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Has anyone here opened an SIPP account at Interactive Brokers?
Hey all, I have a pension with Aviva through my employer but recently realized that the 0.5% fees they're charging are a bit high. For the size of my pension portfolio (~£300k) this comes to about £1500 per year. Moreover, I've recently started to take a bit of interest in managing my investments and I find myself limited by the funds they provide. They also take too long (~upto a week) to process requests for moving investments. For these reasons, I've been looking at opening an SIPP. An SIPP would hopefully give me a bit more control and also cost less. I'm primarily interested invest in US Shares & ETFs. I compared some of the popular pension providers like HL, Interactive Investor, iWeb. My observations about the fee structure:
The annual maintenance fees doesn't seem to vary a lot, with most of them being somewhere ~£200/yr.
Share dealing fees also appear to be a bit all over the place, ranging from £3 - £10. It could end up being a lot depending on the number of trades.
For me the largest component seems to be the forex charge. Most of them appear to be charging 1% - 1.5% for foreign exchange and it also didn't look like they allow you to hold funds in USD in the SIPP. So, if I assume that I'll be moving around investments worth £50k each year, the forex charges could get to about £50k x 1.5% x 2 = £1500.
So now, I'm looking for an SIPP which ideally has the following:
Allows me to trade in US shares & ETFs
Has low (<0.5%) foreign exchange fees
Has maintenance fees in a similar range, < £300
Allows holding balance in foreign currency, mainly USD
During my search, I stumbled upon a lesser known route using which you can get an SIPP account at Interactive Brokers - https://www.interactivebrokers.co.uk/en/index.php?f=38149. IB themselves are not SIPP administrators so you need to register with an SIPP administrator who has a master account at IB and then you can get an IB Cash sub-account under that administrator. IB appears to be checking all my boxes, but I'm just not very sure about the SIPP Administrators that I might need to use. I found a few: https://www.atsipp.co.uk/, http://www.candpsipp.co.uk/, https://www.optionspensions.co.uk/personal-pensions. They all appear to be somewhat less popular names and small in size. Has anyone here done this? Do you have any recommendations on which SIPP Administrator I should use? Any gotchas? Or maybe there's another SIPP that provides the features I'm looking for?
Although it might seem easy to invest in Forex nowadays, by just logging into an account with a broker, deposit some money and start actively trading; it has not always been like this, as forex industry has rapidly changed in the past three decades. Before technology and free-floating currencies took over the industry, world currency exchanges were operating under the Bretton Woods System of Money Management. This agreement established rules for commercial and financial relations among top economies, tying their currencies to gold. Hence, a currency note issued by any world government represented a real amount of gold held in a vault by that nation. When in July 1944 delegates from all over the world sign off the pact, the main goal was to reduce lack of cooperation between countries and therefore avoiding currency wars. This process of regulating the foreign exchange brought to the foundation of the international money fund (IMF) and the International Bank of Reconstruction and Development (IBRD), today part of World bank Group. However, in the early 70s the real-world economics outpaced the system, dollar suffered from severe inflation cutting its value by half. At that time unemployment rate was 6.1% and inflation 5.84%. Finally, in August 1971, U.S. government led by Richard Nixon took away gold standard, creating the first fiat currency and replacing Bretton Woods System with De Facto. Together with this there were other important measures taken by the USA president to combat that high inflation regime:
This decision was driven by many European nations asking to redeem their dollars for gold, till leaving Bretton Woods System. This had an enormous impact on USD which plunged against European currencies. Consequently, USA congress release a report suggesting USD devaluation to protect the currency from foreign gougers. However, dollar dropped again, and Treasury Secretary was directed to suspend the USD convertibility with gold; hence foreign governments could no longer exchange their USD with gold.
The inflation level was skyrocketing and one more action taken by Nixon was to freeze all wages and prices for 90 days, this was the first time since WWII.
Import surcharge of 10% was set up to safeguard American products ensuring no disadvantage in trades.
Today, USD dominates financial markets, accounting together with the EURO, for approximately 50% of all currency exchange transactions in the world. 1971 represents the beginning of a new forex trading era, bringing this market to be the largest and most liquid in the world, with an average of daily trading volume exceeding $5trn. All the world’s combined stock markets don t even come close to this, what does this mean to you? In an environment which is controlled by free-floating currencies moving constantly, following principles of supply and demand, there are constant and exciting trading opportunities, unavailable when investing in different markets. In this article are shared main features of what is forex trading today and how can be an incredible new source of income for everyone who is into financial markets.
What Is Forex?
