A Forex broker is a broker dealing in foreign exchange, just like real estate broker who deals in real estate and properties. Simply, a Forex broker is an advisor who advises you about the forex market. However, the Forex market is not the perfect place to play with as a novice and beginner as there are many criticalities involved along with much risk bearing capacities. Novices can very quickly get their fingers badly burnt. But inexperience is not the only reason to consider using a Forex broker to trade in the high-risk international currencies market.
So, the Forex broker is an advisor who advises you about the forex market and allows you to work for 24 hours a day with major currencies like EUR, JPY, GBP, CHF etc against the US dollar on the spot, i.e. according to the current prices on the forex international exchange market. But the level of profits depends only on your abilities as well as your timely decision.
Although the role of the Forex broker is relatively redundant as a result of technological advancement and increased awareness, we cannot completely underestimate his role. The new paradigm shift has had something of a democratizing effect on the financial markets, and in the years that have followed a plethora of banks and brokerages have extended the range of their services to a new market by packaging up their online trading systems for the retail market, enabling the more modest investor to trade from their own computer screen - even on the previously out-of-reach currency markets. This is where the real role of Forex broker starts.
PIP is nothing special but Price Interest Points. In the forex market, currencies are always priced in pairs. The quoted price is the level where we, acting as the market maker, are willing to buy/sell the currency pair. In the wholesale market, currencies are quoted out to four decimal places, with the last placeholder called a point or a pip. A pip in most currencies is one /10,000th of an exchange rate (in USD/JPY, it is one /100th, likewise you can find for others).
Let's see some more information about Spread. As with all financial products, forex quotes include terms like 'bid' and 'ask"'. The 'bid', in its simplest terms is the price at which a dealer is willing to buy (and clients can sell) the base currency in exchange for the counter currency. The 'ask' is the price at which dealer will sell (and clients can buy) the base currency in exchange for the counter currency. The difference between the bid and the ask price is referred to as the spread. The spread defines the trader's cost, which can be recovered with a favorable currency move in the market. The value of a pip is determined by the pair of currencies being traded, the rate at which the currency pair is trading and the size of the position being traded.
There are many great Forex brokers, like COESfx, who maintains tight, competitive spreads in the four major currencies against the Dollar, and a total of 17 currency pairs including USD/CAD and AUD/USD. Some of the major features of COESfx are:
Real-time streaming prices
Price certainty on market orders
Competitive pricing
Fixed 3-5 pip spreads
sexta-feira, 9 de maio de 2008
Internet Marketing VS Forex Currency Trading
Have you noticed that when someone's trying to sell you something - such as a system for making money - they always make it look far easier than it is?
Let's look at two Internet businesses, almost as diametrically opposed as it's possible to be - Internet Marketing and Forex Currency Trading.
You've probably heard the old Internet adage - build a better website and they will come. Well it ain't true!
You could put up a site advertising dollars for a dime and they still wouldn't come - because they wouldn't know where to look!
Let's look at what you need to have in place in order to build a successful Internet marketing business.
First of all, you need a product. If you've been reading the recent Internet marketing blurb you'll know you need a niche product.
Actually, the new thing is sub-niche but whatever they call it, you need a product for which there is high demand but low supply.
Finding a suitable niche is the hardest part of the whole process but let's say you have a killer product, what else do you need?
The List.
Ask any Internet marketeer and they will say that the most important part of your business is your opt-in list.
For people to join your list you usually have to give them something of value such as a free eBook or report on a subject related to your main product line.
To keep them interested, you need to keep in touch with them offering them additional information, advice and tips.
Website.
To promote your opt-in list you need a website (although there are other ways of promoting your list, too) with features that will encourage people to sign up to your list.
You also need a killer website with killer copy to describe - and sell - your killer product. This may or may not be the same as the one you use for your opt-in list.
Killer copy.
Maybe you're not a good copywriter. There are many eBooks on the subject that can help you or you can pay someone to write copy for you.
You need a domain name, preferably one with some relation to the product but good domain names are becoming increasing difficult to find.
Ads.
To get people to visit your website in the first place you need to register it with the search engines.
SEO (Search Engine Optimisation) is an art in itself. You can mug up on the subject or pay someone to do the job for you (but be aware that not all experts are!).
You might also want to place ads for your list in newsletters and ezines. The better ones will charge you although you might get a free ad in return for an article.
Autoresponder.
To automate your business you need an autoresponder. These clever devices automatically send emails to everyone on your opt-in list at predetermined intervals, and contain predetermined copy.
For example, you could create a series of emails containing, say, five parts of a free course to be sent one a day over the first five days.
Then emails would be sent once a week advertising a different product each time.
Whenever anyone signs up to your list they automatically start at the beginning so everyone gets the full cycle of marketing material.
We haven't even looked at affiliate sales and marketing but I'm sure you get the picture.
The basic idea of selling over the Internet sounds good but there's a lot more to it than most people realise.
Forex Currency Trading
Someone said that trading is the last frontier, the last place where men and women can stand up and pit themselves against the world.
It sounds very Wild Westish but most of it is true! You win or lose entirely by your own efforts and if you win, it's like having your very own bank.
However, even owning a bank is a business and you still have to work hard to put the money there - and to keep it!
Unlike Internet marketing where all your efforts, in one form or another, are geared towards making people join your list and then selling them stuff,
Currency Trading has no customers. That's worth repeating - with currency trading, you don't need customers.
No customers means you don't need any of the associated accoutrements that go with Internet marketing such as: Products Web site Domain name Opt-in list Ads eBooks and reports Autoresponder Any other marketing aids
So far so good, but what do you have to do and what do you need? Well, you need to know what currency prices are doing.
