortization schedule.

HELOC vs. Conventional Loan

HELOC's differ from a conventional loans in that the interest rate on a home equity line of credit is variable depending on an index (Prime Rate for example). In plain terms, this means your interest rate will most likely change over time!

What makes a Home Equity Line of Credit so popular is that interest paid is usually deductible under federal and most state income tax laws; this makes that cost of borrowing money not as high!

Sounds easy, so why doesn't everyone do it? Most people are doing HELOC's and most can't afford it! These people are considered to be Upside Down – a term used to describe someone who owes more on their home than it's worth (much like a car :)

Here is the catch! You owe $80,000 on your home loan and your house is worth $90,000 on the open market. You decide to apply for home equity Line of Credit and the banker asks you what you would like the loan for - That's right! Most of the time, you can ask for more than your home is worth, say $110,000 and almost always, you'll get the loan.
$30,000 to Invest

Now you have $30,000 and live the life for awhile, perhaps a new boat, car or vacation. Then comes the day you need to sell your home but it's only worth $90,000 and you need $110,000 plus the realtor fee of $7,700 (7%), so you put the house on the market for $117,700 and it never sells, payments become late and worse case scenario, you have a foreclosure on your hands! See for yourself, check out our Mortgage Calculator!
HELOC – Not always bad!

A Home Equity Line of Credit can be good or bad depending on how you use it. There are 10 things savvy home owners should look for when considering a Home Equity Line Of Credit:

1) No HELOC application fee or at least the fee should be refunded at closing. If your lender assesses an application fee, make sure it's refundable at closing.

2) No home loan appraisal or closing costs - there are plenty of no-cost options available that you shouldn't have to pay a HELOC appraisal fee.

3) No HELOC account maintenance or check-writing fees - Lenders already make money when you write checks (read - borrow) on the home equity credit line. If your lender tries this, dump him!

4) No "usage" fees – Apparently, HELOC lenders don't approve of the notion that a homeowner may want to have a HELOC as an emergency "reserve" account. Definitely look for a lender that does not charge this type of fee.

5) Variable APR equal to or near the prime rate (adjusted quarterly) – Interest charged on the balanced borrowed should be the only cost involved with a good home equity credit line!

6) Periodic cap on interest rate changes (the amount that the rate can be changed at one time) - Look for a Home Equity Line of Credit that adjusts quarterly (rather than monthly) in increments of 0.5% or less.

7) Lifetime cap on rate increases (the amount that the rate can be adjusted over the loan's life) - You'll want to find a HELOC loan with a lifetime rate cap that you can live with. Ask your loan officer to clearly spell out the "worst case" scenario for HELOC rate increases!

8) Ability to convert to a fixed rate loan - When rates do rise, people often get skittish about their variable-rate debt. A useful feature to look for in a HELOC loan is the ability to convert the line of credit to a standard fixed-rate, fixed-term home equity loan.

9) Interest-only payments allowed – Get this option but only use it if you need to! It's always best to pay down the principle, not just interest!

10) Unrestricted ability to repay principal without penalty – You should be able to pay off the Home Equity Line of Credit at any time without paying extra!

Enjoy these ten basic tips and now, more than ever, be careful! There are a lot of shady deals out there and if you don't take your time reviewing the fine print, it will come back to bite you! Also make sure the pay close attention to any PMI that are presented.

