Bonds Bleed as Rate Hike expectations Soar

As the pace of vaccinations remains slow in the EU but continues to rise in the US and the UK, traders are pricing in the end of the pandemic this year, and that most of the world’s economies will reopen to full capacity. That is pushing inflation expectations higher and higher, along with other things. 

Recently, traders paid attention to Friday’s payrolls report, and it was spectacular. In addition to a massive 916,000 jobs added in March amid broad-based job creation, the unemployment rate fell to 6% from 6.2%, while the underemployment rate declined to 10.7% from 11.1% – from 7% pre-pandemic.

“we will return to the pre-pandemic level of jobs by year-end,” said Bank of America (BoA) chief economist, “[the risk] is that the rate of job growth actually accelerates further given the stimulus-induced boost to spending and economic reopening.”

That, of course, means more inflation is coming, and with higher inflation, the Federal Reserve (Fed) will be expected to tighten monetary policy sooner rather than later. 

At the moment, markets imply more than one rate hike by the end of 2022. Additionally, almost 140bps of tightening – almost 6 rate hikes – is now priced in between the end of 2022 to the end of 2024. 

As yields soar, along with rate hike expectations, bonds have been suffering. The world’s largest credit ETF scored its worst month of outflows since it began trading about two decades ago.

Investors took nearly 3.6 billion USD from the iShares iBoxx Investment Grade Corporate Bond ETF (LQD) in March, according to data compiled by Bloomberg. That massive outflow came as the 42 billion USD fund suffered its biggest quarterly rout in 12 years.

What’s next? For us, it is hard to imagine precious metals and non-profitable tech stocks advancing in such an environment. The pressure on the Fed will continue to mount as inflation is clearly running loose across the globe. 

Large-cap companies should perform better than small caps as they are more resilient to rising rates due to more solid balance sheets. 

When it comes to the USD, it should be supported in this environment, and therefore we don’t expect the EURUSD pair to rise further above this year’s highs of 1.23.

FP Markets launches FP Markets Social Trading

FP Markets Social Trading allows traders to find, follow and copy successful traders automatically.

Whether you are looking to trade as a Copier or offering trading strategies as a Provider, FP Markets Social Trading ensures you stay in control.  

Copy trading removes some of the complexities of trading forex and CFDs and allows customers a more accessible entry point to trading the global financial markets by following successful traders, or Providers.  These Providers are ranked by FP Markets based on their profitability over a given period of time and potential copiers have the ability to view their full trading history and past performance.

Not only can traders access 60+ Currency Pairs, they can also trade in more than 50 of the world’s biggest Stocksincluding Facebook, Google, Apple and Amazon. For investors looking for a more diverse product range, FP Markets provides top-class pricing on all the major commodities as well as the world’s most heavily traded Indices from the largest global exchanges. For clients interested in Cryptocurrencies – Bitcoin, Ethereum, Litecoin and Ripple are all available.

Craig Allison, Head of Europe, Middle-East and Africa commented “FP Markets Social Trading allows traders to find, follow and copy successful traders automatically.  Since its beta launch at the beginning of March, we have experienced huge demand for FP Markets Social Trading with a huge uptake in registrations and increased activity and engagement ratios, especially on social media.  We are excited about the emergence of a new class of traders, and their growing interest in Forex Trading and Contracts For Difference (CFDs), who prefer to analyse the performance of experienced traders and replicate their trading behaviour.  Adding this functionality to our market-leading pricing and trading conditions, makes FP Markets the go-to broker for both professionals and those who are at the start of their trading journey”

Start Copy Trading

Chief Product Officer, Narayan Joshi, added  “There is an increasing trend amongst users towards social trading platforms like this which offer social trading on Forex and CFDs and combine shares, indices, commodities, cryptocurrencies and community.  FP Markets Social Trading delivers a high-end solution for serious traders and is also available on all Android and iOS devices for those clients who want to trade on-the-go”

How does Social Trading work?