You can get a list of prices at the close of each trading day free from many web sites. If you want to trade during the day - intraday trading, you can get real-time prices for a nominal fee from several data suppliers.
In the foreign exchange currency market, commonly called forex, you can get this data and charting software free from many web sites.
Okay, that's the easy bit. In order to trade currencies, you need to analyse the data and determine which way price is heading.
In other words you need a system and this will require study and dedication.
There's lots of other stuff you have to know, too - trading terminology, margin, leverage, money management, order types, trader psychology and more.
But all of this is available in eBooks and courses and on the Net.
You also need some money upfront to fund your trading account. With forex you can begin with as little as $300-500 although you would be advised to start with more.
So while you don't have the ongoing quest for new customers, new products and inventive sales techniques, you do need some sort of education or training before you begin and you need discipline while you're trading.
Let's look at two Internet businesses, almost as diametrically opposed as it's possible to be - Internet Marketing and Forex Currency Trading.
You've probably heard the old Internet adage - build a better website and they will come. Well it ain't true!
You could put up a site advertising dollars for a dime and they still wouldn't come - because they wouldn't know where to look!
Let's look at what you need to have in place in order to build a successful Internet marketing business.
First of all, you need a product. If you've been reading the recent Internet marketing blurb you'll know you need a niche product.
Actually, the new thing is sub-niche but whatever they call it, you need a product for which there is high demand but low supply.
Finding a suitable niche is the hardest part of the whole process but let's say you have a killer product, what else do you need?
The List.
Ask any Internet marketeer and they will say that the most important part of your business is your opt-in list.
For people to join your list you usually have to give them something of value such as a free eBook or report on a subject related to your main product line.
To keep them interested, you need to keep in touch with them offering them additional information, advice and tips.
Website.
To promote your opt-in list you need a website (although there are other ways of promoting your list, too) with features that will encourage people to sign up to your list.
You also need a killer website with killer copy to describe - and sell - your killer product. This may or may not be the same as the one you use for your opt-in list.
Killer copy.
Maybe you're not a good copywriter. There are many eBooks on the subject that can help you or you can pay someone to write copy for you.
You need a domain name, preferably one with some relation to the product but good domain names are becoming increasing difficult to find.
Ads.
To get people to visit your website in the first place you need to register it with the search engines.
SEO (Search Engine Optimisation) is an art in itself. You can mug up on the subject or pay someone to do the job for you (but be aware that not all experts are!).
You might also want to place ads for your list in newsletters and ezines. The better ones will charge you although you might get a free ad in return for an article.
Autoresponder.
To automate your business you need an autoresponder. These clever devices automatically send emails to everyone on your opt-in list at predetermined intervals, and contain predetermined copy.
For example, you could create a series of emails containing, say, five parts of a free course to be sent one a day over the first five days.
Then emails would be sent once a week advertising a different product each time.
Whenever anyone signs up to your list they automatically start at the beginning so everyone gets the full cycle of marketing material.
We haven't even looked at affiliate sales and marketing but I'm sure you get the picture.
The basic idea of selling over the Internet sounds good but there's a lot more to it than most people realise.
Forex Currency Trading
Someone said that trading is the last frontier, the last place where men and women can stand up and pit themselves against the world.
It sounds very Wild Westish but most of it is true! You win or lose entirely by your own efforts and if you win, it's like having your very own bank.
However, even owning a bank is a business and you still have to work hard to put the money there - and to keep it!
Unlike Internet marketing where all your efforts, in one form or another, are geared towards making people join your list and then selling them stuff,
Currency Trading has no customers. That's worth repeating - with currency trading, you don't need customers.
No customers means you don't need any of the associated accoutrements that go with Internet marketing such as: Products Web site Domain name Opt-in list Ads eBooks and reports Autoresponder Any other marketing aids
So far so good, but what do you have to do and what do you need? Well, you need to know what currency prices are doing.
You can get a list of prices at the close of each trading day free from many web sites. If you want to trade during the day - intraday trading, you can get real-time prices for a nominal fee from several data suppliers.
In the foreign exchange currency market, commonly called forex, you can get this data and charting software free from many web sites.
Okay, that's the easy bit. In order to trade currencies, you need to analyse the data and determine which way price is heading.
In other words you need a system and this will require study and dedication.
There's lots of other stuff you have to know, too - trading terminology, margin, leverage, money management, order types, trader psychology and more.
But all of this is available in eBooks and courses and on the Net.
You also need some money upfront to fund your trading account. With forex you can begin with as little as $300-500 although you would be advised to start with more.
So while you don't have the ongoing quest for new customers, new products and inventive sales techniques, you do need some sort of education or training before you begin and you need discipline while you're trading.
Forecasting Forex Trading
What is Forex or Foreign Exchange: It is the largest financial market in the world, with a volume of more than $1.5 trillion daily, dealing in currencies. Unlike other financial markets, the Forex market has no physical location, no central exchange. It operates through an electronic network of banks, corporations and individuals trading one currency for another.
What about Forecasting: Predicting current and future market trends using existing data and facts. Analysts rely on technical and fundamental statistics to predict the directions of the economy, stock market and individual securities.
For those who trade using the Forex, or foreign currency exchange, knowing how to forecast the Forex can make the difference between trading successfully and losing money. When you begin learning about Forex trading, it is vital that you understand how to forecast the Forex trading market.
