Connect with us

Industry News

How to start forex trading business in Australia Daily Scanner

The Forex is a short term. In full form, the Forex is called foreign exchange. Forex trading is the trading of currencies on a large scale. People can trade in foreign exchange in multiple ways. If you have purchased United States dollars at a certain time with a plan of selling these United States dollars…

The Forex is a short term. In full form, the Forex is called foreign exchange. Forex trading is the trading of currencies on a large scale. People can trade in foreign exchange in multiple ways. If you have purchased United States dollars at a certain time with a plan of selling these United States dollars for a higher rate, you are doing the Forex trading. Due to advancement in technology, it is done on a large scale with instant buying and selling orders on specialized portals.

How Forex work in Australia

It is internationally accepted. Australia Forex trading is the same as all the other countries. If you want to trade in the Forex market, you can open a brokerage firm or you can go to a Forex broker to trade the currencies. Before going into business as a broker, you have to register yourself as a broker in the Australian Securities Investment Commission. You will have to be present in the Forex market for more than 5 years and you have to get a bachelor’s degree in finance to become a certified Forex broker in Australia. On the other hand, you can just get the service of a broker to start trading in Australia.

How to start a Forex trading business in Australia

When are you decide that you want to do the Forex trading business, you will have to think about your eligibility for trading the Forex and how are you are going to make your strategy. You will have to select the right type of Forex broker and open a trading account with them. After that, you can learn their trading platforms and fund your account to start the trading process. There are some technical aspects of all these steps that are given below.

Find if you are eligible

The first thing which will come in your mind when you want to start Forex trading in Australia is if it is legal. The fact is, every Australian adult can do Forex trading legally. This means that you are fully eligible to start your Forex business in Australia. You just need the right strategy and some funds to start this business in Australia.

Find the Forex trader

As you know now that you can trade the Forex legally, you will have to find a broker so you can start trading. There are certain points which you should keep in mind when you are selecting a broker. The broker should have a legal presence in Australia. According to FXDailyReport, The Forex broker should be accredited by the Australian Securities Investment Commission (ASIC). You should also check about the reviews of the broker so you can know that if they are giving out profits regularly without any delay.

Fund your account

When you are ready and you have selected the Forex broker you have to open a trading account with your broker and send funds to start reading. Opening your account with any Forex broker is easy in Australia. You will give your identity details and your bank account details that you are going to use to fund the Forex trading account. There is a misconception that people with high capital can only trade the Forex. The fact is that even a small Forex account can do wonders if you have a proper strategy and you know how to manage your risk while taking leverage.

Start trading

When you have added funds in your account, you are completely ready to start trading. You will have to learn some basics about the trading platform of your Forex broker. Some brokers will only allow you to place orders on call. This is this worst form of brokers in Australia. Some Forex traders will allow you to place the buying or selling orders through messages. This is also not an efficient way. You should select a broker who has a proper online trading platform. By using the correct strategy you can easily give buying and selling orders using the online platform. At this time, you will know that if yeah strategy is profitable or not.

Profitable Forex trading

Forex is a game of strategy. You will have to understand the risk involved in opening trade in the market. You can either get profit or you can face loss during any trade. In Australia, the law protects you from any fraudulent Forex activity. This is important that you learn trading before entering the market completely. You should always start with a demo account and later you can use the method tested in the demo account with your real account. Learning is an imported part of starting a Forex business.

[youtube https://www.youtube.com/watch?v=v-Cz_LUsq2g]

The profitability in the Forex trading business largely depends upon the strategy of the trader. Some traders want quick profits so they will go after the scalping strategy. This requires you to open a large number of orders and close them at a small profit. Some people will go after day trading which requires you to open one trade in a day and close it in the evening with a profit or loss. Swing trading is another style that can become profitable if you know the right clues of the market. The swing trader will open a trade and he will keep the trade for multiple days until he feels that the market is going to reverse. You can select any of these strategies and become a profitable Forex trader. This is proven in the book named the Wizard of the Market.

Conclusion

We can conclude that starting the Forex trading business in Australia is easy. You have to be eligible to open the Forex trading account. You will have to find a suitable broker in Australia to start trading the Forex. This trading requires continuous learning and testing strategies. It is best to learn about Forex trading in Australia before making big trades. You must always start with small orders to learn about the market. Opening bigger trades with more risk can wipe out your account in a short span.

Continue Reading
Advertisement

Daily Financial News

Don’t Count On JPY Correction; Staying Long GBP/JPY

The path of the potential pace of the JPY decline may still be underestimated by markets, which continue trading the JPY long.

While the 10% USDJPY advance from September lows looks impressive from a momentum point of view, it may no thave been driven by Japan’s institutional investors reducing their hedging ratios or Japan’s household sector reestablishing carry trades.

Instead, investors seemed to have been caught on the wrong foot, concerned about a sudden decline of risk appetite or the incoming US administration being focused on trade issues and not on spending. Spending requires funding and indeed the President-elect Trump’s team appears to be focused on funding. Here are a few examples: Reducing corporate taxation may pave the way for US corporates repatriating some of their USD2.6trn accumulated foreign profits. Cutting bank regulation could increase the risk-absorbing capacity within bank balance sheets. Hence, funding conditions – including for the sovereign – might generally ease. De-regulating the oil sector would help the trade balance, slowing the anticipated increase in the US current account deficit. The US current account deficit presently runs at 2.6% of GDP, which is below worrisome levels. Should the incoming government push for early trade restrictions, reaction (including Asian sovereigns reducing their holdings) could increase US funding costs, which runs against the interest of the Trump team.