  • No need to develop your own trading plan
  • Follow performance of successful traders in real-time
  • Mirror trading behaviour of professional traders with a proven track record
  • No need to make any trading decisions
  • Maintain control: Functionality allows multiple copy trading options and risk management strategies
  • Completely automated trading
  • Become part of a community that includes traders of all skill levels and choose who you want to copy

FP Markets is a growth case in a large and rapidly growing market and in the fast-paced world of online trading is an award-winning Forex and CFD broker that has consistently stayed ahead of the curve leading the way as one of Australia’s leading Fintech businesses.

Visit and join the FP Markets Social Trading Community!

Download Now: Android (Google Play) | iOS (The App Store)

HotForex starts the Road to Paris trading contest

ROAD TO PARIS TRADING CONTEST

Leading global Forex and commodities broker HotForex gives clients and football fans the opportunity to win a once-in-a lifetime Paris Saint- Germain experience and generous cash prizes in an all new and exciting trading contest, thus further leveraging their partnership agreement with the French football giants.

Join the Road to Paris trading contest to win dream prizes 

“Our partnership with Paris Saint-Germain has been extremely valuable and we are excited to be offering our clients and supporters this trading opportunity” said HotForex CEO George Koumantaris“We equally welcome all new and existing clients and football enthusiasts to exhibit their trading skills for a chance to win an all-inclusive experience relating to their favourite team and official partner of ours, Paris Saint-Germain.”

With the Road to Paris Trading Contest, HotForex clients have once again the opportunity to put their trading skills to the test and go in for fantastic cash prizes offered to the top five traders and a VIP experience money cannot buy which includes, amongst others: 

  • Attend a PSG warm up from side-pitch
  • 2 matchday VIP seats 
  • 2 stadium tour tickets 
  • Flight tickets and paid accommodation 

Marc Armstrong, Paris Saint-Germain Chief Partnerships Officer added: “It is always very exciting for us to have the opportunity to work with a brand that shares our commitment and vision for success. We are delighted to be sharing our love of the game with all HotForex clients, offering them the opportunity to get behind the scenes at the Parc des Princes stadium and experience the thrill and excitement of their favourite team first-hand.”

Visit the Road to Paris contest website for more information. 

About HotForex

HotForex is committed to the success of its clients and gives them a competitive edge through cutting-edge technologies, exclusive access to market research, innovative trading platforms, learning resources and 24/5 multilingual support. Through its policy of providing its clients with the best possible trading conditions and an optimal environment to trade it has positioned itself as the forex broker of choice for traders worldwide.

About Paris Saint-Germain  

Paris Saint-Germain football club was created in 1970. Since QSI’s purchase of the club in 2011, it has transformed to become one of the top football clubs and global sports brands in the world. Paris Saint-Germain is connected with Paris, which is at the heart of the organization, under the philosophy of one unique city, one unique club. The club has since then won 26 trophies in ten years, 44 in its history, becoming the most successful football club in France. Paris Saint-Germain has attracted many great players including Ronaldinho, Beckham, Ibrahimovic, and currently Neymar Jr and Mbappé, both ranked amongst the best players in the world. The international popularity of the club never stops growing. It is now the one of the most followed club in the world, expanding from zero to a community over 100 million social media followers in just ten years. It has opened international offices in Doha, Shanghai and Singapore. The pioneering sports club which now includes men’s football, women’s football, handball and judo added esports in 2016. Giving back to the community is fundamental to the club who has drastically increased the capacity of its Foundation to develop innovative programs for children in tough situations. Among others, the Red & Blue School project allows the Paris Saint-Germain Foundation to serve underprivileged youths. 

3 Ways Online Tools Empower You to Start Trading

What is one of the most powerful tools that allows you to trade without breaking the bank? INFINOX Managing Director, Jay Mawji, highlights how technology plays a critical role in helping Africans trade, and what you should look for in a trading partner.