Managing risk in today’s world

One of the telling stories in the sub-prime saga is about how Citigroup’s former CEO woke up to the bank’s problems. In September 2007, Chuck Prince asks his CFO, Thomas Maheras, if everything was ok. Yes, everything is fine, Maheras reassures him. That’s what Maheras has been saying for a while. Rather belatedly, it occurs to Prince to get the position double-checked. A risk management group is asked to examine the bank’s mortgage-related holdings. The truth soon comes tumbling out and Citigroup announces billions of dollars in losses. So, is this how one of the top banks in the world managed risk? By relying on the word of one executive? According to a story in the International Herald Tribune, the senior risk officer and Maheras’ deputy were close pals, so the hard questions were not asked. That says something about the culture of the bank. If a man at the top keeps quiet, nobody else is supposed to ask questions. At , the CEO, Richard Fuld, left risk management to a trusted deputy, Joe Gregory. Gregory apparently relied on ‘instinct’, not hard analysis, when it came to managing risk. A senior executive, steeped for years in the real estate business, warns him that things are getting out of hand. Gregory’s ‘instinct’ tells him he should get rid of the troublesome guy. Fuld goes along. The rest, as they, is history. Just think of it. Citigroup had over $2 trillion in assets; Lehman Brothers $640 billion. And the decisions on risk or even information about risk exposures were confined to two or three people! Leave aside the board, even the people working in these firms had no clue what they had got into. The problem with firms in distress today was not just that they had the wrong risk management models. It was not lack of talent either. It was that life-and-death decisions about risk were concentrated in a few people at the top. Autocratic decision-making is what destroyed many of the biggest financial firms in the world. So let’s get this straight: risk management is not about fancy models or employing rocket scientists. It is an aspect of firm governance. If risk is to be properly managed, it is absolutely essential, first, that a large number of people within the firm should be involved in the risk-taking decisions. An even larger number should have the information on risk exposures. When you see how the mighty have fallen in the present crisis, you begin to understand why a firm’s processes need to be democratic, why it is necessary to actively foster diversity and dissent. Doing so is not a matter of practising virtue. It is simply a condition for a firm’s long-run performance. That was the theme of a magnificent business book that came out in 2004, The Wisdom of Crowds (James Surowiecki). And yet, as the failures in the present crisis clearly show, the modern firm remains one of the most undemocratic institutions in the world.

Rupee rebounds to 49.25 against dollar

Mumbai: The Indian rupee pulled back from early lows on Friday, tracking a drop in the dollar index, and traders watched the stock market for direction on fund flows.

At 10:40 a.m., the partially convertible rupee was at 49.25/26 per dollar, off an early low of 49.40 and little changed from 49.28/29 at close on Thursday when it rose to 49.2250 during trade, its strongest since Feb. 17.

"There is a lot of momentum in the stock market. Expectations are that foreigners would keep bringing in funds, which is helping the rupee," a senior dealer with a foreign bank said.

"But a lot would depend on the election results, only then would markets get a clear direction," he added.

The results of India's month-long national elections, which are currently underway, are due on May 16.

Indian shares were trading little changed after rallying about 50 per cent from their 2009 low in early March.

Foreign funds have bought a net $1.5 billion of local shares in April, and pumped in a further $575 million in the first three days this week, data showed.

The inflow has helped the rupee rebound nearly 6 per cent from its record low of 52.2 touched on March 3.

The dollar index, a gauge of the US unit's performance versus majors, was 0.1 per cent lower after having risen more than 0.3 per cent earlier.

One-month offshore non-deliverable forward contracts were quoting at 49.25/35, unchanged from the onshore spot rate, indicating an optimistic outlook for the rupee.

अमेरिकी कर प्रस्ताव चिंता का कारण नहीं

ay 10, 05:31 pm

नई दिल्ली। आउटसोर्सिंग कारोबार में लगीं भारतीय कंपनियों को अमेरिका के प्रस्तावित कर प्रावधान से ज्यादा चिंतित होने की आवश्यकता नहीं है। विशेषज्ञों का मानना है कि कर प्रस्ताव का भारतीय कंपनियों पर खास असर पड़ने की संभावना नहीं है।

उन्होंने कहा कि अगर ओबामा प्रशासन कर प्रस्ताव को लागू करता है तो अन्य देशों से कारोबार की आउटसोर्सिंग करने वाली अमेरिकी कंपनियों की कर देयता में 10 फीसदी तक की बढ़ोतरी हो सकती है। लेकिन यह बढ़ा हुआ बोझ उन कंपनियों को ज्यादा परेशान करेगा जो भारत में स्थित अपनी अनुषंगियों द्वारा कारोबार कराती हैं।

अन्‌र्स्ट एंड यंग के कर निदेशक राजेन्द्र नायक ने कहा, 'जो कंपनियां तीसरे पक्ष से कारोबार आउटसोर्स करती हैं, उनका कारोबार प्रभावित नहीं होगा, लेकिन जिन कंपनियों का भारत में स्थाई उद्यम है या वे अपना कारोबार भारत स्थित अनुषंगियों से कराती हैं उन्हें ज्यादा नुकसान होगा।'

नायक ने कहा कि ओबामा की प्रस्तावित कर पहल के कई पहलू हैं जिन्हें व्यक्तिगत तौर पर कंपनियों को देखना पड़ेगा।

Indian IT professionals upset with Obama

BANGALORE: Indian IT professionals on Tuesday slammed President Barack Obama's move to end tax incentives for US companies that ship jobs to

Top Indian outsourcing cos
Nine trends for IT in 2009
Cities that are IT hubs
countries like India, saying it will neither benefit the US nor its corporate sector.