Instead of counting on risk aversion to stop the JPY depreciation, we expect nominal yield differentials and the Fed moderately hiking rates to unleash capital outflows from Japan.The yield differential argumenthas become more compelling with the BoJ turning into yield curve managers. Via this policy move, rising inflation rates push JPY real rates and yields lower, which will weaken the JPY. Exhibit 12 shows how much Japan’s labor market conditions have tightened. A minor surge in corporate profitability may now be sufficient, pushing Japan wages up and implicity real yields lower.

JPY dynamics are diametrical to last year . Last year, the JGB’s “exhausted”yield curve left the BoJ without a tool to push real yields low enough to adequately address the weakened nominal GDP outlook. JPY remained artificially high at a time when the US opted for sharply lower real yields. USDJPY had to decline, triggering JPY bullish secondround effects via JPY-based financial institutions increasing their FX hedge ratios and Japan’s retail sector cutting its carry trade exposures. Now the opposite seems to be happening. The managed JGB curve suggests rising inflation expectations are driving Japan’s real yield lower. The Fed reluctantly hiking rates may keep risk appetite supported but increase USD hedging costs.Financial institutions reducinghedge ratios and Japan’s household sector piling back into the carry trade could provide secondround JPY weakening effects

Continue Reading

Daily Financial News

Mexico raises interest rates, cites Trump as risk

The head of Mexico’s central bank says U.S. Republican candidate Donald Trump represents a “hurricane” sized threat to Mexico.

Banco de Mexico Gov. Agustin Carstens told the Radio Formula network Friday that a Trump presidency “would be a hurricane and a particularly intense one if he fulfills what he has been saying in his campaign.”

Trump has proposed building a wall along the border and re-negotiating the North American Free Trade Agreement.

Mexico’s central bank raised its prime lending rate by half a percent to 4.75 percent Thursday, citing “nervousness surrounding the possible consequences of the U.S. elections, whose implications for Mexico could be particularly significant.”

Mexico’s peso had lost about 6 percent in value against the dollar since mid-August. It recovered slightly after the rate hike

Continue Reading

Financial News

Africa’s first Fairtrade certified gold co-operative offers hope to gold miners living in poverty

Syanyonja Artisan Miners’ Alliance (SAMA) has become the first artisanal small scale mining co-operative in Africa to become Fairtrade certified, bringing much needed hope to impoverished communities who risk their lives to mine the rich gold seam that runs around Lake Victoria.

SAMA is one of nine previously informal groups from Uganda, Kenya and Tanzania which has benefitted from a pilot project launched by Fairtrade in 2013. This innovative program aims to extend the benefits of Fairtrade gold to artisanal miners across East Africa.

In that short time, SAMA has undergone training in business and entrepreneurship, as well as safe use of mercury, internal control systems, labour rights and better working conditions, health and safety and more. Previously, daily contact with toxic chemicals used to process gold meant members risked disease, premature births and even death.  Fairtrade gold was first launched in 2011, and SAMA now joins Fairtrade certified gold mines MACDESA, AURELSA and SOTRAMI in Peru.

The co-operative produces just 5 kg gold per year, but nevertheless has the potential to significantly benefit many people in the local community through better conditions through certification. It is expected that Fairtrade and organizations like Cred Jewellery will support the miners, ensuring their gold can be refined and made available to jewellers in the UK and other markets.

Gonzaga Mungai, Gold Manager at Fairtrade Africa said: “This is a truly momentous and historical achievement and the realisation of a dream that is many years in the making. Gold production is an important source of income for people in rural economies. Congratulations to SAMA, it sets a precedent which shows that if groups like this can achieve certification, then it can work for others right across the African continent.”

The Fairtrade Gold Standard encourages better practice and changes to come in line with international regulation around the production and trade of so-called ‘conflict minerals’. Under the Standard, miners are required to:

  • Uphold a human rights policy preventing war crimes, bribery, money laundering and child labour
  • Clearly represent where the minerals were mined
  • Minimise the risks of conflict minerals through robust risk assessments and collaboration across supply chains
  • Report to buyers and trading partners regarding the risks of conflict minerals

Now in its second phase, the programme will focus on supporting other mining groups in the region to access affordable loans and explore a phased approach to accessing the Fairtrade market, allowing more mining co-operatives across Africa to participate in the programme.

Gonzaga added: “Sourcing African metals from smallscale miners in the Great Lakes Region is the responsible thing to do. For a long time companies have avoided buying gold from this region, with devastating consequences for impoverished communities who were already struggling. It has driven trade deeper underground, as unscrupulous buyers pay lower prices and launder illegal gold into legitimate supply chains. That’s why we have chosen to work with these groups to help them earn more from their gold within a robust compliance system that offers social, environmental, and economic protections.”

The Fairtrade gold programme offers a small but scalable solution to sustainable sourcing of gold from the region in line with Section 1502 of the Dodd-Frank Act in the US, OECD Due Diligence Guidance and recent EU Supply-Chain Due Diligence proposals which could come into effect in 2016. This means that up to 880,000 EU firms that use tin, tungsten, tantalum and gold in manufacturing consumer products could be obliged to provide information on steps they have taken to identify and address risks in their supply chains for so-called ‘conflict minerals’.

Continue Reading

Trending