“Accessibility, accountability and affordability. These are the 3 keys to understanding how the financial trading industry has opened up to allow customers in Africa to reap the rewards that come with responsible and regulated trading,” says Mawji.

Accessibility

Provided there’s adequate internet connection, an individual can trade from any location imaginable. This means that trading is not only available to stock brokers on the trading floor, but that you can get in on the action too. 

“I opened my first demo account when I was 23 years old, in a hotel room on the way back from a holiday after a flight was cancelled. That’s how accessible it was in 2005 – and it’s even more accessible now,” says Mawji. “The rise of apps allows for mobile trading so you can purchase and trade shares anywhere and at any time from the convenience of your mobile device.”

Accountability

Technology also allows you to access countless trading tools and read up on the latest industry news and information, so you can hold your broker accountable for pricing, execution and services. This creates a more trusting environment where you are comfortable enough to participate. 

“In fact, if you ask your social circle, you’d probably be surprised how many people you know who are already trading,” says Mawji. 

Affordability

You no longer need to spend thousands of dollars or “know someone” in the trading industry. Now, all you need to start trading is an investment around $100 and access to the internet. 

“You can open your own trading account for less than $100* with Infinox,” says Mawji.

How technology helps protect traders

The changes in online technology have not only affected your ability to trade – they have also had an impact on how the industry is regulated. Regulators have to constantly adapt and adjust trading regulations that set out how firms operate and the products that they can offer you. 

This is done with the goal of protecting you. 

Although this adaptation can slow down regulatory advancements, it also allows traders the opportunity to slow down, and take the time to make sure that they understand your needs and provide solutions which work for you. 

So, what are the key traits to look out for when you’re in the market for a trading provider? 

“Find a partner who is regulated, and embodies a client-centric ethos,” says Mawji. “They should also focus on aspects such as pricing and ensure they are using the best trading technologies in the market.”

Consider how reliable the trading partners’ server is, because you don’t want to receive a report that the server has crashed just when you’ve made a significant trade. This also ties in with your trading partners’ execution speed, because timing is of the essence when it comes to online trading.

While true trading power and knowledge comes from experience, it’s also important to keep learning. Reading up on trading best practices, paying attention to market trends, and the risks involved is a good start. There are numerous tutorials, applications, guides and videos readily available online, but keep in mind that fast information may not be valuable knowledge. 

Make sure your trading partner has its finger on the pulse – and it’s even better if they can provide you with additional support throughout your trading journey. “Our research channels, manuals, academies, and electronic trading tools help you identify the next trading opportunity. And our multilingual support team is available to you 24 hours a day, 5 days a week,” says Mawji.

When it comes to finding a trustworthy broker, the best place to start is with the Securities Commission of The Bahamas (SCB) who keeps an up-to-date register of all firms and their business activities. Conducting research on the trading firm and the regulations that they abide by will help protect your consumer rights. 

“Remember, if it’s too good to be true, it usually is,” says Mawji. “In the trading world, this means that you should be wary if it’s too easy to open an account, too easy to deposit, too easy to trade and especially if you hear promises that making large amounts of money is easy. This is a clear sign that the broker has limited regulations and processes in place.”

While the impact of technology cannot be understated, it should be remembered that at the heart of the trading industry lies the client, and how you use digital tools has a profound effect on which technology is developed in the first place, and how it evolves. “It’s for this reason that we say that even in a digital world, human value is still the key to success,” says Mawji.

Forex Brokers Unprofitability – February 2021

As the year 2020 has come to end, a lot of Forex brokers have updated their traders’ unprofitability numbers as required by the ESMA regulations. Even though these numbers have to be updated by Forex/ CFD brokers on a quarterly basis, not all regulated European brokers do that regularly. However, the vast majority of brokers already refreshed their risk warning, so we can finally check the updates. 

We suppose the percentage displayed by brokers includes the number of all losing accounts divided by the number of all accounts during the last 12 months, since it is only the middle of the first quarter. We have checked 20 companies. The reason why some companies publish losing accounts percentage and some don’t (or stop publishing) is due to companies leaving/entering ESMA jurisdiction.