"Obama's latest move was expected, but unwelcome at a time when Bangalore's IT and BPO sectors are already reeling under the global economic meltdown," said Padma Nair, 26, an IT-professional working for a Bangalore-based American company.

"Obama's new policy is not going to benefit anyone, neither the outsourcing companies nor the country the job is outsourced to. The cost saved in outsourcing
is higher than that saved by tax exemption," Nair told media.

Expressing a similar view, Shankar Banerjee, 25, a quality analyst working for another American IT company, said if Obama's proposal is pushed through, it will hit business coming India's way and many Indians would lose their jobs.

"IT and BPO companies in India have already suffered due to the slowdown. A lot of people have lost jobs. Obama's latest move will cause more problems," added
Banerjee.

The comments came after President Obama said Monday that the current US tax system gave US-based multinationals that shipped jobs to places like India an unfair advantage over other domestic rivals and wanted corrective steps.

"It's a tax code that says you should pay lower taxes if you create a job in Bangalore, India, than if you create one in Buffalo, New York," Obama said, explaining why he intended to close tax loopholes and crackdown on overseas tax havens.

"I want to see our companies remain the most competitive in the world. But the way to make sure that happens is not to reward our companies for moving jobs off our shores or transferring profits to overseas tax havens."

According to the National Association of Software and Services Companies (Nasscom), the US accounts for about 60 percent of India's software services export revenue. Bangalore-based firms account for one-third of this.

A recent study by the association, conducted along with McKinsey, shows the Indian software and outsourcing industry employs some two million people, earning total revenues worth $52 billion, of which nearly $48 billion comes from exports.

American IT companies that have set up offices in Bangalore include Accenture, Microsoft, Amazon, AOL, Cisco, Dell, IBM and Intel.

An estimated 600,000 people are employed in Bangalore's software and outsourcing sectors. And industry professionals say many could lose their jobs following Obama's latest move.

UNITES-Professionals India, a trade union for IT enabled services sector, predicts 50,000 employees in India will be handed the pink slip over the next few months. Bangalore, hailed as India's Silicon Valley, could be the worst affected.

Concurred Sumana Prasad, 32, an IT employee working for an Indian company: "The slowdown has already hit Bangalore's IT and BPO companies. Obama's latest step will affect more people."

sorce;economic times

Crude may touch $58-60; US dollar, inventory data eyed

MUMBAI: After nose-diving from a peak of $147 to $ 33 per barrel, crude oil is again displaying a good show of strength. The US crude oil future
oil.jpg
World's top oil exporting countries
World's top 10 oil producers
World's largest refining companies
was trading above $54 a barrel, to a five month high, on improved optimism about an economic recovery. Encouraging data from China and US housing and construction data fuelled hopes that the US economy is stabilizing.

“Crude oil has finally breached the long consolidation pattern on good volumes. Crude closed positive on a month-on-month basis, indicating the continuation of ongoing bullish trend. The momentum is supporting bulls, as the KST cycle turned positive on the daily chart and the same is already positive on the weekly chart,” said a report of Sharekhan.

According to Sameer Mehta, analyst at Connoisseur Wealth Management, “West Texas Crude has breakout above the flag continuation pattern. This upward breakout would offer a target of $70. Downward breakout, though less likely, but would test primary support at $35.”

“The likely target of this current up-move is initially the recent swing high-around $54.65. Once that is breached, crude could test $58-60, which is 23.6% retracement of the entire fall from its all-time high. On the downside, $48 will act as immediate resistance,” Sharekhan added in report.

source:economic times

About credit cards

A credit card is basically a service provided by banks to customers who may or may not be having accounts with them. As the name suggests, they are meant to give credit to the user. With a credit card, users can shop for commodities, consumer goods, fuel, automobiles, and practically everything under the sun, at stores where credit cards are accepted, without paying any interest. One can also avail cash on credit for an interest rate from his credit card via the bank’s ATM. The affiliations for credit cards are with two international bodies, VISA and Master Card, which are basically economic joint ventures of more than 20,000 financial institutions each, with the former having a better acceptability in our country. Credit cards trace their history way back to 1914, and have become a necessity for millions across the world.