Forex is the acronym for foreign exchange which intends to be a decentralized or over the counter (OTC) marketplace, where currencies from all over the world are traded 24 hours, five days a week. Main financial centres include New York, Chicago, London, Tokyo and Frankfurt for Eurozone. It is by far the largest market in the world in terms of volume, followed by the credit market. Being highly liquid is an important feature that allows traders to be able to enter and exit their positions very quickly. Nevertheless, while trading forex, an investor should be aware of several components: Dynamicity – forex is an extremely fast environment, this means that currency rates can move very fast, influenced by price action signals and fundamental factors. Therefore, going into forex trading, one needs to be aware of adopting serious risk and money management strategies in order to be effective, limiting losses. Zero Sum Game – trading forex is not like investing in the stock market but is known to be a zero-sum game. For example, going into the equity market buying some tech shares, they could both rise or decrease in value. In forex is different because currencies work in pairs; for instance, an investor decides Euro will go up he or she is doing it against another currency. Thus, in this specific marketplace one currency will rise while the other will fall, meaning an investor is buying the currency hoping it will appreciate to the other, or selling the one that will depreciate. See image below: Figure 1: Main traded currency pairs https://preview.redd.it/vu77ziuoyle31.png?width=574&format=png&auto=webp&s=9b1693bf27508fcb142705c309de1fc5b3e8fa19 Currency pairs are composed by a base and a price currency. Main forex trading principle is how much price currency an investor can buy using 1 unit of the base, thus, the base currency, which is the first one in line within the quotation, is always equal to 1. Because like every financial instrument currency pairs are driven by fundamentals of supply and demand, forex is intensively influenced by geopolitical and macroeconomic factors. Capital Markets – these are the most visible indicators of a country economic health, where usually the healthier the economy the stronger the currency. For example, a rapid sell-off from a country will show that nation is not economically stable, subsequently investors will think negatively of it depreciating its currency. Moreover, many countries are sector driven, this means that their currencies are strictly correlated with certain resources. For instance, Canada which is a commodity-based market, CAD is strictly linked to price of Brent and metals, a swing in those will affect the Canadian currency. Finally, credit market is also connected to forex since also relies heavily on interest rate so, a change in bond yield will have major impact on currency prices. like increase in yield will favour bullish market for USD International Trade – Trade levels serve as a proxy for relative demand of goods from a nation, a country which goods and services that are in high demand internationally, will experience an appreciation to its currency. This is an effect driven by all other countries converting their currencies into the one of that state to purchase its goods and services. Let’s say a product from USA is in high demand globally, all the other countries must sell their currencies to buy dollars to then see their goods shipped, thus USD will appreciate. Trade surplus and deficit also indicate a nation competitive standing in international trade. Countries with a large trade deficit are usually importers resulting in more of their currencies being sold to buy goods worldwide, thus they will see their currencies devaluate. Geopolitics – The political landscape of a nation places a major role in the economic outlook for that country and consequently, the perceived value of its own currency. Beside building up price action strategies, based purely on price levels, forex traders constantly look at economic calendars and news to gauge what could move currencies. A geopolitical event which is having a great impact on GBP, is the election of Boris Johnson as UK prime minister, driving the local currency to 2 years low, yesterday 29th of July 2019. Therefore, when investors observe instability from a nation political environment, there are high chances that the currency of that country will depreciate.
Why Trading Forex
Beside swapping from a gold standard to free-floating, which change the whole forex trading game, technology is another crucial factor that helped this financial sector to spread globally. With the introduction of internet in the 90s forex opened to retail investors giving access to various trading platforms. The introduction of online platforms and retail investments have increased forex market volume by 5%, up to $250bn of its daily turnover. Different traders may have different reasons for selecting forex, however, mostly is because this is a fertile market plenty of daily opportunities to gauge price action and profit from it.
How traders profit from trading forex? Basics of trading are rather simple to understand. An investor buys an asset at a certain price hoping to get rid of it for a higher price. The more volatile is the market for that specific financial instrument, the more revenue is possible to make. Therefore, a trader is looking for long up and down moves rather than market fluctuating sideways. Volatility is great in forex and a trader can expect to regularly see prices oscillating 50-100 pips on major currency pairs almost any day of the week. Yet again, due to this enormous constant fluctuation, potential losses or gains can be very high thus, rigours money management must be applied to avoid major damages and become a profitable trader. To conclude, volatility is the main characteristic investors are looking at and that is why it is one of the main feature traders can take advantage. See image below: Figure 2: FDAX Volatility, H4 (30th May 2019, 16:00, 30th July 2019, 16:00)
Accessibility & Technology
While volatility is the most important element out in the market that tell us why forex is the best market to trade, accessibility comes straight after. This market is more accessible than all the others, trading forex requires an online desk position and as little as $100 to start off an account. In comparison with the other financial markets, forex requires a rather low trading capital. Moreover, trading forex can be easily accessible from your PC, tablet or mobile since most of retail broker firms operate online. Although, accessibility cannot tell the quality of the market by itself, it definitely shows a reason why many investors try their first trading experience on forex. Also, the rapid introduction of technology since the 90s, made trading much easier. There are every year more advanced online platforms to trade on with many possible updates and that is why trading forex is edging for many global investors.
Before the introduction of free-floating currency and more importantly cutting hedge technology, forex was a market that could have been traded only by institutional investors. Nowadays however, even retail and individual investor can take advantage of the huge volume forex offers every day. Banks Interbank market is the major responsible for the high volume registered daily in forex. This is the place where banks exchange currency among each other, facilitating forex transactions for customers and speculate for their trading desks.
Clients transactions: in this case banks of all size act as dealer for clients, where the bid-ask spread represents the profit for the institutions.
Speculation: currencies are traded to profit from their price fluctuations as well as to increase diversification on their portfolio
Because banking institutions are the biggest players in foreign exchange market, they are able to push up and down the price of currencies giving an extreme advantage and higher volatility to individual traders who are trying to gauge price moves. Central Banks Central banks representing their nation’s government, are crucial in forex. They oversee monetary and fiscal policies having massive influence on currency rates. A central bank is responsible for fixing the price level of its native currency on the market, in other words they take care of the regime currencies will float in the open market.
Floating: these are the currencies which price floats on the open market based on principles of supply and demand relative to other currencies
Pegged (fixed exchange rate): opposite to floating currencies pegged ones are not free-floating in the open market however, their government rather tie them to the value of a stronger foreign currency. Pegged currencies are more seen in developing countries (CYN to USD).
Because central banks manage interest rates in order to increase the competitiveness of their native nation to another.
Dovish: these policies will be lowering down interest rates. A central bank which applies dovish conditions aims to give economic stimulus and guard against deflation. Usually a policy intended to give economy stimulus will weakening the currency value.
Hawkish: on the other hand, hawkish policies lead to an increase in interest rate. A central bank that uses hawkish measures aims to reduce inflation. Typically, this kind of policies will reinforce the country currency value.
Investment Managers & Hedge Funds Portfolio managers and hedge funds are the second investors in forex after central and investment banks. They are hired by huge institutions such as pension to manage their assets. However while portfolio managers of pool funds will buy currency to speculate on foreign securities, hedge funds execute speculative trades as part of their strategies. Corporations Also international corporation play a big role in forex. Those firms operating globally, buying and selling goods and services are involved in forex transactions daily. Imagine an American company producing pipes that imports Japanese components and sell the finished product to China. After the sale is closed the CYN must be converted back to USD, while the American company must exchange USD into JPY to repay for the components supply. Moreover, company involved in international trade have an interest in forex in order to hedge the risk associated with currencies fluctuations making several foreign exchange transactions. For instance, the same American company might buy JPY at spot rate, or enter a swap agreement to obtain JPY in advance, overtaking the risk of the Japanese currency to rise in the future. Therefore, forex become crucial to run companies with many subsidiaries and suppliers all over the word. Individual & Retail Investors Even though this investor cluster brings to forex a very limited volume compared to financial institutions and corporations, it is rapidly growing in numbers and popularity. These base their trades on a mixture of fundamentals and technical analysis. Bottom line, main reason why forex is the most traded market in the world is because gives everyone, from top financial institutions to retail and individual trades, opportunities to make returns on capital invested from currencies price fluctuations related to global economy.
