Fxopen Honest Review
I use fxopen forex broker since more than one year ago, and here is my honest review. This guys really good, I have no problem funding or withdrawing money thorough their malaysia agent, fxmalay.com. You can fund your account using CIMB or MBB online banking and your fund will be in your trading account within 10 minute. Withdrawal normally take not more than two day and i had withdrawn thousands ringgit since with them.
The bad thing is, occasionally your order will not be completed as you want due to reqoute which sometime very often especially during news time, sometime you been reqoute 5 times before your order completed, and if you are not carefull enough with your order, you might ending on the wrong direction.
Other than that, i found fxopen or fxmalay is a good broker especially if you are in malaysia. No wire tranfer, no cc, no waiting for fund. Just register and 10 minute later you can begin your trade.
China eases rules on trade-related forex advances
BEIJING, Dec. 24 (Xinhua) — Exporters will be able to increase their advances on foreign-currency payments to 25 percent from the current 10 percent, the China Securities Journal reported on Wednesday.
The decision came in a circular issued by the State Administration of Foreign Exchange (SAFE) on Tuesday night.
Importers’ quota for deferred foreign-currency payments also rose to 25 percent from 10 percent.
Analysts said the move would help small and medium-sized enterprises raise funds and improve their cash flow.
A banker who asked to remain unidentified told Xinhua the financial crisis has caused difficulties for many enterprises and this move would give them more operating capital.
The State Council, or cabinet, urged a higher quota of foreign exchange advances to support trade during a standing committee conference on Dec. 3.
SAFE official Cai Qiusheng was quoted by Tuesday’s Shanghai Securities Journal as saying that foreign exchange reserves were below their peak at 1.9 trillion U.S. dollars as of the end of September.
According to the paper, enterprises that have good credit and haven’t violated any foreign-exchange regulations can qualify for the new limits.
To prevent “hot money” inflows through trade, SAFE, the Ministry of Commerce and the General Administration of Customs issued a joint circular on July 14 to step up supervision of cross-border capital flows.
The foreign exchange agency told administrative departments at all levels to step up inspection to prevent large-scale cash outflows.
Forex Trading Continues to Grow in Popularity
Currency trading offers opportunities (and risks)One of the most popular forms of trading this year has been currency trading – and for good reason. Even though investments like stocks may lose across the board, with forex trading, there is always money to be made.
Indeed, GFT has seen explosive growth the last few months as people turn to currency trading. Kathy Lien, director of currency research at GFT Forex points out that GFT has seen a 37% surge in volume this year.
Forex trading provides a way for investors to:
- Hedge against other investments.
- Make money quickly. (Don’t forget you can lose it quickly as well, however.)
- Use leverage to their advantage. (Remember that leverage has a dark side: Without proper management, high leverage can lead to large losses as well as gains.)
Additionally, because of the nature of currency trading, there is always money to be made it is possible to make money in the following way: If you think the euro is going down against the dollar, but up against the pound, you can enter two different positions — one favoring the euro and one shorting the euro — and possibly make money on both. Of course, there is an equal possibility that you will be wrong and lose money on both positions.
However, it is important to realize that forex trading is very risky. And, while it can provide some benefits to the investor, it can also add up to large losses. Forex trading is a form of speculation. Additionally, volatile market conditions can lead to abrupt changes in direction, resulting in rapid losses.
It is important to balance your investment portfolio with a range of investments, some less risky than others, and to realize that no matter how “safe” an investment is, there is still a risk of loss.
Forex Broker Do I Really Need One
Writen by Mike Singh
Being involved in the Forex market you may have heard the term Forex broker many times before. But do you really know what this individual does or what it means? A Forex broker is one who assists not only traders and firms, but also individuals involved in the Forex market. The Forex broker’s assistance can be in providing information or may be actually trading for the person or company they are representing. A Forex broker does charge a fee for any services they provide, depending on which one it is.
A list of services that a Forex broker can provide can range from general advice to real time quotes to news feeds. There are different ways that these brokers can give advice. Some Forex brokers use their own personal experience and understanding. While others rely on software to provide the information their service provides.
There have been some advantages and new benefits allowed for Forex brokers and the Forex market since the Internet has evolved. Because of this the individual Forex broker can better provide accessibility to the Forex market, impossibility in previous years. This meant that only banks or large financial institutions would have any access to the Forex market.
There has been a huge growth since then of Forex brokers, which can make it hard to choose, especially for beginning or new traders to the market. The best advice when looking for your Forex broker is to get as many referrals and recommendations as you can. This can better help you decide in finding a reputable and competent Forex broker.