The most essential term one should be familiar with is a billing cycle. This refers to the time span when you can purchase goods on credit, and pay later. As a standard, the billing cycle of credit cards in India is of 45 days. This means that if my billing cycle starts at 1st March, I can purchase a T-Shirt on that date and pay for it 45 days later, i.e., 14th April. However, the purchase period, i.e., the period in which you can actually purchase is of 30 days. Hence, I would be billed for my purchases uptil 30th March and start off on a fresh purchase period starting the next day, for which I would be billed in the next cycle.

Another term to be familiar with is the grace period. Usually, banks offer a grace period after you bill is due, before charging the interest, which is actually an advantage in case of emergencies. One should always go for the card fofeing the longest grace period.

The credit limit signifies the amount of credit you can avail in one billing cycle. Banks generally have different categories of credit cards to indicate the same. The ranking goes like this ; Silver (standard, lowest credit), Gold (higher credit), Platinum(highest credit). Banks usually assign these categories based on one's paying capabilities according to their parameters.

There are often many additional charges such as membership fees, annual fees, renewal fees, etc. One should always check for these while making a choice between different options, since these charges, though trivial at first, sum up to a huge amount over the due course of time.

The interest rate (APR) that would be charged by banks is also very important. Generally, companies charge between 2-3% per month. One should always go for the card having the minimum APR.

Advantages

* First of all, they rule out the necessity of carrying extra cash, as they are accepted almost everywhere now, which in turn results in instant cash or credit in case of an urgent requirement.
* Credit cards give a grace period for payment, which means that even if one does not have cash even in his bank account, he can make purchases and pay for them later.
* Credit cards are handy, and can be carried anywhere with ease. While this might not be a significant advantage in words, it is extremely beneficial in practical usage.


Disadvantages

* Credit cards frequently lead to spontaneous buying decisions, which are often unaffordable. Since the user rarely keeps a check on how much has been spent prior to every transaction, credit bills are often more than expected.
* Credit cards, if used to avail cash, come at an enormous interest rate of 35-40%.
* There are security issues also; Credit cards, if stolen, could be used to do fraudulent purchases, and billed to the owners’ account, if proper action is not take on time.


A few points to be taken care of while handling credit cards

* Never reveal your credit card number to anybody. While shopping online, ensure that the source is credible and your account details would not be leaked.
* Sign your credit card as soon as it arrives. This would minimise its use to some extent in case of theft.
* Verify the purchases with your credit card when the bill arrives. Always keep a record of all your transactions. The most effective way would be to store your copy of the transaction slip.
* If the credit card is damaged or has expired, be sure to dispose it properly, after cutting it in two or more pieces with a pair of scissors
* If your credit card is lost or stolen, inform the police as well as the credit card company.

Home Loan Information & Eligibility

Having a home of one's own is always a dream for many. We help you realise this dream by offering you home loan options from a wide range of financial institutions. A home loan, as the name suggests, refers to a loan taken for the purchase or construction of a living space. Quite obviously, you would want to avail the maximum amount at the minimum rate possible, which is why we, at PaisaWaisa.com, are here to help you.

Currently, there are many loan providers in the market which are offering home loans at various interest rates. However, not all deals would serve your needs, and one must do thorough market research before taking a decision. Reading the terms and conditions carefully, deciding whether to take loans at a floating rate basis or a fixed rate one, how much loan amount to take, for what period of time to take it, these are some of the questions that must be answered before applying anywhere. For instance, Bank A might give you a loan of 15 lacs at an interest of 15% for 3 years, and Bank B might give you the same loan at an interest of 18% for 7 years. It is now up to you to decide which offer to accept, since it depends entirely on your repaying capacity.