DEMYSTYFYING CRYPTOCURRENCIES, BLOCKCHAIN & ICO IN SIMPLE ENGLISH – REFLECTIONS AND WAY FORWARD FOR 2018
DISCLAIMER: The authors of this article by no means are advocating, advising or persuading anyone to invest in Cryptocurrencies, ICOs or any other form of investment. Investments are subjected to market risks and you must do your own research before investing and seek financial advise and help from qualified personnel. Any businesses or companies quoted in this article have not paid us financially or through any other means for profit or gain. The authors also do not intent to challenge, disrespect or disobey any specific government, institution or personnel of authority including Banks, Financial regulators, governing bodies and laws of the land. All viewpoints in this article are our own and does not relate to any company, partner, employment or body that we are associated with in our day to day life. THE HEADLINE: As we reflect upon on 2017, it is probably fair to make a bold statement that it has been a phenomenal leap forward for the trio of Blockchain, Cryptocurrency and the ICO. Here is why: • Bitcoin (the most popular cryptocurrency and once defamed as a ‘hyper-coin’) hit another all-time high passing $8000. Today, Bitcoin is worth about $50 billion and has been accepted under the law and tax frameworks of Canada, Australia, and Japan. • Ethereum network (platform) and its own fuel ( coin) Ether has appreciated more than 2,800% since it was launched in 2015. • Underlying Blockchain technology is no more a hype, it is disrupting every industry through its secure public ledger • ICOs have raked in over 3.6 Billion Dollars, the largest ICO in 2017 has been Filecoin raising over 257 Million Dollars. This is the just beginning of the ICO revolution where IPOs and traditional stock exchanges are going to become a thing in the past. Let’s admit it. We either have a tribe of people who love the whole concept of decentralized and autonomous Peer to Peer network completely secure and away from the control of the regulators and bureaucrats OR you still belong to the other tribe, you think Cryptocurrencies are dark alleys and ‘good’ people should stay away lurking in these areas. We respect views on either side and we would like to just attempt to demystify few basic practical concepts here that one should know if you are new to this so called “Crypto Tribe”. EVOLUTION OF CRYPTO AND BITCOIN The first internet currency, known as DigiCash, was created by David Chaum and is said to have its origin from Netherlands. This was arguably the first attempt, but the idea failed and the company went bankrupt in 1998. Keeping up with the trend PayPal ( one of the global leaders in Payments Industry) was next to follow-up and became highly successful, but did not create an actual cryptocurrency. So history was made when the first real cryptocurrency, Bitcoin, was invented by someone went by the pseudonym Satoshi Nakamoto in 2008 and went online in 2009. There has been several failed attempts to identify this person. This ground breaking and revolutionary makes it possible to take to replace central authorities, government, watchdogs bureaucrats and politicians with the decentralized blockchain, and take power away from Wall Street. Bitcoin has already broken its own records several times since it started. The chart below will obviously blow your mind if you have not tracked Bitcoin recently. In less than 8 years Bitcoin has given over 8000% return. From 0 to 8000 USD per coin. And ofcourse there are talks of the next bubble and market for Bitcoin crashing down anytime. Really? Let’s address them a bit later in this paper. The legacy of crypto goes back to the days of World War II when cryptographic systems were devised to securely transmit messages between various parties. All has happened is the technology and evolution has progressed since with the advancement of Computer systems and underlying hardware and software. We hence now have a very powerful system on the network for anyone to harness. WHAT IS BLOCKCHAIN? A blockchain is a continuously growing list of records, called blocks, which are linked and secured using cryptography. Each block typically contains a hash pointer as a link to a previous block, a timestamp and transaction data. By design, blockchains are inherently resistant to modification of the data. A blockchain can serve as "an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way not in citation given. For use as a distributed ledger, a blockchain is typically managed by a peer-to-peer network collectively adhering to a protocol for validating new blocks. Once recorded, the data in any given block cannot be altered retroactively without the alteration of all subsequent blocks, which requires collusion of the network majority. And that is the latest Wikipedia definition for you. However, in layman terms, what is the best way to explain it? Let’s think of a used-car for a purpose of illustration. The new buyer would like to ensure that the car is genuinely owned by the seller, that the car servicing history is fully up to date and any major issues has been picked up transparently in the car service history. In real world that may not be possible always. Let’s take another example. We go to our regular family doctor ( GP). Their computer has full history of our health records from illness, diagnosis, medicines and treatments. If we go to another city, it would be very important that the new doctor has full information as well. Sometimes things do not work that way. And this is where the power of Blockchain comes into play. Blockchain is like a decentralized and distributed computer or electronic database existing on multiple computers at the same time ( but not owned by any big company specifically atall). The database keeps growing continuously as new sets of key information, or ‘blocks’, are added to it. Each block contains a very important information - timestamp and a link to the previous block. These then actually form a chain, everyone in the network gets a copy of the whole database but the database is not managed by any particular body, person or corporation. Entire old block are preserved forever and new blocks are added to the ledger irreversibly, making it next to impossible to manipulate by faking documents, transactions and other information. And yes, hackers know this and they have no interest in this area as they cannot manipulate here. They will most likely to continue to pry on large private businesses and public sector for ransom not Blockchain for a very long time or may be forever! It is also worthwhile mentioning here that since Blockchain runs on a public network, there are concept of ‘mining’ and rewards to the ‘miners’. In simple terms, people are rewarded for allowing their computers to be used for harnessing the ‘processing power’ of Block execution. Every new transaction on a block ofcourse needs to be executed. Now that you have got a bit of history of the whole Cryptocurrency and Block chain technology mumbo-jumbo, you may be thinking what about another term ICO which everyone keeps talking at the Pub and every now and then on various websites and journals. What are ICO really? Let’s get that out of way as possible. THE DAWN OF INITIAL COIN OFFERING ( aka ICO) You are probably already familiar with the traditional stock