There are a few methods that are used when forecasting the Forex. Each system is used to understand how the Forex works and how the fluctuations in the market can affect traders and currency rates. The two methods that are most often used are called technical analysis and fundamental analysis. Both methods differ in their own ways, but each one can help the Forex trader understand how the rates are affecting the currency trade. Most of the time, experienced traders and brokers know each method and use a mixture of the two to trade on the Forex.
One method used in forecasting foreign currency exchange is called technical analysis. This method uses predictions by looking at trends in charts and graphs from past Forex market happenings. This system is based on solid events that have actually taken place in the Forex in the past. Many experience Forex traders and brokers rely on this system because it follows actual trends and can be quite reliable.
When looking at the technical analysis in the Forex, there are three basic principles that are used to make projections. These principles are based on the market action in relation to current events, trends in price movements and past Forex history. When the market action is looked at, everything from supply and demand, current politics and the current state of the market are taken into consideration. It is usually agreed that the actual price of the Forex is a direct reflection of current events.
The trends in price movement are another factor when using technical analysis. This means that there are patterns in the market behavior that have been known to be a contributing factor in the Forex. These patterns are usually repeating over time and can often be a consistent factor when forecasting the Forex market. Another factor that is taken into consideration when forecasting the Forex is history. There are definite patterns in the market and these are usually reliable factors. There are several charts that are taken into consideration when forecasting the Forex market using technical analysis. The five categories that are look at include indicators, number theory, waves, gaps and trends.
Most of these can be quite complicated for those who are inexperienced using the Forex. Most professional Forex brokers understand these charts and have the ability to offer their clients well-informed advice about Forex trading.
Another way that experienced brokers and traders in the Forex use to forecast the trends is called fundamental analysis. This method is used to forecast the future of price movements based on events that have not taken place yet. This can range from political changes, environmental factors and even natural disasters. Important factors and statistics are used to predict how it will affect supply and demand and the rates of the Forex. Most of the time, this method is not a reliable factor on its own, but is used in conjunction with technical analysis to form opinion about the changes in the Forex market.
For those interesting in being involved with Forex trading, a basic understanding of how the system works is essential. Understanding both forecasting systems and how they can predict the market trends will help Forex traders be successful with their trading. Most experienced traders and brokers involved with the Forex use a system of both technical and fundamental information when making decisions about the Forex market. When used together, they can provide the trader with invaluable information about where the currency trends are headed.
Always leave the forecasting to the pros unless you are playing the Forex as a hobby and don't have a lot of money invested...Or like most people you will learn the hard way.
What about Forecasting: Predicting current and future market trends using existing data and facts. Analysts rely on technical and fundamental statistics to predict the directions of the economy, stock market and individual securities.
For those who trade using the Forex, or foreign currency exchange, knowing how to forecast the Forex can make the difference between trading successfully and losing money. When you begin learning about Forex trading, it is vital that you understand how to forecast the Forex trading market.
There are a few methods that are used when forecasting the Forex. Each system is used to understand how the Forex works and how the fluctuations in the market can affect traders and currency rates. The two methods that are most often used are called technical analysis and fundamental analysis. Both methods differ in their own ways, but each one can help the Forex trader understand how the rates are affecting the currency trade. Most of the time, experienced traders and brokers know each method and use a mixture of the two to trade on the Forex.
One method used in forecasting foreign currency exchange is called technical analysis. This method uses predictions by looking at trends in charts and graphs from past Forex market happenings. This system is based on solid events that have actually taken place in the Forex in the past. Many experience Forex traders and brokers rely on this system because it follows actual trends and can be quite reliable.
When looking at the technical analysis in the Forex, there are three basic principles that are used to make projections. These principles are based on the market action in relation to current events, trends in price movements and past Forex history. When the market action is looked at, everything from supply and demand, current politics and the current state of the market are taken into consideration. It is usually agreed that the actual price of the Forex is a direct reflection of current events.
The trends in price movement are another factor when using technical analysis. This means that there are patterns in the market behavior that have been known to be a contributing factor in the Forex. These patterns are usually repeating over time and can often be a consistent factor when forecasting the Forex market. Another factor that is taken into consideration when forecasting the Forex is history. There are definite patterns in the market and these are usually reliable factors. There are several charts that are taken into consideration when forecasting the Forex market using technical analysis. The five categories that are look at include indicators, number theory, waves, gaps and trends.
Most of these can be quite complicated for those who are inexperienced using the Forex. Most professional Forex brokers understand these charts and have the ability to offer their clients well-informed advice about Forex trading.
Another way that experienced brokers and traders in the Forex use to forecast the trends is called fundamental analysis. This method is used to forecast the future of price movements based on events that have not taken place yet. This can range from political changes, environmental factors and even natural disasters. Important factors and statistics are used to predict how it will affect supply and demand and the rates of the Forex. Most of the time, this method is not a reliable factor on its own, but is used in conjunction with technical analysis to form opinion about the changes in the Forex market.
For those interesting in being involved with Forex trading, a basic understanding of how the system works is essential. Understanding both forecasting systems and how they can predict the market trends will help Forex traders be successful with their trading. Most experienced traders and brokers involved with the Forex use a system of both technical and fundamental information when making decisions about the Forex market. When used together, they can provide the trader with invaluable information about where the currency trends are headed.
Always leave the forecasting to the pros unless you are playing the Forex as a hobby and don't have a lot of money invested...Or like most people you will learn the hard way.
sexta-feira, 2 de maio de 2008
Seminars: The Good, the Bad and the Ugly
Ask 10 people how they feel about seminars and you’re likely to get mixed reactions. For some, seminars provide a valuable tool for further education on topics not effectively covered by traditional educational institutions. For others, seminars are a black hole into which they throw their money in the hopes that they will learn the magic secret to wealth and happiness.