There exists several unique features of Home Loans:-

* Purpose of availing the loan amount- One must be crystal clear about the purpose behind taking home loan.
* One must keep in mind whether the house needs to be purchased from the builder or whether he wants to take up loan facility for extension of existing house.
* Loan amount:- Depending on the eligibility, income and repaying capacity, one can avail the loan amount ranging from Rs 2 lac to Rs200 lac.
* Security- Home loan is a type of secured loan. One needs to place collateral against the loan amount.
* Tenure of Home Loan- Home loan can be availed for a maximum of 25 years.

Types of Home Loans

Depending on the interest rate regime offered by various banks , you can choose the one which best suits your tastes and preferences.

* Fixed interest rate loans - Under this type of home loan, bank charges the same amount of interest rate throughout the tenure of loan. However, the disadvantage is that the borrower is subject to market risk. Generally fixed interest rate loans are costlier than floating interest rate loans. Availing this type of loan facility is beneficial only when there is expectation that the interest rates will have an upward revision in the near future.
* Floating interest rate loans - Floating interest rates home loans are subject to market conditions and hence they are constantly revised by the banks. These loans are generally called as adjustable rate home loans as the interest rates vary throughout the entire tenure. Floating rates are beneficial only if the interest rates falls in the future.

One can switch to floating interest rate from fixed interest rate or vice-versa as and when the rates go in your favor.

Other Costs

Apart from paying interest rates and EMIs, there are several other costs which need to be bear by the customer while taking up the home loan facility. Recently, the banks have made it mandatory for the borrowers of the loan amount to get the home, insured in order to safeguard their interest. There are other cost factors like processing fee, administration fee, valuation fee, legal fee etc which needs to be paid at the time of application. Certain other costs needs to be taken care of during the closing time. In order to avoid any future disputes, it is necessary that the borrower calculates the entire cost beforehand.

Documentation :

1. PROOF OF IDENTITY (any one)

* Passport
* Driving License
* Voter's ID
* PAN Card

1. PROOF OF RESIDENCE (any one)

* Ration Card
* Utility Bill
* LIC Policy Receipt

1. PROOF OF AGE

1. PROOF OF SIGNATURE

* PAN Card
* Passport

1. PROOF OF INCOME (Salaried)

* Latest 3 months Bank Statement from Salary Account
* Latest Salary Slips
* Form 16

1. PROOF OF INCOME (Self Employed)

* Latest 3 months Bank Statement from Operating Account
* Last 2 years ITR with Computation of Income/Certified Financials,Proof of Turnover(Latest Sales/Service Tax Returns.

1. SECURITY DOCUMENTS

* Documents of Equitable Property and/or Other suitable Collateral Security eg. Life Insurance Policies
* Marketable Shares and other such Investments

Reduced Margin for FX Trading

REDUCED FX MARGIN REQUIREMENTS FOR MAJOR CURRENCY CROSSES

From 12:00 CET on Monday, 27 April 2009, Saxo Bank’s FX margin requirements for certain major currency pairs have been reduced to approximately 0.5% for the first EUR 50,000 of investment collateral, and to approximately 1% above a EUR 50,000 deposit.

The reduction applies to the 10 currency pairs that include two of the following currencies EUR, USD, GBP, JPY and CHF (i.e. major currency pairs).

For FX Spot and Forward positions Saxo Bank clients can obtain approximately 200:1 leverage on the first EUR 50,000. For FX Options only the delta margin is reduced on the first EUR 50,000. Follow this link for information about the margin requirements for FX Options.

In effect, this means FX margin requirements have been reduced by approximately 50% from their previous level for exposure in EUR, USD, GBP, JPY, and CHF. For these 10 major currency pairs, Saxo Bank previously required 1% margin for the first EUR 50,000 in the client’s account, and 2% above a EUR 50,000 deposit.

Myths About swiss bank account

• Swiss bank accounts are only for millionaires.
• Money invested in Switzerland yields no interest.
• It's impossible to open an account in Switzerland by correspondence.
• Swiss bank accounts are very expensive to maintain.
• It is difficult to close a Swiss bank account.
• Swiss bank accounts attract only criminals and dictators.
• Numbered accounts are anonymous.

1. Swiss bank accounts are only for millionaires

This is not true. The majority of our clients are not major manufacturers or movie stars, but everyday people (business people, computer engineers, civil servants, etc.). Swiss banks are no longer only for stars.
You can open a Swiss bank account with a deposit of only 5,000 Swiss francs. We even offer accounts with no minimum balance.