market and the concept of Initial Public Offering ( IPO), so we will not go too deep into it. But in a nutshell, until recently businesses have raised money from the public by listing their businesses on the famous stock exchanges. Ofcourse, it is not possible for Mr. John Smith from a little village selling his home made secret strawberry jam globally until he has deep pockets. Neither he can even dream of getting his business listed on a stock exchange to raise cash from public. Hence listing businesses and raising cash has remain the forte of the big and bold with the backing of Venture Capitalist firms, Private Equity firms and the Brokers. And ofcourse there has been the means of the “Angel Investor” who would give cash by taking significant equity stake in a business started by the entrepreneur with their blood and sweat. Then emerged the concept of “Crowd Funding”. Online project funding websites like kickstarter, crowdcube, seedrs emerged. They allowed entrepreneurs to request for funds from the public. But these methods have raised limited funds, grossly regulated by the local authorities and not everyone could raise money from here. So you may ask what IPOs and Crowdfunding has anything to do with Blockchain technology and ICOs? Well what if we say that there are investors out there who believe in the disruptive nature of Blockchain Technology and are also early adopters of cryptocurrency such as bitcoin. Then there is whole liberal aspect of the unregulated market which makes the whole world shift towards a very different perspective. Now an entrepreneur could actually raise money for building their business from very early stages ( sometimes from just a concept level) and accepting the money not in traditional currency ( aka Fiat currency) but Cryptocurrency. And further, each of these new projects could even release their own version or token of an underlying cryptocurrency or digital currency. Now that’s sexy and awesome isn’t it? Well, we are not going to down the route here to inform the readers it is good or bad practice in this paper. We will leave that opinion formation to yourself. Now that you got a high level understanding of ICOs, the next thing you may want to know is that it is pretty straight forward to invest into an ICO ( we will cover more in this paper later). But you need to understand is ICOs just like an IPO are for short duration. Usually they last for few weeks (typically 4 weeks). You get bonus Tokens or the crypto coin to invest early. Once the ICO minimum target is reached ( Softcap) the coins gets listed on the CoinExchange and they start trading. Coinexchange? What are these then? Quite simple, just go back to the analogy between a traditional stock and traditional stock exchange. Very simple concept really. How you buy, sell and do the nitty-gritty just differs. Since there are no brokers or regulators involved here. The whole process is really simple and quick. It may worthwhile sharing a quick snapshot of the ICO market worldwide: It is mind boggling to see that new businesses in really concept stages are raising more money than traditional businesses in just few hours of ICOs getting listed. Obviously this is really bothering lot of people in high ranking posts. We are not here to again debate who is right or wrong here. What we essentially want you to understand is some of these ICOs are really shaping the next wave of revolution. How many of you believed that a Smart Phone with a so called ‘mobile app’ would be worth billion of dollar? Look at Uber, Alibaba, Airbnb, Facebook. Why no one complains about their valuation? May be because these businesses have backing of very large venture capitalists, Private Equity firms? But who runs these VCs and PE firms? Do you really need 70 Billion Dollars to run a Taxi mobile app? We honestly do not know. But what we know for sure is disruptive technologies and businesses built on top of them always have an edge. And then you combine the technology and handover its power to the people you create a social eco-system that is so strong and powerful that it can override and form its own status. And that is what is happening with the ICOs. People are investing into their trust and belief. Now that’s more powerful than any single bank, government or institution ! If you have followed this paper so far, you should have started to get an idea of what is really going on here about the trio – Blockchain Technology, Cryptocurrencices and ICO. However, I am sure you still have may have zillion questions about how you do certain things. Let us try give you answers to some of the most common questions asked by those who really want to get involved. FREQUENTLY ASKED QUESTIONS Question 1: I am interested in buying and investing into a Cryptocurrency. Should I buy Bitcoin? Answer: Bitcoin is one of the most popular cryptocurrency. We can not advise you anything specific as you need to do your own research. The number of cryptocurrencies available over the internet as of 6 November 2017 was over 1172 and growing. A new cryptocurrency can be created at any time. By market capitalization, Bitcoin is currently (2017-08-19) the largest blockchain network, followed by Ethereum, Bitcoin Cash, Ripple and Litecoin. Question 2: I am interested in investing into a ICO that what research and due-diligence I need to do ? Answer: We are glad that you mentioned the two magical words “research” and “due-diligence”. That is the most important golden nugget that we want you to take-away from this paper. Never-ever invest into a ICO unless you have researched it for how long it takes to build a strong opinion. Here is a good article that gives some really good tips. One quick tip from us would be ensure that Team is really strong and they are genuine people. http://mashable.com/2017/10/25/survive-ico/#CDVyGFJOiiqF Question 3: How do I find out about upcoming ICOs and useful related news and press releases? Answer: There are plenty of websites now that can give you early headsup and keep you well informed. Our favourites are ICOBENCH, COINDESK, ICOALERT. Question 4: Where can we buy and sell ICO and cryptocurrencies? Answer: If you are newbie, it may be a good idea to ask someone in your close network to guide you. There are lots of information and instructional video available on Youtube and other social media network and blogs. Sometimes too much information leads to confusion. You may also want to look into tutorials and training available at UDEMY.COM. But please steer away from self-proclaimed gurus. Do not buy any quick rich scheme related courses and scams. We have found that for beginners https://www.myetherwallet.com/ or https://parity.io/ are good starting point for Ethereum Blockchain related transactions. Question 5: When is a good time to invest in Cryptocurrency? Answer: We wish we had the crystal ball to give you the answer. If we had this crystal ball in 2009 ( when Bitcoin started), we would be very rich people right now. But with a bit of research and education, you can master this. You need to make your own decision when is the right time for you. Question 6: ICO and Cryptocurrency are all hype and dodgy? Answer: We are assuming you are a beginner, you do not know enough about Blockchain technology and how it works, you possibly have not spent enough time learning and tracking about