We can see that the lowest percentage of losers is 50% (TriumphFX), while the maximum is 82.78% (TradeFW). However, it is not actually possible to get a meaningful and believable percentage value due to the distorted data published by brokers reporting a range instead of a single number and by brokers with not enough EU traders.

The list of 20 brokers and unprofitability of their retail traders (sorted in an ascending order):

TriumphFX50%
EBH Forex 51.38%
Everfx65%
Etoro67%
Valbury Capital 68%
Skilling69%
Saxo Bank 70%
Trade 360 70.33%
City index 73%
IG Markets75%
CMC Markets76%
FXCM76.31%
Plus50076.4%
ETX Capital76.42%
BDSwiss78.8%
Forex.com79%
Infinox82.44%
TradeFW82.78%

Oil Rally Continues, How High Will It Go?

As of Wednesday, West Texas Intermediate (WTI) crude oil has been seeing gains for eight consecutive days, and at the time of writing is trading near 58.60 USD. Oil gained 135% in February alone, making it one of the best-performing commodities. 

Last April, WTI dropped below zero with the subsequent front-month contract trading at around 15 USD. This means oil has seen a staggering 280% gain since May 2021, and it looks like the rally is not over yet. 

Total, a French multinational integrated oil and gas company, and one of the 7 supermajor oil companies, reported a net loss of 7.2 billion USD for 2020, down from a profit of 11.27 billion USD in 2019, suggesting oil demand was incredibly weak last year.

Considering continued global lockdowns, demand could still be very low in the first months of 2021, putting further pressure on oil companies. 

Nevertheless, oil price is moving higher nearly every day. Oil and copper tend to be from the best inflation hedges in the world. When investors expect rising inflation, they buy hard assets, such as commodities. 

Since central banks and governments are flooding the system with money, inflation expectations are spiking higher, and oil will most likely continue to outperform other assets. We would not be surprised to see oil north of 70 USD, despite the global economic depression. That is what happens when uncontrolled money printing becomes a reality. 

Technically speaking, the next major resistance is most likely at 2020 highs in the 65 USD area. If that level is broken to the upside, oil could rise toward 2018 highs near 75 USD. 

Alternatively, the major support now stands in the 52/54 zone, and while oil trades above it, the medium and long-term outlooks look bullish.

10 Gifts 2020 Gave Traders

When we look back on 2020, we’ll probably remember COVID-19, the sudden virus outbreak that tanked markets and crashed economies. The future looked painfully uncertain, and it dramatically affected almost every aspect of our normal everyday life. 

Despite the dark clouds and many weathered storms, 2020 had its share of silver linings too. For millions of traders around the world, it meant more time to invest in trading, more resources to level-up skills, and more market volatility to take advantage of. 

Sure it wasn’t a smooth ride for everyone, and there was a lot to adjusting, but there were also plenty of gifts for traders who looked for them.  Here are 10 gifts 2020 gave traders.

  1. More time at home = more time to trade

If 2020 gave us anything, it was the gift of time. Being forced to spend more time at home meant a lot more free time to focus on trading. There was time to practice strategies, analyze  the market, and monitor its performance throughout the day. 

The near-unprecedented market volatility was also a big incentive to leverage the market’s highs and lows. There were plenty of those in 2020. 

As a result, brokers saw a significant uptick in trading volumes when the lockdowns were taking effect globally in March 2020, which means many more traders turned to their trading accounts and took advantage of opportunities.  

  1. Lockdowns = More online efforts from brokers

With more flexible schedules, traders aso had time to level up their trading skills. They were at home with more time to kill. When the lockdowns began in March, Google Trends saw an increase in people searching for words like forex, trading courses, and day trading, almost doubling in some cases, since the beginning of 2020.

In response, brokers began providing more access to free online training courses, webinars, and market insights. It was a way to stay closer to traders since seminars and meet-ups were cancelled, and many brokers put extra effort to help traders navigate unprecedented extreme volatility that came along with unprecedented lockdowns. 