In the instance where you cannot get a referral or recommendation, it is up to you to do your own thorough and careful research. You should find out the amount of trades they are conducting and with how many clients. Of course you should also find out the Forex broker’s amount of experience. The most important thing to look for in your own research is a Forex broker who has learned by experience over several years and has the right amount of instinct to give the right advice. Of course you should also examine what kind of services and what variety they provide, such as mini accounts, market intelligence, market analysis, news feeds and real time quotes.
When deciding if you would like to use a broker or not, you need to take all advantages as well as disadvantages into consideration. This is a personal decision, one in which referrals and recommendations are highly recommended when looking, or at the very least extensive research on your part. Choosing the right Forex broker, in the end, can make the difference between success and failure in the Forex market.
Forex − Risk aversion remains high in currencies after weak data and lower stock markets
The Dollar fell against the Japanese yen on Monday, as weak US manufacturing data deepened worries about the global economy that worldwide leaders ended a weekend meeting with few concrete proposals for dealing with this year’s downturn. The Euro slipped versus the Dollar in a choppy session, but was off its lows for the day, as risk aversion remained elevated on news Japan’s economy slid into recession in Q3. Further weighing on the market came after record low report of Empire Manufacturing and news that Citigroup intends to slash up to 50k jobs or 15% of its work force. That depressed Wall Street, with major indexes falling more than 2%. US data showing industrial production rose 1.3% in October, after a downwardly revised September drop of 3.7%, the biggest fall in more than 62 years, did little to ease worries about the world’s largest economy. The bounce in production has been attributed to a post-hurricane rebound and analysts say this was not a sign that downward pressure on the US economy was easing. In fact, the Philadelphia Federal Reserve’s latest Survey of Professional Forecasters said the US economy dipped into a recession last spring and will contract sharply this quarter. Lately the Dollar rises against a broad range of currencies and the Yen gains as well when risk appetite is low because investors seek refuge in US Treasuries and unwind trades financed with the cheaply borrowed Yen.
Yesterday, EurUsd was down 0.36% at 1.2644 rebounding from 1.2513 intraday low. EurJpy was 1.1% at 121.86. UsdJpy was 0.73% lower at 96.38. GbpUsd rose 1.25% at 1.4987 having posted 1.5083 intraday high. GbpJpy rose 0.51% at 144.45 with 146.50 intraday high. UsdChf rose to 1.2007 1-year high and ended 0.58% higher at 1.1988.
In Washington over the weekend, leaders of the Group of 20 countries drafted steps to rescue the world economy from its worst crisis in 80 years but left it to individual governments to tailor their responses to their own circumstances and troubled industries. Traders and analysts remained skeptical on the British currency given signs of worsening UK economic conditions. The Confederation of British Industry said Monday the UK economy in 2009 will suffer its sharpest contraction in almost two decades and unemployment could approach 3 million by 2010.
Treasury pays $33.56B to 21 banks
WASHINGTON – The government said Monday it has supplied $33.56 billion to 21 banks in a second round of payments from the $700 billion rescue program, and announced a deadline for another 3,800 banks to apply for funds.
The Treasury Department said a category of privately held banks will have until Dec. 8 to apply for the government to purchase shares of their stock as a way to bolster their balance sheets. The deadline for the larger publicly traded banks was Nov. 14.
The new Dec. 8 deadline will apply to about 3,800 banks that are so-called C-Corps institutions for the part of the tax code that applies to them. Another 2,500 S-Corps institutions also will be able to apply for money, but Treasury has not set the deadline for their applications.
The new deadline was announced as Treasury confirmed a second round of government stock purchases that follow the initial $125 billion it allocated to nine of the country’s largest banks. The rescue program now has earmarked payments of $158.56 billion to banks.
Treasury Secretary Henry Paulson announced last week the administration was abandoning the initial centerpiece of the rescue program, the purchase of troubled mortgage-backed securities from banks in an effort to bolster their balance sheets.
That was the only program Paulson mentioned as Congress debated the rescue package, which was approved on Oct. 3. However, Paulson later said the severity of the financial crisis made him realize it would take too long to get the troubled asset program into operation.
In its place, he announced on Oct. 14 that the government would buy shares of bank stock as a way to quickly inject fresh capital into the institutions.
He pressured nine of the largest banks to participate in the program during an Oct. 13 meeting at the Treasury Department, arguing that they should go along with the idea to remove the stigma other banks might feel in getting money from the government.
The rescue program has drawn a significant amount of criticism from lawmakers who have objected to the sudden switch in emphasis and what they see as a lack of restrictions on the funds. The critics contend that banks can simply hoard the fresh capital or use it to pay dividends to their shareholders or acquire other institutions rather than using it to boost their lending.