cryptocurrencies. There is also a possibility you have never invested in a cryptocurrency or ICO. Or possibly you invested in a ICO that was a scam. You possibly could be a sophisticated investor in property, traditional shares, gold, forex and much more. But may be you do not want to know any more about Digital currencies or Technology as it is not your “comfort zone”. So the question is how much of homework you have done to assess if this whole concept for you is really interesting or completely ruled out? The decision end of the day is yours. AUTHOR: Avijeet Jayashekhar: Has over 20 years of entrepreneurial, management consulting , Technology leadership in UK Financial Services Industry. He also has a long successful property investment business in UK. In his last stint, as Vice President of Barclays Bank UK, he managed large Technology Programme in next generation technologies such as Artificial Intelligence, Robotic Process automation and Digital Payments including Blockchain. He has track record of setting up 3 successful global Technology businesses. Integrally part of the London Fintech and PropertyTech businesses, he is a popular mentor and speaker. He has a Bachelor’s degree in Electronic and Computer Science, a Business Management Qualification and Project Qualification from Stanford University. He is a British Citizen of Indian origin and lives near London with his family. Linkedin: https://www.linkedin.com/in/avijeetjs/ REFERENCES: https://icobench.com/statshttps://www.coinbase.com/https://www.icoalert.com/https://www.coindesk.com/information/what-is-a-distributed-ledgehttps://tokentarget.com/the-evolution-of-the-ico-2017-and-beyond-2/http://www.ilovegrowingmarijuana.com/the-basics-of-cryptocurrency/http://www.telegraph.co.uk/technology/0/cryptocurrency/https://themerkle.com/top-10-cryptocurrency-icos-throughout-2017-to-date/https://en.wikipedia.org/wiki/Blockchainhttp://mashable.com/2017/10/25/survive-ico/#CDVyGFJOiiqFhttps://en.wikipedia.org/wiki/List_of_cryptocurrencieshttps://en.insider.pro/tutorials/2017-09-04/what-blockchain-laymans-terms/
Right now segwit2x (BT2) is trading for $1143 and segwit1x (BT1) is $3070 on Bitfinex futures markets. Even with not the greatest terms, you would expect 2x to be much higher. I believe this bodes well for BCC. (61 points, 112 comments)
The other day people were suggesting we do an EDA change before the November 2x fork. Here is why I think that is a terrible idea, and why we should only consider EDA change AFTER the 2x fork. (58 points, 40 comments)
While /bitcoin was circle-jerking to the idea that no exchange would list the SW2x chain as BTC, Bitcoin Thailand's comment to the contrary was removed from the very same thread! (228 points, 70 comments)
By proving that it can be done (getting rid of Core) this will set a HUUGE precedent and milestone that dev teams and even outright censorship cannot overtake Bitcoin. That will be an extremely bullish occasionfor all crypto. (149 points, 84 comments)
The goal of all the forks appears to be to dilute investment in the true forks: Bitcoin Cash and Segwit2x. A sort of Scorched Earth approach by Blockstream. They are going to try to tear down Bitcoin as they get removed. (35 points, 11 comments)
In light of all these upcoming forks, we need a site where you can put in a BTC address and it checks ALL the forks and says which chains still have a balance for that address. This way you can split your coins and send coins carefully. (6 points, 6 comments)
Can we take a moment to appreciate Jeff Garzik for how much bullshit he has to deal with while working to give BTC a long-needed upgrade that Core has been blocking for so long? (278 points, 193 comments)
Everyone should calm down. The upgrade to 2x has 95%+ miner support and will be as smooth as a hot knife through butter. Anyone that says otherwise is fear monguring or listening to bitcoin propaganda. (364 points, 292 comments)
Notice: Redditor for 3-4 months accounts or accounts that do not have a history of Bitcoin posts are probably the same person or just a few people paid to manipulate discussion here. It's likely a paid astroturfing campaign. (38 points, 30 comments)
The latest TED Radio Hour titled “Getting Organized” talks about the decentralized algorithms of ants and how centralization is not the most ideal state of an organization. (2 points, 0 comments)
BCC Miners, two EDAs have locked in. This will reduce mining difficulty to 64.00%. If you are aiming to achieve profit parity, you should start mining after the next EDA (in 2.5 hours), because then the difficulty will be at 51%, which gives profit parity on both chains and steady block rate. (9 points, 14 comments)
Antpool, Viabtc, Bitcoin.com, BTC.com, we need to hear your voice. In the case of a scheduled hardfork for updating the EDA, will your pool follow? (6 points, 18 comments)
Fact: proof of work which is the foundation of bitcoin and not invented by Adam back was designed to counter attacks where one person falsely represents to be many(like spam). Subreddits and twitter dont form the foundation of bitcoin for a reason. (156 points, 27 comments)
I'm a small blocker and I support the NYA (87 points, 46 comments)
Devs find clever way to add replay protection that doesn't change transaction format which would break software compatibility and cause disruption. G. Max responds by saying that this blacklisting is a sign of things to come. (49 points, 57 comments)
Five ways small blocks (AKA core1mb) hurt decentralization (36 points, 4 comments)
Even if bitcoins only use to society was avoiding negative interest rates, bail-ins + bail-outs, that is incredibly useful to society. Of course a banker like Jamie Dimon would call something a fraud that removes a "bank tax" on society by allowing them to avoid these fraudulent charges. (18 points, 0 comments)
There are different kinds of censorship. The core propagandists are unwittingly great advocates of economic censorship (2 points, 1 comment)
Everyone should calm down. The upgrade to 2x has 95%+ miner support and will be as smooth as a hot knife through butter. Anyone that says otherwise is fear monguring or listening to bitcoin propaganda. by Annapurna317 (364 points, 292 comments)
FXCM CEO Drew Niv Discusses Firm's Future after the CHF Crisis