2. Money invested in Switzerland yields no interest

Nothing could be more untrue. You can invest your money worldwide from your account in Switzerland through investment funds, bonds, the stock market, the purchase of metal values, raw materials, derivatives and many other types of investments. Swiss bankers are among the best finance managers in the world, so it comes as no surprise that they manage over 35% of offshore holdings.

3. It's impossible to open an account in Switzerland by correspondence

This is not true. Most of the accounts that we offer can be opened by correspondence as long as you comply with our opening procedures and provide us with the necessary documents. What is more, your banking relations can be conducted by correspondence, using the telephone, Internet banking, bank transfer and credit cards. That said, we encourage our customers to meet with their banker at least once in order to get acquainted and see where their money is held.

4. Swiss bank accounts are very expensive to maintain

This is not true. Most of the accounts we open don't charge a cent in annual fees. Even if you would like additional services such as retained correspondence or numbered banking relations, the annual fees are very reasonable.

5. It is difficult to close a Swiss bank account

On the contrary. You can close your account in Switzerland whenever you wish and without any restriction. You will pay no financial penalty. If need be, you will just have to realize your investments. Contrary to many onshore banking practices, your money is not held hostage by Swiss banks.

6. Swiss bank accounts attract only criminals and dictators

Not true! The vast majority of Swiss bank account holders are honest people who want to keep their savings in a country renowned for its stability. Swiss banks are extremely cautious regarding politicians who wish to open an account and they systematically refuse to accept any money that is of dubious origin or poorly founded.

7. Numbered accounts are anonymous

There are no anonymous accounts in Switzerland. A numbered account is an account that is identified solely by a number, rather than a name, in order to preserve the strictest confidentiality possible during teller transactions or bank transfers. Only the bank manager and a few select people know the identity of numbered account holders.

Benefits of forex markets

You can find so many fascinating things that can be mentioned about the foreign exchange market. Here we see some major benefits which are absent in equities and futures markets.

1. Liquidity:
The greatest advantage that forex trader will mention is that the market is undoubtedly the largest market in the world, and that major currencies can be exchanged dynamically 24 hours a day. The vast amount of money traded in the world’s major currencies each day, undersize the level traded in the equities and the futures markets very much. This coupled with the 24 hour trading day makes traders the capacity to establish their own trading hours rather than having to trade within the confined time as in the case of trading futures and stocks. Above all, forex is more liquid than the futures and equities markets, price slippage in the forex market is usually much lesser than in the stock and futures.

2. Leverage:
There is more leverage offered to traders by most forex trading concerns than any other market in the world. Many companies offer you up to 200 to1 leverage which if fully utilized would effectively receive a 0.5% move in the market and turn it into a 100% gain or loss on the value of the account.

3. Minimal Factors influence Forex Market
The most highly traded currencies are only influenced by macro affairs like the capital flows between countries, and policy changes in government or central bank. This is an advantage by forex traders who consider that this fetches less uncertainty to their trades than stock trades.

Computerised forex trading

The currency trading is over three trillion dollars a day moving around, making it the largest market in the world. Computerized or Automated currency trading is very much helpful for the comfort and security of a trader. Several people jump straight in to this market hoping to make fast money.

The plan of creating big money than cashing out is a myth. What you necessitate is to build up an automated currency trading system that permits you earn liquid cash. You don’t require a million dollars to operate the system. You can automate an income of $5000-7000/ month, which indicates you can happily travel around the globe for the rest of your life. You can start retirement at this instant.

The most efficient thing you can do is to make your daily schedule of trading into a system. This is what automation is all about, systems. You can’t precisely employ someone to do work, if you can’t suitably prepare them to do it. You have to have certain tasks and works that are replicated each and everyday. It requires to regulations on analysis. Hence, you know better when to take a decision.

The ideal automation tool is forex software. In the forex market, we trade a thorough analysis, which is just a delight word for math. Computers survive to do tiresome math work, so having the forex trading system software to glance at currency data is in our greatest interest.

There are softwares just as 10 Minute Forex Wealth Builder. This forex trading software only takes around 10 minutes to setup the program. This tool is an excellent for both learners and specialists.