Real estate and investment education top the list of controversial seminar programs, and it’s no small industry. More than $2 billion is spent annually on real estate education and seminars, according to Real Estate Investors.tv. Many aspiring investors pay upwards of $5,000 to $20,000 for weekend or week-long “bootcamps” to figure out how they can tap into “real estate riches” and access “other people’s money.”
Seminars can provide great opportunities for learning about investmentsFull of buzzwords and empty promises, many of these seminars draw large crowds. Yet in the realm of real estate education, seminars are one of the only places where investors can get some hands-on training in real estate investing. The key to being a savvy investor is being able to filter through the good, the bad and the ugly of real estate seminars—before you spend your money.
The good
There are plenty of great seminars out there. Often these are put on by investment clubs, local professionals, title companies or universities. A good seminar will probably cost $200 to $500 per day and involve a knowledgeable expert in a specific field.
Good seminars focus on current topics and specific and applicable skill building. Seminars that provide hands-on learning are typically the best. Most of the information in seminars can be found somewhere in print. However, some people find more value in a live presentation than in reading a book. Just be aware of what that live presentation is really worth.
Some of the best and most qualified speakers in the world make $100,000 to $250,000 for a speaking engagement. With an audience of as little as 1,000 people, that amounts to $100 to $250 per person to cover speaking costs.
The bad
Bad seminars almost always involve the regurgitation of basic information and the prospect of big dollars. Investors can pay hundreds to thousands of dollars for material that would be better found in a book or on the Internet. Investors shouldn’t overpay to hear a lot of speaking about the investment lifestyle when what they need is to learn the right fundamentals.
Investors should be wary of seminars preaching ‘fast cash’Although the information may be sound, these bad seminars are able to make money by providing an emotional boost for investors. Do yourself a favor: Save your money. If you are going to become a successful investor, sooner or later you’ll realize that motivation stems from action, not emotion. If you wait around until you feel motivated to hit the gym, you’ll never get there. If you head to the gym diligently, you’ll see some results. Results are what drive sustainable motivation.
The ugly
Does anyone else see the irony in charging $15,000 for a seminar on no-money-down techniques?
There is a group of seminar speakers and promoters that have discovered selling what they call “education” to the masses is infinitely more profitable than actually investing themselves. If you don’t believe me, check out John Reed’s guru ratings. You may be surprised what Reed has uncovered in his investigative reporting on some familiar names in the seminar business.
Recently, Money magazine published an article about a real estate seminar company. I was particularly interested in the personal consumption habits of the company’s owner. The article talked about his 22,000 square foot home and his Ferrari, Lamborghini, Bentley and company jet. That sent up red flags for me. Why? Because someone who would spend more than $100,000 on three cars, when they can only drive one, clearly does not have the mentality of an investor.
What is clear to me is that most aspiring investors don’t really want to be investors. They want to be spenders. Thus they are attracted to seminars promoted by flashing expensive cars and homes that promise fantastic returns with little effort. So let me say this loud and clear: Great returns with little to no effort are not sustainable. It can work for short periods of time when markets are really hot. However, I am a firm believer in the saying that “a fool and his money are soon parted.” In essence, people who make their money through luck typically find a way to give it back. That’s why it’s not uncommon to hear about lottery winners who win millions and then lose everything.
In my opinion, 99 percent of the people willing to pay $15,000 for a week-long seminar are going to make lousy investors. They’d be better off using that money to actually purchase a property. The education they will get from doing one transaction should far surpass what they’ll retain from any seminar
Real estate and investment education top the list of controversial seminar programs, and it’s no small industry. More than $2 billion is spent annually on real estate education and seminars, according to Real Estate Investors.tv. Many aspiring investors pay upwards of $5,000 to $20,000 for weekend or week-long “bootcamps” to figure out how they can tap into “real estate riches” and access “other people’s money.”
Seminars can provide great opportunities for learning about investmentsFull of buzzwords and empty promises, many of these seminars draw large crowds. Yet in the realm of real estate education, seminars are one of the only places where investors can get some hands-on training in real estate investing. The key to being a savvy investor is being able to filter through the good, the bad and the ugly of real estate seminars—before you spend your money.
The good
There are plenty of great seminars out there. Often these are put on by investment clubs, local professionals, title companies or universities. A good seminar will probably cost $200 to $500 per day and involve a knowledgeable expert in a specific field.
Good seminars focus on current topics and specific and applicable skill building. Seminars that provide hands-on learning are typically the best. Most of the information in seminars can be found somewhere in print. However, some people find more value in a live presentation than in reading a book. Just be aware of what that live presentation is really worth.
Some of the best and most qualified speakers in the world make $100,000 to $250,000 for a speaking engagement. With an audience of as little as 1,000 people, that amounts to $100 to $250 per person to cover speaking costs.
The bad
Bad seminars almost always involve the regurgitation of basic information and the prospect of big dollars. Investors can pay hundreds to thousands of dollars for material that would be better found in a book or on the Internet. Investors shouldn’t overpay to hear a lot of speaking about the investment lifestyle when what they need is to learn the right fundamentals.
Investors should be wary of seminars preaching ‘fast cash’Although the information may be sound, these bad seminars are able to make money by providing an emotional boost for investors. Do yourself a favor: Save your money. If you are going to become a successful investor, sooner or later you’ll realize that motivation stems from action, not emotion. If you wait around until you feel motivated to hit the gym, you’ll never get there. If you head to the gym diligently, you’ll see some results. Results are what drive sustainable motivation.
