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FX Scorecard: Winners and Losers of COVID-19 | FXTM Global

The first quarter of 2020 will be remembered as one of the most volatile periods across financial markets since 2008 as chaos surrounding the coronavirus outbreak fostered panic, gloom and doom. In the FX space there were many casualties of the virus pandemic but some currencies were able to shine through the market mayhem.

The first quarter of 2020 will be remembered as one of the most volatile periods across financial markets since 2008 as chaos surrounding the coronavirus outbreak fostered panic, gloom and doom.

In the FX space there were many casualties of the virus pandemic but some currencies were able to shine through the market mayhem.

The biggest winner was the mighty Dollar which appreciated against every single G10 currency excluding the Swiss Franc and Japanese Yen. Investors from all four corners of the world rushed for a sweet piece of the Dollar as global recession fears became a key theme.

As we head into the second quarter of 2020, the Dollar Index (DXY) could push higher if global sentiment fails to improve. Looking at the technical picture, a solid daily close above 99.90 could open a path toward 101.00 and 102.00, respectively.

Japanese Yen eyes Dollar’s throne

Another champion in the FX arena was the Japanese Yen.

In times of uncertainty, investors tend to rush to safety with the Yen acting as one of the hotspots of safety over the past few months.

The USDJPY remains a battleground for the Dollar and Yen as risk aversion supports appetite for both currencies. A breakdown below 107.00 could trigger a decline towards 106.60 and 106.00. Alternatively, a breakout above 109.00 should open the doors towards 111.60.

Euro posts a mixed performance but volatile against USD

The Euro has displayed explosively levels of volatility against the Dollar since the start of 2020. At one point the EURUSD tumbled over 850 pips before rebounding 500+ pips as the coronavirus swept through markets.

Unprecedented measures have been enforced by the European Central Bank to cushion the painful blows inflicted by the coronavirus outbreak. The question is whether this will boost attraction towards the Euro in the second quarter of 2020.

Sustained weakness below 1.1000 could trigger a decline towards 1.0780 and 1.0650. Should 1.1000 act as a reliable support, prices could test 1.1220.

EURGBP tumbles below 0.8900

A tug of war is taking place on the EURGBP as investors grapple with weakness in both the Euro and Pound.

A solid daily close below 0.8800 could open a clean path towards 0.8600. If prices break above 0.8900, the EURGBP could rebound towards 0.9100.

South African Rand tumbles to all-time low

The South African Rand is sulking near all-time lows as investors digest Moody’s latest decision to downgrade the country’s last investment-grade rating.

The local currency has weakened against every single G10 currency year-to-date and shed almost 30% against the Dollar. With investors adopting a cautious stance amid the coronavirus outbreak and global recession fears draining confidence, emerging market currencies like the Rand are positioned to weaken further.

One key question is how much further can the Rand depreciate as we enter the second quarter of 2020? Should the Dollar appreciate on risk aversion, this could compound to the Rand’s woes. Technical traders will continue to observe how the USDZAR behaves above 18.00.

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Is Your Portfolio’s Performance Satisfactory? (WMT, VOO, BOND)

What’s your investment portfolio’s performance? Do you know? Just 57% of U.S. adults are “financially literate,” according to a study from Standard & Poor’s titled the “2015 Global Financial Literacy Survey.” Another study by a large insurance company found that people are more frightened by planning their finances than dying.  What’s wrong?

Part of the problem is structural: Fewer than half of all U.S. states require high school students to enroll in a personal finance course.

(Audio) Portfolio Report Card on a $4 Million Account for T.R.

The other problem is psychological: People are fearful when it comes to saving and investing money.

Once a person has overcome these obstacles and gotten started with their investment plan, how can they know if their investment portfolio is making progress?

The Case for Benchmarking
The concept of “benchmarking” boils down to measuring the performance of your investments against relevant yardsticks. “Relevant” is key, because measuring performance against irrelevant yardsticks will inevitably lead to irrelevant results.