Hi Everyone, Our CEO Drew Niv held a Q&A with Forex Magnates which will answer many questions we have received over the past couple of weeks http://forexmagnates.com/exclusive-fxcm-inc-ceo-drew-niv-discusses-firms-future-after-the-chf-crisis/. Please understand that some questions I can't answer since we are a publicly traded company and it may be material information, but we will get to all questions in due time. What happened on January 15th after the SNB announcement? What was the immediate impact of the SNB announcement on the company’s systems? At the time of the SNB announcement over 3,000 FXCM clients held slightly over $1 billion in open positions on EUCHF. Those same clients held approximately $80 million of collateral in their accounts. As you know this was the largest move of a major currency since currencies started floating 1971. The EUCHF move was 44 standard deviation moves, while most risk management systems only contemplate 3-6 standard deviations. The moved wiped out those clients’ account equity as well as generated negative equity balances owed to FXCM of over $225 million. We believe that the FXCM system operated properly during this event. The caveat of our no dealing-desk execution system is that traders are offset one for one with a liquidity provider. When a client entered a EUCHF trade with FXCM, FXCM Inc. had an identical trade with our liquidity providers. During the historic move, liquidity became extremely scarce and shallow, which affected execution prices. This liquidity issue resulted in some clients having a negative balance. While clients could not cover their margin call with us we still had to cover the same margin call with our banks. When a client profits in the trade FXCM gives the profits to the customer, however, when the client is not profitable on that trade FXCM Inc. ends up having to pay the liquidity provider. FXCM ended with a regulatory capital shortfall. Accordingly, FXCM needed to get a loan to cover this balance, which it did. For anyone that still thinks FXCM is running an FX dealing desk, we have now demonstrated that such is not the case. Why do you think many people traded EUCHF with FXCM? Because we are a no dealing-desk broker and offset each trade one-for-one with our liquidity providers, and only make money on trades not customer losses. We published a study a few years ago called “traits of successful traders” that looked at FXCM traders over a long period of time and their general behavior to find what was destructive behavior to stay away from and what worked for clients. The study focuses on what the majority of profitable traders did to increase their odds of success. What the study found was that traders who traded during quiet range-bound market hours like Asian hours OR that traded rang- bound low volatility currency pairs tended to be more profitable. Obviously many of our competitors who are on the opposite side of their clients’ trades did not find this trade to be helpful to their bottom line, as they lose money when traders profit. We saw many of the dealing desk firms begin to increase overnight rollover cost as well as raise margin requirements to get these trades off their system and that’s why FXCM and other STP brokers had much bigger exposure. Why did FXCM require an emergency loan with such tough terms? As a regulated broker we are required to notify our regulators in a timely manner when any event occurs that may be deemed sensitive to clients. When we notified the regulators, they required FXCM Inc.’s regulated entities to supplement their respective net capital on an expedited basis. We explored multiple debt and equity financing alternatives in an effort to meet the regulator’s deadline. The deal we ended up doing with Leucadia was the only deal that could and would happen in the very short timeframe we were given by the regulators. The CEO and the president of Leucadia were here in the office working on the deal. It was a tall order for someone outside of the FX industry to come in and write a $300 million dollar check. This was the type of thing only top management could do. But they see the sustainability of FXCM, and that was everyone’s end goal. We really are very thankful to Leucadia. The deal enables us to live and fight another day and gives us time to build shareholder value in the future. You said you plan to pay back the loan with proceeds from sales of non-core assets so what are non-core assets and will that be enough? We announced last week that we anticipate that with the proceeds from the sale of some non-core assets and continued earnings we can meet both near and long-term obligations of our financing, while preserving the strength of our franchise. It’s widely known and understood that FXCM’s core business has always been retail FX; It is the majority of FXCM’s revenue. However, over the past few years, the company has spent over $250 million dollars making strategic acquisitions building up our non-core businesses, mainly the institutional side as we tried to diversify the firm. We are now looking to sell some of those non-core assets; But, we are not in a rush and are looking to get the highest valuations for these assets. We are considering closing or selling smaller regulated entities that require large sums of capital requirements, but that offer increasingly low return on capital. The latter move allows us to free up significant amounts of cash that is currently trapped. We believe that in the near term we can pay down a majority of the loan. That’s our goal. What happens after 90 days according to your agreement with Leucadia? The agreement says we need to pay back $50 million of the loan along with $10 million in fees in 90 days. If we don’t pay that $60 million, we will be assessed an additional $30 million in fees when the loan is due in 2017. So we are going to pay our $60 million and hopefully more in 90 days and then go from there. To be clear, the financing does not force us to do anything at 90 days. Will you be selling FXCM? I absolutely do not plan on selling FXCM. Like I said we will be selling non-core assets but no I don’t plan on selling FXCM. That is also why we implemented the shareholder rights plan to prevent a hostile takeover. FXCM has been independent for over 15 years and we intend to stay that way. Are client funds safe with FXCM? Yes. As we have said, we believe FXCM’s systems operated properly during this event. I’ll stress it here again, FXCM is not insolvent, has not filed for any form of bankruptcy, and is in compliance with all regulatory capital requirements in the jurisdictions in which it operates. The financing we received from Leucadia has strengthened our balance sheet and gives us the opportunity to grow our core business. With Leucadia, our pockets are even deeper and we aren’t going anywhere. Additionally, all of our regulated entities except the U.S. provide clients with segregated funds. All of our global client base in our regulated entities minus US clients would be protected under a bankruptcy. Our UK regulated entity through the FSCS even offers clients £50,000 per person in protection. Canada has similar insurance for retail traders of up to $1 million CAD. What are the relationships like with your liquidity providers after this event? Many of these relationships are long-standing relationships. The entire industry took a hit here. They understand what happened. Most everyone halted trading in EUCHF, but half of our liquidity providers kept providing prices in all other pairs the entire time. Half of the LPs did stop pricing FXCM on Friday January 16th, but most have returned. We presently only have two providers that have not yet returned, but we are optimistic that they will soon return. There is still plenty of liquidity on the platform. Most banks and other liquidity providers have been working very closely with the FXCM team. Where do you see FXCM in six months from now? We will be well on our way to paying down the loan and continue to grow our core franchise. FXCM still has the best platform for retail traders, we still provide the fairest and more transparent execution in the business and we have a slew of new trading indicators and applications that no one in the space is even considering offering their clients. We’ll still be here; We may just look a little different. Here are a few things we are working to get out in the next six months: Single Share