Videos with high production value helped traders understand the industry, trading academies on brokers’ websites were advanced and webinars frequencies increased. 

Topical webinars were particularly popular during the pandemic. With everyone safely at home and travel-limitations being enforced globally, there was record-breaking webinar attendance. 

With more people taking up trading, brokerage firms also aligned their offers to make it easier and more cost-effective for everyone to access the financial markets. Zero-commissions is now the name of the game. 

  1. Negative oil prices = new oil indices 

On April 20, 2020, the benchmark price for crude oil in the United States fell to -$37.63. It was a historic crash and the first time oil dropped into negative territory. The shock of the Covid crisis was spreading and it triggered a sudden and very drastic drop in demand for oil. West Texas Intermediate (WTI) crude oil, dropped below $0 for the first time.

In response,  new pioneering oil indices were introduced to both protect clients and give them the opportunity to take advantage of the oil markets.  

With oil indices, traders could still take advantage of the oil market’s volatility, with less risk. These US and UK Oil Indices will not stop out positions if oil prices drop to $0.  These products are rebased at $100. That means, should spot price fall into negative territory, for example -$5 USD, the pricing of the index will reflect this at $95 giving traders the opportunity to leverage their loss.

The best part is traders can still analyze price movements in the same way as we would analyze oil, using the same fundamental and technical indicators to open and close positions. 

  1. The world moving online = an edge for those who are already online

For online traders, adjusting to the post-corona world was relatively easy. Most professionals had to adapt to working remotely and purely online. For traders this was just another Wednesday, no transition was required. That meant that 2020 was slightly smoother for traders in comparison to others. 

During COVID they facilitated a smooth adjustment to home-based trading. Helping traders adapt through the pandemic and beyond is a comforting gift that makes it easier for traders to keep calm and carry on. 

  1. Unstable markets + a tension-filled US election = stocks hitting all-time highs 

Buoyed by the prospect of a Democratic president and Republican senate, stocks hit an all-time high in November. 

Analysts were optimistic that a Biden presidency will deliver a new economic stimulus package that will be good for the markets, while a Republican Senate will likely block more expensive Democrat policies, like corporate tax hikes and debt-funded spending on infrastructure. 

That’s great news for the markets, and after the run the stock market had in 2020, it’s welcome news. Analysts are forecasting the stock market will remain strong throughout 2021, which means this gift will likely keep on giving.

  1. A historic US election = interesting trading opportunities

Many CFD traders were sizing up their trading and risk management strategies and positioning themselves to trade the unprecedented volatility of 2020’s US election. 

Trump was up for re-election, anything could happen, and that kept volatility high in the markets leading up to November, 2020 – and beyond. Volatility continued to pick up as Biden captured enough Electoral College votes to win the U.S. Presidency, and even while Trump challenged states to vote recounts.

Every trader looks for a rise in market volatility for potential opportunities. That’s why the 2020 US election was a welcome end to the year. It has continued to deliver after the elections were called. The markets then turn their attention to the implications of a contested election and, potentially, a divided government.

Market volatility and the plethora of news that was driving the market, created many trading opportunities for traders. 

  1. Trump tweets = trump tweets 

By now everyone is well aware of Trump tweets, which for the last four years have affected the world and the markets. Trump was in no way a conventional president so it wasn’t a surprise that he insisted on keeping his personal Twitter account active during his time in office. 

In 2020 – which would be his last year in office – his tweets continued to deliver a roller coaster ride of mixed emotions for traders. He shocked, terrified, amused, and very often baffled us with intentionally false or misleading information. 

The way he relied on Twitter and the way his Twitter account affected the world is as unprecedented as the Coronavirus lockdowns that defined 2020 – it’s worth mentioning that he was banned from Twitter in January of 2021. 

Who’s to say if the incoming president will be as prolific on Twitter, but it’s safe to assume he’ll be a lot less controversial and 2020’s obsession with the US president’s Twitter account is over.