Pairs of currenciesin Forex

Forex quotations are usually denoted in pairs. Since, the U.S. dollar is observed as the common currency of the Forex market; in any Forex quote it is always treated as the base currency where it is one of the pairs. Incidentally, the U.S. Dollar is involved in nearly 90% of all Forex transactions.

There are many official currencies that are used all over the world, but there only a handful of currencies that are traded actively in the forex market. In forex trading platforms, only the most economically and politically secure and liquid currencies are required in sufficient quantities. For instance, the American dollar is the world’s most actively traded currency, because of the magnitude and power of the United States economy.

Commonly, the most traded currencies (not in particular order) are the U.S. dollar (USD), the euro (EUR), the British pound (GBP), the Swiss franc (CHF), the Japanese yen (JPY), the New Zealand dollar (NZD), the Australian dollar (AUD) and the Canadian dollar (CAD).

In general, there are 27 different currency pairs that can be derived from those eight currencies alone. Still, there are about 18 currency pairs that are traditionally quoted by forex market makers as an outcome of their overall liquidity. These pairs are:
USD/CAD, EUR/JPY, EUR/USD, EUR/CHF, USD/CHF, EUR/GBP, GBP/USD, AUD/CAD, NZD/USD, GBP/CHF, AUD/USD, BP/JPY, USD/JPY, CHF/JPY, EUR/CAD, AUD/JPY, EUR/AUD, and AUD/NZD.

The total amount of forex trading relating these 18 pairs characterizes the majority of the trading volume in the Forex market. This convenient number of options creates trading a much less convoluted when compared to trading with equities, which has innumerable possible options to pick from.

Learning Forex

Several learning platforms are available to novice, namely books, CDs, online courses, etc. Learning foreign trade from specialists is worth for your investment and rectifies the mistakes. While you are learning you will need forex charting software to practice understanding the market. Charting is a vital tool that shows you in real-time data how the foreign exchange rates are doing minute by minute and also what the market has done in the past. As you learn to evaluate these charts you can decide what trades to enter and exit, where to place your stop losses, limits etc.

To execute your real trades online you require a concurrent ’trading platform’ to effect your transactions directly in the Foreign Currency Exchange. You obtain a trading platform from a Forex Clearinghouse (Brokerage Firms, Market Makers etc.) that is connected real-time to the inter-bank market. Learn about the foreign currency conversion before entering into the market. The foreign currency converter will show the currency conversion from dollar to euro or from euro to dollar.

A good clearinghouse (i.e. your computer access/link to the live Forex Exchange Market) is the associate with whom you trade the money you have deposited with them in your trading account.

The topic of selecting the right clearinghouse depends on— how much you can start an account with, how much the clearinghouse revenue multiply, what your liquidity requirements are, your lowest/highest stop loss and margin necessities, even where you live and how much time you have to give to trading in 24 hours a day.

You, as the investor/account holder, have direct contact online to your account movement, and control over your account in your name. The value of this, for the protection of your funds, cannot be over highlighted.

Forex Day Trading

Currency day trading is a trading in which a trader creates numerous trades per day, buying, selling, entering and exiting a trade in the same day. Forex day trading is generally referred to as merely forex trading, but all day traders; whether they trade in stocks or currencies, attempt to increase their return by taking advantage of rate (currencies) changes with respect to the day trading advice. Day trading forex is not an investment that you build and then leave it alone to let it mature over time.

Forex day trading requires an investment of time as well as money. Time must be taken to educate oneself in forex day trading. For day trading, one must know to study the forex converter, for example, dollar conversion to euro, euro to dollar conversion likewise. There are free forex charts available to know the forex rates.

Forex day trading can be performed at all hours of the day and night. There is always a bank open somewhere in the globe. In the world of forex day trading there are no exchange fees, no commissions paid to brokers, and low transaction fees.

Log on to any computer, go to any website search engine and type in forex day trading, forex trading or simply forex. Most of those websites that come up offer platforms for trading. Some simply offer information. Learn forex through day trading education. Day trading software is available in many websites. You can download free and initially start practicing it until you are conversant with euro to dollar conversion, stop-loss limit, when to exit and so on. Forex day trading can be risky or profitable, exciting or frustrating, but not at all boring!!