The ugly
Does anyone else see the irony in charging $15,000 for a seminar on no-money-down techniques?
There is a group of seminar speakers and promoters that have discovered selling what they call “education” to the masses is infinitely more profitable than actually investing themselves. If you don’t believe me, check out John Reed’s guru ratings. You may be surprised what Reed has uncovered in his investigative reporting on some familiar names in the seminar business.
Recently, Money magazine published an article about a real estate seminar company. I was particularly interested in the personal consumption habits of the company’s owner. The article talked about his 22,000 square foot home and his Ferrari, Lamborghini, Bentley and company jet. That sent up red flags for me. Why? Because someone who would spend more than $100,000 on three cars, when they can only drive one, clearly does not have the mentality of an investor.
What is clear to me is that most aspiring investors don’t really want to be investors. They want to be spenders. Thus they are attracted to seminars promoted by flashing expensive cars and homes that promise fantastic returns with little effort. So let me say this loud and clear: Great returns with little to no effort are not sustainable. It can work for short periods of time when markets are really hot. However, I am a firm believer in the saying that “a fool and his money are soon parted.” In essence, people who make their money through luck typically find a way to give it back. That’s why it’s not uncommon to hear about lottery winners who win millions and then lose everything.
In my opinion, 99 percent of the people willing to pay $15,000 for a week-long seminar are going to make lousy investors. They’d be better off using that money to actually purchase a property. The education they will get from doing one transaction should far surpass what they’ll retain from any seminar
HiFX: Foreign Exchange Services for Investors
With the U.S. facing a weakening dollar and a recession, many investors are interested in investing some money in foreign countries; the foreign exchange market, also known as forex or FX, is crucial in that endeavor. HiFX, Inc. is an international company that seeks to simplify the process of investing using the foreign exchange market.
"To a lot of consumers, foreign exchange markets...feel very complex. And we tend to help people get through that pretty easily," Ward Naughton, president of HiFX, said. HiFX offers "personalized service, because it's an important part of what you're doing [as an investor]."
HiFX offers its clients better exchange rates than banks offer. One reason they are able to do so is that they have lower costs than banks, Naughton said. "We don't have all the bank branches and all that infrastructure. We do everything through centralized locations and call centers, so our cost basis is less to begin with."
"We do $40 billion in FX a year...we get very, very competitive rates from our suppliers," he said. "We're almost like a Fortune 500 company working on behalf of our clients....It's almost like a Costco model. We get wholesale rates and we give [clients] better than straight retail rates that they would otherwise get on their own."
HiFX offers investors assistance with everything from emigration to importation. They have a variety of ways in which they can help investors purchase property overseas, including money transfers and mortgages. They offer mortgages for several European countries, Dubai and South Africa.
HiFX advises when to buy currency and can lock in a good rate"If you're buying property overseas, or you're making an investment overseas, and you need to move currency amounts—generally in excess of $5,000—overseas, we're the type of firm [that] can help you do that, and in a very cost-effective way," Naughton said. "If you're buying, say, property in Europe, what do you do? You try to go into a bank branch and you would never be able to do that very effectively. It would be very cumbersome."
HiFX can help both investors with defined timeframes for investment and those without. "If you're making an investment overseas and you know you're going to close in, say, 30 or 60 days on a piece of real estate...we can say, 'Based on what's going on in the market right now, where...the dollar is very weak...our expectation is that the U.S. currency could move anywhere between 2 and 4 percent against different currencies," Naughton said. "And so you can actually have an intelligent decision made on foreign exchange tied to that investment decision."
Alternatively, Naughton said, "If you say, 'Hey, look, in six months, I'm going to need this currency, but I don't want to lock it in today...we'll be watching that....We'll give you insight and input and then you can decide, 'Okay, I want to enter into execution of this contract.'"
In addition to offering its clients better exchange rates than banks offer, HiFX offers its clients the ability to lock in a particular exchange rate for up to two years. "We allow the client or investor to lock in what we call a forward rate. And that forward rate says you can lock in a rate for up to two years, based on whatever your needs are," Naughton said.
This forward rate could be beneficial for investors who are wary of the shifting and fluid global market and remove some of the risk that would otherwise deter some investors. "Let's say you're going to have a series of payments you're going to make over a two-year period, and you say 'I want to know what my exchange rate is. I don't want to be subject to market volatility,'" Naughton said. "We get a rate that will essentially be the rate that you can get over...whatever timeframe, up to two years."
"It removes the uncertainty in the marketplace...it's like an insurance policy," Naughton said. "There's a small spread built into that rate...it's basically an insurance premium, if you will, that's built into that [forward] rate."
The price of the small spread may be well worth it to investors who wish to not be subject to market volatility. "The Canadian dollar fluctuated 14 percent between October and November," Naughton said. "If you had had to send dollars to Canada during that period, you would have taken a significant hit as an investor. It would probably have destroyed your returns. We could have done a forward rate agreement that would have protected you against that."
The price of that protection, however, also means that investors who use the forward rate option do not benefit from market changes that would be in their favor because they are already locked in at a certain rate. "If rates move the other way, you don't get the benefit," Naughton said.
The process for investors who are interested in using HiFX's services is fairly straightforward. "They open up an application, they tell us what currency they're interested in [and] what timeframe, they tell us whether they want to do it spot—which means today—or whether they want to do it at a future date, and we basically enter that into our system and we watch that position," Naughton said. "We send the money right away to where you want us to designate it, so we don't sit on your money. All we are is basically a facilitator," Naughton said.