Paulson and Federal Reserve Chairman Ben Bernanke are scheduled to testify Tuesday before the House Financial Services Committee to answer questions that have been raised about the bailout program.
The Treasury announcement on Monday said the largest stock purchase in the second round was $6.6 billion paid to U.S. Bancorp of Minneapolis. The smallest stock purchase was $9 million paid to Broadway Financial Corp. of Los Angeles.
Many of the banks in the second group of 21 already announced that the government was purchasing stock after they had reached preliminary agreements. Treasury does not make any announcement until after the final legal documents are signed, a process that can take a month from when the preliminary agreements are reached.
The department noted that the $10 billion scheduled to be paid to Merrill Lynch & Co. has been deferred pending the completion of that company’s acquisition by Bank of America Corp.
Oil lingers near $55 as investors mull recession
SINGAPORE – Oil prices lingered near $55 a barrel Tuesday in Asia as investors mulled more dire news pointing to a prolonged recession in developed countries and continuing weakness in demand for crude.
Light, sweet crude for December delivery was up 36 cents to $55.31 a barrel in electronic trading on the New York Mercantile Exchange by midafternoon in Singapore. The contract Monday fell $2.09 to settle at $54.95, the lowest since January 2007. Prices have fallen about 62 percent since reaching a record $147.27 in mid-July.
Stock markets, which oil investors use to gauge sentiment about the global economy, fell on mounting evidence that U.S. consumers are cutting spending as big corporations shed tens of thousands of staff.
The Dow Jones industrial average fell 2.3 percent Monday, and Asian stocks were lower across the board Tuesday. Japan’s benchmark Nikkei index fell 2.3 percent, Hong Kong’s Hang Seng index slid 5.1 percent and the Korea Composite Stock Price Index dropped 3.9 percent.
“We’re hearing bad news every day,” said Victor Shum, an energy analyst with consultancy Purvin & Gertz in Singapore. “The market has priced in a recession in the developed countries and a slowdown in China so the uncertainty is how long and deep this recession will be.”
Citigroup Inc. said it’s cutting another 53,000 jobs in the coming quarters after announcing last month it would lay off 22,000 workers. Analysts forecast Wall Street could lose up to 200,000 jobs by year-end.
Retailer Target Corp. said profit fell 24 percent in the third quarter and Lowe’s Cos. predicted a fourth-quarter profit below the average analyst forecast.
“The $55 level has gotten some support,” Shum said. “But downward pressure continues and we may approach $50.”
The Organization of Petroleum Exporting Countries, which accounts for about 40 percent of world crude supply, will have an informal meeting later this month, and some members are calling for another production cut on top of the 1.5 million barrels a day reduction the group announced last month.
OPEC will more likely reduce output quotas at it next official meeting on Dec. 17, Shum said.
“The cuts will not have much impact on pricing because the downward spiral has been due to recession fears and a substantial reduction in demand,” Shum said. “However, the cuts will set up a price resurgence down the line when the economy finally recovers.”
In other Nymex trading, gasoline futures rose 1.02 cent to $1.18 a gallon. Heating oil gained 2.40 cents to $1.81 a gallon while natural gas for December delivery increased 1.4 cents to $6.56 per 1,000 cubic feet.
In London, December Brent crude rose 30 cents to $52.60 on the ICE Futures exchange.
Forex losses send S.Koreas Daewoo Ship into red
Daewoo Shipbuilding the worlds third-largest shipbuilder, said on Friday that it suffered a huge foreign exchange-related loss for the third quarter, sending its bottom line into the red.
The dockyard operator said in a regulatory filing that for the July to September period it recorded 231.5 billion won ($166.1 million) in losses from foreign exchange derivative investments as the won unexpectedly tumbled against the dollar.
The loss in the non-operating item was equivalent to about 13.1 percent of the companys capital base.
As a result, for the third quarter Daewoo saw a net loss of 84.9 billion won, versus a 114.6 billion won profit a year earlier, a company spokesman said.
Operating profit was 107 billion won and sales stood at 2.66 trillion won for the third quarter, he said.
For the nine months to September, Daewoos foreign exchange-related losses totalled 380.1 billion won.
Shares in Daewoo soared almost 15 percent Friday after preferred bidder Hanwha Group signed a memorandum of understanding to acquire a controlling stake in the shipbuilder.
Daewoos top shareholder Korea Development Bank also said in a statement that a consortium led by Hanwha was expected to soon launch due diligence on the shipbuilder for three to four weeks. -Reuters
India: Company results to show forex losses
NEW DELHI: Companies may soon be forced to reveal losses from foreign exchange fluctuations in their financial results.