  1. Biden wins the US election = a gift for everyone around the world

On January 20, 2021 Joe Biden was sworn in as the 46th president of the United States. 

Any new US presidency tends to affect the market, but this specific presidency means an end to Trump’s divisive and controversial presidency. 

While the markets did see a lot of highs during Trump’s four-year term, towards the end, the USD had been weakening. A Biden presidency could bring more stability to the global economies. Analysts predict his policies for managing the health crisis and proposed investments in clean energy will be great for the markets.

Regardless of the markets, the United States and most people around the world let out a global sigh of relief, that one of the most controversial presidencies in history had finally come to an end.

  1. An unprecedented NFP report = the return of the NFP effect

The US nonfarm payrolls report (NFP) has always been an anticipated news release that traders used as a cue for their next trading moves. But for May 2020, the NFP crushed market expectations by 9.5 million. The median estimate expected on Wall Street was -7.5 million jobs (lost). Instead, the NFP showed the actual figure was +2.5 million jobs (gained). 

The unemployment rate fell to 13.3% from 14.7% previously reported too. This had investors and traders hopeful, seeing clear indication that the US may be turning the corner economically. The stock market gained over 700 points, and the USD/JPY price action spiked.

That was one of our favorite moments this year. Despite all of the negative downturns, the May report offered a glimmer of much-needed hope for the markets after a very bleak first-quarter run. 

  1. CFDs = a gift every single year

The markets were exceptionally volatile this year, and that was great news for CFD traders. Unlike long-term traders who buy actual assets and wait for them to rise, CFDs offer traders the opportunity to trade on both the upward and downward movements in the market. 

That came in very handy in 2020, because there was plenty of movement in the markets to leverage. 

It mattered not if the markets rose or fell as long as market prices were moving, there was an opportunity for CFD traders to trade on market’s volatility. CFDs are designed to mimic their underlying market’s trading environment fairly closely, so as you monitor your investment, you’ll see your profit or loss move with the underlying market price. With the right strategies, tools and understanding of the markets, trading CFDs can be very profitable. 

The flexibility CFDs offered traders in 2020 enabled them to take advantage of  the years exceptionally high-volatility. With all the uncertainty and risk to manage, CFD traders had the option to hold long as well as short positions, quickly adjust their strategies and hedge their portfolio. 

Technology drives an inclusive trading market

INFINOX Managing Director, Jay Mawji, explains that technological advancements have allowed everyday people the opportunity to trade without breaking the bank, and highlights key takeaways of what clients should be looking for in an online trading partner. 

Gone are the days of being in the know and wheeling and dealing with the stressed out stock trader on the floor during the Wall Street boom era. Today, trading is accessible to anyone with disposable income, young or old. 

Putting this into context, it has recently been reported that millennials make up as much as 60% of the 15 million online traders across the globe. This number reflects the rise of the Fourth Industrial Revolution and how technology has become intrinsic in many of our daily lives. Millennials are the first of the digital natives amongst generations, and in the world of trading, the natural progression was for it to move from solely being entrenched in the physical world, to moving into the digital realm – bringing along with it many new opportunities. 

Much has changed in the financial trading industry with the advent of technology. Technology opened the market up to everyday people, and allowed them to reap the rewards that come with responsible and regulated trading, comprising what Mawji refers to as the 3 A’s: accessibility, accountability, and affordability.

Why Start Trading Now?

Today, technological advancements have allowed us the accessibility to trade from any location imaginable, provided that there’s an adequate internet connection. As such, the digitisation of the industry was an important step forward to ensure its progression to one that is open to a larger demographic than before, and not just stock brokers on the trading floor.

Further, in a digital world, clients can hold brokers accountable for pricing, execution, and services; creating a more trusting environment where clients will feel more confident in participating. Lastly, the digitisation of the industry has presented a more affordable option to trading, and instead of spending hundreds of thousands and needing to know someone in the trading industry in the days gone by, today all that is needed is an investment around $100 and access to the internet. 