CFDs – We are going to be offering the top 200 or so most traded US, UK, French and German stocks. We are going to offer these shares on the equivalent of NDD in FX. Improving CFD execution – Sharpening execution capabilities to match some of the benefits of our FX capabilities for Index and Energy CFDs to remove restrictions on stops and limits, allowing APIs, along with tighter spreads. Market Depth in FX – clients will be able to see the depth of liquidity which will provide them more transparency with execution quality and allow them to make more informed trading decisions. Real Volume indicators – clients will have a real volume ticker of all trades done on the FXCM system, which will show clients’ actual order flow; they can see directional volume, so long, short, net or total volume as well as balance on volume per instrument; and finally we have an indicator to show the ratio of real volume divided into transactions per period. These indicators will let clients compare our trading activity against other independent providers who also publish volumes like the CME, and clients will be able to compare execution. Sentiment Index – We will be providing FXCM’s client sentiment data in real-time as a default on the platform so clients can see where the rest of the clients are. These software updates and platform features are bringing much more transparency to the retail FX market aimed at improving the client experience in the market. With your stock price so low, is that an indication of the health of your company? While it is true that FXCM’s stock price dropped after the events of January 15th, we do not believe that the present stock price is indicative of the health of the company. The stock price does not impact our day to day operations as a company. With the injection of cash from the Leucadia financing, the core retail business is functioning completely as normal. We have excess regulatory capital in all our regulated entities and never had to pause trading or interrupt client’s trading experience. As we announced in our business update, daily volume on the retail side was on pace to set an all-time company record. Why didn’t the dealing desk brokers have these types of losses? A dealing desk broker does not have offsetting trades. If the customer is long a trade the broker is short that trade, so when the customer makes a profit on a trade the broker loses. When the customer loses on the trade then the broker is profitable. Obviously on January 15th most clients lost money so the dealer was very profitable. Even for clients that blew through their stops and had negative balances with these firms, the dealer doesn’t have a liquidity provider that it owes money to. They can essentially act like the negative balances never happened and enjoy their profits. What is FXCM changing with regards to their risk management systems? The primary change we will be making is removing currency pairs from the platform that carry significant risk due to over-active manipulation by their respective government either by a floor, ceiling, peg or band. Given what happened with EUCHF the industry is now looking very hard at any potentially similar issues, especially given the increased geopolitical risks in Southern and Eastern Europe. We will also be raising margin requirements for other pairs as well. Some of these changes will be permanent while others may change as geopolitical risks change. The pairs we are removing from the platform were not material to our volume or our revenue. Some of the currencies we are removing include DKK, SGD, HKD, PLN and CZK. FXCM made some material changes in margin requirements for clients. Are those changes permanent or temporary in nature? When you look at some of the changes we made to margin requirements, look at them in three different categories: 1. Some of the changes we made were required by regulators, and therefore we had to comply with these changes. 2. When you look at emerging market currencies, the banks and our liquidity providers were raising margin requirements to eliminate any potential risk of large gaps. 3. Previously liquid Western country currencies, like the DKK or CHF, which now carry risk because they are manipulated currencies, have become less liquid. Despite what the media thinks about leverage, we know the clients like it and want more, it’s the number 1 or number 2 request our sales staff has been getting the past week. We understand the importance of this to our clients but we just need to be smart about it moving forward. What is Black Thursday’s long-term impact on the retail foreign exchange industry? In what ways has it changed the direction the industry is going? Banks are raising their margin requirements, too. A lot of these currencies that carry any type of geopolitical risk with them are going to lose support and liquidity. Investors always had little faith in emerging market currencies but always believed in Western countries’ currencies even if they were manipulated in some way, but that’s gone. Switzerland is a Western country and if they can pull the shenanigans they did with their currency, what’s to say other western countries won’t do the same? The market is going to be very sceptical as they can only stand to lose; The risk is just too high now. It’s too bad really as these pairs historically had low volatility, were range-bound and were very profitable trades for clients.
ECN. Used most by professional traders. Difficult platform for beginners
Minimum deposit $10000 (or $3,000 if under 25yo) * Well diversified -Oanda
Market maker. Second largest retail FX brokerage in the US. Easy platform for beginners.
No minimum deposit
Not well diversified, but well capitalized -Gain Capital (whitelabel forex.com) *Market Maker *Fair spreads *Minimum deposit $250 *Well diversified -FXCM Inc
ECN. Largest retail FX brokerage in the US
Minimum deposit $2000
Not well diversified. CAUTION: FXCM nearly went bankrupt in Jan-2015 due to a lack of diversification and low capitalisation. As a result FXCM LLC was bailed out with a large loan which may prove difficult to pay back. Be warned that their business may not be sustainable in the long term. -MBTrading
ECN. Mid-sized retail FX brokerage
Minimum deposit $400
International Only- -LMAX (whitelabel DarwinEx) *DMA broker based in the UK. Note that as a DMA broker LMAX eliminates the ability for LPs to last-look transactions. This may result in reduced liquidity during volatile times as liquidity providers would be likely not to risk posting liquidity to LMAX's pool. *Tight spreads *Minimum deposit $10,000 *Fairly well diversified -Dukascopy *ECN based in Switzerland, but available elsewhere depending on local regulations. *Tight spreads *Minimum deposit $100 *Fairly well diversified -IC Markets *ECN based in Australia *Fair spreads on standard account, tight spreads on professional accounts. *Minimum deposit $200 *Fairly well diversified -Pepperstone *ECN broker based in Australia. *Fair spreads on standard account, tight spreads on professional accounts. *Minimum deposit $200 *Not well diversified Software / Apps: Desktop/mobile
Apps are typically broker dependent. Some brokers have their own proprietary software, while others lease common software like Metatrader or NinjaTrader. Some software has a large development community for indicators and EAs.