For example, racing a collie against a field of greyhounds could lead observers to incorrectly assume collies are slow. On the other hand, racing each dog against its corresponding breed will result in a more accurate view of canine speed. If your collie is able to easily outrun a field of competing collies, you have a fast dog. And if he/she can’t outrun a pack of greyhounds, it’s mainly because he/she isn’t a greyhound.

Beyond choosing relevant yardsticks, the exercise of measuring investment performance should become a consistent routine for all investors. Why? Because failing to periodically measure your portfolio’s performance, either by choice or by ignorance, leads to a distorted view of satisfactory results. Moreover, just because you’re comfortable with portfolio’s results doesn’t necessarily make the results satisfactory.

Level 1 Analysis
Benchmarking your investment performance is a layered process. Layer 1 is what I refer to as the “big picture” because it examines your portfolio’s investment performance against relevant passive yardsticks using an asset weighted approach. Let’s look at an example:

Portfolio ABC
30% U.S. stocks
10% International developed stocks
40% U.S. bonds
10% Global real estate
10% Money market (cash)

Comparing the performance results of a portfolio with exposure to different asset classes (like our example of Portfolio ABC shown above) against the S&P 500 (NYSEARCA:VOO) is a common mistake. In this example, the vast majority of Portfolio ABC (70%) has non-U.S. equity exposure, which makes an all U.S. equity benchmark like the S&P 500 an irrelevant yardstick for all but Portfolio ABC’s 30% U.S. equity exposure (NYSEARCA:IWB).

Properly measured, the other assets like bonds (NYSEARCA:BOND) and real estate (NYSEARCA:ICF) should have their performance compared to relevant passive benchmarks over the exact same time frame. And together, the asset weighted returns for the passive benchmarks will explain whether portfolio’s performance has been satisfactory or unsatisfactory. Simply put, outperformance over identical time frames is good whereas underperformance isn’t.

Level 2 Analysis
Analyzing investment performance at level 2 is less “big picture” versus level 1. Why? Because level 2 analysis focuses on the performance examination of individual securities versus their respective peer group. Put another way, level 1 analysis is comparable to using a telescope whereas level 2 is comparable to using a microscope.

Below we use level 2 analysis by comparing the performance of Wal-Mart Stores (NYSE:WMT) against its peer industry group, consumer staples (NYSEARCA:XLP). Over the past 10-years, Wal-Mart has gained almost +103% against a +173.10% gain for the Consumer Staples Sector SPDR ETF. In other words, Wal-Mart has badly underperformed its peer group by a whopping +70% over the past 10-years!

WMT vs XLP

Had we failed to use level 2 analysis on Wal-Mart by simply accepting the fact that its stock has gained +102.97%, we could’ve been easily misled to conclude that Wal-Mart’s 10-year equity performance  has been wine and roses. However, our level 2 analysis explicitly shows that Wal-Mart’s 10-year performance record has been substandard compared to its peers.

Because virtually all individual stocks will have a corresponding peer sector group, comparing the performance of a company’s equity performance isn’t just easier, but mandatory for all serious and truthful stockholders.

Summary
The proper way to determine satisfactory investment performance is to use relevant benchmarks over identical time frames. Level 1 analysis examines the portfolio’s asset weighted performance against passive yardsticks, whereas level 2 analysis focuses on the performance of individual securities.

Level 2 analysis can also be applied to mutual fund holdings, however, the fund’s underlying asset exposures vs. its peer group classification are far more important for correct analysis. This is a similar approach I use with the Portfolio Report Card grading system that I invented.

It’s crucial to remember that investment performance is directly impacted by your portfolio’s cost, risk, diversification, and taxes.  And while performance measurement is an ultra important step,  focusing exclusively on historical performance results and nothing else will tell you most of the story, but not all of it.