HiFX, Inc., which last year helped 30,000 people buy and sell foreign currency, according to their website, was founded in 1998. HiFX, Inc. is seeking licensure as a money transmitter in California. Investors in California who are interested in using HiFX's services can contact HiFX's affiliate, HiFX Plc.
"To a lot of consumers, foreign exchange markets...feel very complex. And we tend to help people get through that pretty easily," Ward Naughton, president of HiFX, said. HiFX offers "personalized service, because it's an important part of what you're doing [as an investor]."
HiFX offers its clients better exchange rates than banks offer. One reason they are able to do so is that they have lower costs than banks, Naughton said. "We don't have all the bank branches and all that infrastructure. We do everything through centralized locations and call centers, so our cost basis is less to begin with."
"We do $40 billion in FX a year...we get very, very competitive rates from our suppliers," he said. "We're almost like a Fortune 500 company working on behalf of our clients....It's almost like a Costco model. We get wholesale rates and we give [clients] better than straight retail rates that they would otherwise get on their own."
HiFX offers investors assistance with everything from emigration to importation. They have a variety of ways in which they can help investors purchase property overseas, including money transfers and mortgages. They offer mortgages for several European countries, Dubai and South Africa.
HiFX advises when to buy currency and can lock in a good rate"If you're buying property overseas, or you're making an investment overseas, and you need to move currency amounts—generally in excess of $5,000—overseas, we're the type of firm [that] can help you do that, and in a very cost-effective way," Naughton said. "If you're buying, say, property in Europe, what do you do? You try to go into a bank branch and you would never be able to do that very effectively. It would be very cumbersome."
HiFX can help both investors with defined timeframes for investment and those without. "If you're making an investment overseas and you know you're going to close in, say, 30 or 60 days on a piece of real estate...we can say, 'Based on what's going on in the market right now, where...the dollar is very weak...our expectation is that the U.S. currency could move anywhere between 2 and 4 percent against different currencies," Naughton said. "And so you can actually have an intelligent decision made on foreign exchange tied to that investment decision."
Alternatively, Naughton said, "If you say, 'Hey, look, in six months, I'm going to need this currency, but I don't want to lock it in today...we'll be watching that....We'll give you insight and input and then you can decide, 'Okay, I want to enter into execution of this contract.'"
In addition to offering its clients better exchange rates than banks offer, HiFX offers its clients the ability to lock in a particular exchange rate for up to two years. "We allow the client or investor to lock in what we call a forward rate. And that forward rate says you can lock in a rate for up to two years, based on whatever your needs are," Naughton said.
This forward rate could be beneficial for investors who are wary of the shifting and fluid global market and remove some of the risk that would otherwise deter some investors. "Let's say you're going to have a series of payments you're going to make over a two-year period, and you say 'I want to know what my exchange rate is. I don't want to be subject to market volatility,'" Naughton said. "We get a rate that will essentially be the rate that you can get over...whatever timeframe, up to two years."
"It removes the uncertainty in the marketplace...it's like an insurance policy," Naughton said. "There's a small spread built into that rate...it's basically an insurance premium, if you will, that's built into that [forward] rate."
The price of the small spread may be well worth it to investors who wish to not be subject to market volatility. "The Canadian dollar fluctuated 14 percent between October and November," Naughton said. "If you had had to send dollars to Canada during that period, you would have taken a significant hit as an investor. It would probably have destroyed your returns. We could have done a forward rate agreement that would have protected you against that."
The price of that protection, however, also means that investors who use the forward rate option do not benefit from market changes that would be in their favor because they are already locked in at a certain rate. "If rates move the other way, you don't get the benefit," Naughton said.
The process for investors who are interested in using HiFX's services is fairly straightforward. "They open up an application, they tell us what currency they're interested in [and] what timeframe, they tell us whether they want to do it spot—which means today—or whether they want to do it at a future date, and we basically enter that into our system and we watch that position," Naughton said. "We send the money right away to where you want us to designate it, so we don't sit on your money. All we are is basically a facilitator," Naughton said.
HiFX, Inc., which last year helped 30,000 people buy and sell foreign currency, according to their website, was founded in 1998. HiFX, Inc. is seeking licensure as a money transmitter in California. Investors in California who are interested in using HiFX's services can contact HiFX's affiliate, HiFX Plc.
Decline of the Dollar Spurs Diversification
What do supermodel Gisele Bündchen and the Organization of the Petroleum Exporting Countries (OPEC) have in common? Both announced a desire to begin dealing in currencies other than the U.S. dollar in November. They’ve joined a growing number of people, organizations and countries that have decided the dollar is—as Iranian President Mahmoud Ahmadinejad said Nov. 18—just a “worthless piece of paper,” according to The Washington Post.
U.S. investors could learn something from the likes of Bündchen and OPEC, not to mention billionaire investors William Buffet and Bill Gross, and the People’s Republic of China—all of whom have decided to say “so long” to the greenback.
“This is a time to be fully diversified....The world agrees the dollar must fall further, with oil producers having all but abandoned the buck,” Craig R. Smith, CEO of Swiss America and author of Rediscovering Gold and Black Gold Stranglehold, said.
But getting out of the U.S. dollar may be easier said than done, particularly for those uncertain of how to approach it. There are many options out there, and it may be difficult to know just how much a portfolio ought to be diversified.
Owning blocks of foreign currency can help protect investors from dollar devaluation“A strictly statistical approach says that the relative weighting of one currency block…should reflect a nation’s or group of nations’ contribution to gross world product,” Richard Olsen, founder of Olsen Limited, a Zurich-based e-finance technology and service provider, and one of the founders of OANDA FX Trade, a retail foreign exchange dealer, said. “So, if the United States accounts for about 25 percent of GWP, dollar assets should make up no more than one fourth of the portfolio.”