By far some of the most significant technological innovations that have been introduced to online trading include tools associated with pricing, charting, and order logs. However, one which we have seen becoming ever-more prevalent given the App Generation that we live in is the concept of mobile trading, allowing one to purchase and trade financial instruments from anywhere and at anytime from the convenience of their mobile device. 

However with these digital progressions, regulations and the ability to understand clients will always be the biggest ramification to the evolution of these technologies. Regulators have to constantly adapt and adjust regulation to dictate how firms and their market solutions should operate, while taking into account how clients are protected. And while this can at times slow down regulatory advancements, it allows trading partners the opportunity to slow down and pay greater attention to where we can adapt and provide even greater solutions to clients.

Find the Best Broker For You

When looking to partner with an online trading provider, traders should look for one that not only provides customer care, but one that is regulated in the relevant jurisdiction and focuses on aspects such as pricing, and trading technologies. Additionally, traders should consider the providers’ server reliability and execution speed. 

It’s important to consider that in order to be a successful trader, you should be regularly educating yourself on trading best practises, including being attentive to the trends and the various associated risks involved. While there are numerous resources such as tutorials, applications, guides and videos readily available on the internet, be cognizant that consuming this fast information doesn’t always lead to success, with true trading power and knowledge coming from experience. 

It’s therefore important to partner with a broker that has its finger on the pulse of the digital evolution, while still maintaining the human touch that will enable a trustworthy relationship between broker and trader. 

This is because as technology has grown, malpractice has evolved to take advantage of digital opportunities. The rise of the digital age has resulted in an information overload and often a lot of this information is made up of unqualified opinions and regurgitated statements.

Top Tips For Selecting A Broker

In order to find the right broker, it is crucial to conduct research on the company and the regulations that they abide by. The best place to do so would be the Securities Exchange of the Bahamas (SCB) who keeps an up-to-date register of all firms and their business activities.

Secondly, traders must recognise the investment risk versus reward, and take into account that it should be a balanced approach between the two, while being aware that if it is too good to be true, it usually is. Be wary of schemes that are too easy to open an account, too easy to deposit, too easy to trade, and too easy to make money. This is a clear sign of limited regulations and processes. 

While the advent of technology has undoubtedly been instrumental in the progression of the industry, we must be aware of the fact that at the heart of the industry lies the client, and that technology’s impact on the industry is truly down to how the client digests it. This highlights that even in a digital world, human value is still key to success. 

Online broker Infinox Capital to expand in Africa after launching in Nigeria

Infinox Capital, a global online brokerage, has announced plans to launch an African hub in South Africa and expand into key economic African countries, namely Namibia, Botswana, Mozambique, Tanzania and Ghana. This follows its recent launch of operations in Nigeria.

According to Jay Mawji, Managing Director of Infinox Capital, the decision is attributed to the fact that the continent has a high youth population makeup combined with the improvements made through the implementation of technologies and the accessibility thereof.

“For any financial institution, Africa is the place to be. There is a strong drive to bridge the knowledge and accessibility gaps between bankers in major global financial hubs and the everyday person on their mobile device,” he said.

He said that Africa, being home to as many as 1,3-million traders, according to insights provided by ForexBrokers.co.za, Infinox Capital believes that as technological accessibility increases, the boost in the economic standpoint of the country will result in a growth in the middle class population with additional disposable income.

“This is driven by the country’s technological accessibility, having the appropriate infrastructure in place, and the right skillset of the people utilising the various platform solutions.”

Jay Mawji – Managing Director, Infinox Capital

“This, we believe, will most certainly mean a surge in popularity as many realise the potential of expanding their exposure to financial markets through the investment in CFD and associated trading commodities,” he added.

“We have observed that the African markets we are expanding into are already seeing a significant increase in potential investors showing an interest in trading stocks and other products by downloading various industry-related apps, and being more financially-savvy,”

“This is driven by the country’s technological accessibility, having the appropriate infrastructure in place, and the right skillset of the people utilising the various platform solutions.”