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EasyMarkets Demo Account Review for Practicing Trading

easymarkets demo account review
    • A 10+ Year Veteran of the Forex Market with a Strong Presence in Europe and Asia
    • One of the Few Brokers to Provide Guaranteed Stop Losses and Negative Balance Protection
    • Deep Product Coverage with CFDs on 95 Forex Pairs and Vanilla Forex Options on 23 pairs
    • Use Exclusive Tool Trade Controller More Effectively, Set Stop Loss and Profit Points For Your Trades
    • Personal Assistance with Trade Strategy and Order Execution from Dealing Room
  • stablished –2003
  • Domicile –Marshall Islands
  • Regulation –
  • Cyprus – CySEC (License Number 079/07), Australia – ASIC (AFSL 246566)
  • Restricted Jurisdictions –United States
  • Ownership –Privately Held
  • Segregated –Yes
  • Broker Type-Market Maker
  • Web Security –Verisign
  • Negative Balance Protection Policy –Yes

The EasyMarkets demo account review platform with a Demo account and experience simulated trading under live market conditions.

  1. No obligations,
  2. no cost
  3. no risk.

Feel the thrill ofEasymarkets Demo Account Review

 

trading the world’s markets, discover our trading platform and see for yourself just how easy we are.

this is the way to improve your techniques and professional traders to hone their skills. Try their trading simulator now for eight days. If you like them you can always open a live account, you’ll also get your lifetime demo account to practice trading strategies before you open live deals

EasyMarkets Demo Account Review Trading Features

EasyMarkets guarantees trade execution at pre-set stop-loss and profit points.  EasyMarkets is able to offer this because of its time tested risk management systems and procedures.  Brokers who do not provide these protections may execute an order at a very different level than your stop levels (also known as slippage), causing you to have much greater losses than anticipated.  Please note that this guarantee is only available for trades placed via EasyMarkets ’s web trading and mobile platform.

EasyMarkets is one of the few brokers with a negative balance protection policy.  Traders can incur a negative balance if the market gaps quickly and the broker is forced to close out open trades at a loss exceeding the account’s equity.  While some brokers begrudgingly forgave negative balances after the CHF crisis on a one-off basis, EasyMarkets is one of the few brokers offer this protection at all times and include it in its terms of service.

This Broker has more in-depth coverage of the markets than most forex brokers.   It offers CFDs on 95 currency pairs, 16 commodities, and 15 indices.  However, its coverage isn’t as broad as other brokers, some of which also offer CFDs on individual shares, bonds and ETFs.

EasyMarkets is one of the few forex brokers to offer vanilla forex options on the same platform.  This means you don’t have to switch to a different platform or broker when you want to options.  You can also use the same pool of funds for your option trades.

This means you don’t have to deal with  the hassle of transferring funds around and avoid withdrawal and deposit fees from other brokers.  EasyMarkets allows you to trade options on 23 currency pairs.  While there are no margin requirements for options, however, you will not be able to sell options unless you have an existing position in the underlying.

EasyMarkets offers up to 200:1 leverage on most currency pairs.  Automated trading available with Expert Advisors via Metatrader 4.

Market Analysis and Education

EasyMarkets provides a number of exclusive tools to help you optimize your trading.  The Inside Viewer allows you to see which are the most popularity traded currency pairs, the percentage of bullish / bearish traders, and the average stop losses and profit points on Easy-Forex.EasyMarkets demo account review

 

Trade Controller is a great tool which aids you in setting and modifying stop loss and profit points for your trades.  Its intuitive visual display allows to see profit / loss levels as both dollar amounts and exchange rates.

EasyMarkets demo account review

You are also given access to Reuters news feeds, exclusive fundamental analysis from EasyMarkets ’s research team, and technical analysis from leading independent research firm, Trading Central.  You can set SMS alerts for fills on limit orders, trade closings, and exchange rate levels.

this Broker has a nice archive of educational articles, videos, and eBooks.  They also have a well maintained YouTube channel where they provide videos on timely topics in the forex markets.  EasyMarkets also hosts the occasional webinar and in person seminar.