One method of getting out of the U.S. dollar is investing in foreign currency on the foreign exchange, or forex, market. (For more information, see our article on the Forex Investment Market.) As the dollar falls, owning blocks of foreign currency can help protect investors from devaluation.
“The euro is the second most liquid currency, and offset currency to the dollar. Therefore most diversified investment portfolios own a piece of euros,” Chuck Butler, president of the EverBank World Markets, said. The dollar was trading at an average of 0.69 Euro in November, a significant drop from January’s average of 0.77 Euro, according to Exchange-Rates.org.
Asian currencies are also recommended for investment. Asian currencies have intentionally been kept undervalued in order to encourage the exports that boost the countries’ economies, Butler said.
“Asian currencies and those economies with strong natural resources will outperform the U.S. economy because they have secular trends that work in their favor. As investors around the world begin to diversify out of dollars, they will necessarily apply buying pressure on attractive alternatives. And the resulting appreciation will generate additional buying pressure, driving up values,” Olsen said.
However, foreign currencies are not the only option available to investors looking to diversify out of the U.S. dollar. Smith said he recommends that investors have 5 to 15 percent of their portfolios made up of precious metals as a “foundation” before considering foreign currency.
“Precious metal prices have tripled since 2001 and may triple again over the next five to seven years because gold and silver represent an honest store of value,” Smith said. “Gold is fast becoming the global anti-dollar.” (See our articles on gold and silver for more information.)
Some investors consider precious metals the foundation of a strong portfolioThere are programs to help investors convert some of their dollars into gold and other precious metals. (For more information, see our article on Investing in Gold and Silver CDs.) Americans can diversify their retirement portfolios with precious metals through the use of a self-directed precious metal IRA, for example, according to Smith.
“Investors can roll over a portion of their paper assets into precious metals without any tax penalties or new contributions by converting an existing IRA, 401(k) or other retirement fund into a precious metal IRA,” Smith said.
Investors can also shed their dollars by purchasing foreign real estate. Foreign real estate stocks have outperformed other asset classes in the past, averaging a 30.6 percent annualized total return (ATR) in the last three-year period as of April, compared with U.S. real estate, which had an ATR of 21.9 percent; U.S. stocks, which had an ATR of 8.5 percent; and international developed country stocks, which had an ATR of 17.1 percent, according to Fidelity Investor’s Weekly.
“European and Asian property markets are generally healthy. Their building booms are likely to outlast ours. That suggests that you should switch money invested in domestic real estate funds and export it,” according to Kiplinger.
However, investors should not overload themselves with foreign property investments. “Several academic studies have found that the performance of global real estate securities has more to do with how real estate is doing globally than with any differences between American and overseas stock markets,” according to Kiplinger.
Investors may also wish to note that, although the numbers siding with Bündchen and OPEC are growing, some do not feel the urgency to escape from the falling dollar.
Ken Fisher, CEO of Fisher Investments and a Forbes columnist, said it is not important to diversify into non-dollar assets. “Unless someone has special skills in forecasting currencies, which are exceptionally rare, the history of currency movements among western nations shows that the costs of hedging eat up all the benefits.”
But for concerned investors, there is still time to get out. Olsen said he believes the U.S. dollar has some time before it loses its position as the world’s dominant currency. Consequently, investors shouldn’t be too worried about missing the proverbial boat.
“At the beginning of the last century the British pound was the world’s preeminent currency; its demise required more than 50 years,” Olsen said. “We expect the dollar’s fall from leadership will happen a lot faster than that, but not in the next few years....We believe there is still plenty of time to start the diversification process: The U.S. dollar has a long way to go.
U.S. investors could learn something from the likes of Bündchen and OPEC, not to mention billionaire investors William Buffet and Bill Gross, and the People’s Republic of China—all of whom have decided to say “so long” to the greenback.
“This is a time to be fully diversified....The world agrees the dollar must fall further, with oil producers having all but abandoned the buck,” Craig R. Smith, CEO of Swiss America and author of Rediscovering Gold and Black Gold Stranglehold, said.
But getting out of the U.S. dollar may be easier said than done, particularly for those uncertain of how to approach it. There are many options out there, and it may be difficult to know just how much a portfolio ought to be diversified.
Owning blocks of foreign currency can help protect investors from dollar devaluation“A strictly statistical approach says that the relative weighting of one currency block…should reflect a nation’s or group of nations’ contribution to gross world product,” Richard Olsen, founder of Olsen Limited, a Zurich-based e-finance technology and service provider, and one of the founders of OANDA FX Trade, a retail foreign exchange dealer, said. “So, if the United States accounts for about 25 percent of GWP, dollar assets should make up no more than one fourth of the portfolio.”
One method of getting out of the U.S. dollar is investing in foreign currency on the foreign exchange, or forex, market. (For more information, see our article on the Forex Investment Market.) As the dollar falls, owning blocks of foreign currency can help protect investors from devaluation.
“The euro is the second most liquid currency, and offset currency to the dollar. Therefore most diversified investment portfolios own a piece of euros,” Chuck Butler, president of the EverBank World Markets, said. The dollar was trading at an average of 0.69 Euro in November, a significant drop from January’s average of 0.77 Euro, according to Exchange-Rates.org.
Asian currencies are also recommended for investment. Asian currencies have intentionally been kept undervalued in order to encourage the exports that boost the countries’ economies, Butler said.