Mawji added that the expansion into key African markets allows for job creation, their commitment of being a real organisation run by real people with on-the-ground presence lends to their principle of employee retention and growth.

“Our intention as an employer is to positively impact the lives of our employees across all regions by seeing them succeed and change their lives for the better.”

As the infrastructure to connect continues its reach throughout the continent, Mawji says that further expansion into other markets in Africa is quite possible with the launch of INFINOX Capital’s recently released trading app.

“We have launched our app to make trading even more accessible in regions across Africa. Comparable to Instagram for trading, it provides clients with the interactive functionality to social trade, see what other traders are doing, and follow and engage with them.”

Mawji concluded by saying that it’s great to have an online presence and an app, the process still involves client’s money meaning that many may be apprehensive to invest and transact with a faceless organisation.

“Infinox Capital, while a large firm, acts as a small organisation, and it is for this reason that the interactive experience with local representation is important, adding a sense of trust, comfort, personal touch and support for clients,” he said.

About Infinox Capital

INFINOX is a globally recognised FX & CFD broker, regulated since 2009. We have a presence in over 15 countries, providing competitive trading conditions and premium client service worldwide. 

2021, a Fresh Start for the Markets or More of the Same?

It’s been a roller coaster ride of a year for the financial markets, with crashes, losses, and unprecedented volatility. 

West Texas Intermediate (WTI) crude oil prices went negative at one point and still trail below 50 USD. The USD took a big hit, along with the GBP and EUR. The Forex market remained uncertain for most of the year, mainly due to the pandemic and the US presidential elections. 

However, market analysts are saying there’s a good indication that the wild ride may be over. The world has a COVD-19 vaccine now, as well as a new US president.

All of these events bring new hope for 2021 markets. However, if 2020 taught us anything, it’s that unpredicted events can happen, and when they do, they send massive shockwaves across financial markets. So what can we expect in 2021? New beginnings or more of 2020’s volatility?

Will the stock markets continue rising?

The stock market crashed in February 2020, the most significant drop since the Great Depression of 1929. Still, by November, Moderna and Pfizer had announced promising Covid vaccines, and the Dow Jones Industrial Average hit a record high of 30,000 for the first time in history.  

That’s the beauty of the stock market. It’s resilient and bounces back.

Analysts predict it will continue its rise through 2021. After an almost unprecedented fiscal and monetary response coordinated globally, interest rates have been historically low. These conditions have supported stock market gains in the past, and there’s no reason to suspect they won’t have the same effect in the new year. Interest rates are likely to stay low until the world has moved past the pandemic. 

How will the EURUSD perform? 

Most analysts predict the USD will decline. There are two significant reasons for the USD weakening.  The Trump administration poured USD into the market to stimulate growth when the lockdown began in March 2020. The U.S. Federal Reserve’s pledge piled on further pressure to keep rates at their record low. 

The European Central Bank (ECB) doesn’t like the idea of a rising EUR because it negatively impacts exports.  However, a weaker USD may cause a hike in the price of EUR. So if the trend continues, EUR/USD could jump to 1.24 in 2021. 

Will the GBP remain uncertain?

The British pound is the fourth most frequently traded currency on the global market. With the USD expected to weaken under the new US administration, analysts are focused on the performance of the GBP against a weak USD. 

Widespread distribution of a vaccine, a weaker USD, and an agreement on a Brexit deal support the GBPUSD pair in 2021. 

However, a lot is riding on the Brexit deal, with many analysts agreeing that the sterling could potentially reach an all-time low if there’s no deal and pressure for negative rates to grow. 

There’s a lot of volatility in the pairing heading into 2021. If you’re interested in making the most of it, trading CFDs offers an opportunity to profit from both bullish and bearish price action potentially. You can either hold a long position, speculating that the GBPUSD rate will rise, or a short position, speculating that the rate will fall.