easymarkets demo account review Trading Features

  • CFD’s –Forex, Indices, commodities
  • Currency Pairs –95
  • Leverage –up to 200:1
  • Cryptocurrencies –No
  • Options –Forex Options
  • Trading Signals –Yes, Trading Central
  • Automated Trading –Yes
  • Social Trading –No
  • Phone Trading –No

easymarkets demo account review –  Trading Platforms

EasyMarkets demo account review Platforms 

  • Metatrader 4 (PC), Metatrader Multi-terminal (PC), EasyMarkets Web Trader (Browser), Metatrader 4 Mobile (iPhone, Android), EasyMarkets Mobile (iPhone, Blackberry)
  • Metatrader –Yes
  • Mac Software –No
  • Mobile Trading –Yes

easymarkets demo account review –  Customer Service

  • Online Support –Live chat and email
  • Phone Support –Yes
  • Multi-Lingual Support –Yes
  • Personal Account Manager –Dealing Desk Access for VIP accounts (USD 20,000 minimum deposit)

easymarkets demo account review –  Account Options

  • Minimum Initial Deposit –$25
  • Base Currencies –EUR, GBP, USD, CNY, AUD, PLN, ILS, ZAR, NOK, JPY
  • Minimum Lot Size –5,000
  • Account Types –Standard, Premium, VIP
  • Payment Options –Visa, Mastercard, Skrill, Bank Transfers

Safety and Security

asy-Forex is a respected veteran of the forex industry with 10+ years operating history. Its parent company is a privately held company domiciled in the Marshall Islands. EasyMarkets has offices in major financial centers around the world including London, Shanghai, Limassol, Warsaw and Sydney.

EasyMarkets is currently regulated by CySEC in Cyprus and by ASIC in Australia. They previously held coveted US licenses but decided to withdraw in 2010 after regulatory capital requirements were increased twenty fold during the recent financial crisis.

Over its more than a decade long operating history, EasyMarkets has been subject to a few small regulatory fines from CySEC relating to its advertising practices in 2010 and compliances lapses in 2009. There is an Israeli class action lawsuit alleging that Easy Forex provided investment advice without proper licenses.  There was a similar suit in 2010 that was subsequently settled out of court.  Overall, there hasn’t been regulatory action in recent years and the issues above didn’t endanger client funds or integrity of EasyMarkets ’s trading system.

Customer funds are held in segregated accounts in a number of reputable European banks and ANZ bank.  Online payments are secured by Verisign and EasyMarkets is subject to yearly audits by PriceWaterhouseCoopers.

Our Best Forex Demo Broker Reviews

Best Forex Demo Resources and usefull Links

Trading Forex, Stocks and CFDs carries risk and could result in the loss of your deposit, please trade wisely.

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AvaTrade Demo Account Review for Practicing Trading Forex

AvaTrade demo account review
  • Trusted Forex Broker Regulated in 5 Jurisdictions With Monthly Trading Volume Exceeding $60 Billion
  • Broad, Deep Product Palette Spanning Forex Options, Digital Currencies, Stocks, Commodities, ETFs, Bonds, Indices
  • Many Options For Automated Trading Including Mirror Trader, Zulu Trade, MQL 5, Signal Trader
  • Choice of Fixed or Floating Spreads and Leverage up to 400:1
  • Market Analysis and Educational Resources From Reputable Independent Providers Like Autochartist, FXInsights, Dow Jones, and Hushtrade
    • Established –2006
    • Domicile –Ireland
    • Regulation –Ireland – Central Bank of Ireland Reference No.:C53877), Australia – ASIC (License No.: 406684), British Virgin Islands – FSC, Japan – FSA (License No.:1574)
    • Restricted Jurisdictions –United States
    • Ownership –Privately Held
    • Segregated –Yes
    • Broker Type-Market Maker
    • Web Security –McAfee Secure
    • Negative Balance Protection Policy –No

AvaTrade demo account review

Avatrade has great depth and breadth in its range of markets. In additional to forex, Avatrade covers all major areas of the capital markets including equities, fixed income, and commodities.   It offers many more instruments than most of its competitors. Avatrade allows you to trade CFDs on 54 forex pairs, 16 commodities, 20 global indices, 21 ETFs, hundreds of individual shares from US, UK, Spain, Germany, France and Italy.