“Asian currencies and those economies with strong natural resources will outperform the U.S. economy because they have secular trends that work in their favor. As investors around the world begin to diversify out of dollars, they will necessarily apply buying pressure on attractive alternatives. And the resulting appreciation will generate additional buying pressure, driving up values,” Olsen said.
However, foreign currencies are not the only option available to investors looking to diversify out of the U.S. dollar. Smith said he recommends that investors have 5 to 15 percent of their portfolios made up of precious metals as a “foundation” before considering foreign currency.
“Precious metal prices have tripled since 2001 and may triple again over the next five to seven years because gold and silver represent an honest store of value,” Smith said. “Gold is fast becoming the global anti-dollar.” (See our articles on gold and silver for more information.)
Some investors consider precious metals the foundation of a strong portfolioThere are programs to help investors convert some of their dollars into gold and other precious metals. (For more information, see our article on Investing in Gold and Silver CDs.) Americans can diversify their retirement portfolios with precious metals through the use of a self-directed precious metal IRA, for example, according to Smith.
“Investors can roll over a portion of their paper assets into precious metals without any tax penalties or new contributions by converting an existing IRA, 401(k) or other retirement fund into a precious metal IRA,” Smith said.
Investors can also shed their dollars by purchasing foreign real estate. Foreign real estate stocks have outperformed other asset classes in the past, averaging a 30.6 percent annualized total return (ATR) in the last three-year period as of April, compared with U.S. real estate, which had an ATR of 21.9 percent; U.S. stocks, which had an ATR of 8.5 percent; and international developed country stocks, which had an ATR of 17.1 percent, according to Fidelity Investor’s Weekly.
“European and Asian property markets are generally healthy. Their building booms are likely to outlast ours. That suggests that you should switch money invested in domestic real estate funds and export it,” according to Kiplinger.
However, investors should not overload themselves with foreign property investments. “Several academic studies have found that the performance of global real estate securities has more to do with how real estate is doing globally than with any differences between American and overseas stock markets,” according to Kiplinger.
Investors may also wish to note that, although the numbers siding with Bündchen and OPEC are growing, some do not feel the urgency to escape from the falling dollar.
Ken Fisher, CEO of Fisher Investments and a Forbes columnist, said it is not important to diversify into non-dollar assets. “Unless someone has special skills in forecasting currencies, which are exceptionally rare, the history of currency movements among western nations shows that the costs of hedging eat up all the benefits.”
But for concerned investors, there is still time to get out. Olsen said he believes the U.S. dollar has some time before it loses its position as the world’s dominant currency. Consequently, investors shouldn’t be too worried about missing the proverbial boat.
“At the beginning of the last century the British pound was the world’s preeminent currency; its demise required more than 50 years,” Olsen said. “We expect the dollar’s fall from leadership will happen a lot faster than that, but not in the next few years....We believe there is still plenty of time to start the diversification process: The U.S. dollar has a long way to go.
2007's Top 10 Investments Under $25,000
There are many investment options outside the stock market that don't require hundreds of thousands of dollars. However, many investors shy away from alternative assets because they mistakenly believe that such investments, unlike traditional stocks or bonds, require large amounts of capital.
Many investments require only $25,000In fact, a variety of opportunities are available for less than $25,000 in real estate, business, currency trading, lending, commodities and more. Some of the investments below are cash only, while others utilize some sort of leverage. The days of easy money are nearing an end, so the amount of leverage available to investors is on the decline. However, with a reasonable down payment, investors can still enjoy the growth opportunities available though leveraging.
In today's volatile marketplace, both in real estate and stocks, there is heightened risk. With this in mind, NuWire has placed added emphasis on more predictable benefits, such as cash flow and profit in-hand, rather than more speculative investments focused on future appreciation and capital gain.
We also gave added value to investments that aid diversification and protect against the devaluation of the dollar. Gold, silver, timber and foreign currencies fall into that category.
After careful consideration of the many opportunities available for alternative investors in 2007, NuWire presents its Top 10 Investments Under $25,000:
1.
Invest in a single family or multi-family property
2.
Invest in gold and silver
3.
Invest in foreclosure properties
4.
Invest in mobile homes
5.
Invest in fractional ownership of timber
6.
Invest in loans
7.
Invest with partners on larger projects
8.
Invest in Japanese yen
9.
Invest in a business or franchise
10.
Invest in vacant land (domestic or foreign)
Many investments require only $25,000In fact, a variety of opportunities are available for less than $25,000 in real estate, business, currency trading, lending, commodities and more. Some of the investments below are cash only, while others utilize some sort of leverage. The days of easy money are nearing an end, so the amount of leverage available to investors is on the decline. However, with a reasonable down payment, investors can still enjoy the growth opportunities available though leveraging.
In today's volatile marketplace, both in real estate and stocks, there is heightened risk. With this in mind, NuWire has placed added emphasis on more predictable benefits, such as cash flow and profit in-hand, rather than more speculative investments focused on future appreciation and capital gain.
We also gave added value to investments that aid diversification and protect against the devaluation of the dollar. Gold, silver, timber and foreign currencies fall into that category.
After careful consideration of the many opportunities available for alternative investors in 2007, NuWire presents its Top 10 Investments Under $25,000:
1.
Invest in a single family or multi-family property
2.
Invest in gold and silver
3.
Invest in foreclosure properties
4.
Invest in mobile homes
5.
Invest in fractional ownership of timber
6.
Invest in loans
7.
Invest with partners on larger projects
8.
Invest in Japanese yen
9.
Invest in a business or franchise
10.
Invest in vacant land (domestic or foreign)
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