Terminology/Acronyms: www.forexlive.com/ForexJargon - Common terms and acronyms FAQ: I need to exchange money, how do I do it? This isn’t what this sub is for. Your best bet is using your bank or an online exchange service. Be prepared to pay a hefty fee. I have money in one currency and need to exchange it into another sometime in the future, should I wait? Don’t ask us this. We speculate intraday in FX and shouldn’t be relied on to tell you what’s best for you. Exchange the money when you need it. I have an FX account, should I start trading demo or live? This is highly debatable. You should definitely demo trade until you have mastered how to use the trading platform on desktop and mobile. After that it’s up to you. Many think that the psychology of trading live vs demo trading is massively different. So it may pay to learn to trade live. Just be warned that most FX traders lose almost their entire first account so start with a low affordable balance. What’s money management? Money management is a form of risk management and is arguably the most important aspect of your trading when it comes to long term survival. You should always enter trades with a stop loss - the distance of the stop allows you to calculate how large of a percent of your account balance will be lost if your trade stops out. You can run a monte carlo simulation to figure out the risk of having a number of trades go against you in a row to drain your account. The general rule is that you should only risk losing 1-4% of your account per trade entered. More on this here: www.investopedia.com/articles/forex/06/fxmoneymgmt.asp www.swing-trade-stocks.com/money-management.html What about automated trading? Retail FX traders have been known to program “Expert Advisors” (EAs) to automate trading. It’s generally advisable to stay away from that until you’re very experienced. Never buy an EA from a developer because the vast majority of them are scams. What indicators are best? That’s up to you to test and find out. Many in this forum dislike oscillating indicators since they fail to capture the essence of what moves price. With experience you will discover what works best for you. In my experience indicators that are most popular with professional traders are those that provide trading “levels” such as pivot points, fibonacci, moving averages, trendlines, etc. What timeframe should I trade? Price action can vary in different timeframes. In longer term timeframes the price action and fundamentals are much more clear. Unfortunately it would take a very long time to figure out whether or not what you’re doing is successful on longer timeframes. In shorter timeframes you can often tell very quickly if what you’re doing is profitable. Unfortunately there’s a lot more “noise” on these levels which can prove deceptive for those trying to learn. Therefore the best bet is to use a multi-timeframe analysis, working from top-down to come up with trades. Should I trade using fundamental analysis (FA) of technical analysis (TA)? This is a long standing argument in these forums and elsewhere. I’ll settle it here - you should have an understanding of both. Yes there are traders who blindly ignore one of the other but a truly well rounded trader should understand and implement both into the analysis. The market is driven in the longer term through FA. But TA is necessary to give traders a place to enter and exit trades from a psychological risk/reward standpoint. I’ve heard trading Binary Options is an easy way to make money? The general advice is to stay away from binaries. The structure of binary options is so that when you lose the broker wins. This incentive has created a very scammy industry where there are few legitimate binary options brokers. In addition in order to be profitable in binaries you have to win 55-65% of the time. That’s a much higher premium over spot FX. Am I actually exchanging currencies? Yes and no. Your broker handles spot FX is currency pairs. Although they make an exchange at the settlement date they treat your position in your account as a virtual currency pair. Think of it like a contract where you can only buy or sell it as a pair. In this sense you are always long one currency while short another. You are merely speculating that one currency will appreciate or depreciate vs another. Why didn't my order fill? Even if price appears to cross over a line on your chart it does not guarantee a fill. Different charting platforms chart different prices - some chart the bid price, some the ask price and some the midpoint price. To fill a limit order price needs to cross your limit's price plus the spread at the time that it is crossing. If it does not equal or exceed the spread then it will not fill. Be wary that in general spreads are not fixed. So what may fill at one time may not at another.
The UK forex brokers City Index, FXTM, IG broker & other trading brokers incorporate a wider range of economic data into their foreign exchange decisions. The major economic data include trade balances, inflation, GDP figures, industrial production, and retail sales. Unlike Singapore or Australia where leverage can be as high as 500:1, the FCA requires all UK brokers to enforce leverage caps in an aim to reduce the high risk of forex and CFDs. Major currency pairs have a maximum of 30:1 while minor and exotic fx pairs are limited to 20:1. Forex Brokers. Free Broker Comparison List and Top 10 FX Brokers 2020 . Find the best Forex Broker and take your trading to the next level. Largest forex brokers from other jurisdictions. There are several high volume forex brokers located in other jurisdictions than the ones presented above (Australia, Europe and United States). Since the remaining big brokers are spread around the world and are not concentrated in a smaller region, we have included them in the "rest of the world ... The FCA UK forex brokers should be able to answer the investors’ questions and provide help in case of any difficulties. This is in a bid to make Forex trading easy and profitable to the traders ... Best UK Forex Brokers for 2020. To find the best forex brokers in the UK, we created a list of all FCA authorised brokers, then ranked brokers by their Trust Score. Here is our list of the top UK forex brokers. Saxo Bank - Best VIP client experience; IG - Best Overall Broker 2020; CMC Markets - Best web platform, most currency pairs It shook the market and left Alpari UK filing for bankruptcy and FXCM scrambling for a bailout to survive. It took two more years for FXCM to finally lose its US license and withdraw from the US market by selling its client base to Gain Capital in February 2017. While the SNB event had major consequences for retail forex brokers, there were other long term trends that also contributed to the ... To help choose a broker we compared 41 FCA regulated UK forex brokers spreads, best features and forex trading platforms. Based on 200+ hours of research comparing the top forex trading accounts the top 10 forex brokers UK list was finalised in November 2020. Internationally UK is considered as one of the worlds largest financial centers. In the United Kingdom brokers are highly regulated, professional and supportive. However, below are some of the important things a trader should know: Financial markets in the United Kingdom are very mature and are seen are being trustworthy due to regulation and compliance by the The Financial Conduct Authority ... The UK is by far the largest fx trading centre, contributing to 43.1% of the worlds foreign exchange turnover. With the recent rise in popularity of Forex trading in Asia, China has increased from the 13th to 8th largest forex trading centre in the world.
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