Avatrade is one of the few brokers to offer bitcoin and litecoin trading. It was awarded the Best European Bitcoin CFD Provider title at the 2014 European Bitcoin Awards. Avatrade also offers forex options for 30 pairs. You can also use options to hedge and alter the risk profile of your open forex CFD positions.

Avatrade provides many choices for automated trading including mirror trading, social trading, expert advisors, trading signals from independent providers like MQL5 and its API Library.  Avatrade offers higher leverage than most other brokers with up to 400:1 leverage for floating spread accounts.

AvaTrade Demo account Review – Market Analysis and Education

Avatrade demo account broker provides a lot of live market analysis to support your trading activity. Customers are given access to technical analysis from Autochartist and fundamental analysis from FXInsights, live news from Dow Jones, and audio commentary from Avatrade’s Chief Market Analyst, Naeem Aslam, a frequent contributor to news outlets like CNBC and Bloomberg.

Customers with deposits of at least $500 are given access to Autochartist free of charge. Autochartist’s pattern recognition features can be a very useful tool to help identify trading opportunities.

Avatrade invests heavily in trader education. It provides clients with ebooks, webinars and videos on a variety of topics, as well as, access to the premium forex education service, Hushtrade. Hushtrade arms you with a solid foundation in the fundamentals of forex trading and technical analysis. For advanced traders, Hushtrade also has cutting edge material covering trading strategy, psychology, and insights from professional forex and commodities traders.

AvaTrade Demo account Review – Trading Features

    • CFD’s –Forex, Commodities, indices, ETFs, Stocks, Bonds
    • Currency Pairs –54
    • Leverage –Up to 400:1 for floating spreads, up to 200:1 for fixed spreads
    • Cryptocurrencies –Yes
    • Options –Forex Options
    • Trading Signals –Yes, API Libary and MQL5 available to accounts with $1000 deposit and more
    • Automated Trading –Yes
    • Social Trading –Yes
    • Phone Trading –No

AvaTrade Demo account Review-Trading Platform

  • Platforms –
  • Metatrader 4 (PC, Mac, Browser), Avatrader (PC, Mac, Browser), Avatrader Options (PC, Browser), Mirror Trader, ZuluTrade, Signal Trader, Metatrader 4 Mobile (android, ios), Avatrader Mobile (android, ios)
  • Metatrader –Yes
  • Mac Software –Yes
  • Mobile Trading –Yes

AvaTrade Demo account Review- Account Options

    • Minimum Initial Deposit –$/€/£/AUD 100
    • Base Currencies –USD, EUR, GBP, AUD
    • Minimum Lot Size –1,000
    • Account Types –Silver, Gold, Platinum, Ava Select
    • Payment Options –Credit Cards, Debit Cards, Neteller, PayPal, Skrill, WebMoney, Wire transfer

AvaTrade Demo account Review- Customer Service

    • Online Support –Live chat and email
    • Phone Support –Yes
    • Multi-Lingual Support –Yes
    • Personal Account Manager –Yes, but dedicated account analyst for Ava Select account only

Safety and Security

Avatrade was acquired by Playtech in June 2015 at a sale price of $105 million.  Playtech is a London Stock Exchange listed FTSE 250 gaming software and services provider and the owner of Markets.com.   Playtech intended to integrate these brokers at some point in the future.  With these recent acquisitions and solid financial backing,  However,Playtech decided to walk away from the acquisition after the Bank of Ireland objected to the merger in October 2015.

Avatrade is a reliable and established forex broker officially regulated in 4 jurisdictions.  Overseen by regulators from Ireland, Australia, British Virgin Islands and Japan, Avatrade is subject to stringent compliance requirements, including how it handles client assets, security of client funds and financial reporting.  At present, there is no record of regulatory fines or settlements

Client funds are held in segregated accounts.  Avatrade secures your information and money with 256-bit SSL encryption across the entire website.  It uses McAfee Secure (HackerSafe) to prevent credit card fraud and identity theft.

Our Best Forex Demo Broker Reviews

Best Forex Demo Resources and usefull Links

Trading Forex, Stocks and CFDs carries risk and could result in the loss of your deposit, please trade wisely.

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