The government is likely to take away an accounting loophole that has till now enabled some of them not to show such losses in their books of accounts.
The ministry of corporate affairs is working on a clarification that will force companies to highlight the effects of any gain or loss incurred due to fluctuations in forex rates in their books. A formal government order could be issued in a few months.
Paulson Changes Bailout Plan’s Approach
WASHINGTON — The Treasury Department on Wednesday officially abandoned the original strategy behind its $700 billion effort to rescue the financial system, as administration officials acknowledged that banks and financial institutions were as unwilling as ever to lend to consumers.
But with a little more than two months left before President Bush leaves office, Treasury Secretary Henry M. Paulson Jr. is hoping to put in place a major new lending program that would be run by the Federal Reserve and aimed at unlocking the frozen consumer credit market.
The program, still in the planning stages, would for the first time use bailout funds specifically to help consumers instead of banks, savings and loans and Wall Street firms.
Treasury officials said they hoped to invest about $50 billion from the bailout fund into the new loan facility, with the aim of helping companies that issue credit cards, make student loans and finance car purchases.
As envisioned, the Treasury would put up about 5 percent of the money that a company would use for lending and private investors would put up perhaps 20 times that much by buying bonds issued by the new program.
Despite the mind-boggling amount of money that Congress has authorized the Treasury to spend — $350 billion immediately, and another $350 billion that Congress would approve under a fast-track procedure — Mr. Paulson is running short of money and time.
The news that the government will not buy soured mortgage assets, along with a string of poor corporate earnings, disheartened investors on Wednesday, sending the markets down for a third straight day this week. The Dow Jones industrial average fell 411.30 points, or 4.7 percent, to close at 8,282.66.
The Treasury has already committed about $290 billion. It has allocated $125 billion to the nation’s nine biggest banks and investment banks; another $125 billion for publicly traded regional banks; and $40 billion to expand the existing bailout of American International Group, the insurance conglomerate that collapsed in September.
Mr. Paulson alluded to the consumer credit plan vaguely in a news conference on Wednesday, and some Fed officials cautioned that they had seen few details. But Treasury officials said such a plan would give them the biggest bang for the buck and might be enacted within several weeks.
Mr. Paulson conceded that he had scrapped the plan he originally sold to Congress in September, which was to have the Treasury Department buy hundreds of billions of dollars worth of illiquid mortgage-backed securities in order to free up banks to resume normal lending.
The program is still called the Troubled Asset Relief Program, or TARP, but it will not buy troubled assets. “Our assessment at this time is that this is not the most effective way to use TARP funds,” Mr. Paulson said.
Instead, Treasury will step up its program of injecting capital directly into banks and, for the first time, expand it to include financial companies that are not federally regulated banks or thrifts.
Mr. Paulson made it clear he would not use Treasury money to help bail out the automobile industry, rebuffing pleas from General Motors, Ford and Chrysler as well as from top House and Senate Democrats.
But Mr. Paulson left open the prospect of providing backdoor support to the car companies by offering to recapitalize nonbank financial companies like GE Capital and CIT Financial, and the financing subsidiaries of Ford, Chrysler and G.M.
House Democrats are already drafting legislation that would provide Detroit’s Big Three with an additional $25 billion, on top of $25 billion in low-interest loans that are supposed to be used for retooling factories for energy-efficient cars.
“The consequences of a collapse of the American automobile industry would be particularly troublesome,” said Barney Frank, Democrat of Massachusetts and chairman of the House Financial Services Committee. Mr. Frank said the assistance would come with strict conditions aimed at protecting taxpayers.
Some Republican lawmakers have already objected, saying the effort would amount to throwing good money after bad. But the White House on Wednesday left the door open to a legislative compromise with Congress.
“I know the automakers are important to the United States,” Mr. Paulson said. “We care about the automobile industry.” But he cautioned that “my focus is on the financial sector — getting credit going, getting lending going.”
White House and Treasury officials have been devising policy on the fly for months now, as what began as a panic over losses on subprime mortgages broadened into a crisis that wreaked havoc on Wall Street, at major commercial banks and in the broader economy itself.
In September, Mr. Paulson went to Congress and urgently pressed for authority to spend as much as $700 billion to unclog the nation’s financial pipelines by buying up unsellable securities from banks and other financial institutions.
But by the time Congress approved the bailout law in early October, Mr. Paulson and the chairman of the Federal Reserve, Ben S. Bernanke, were already shifting to a strategy he had actually opposed: buying equity stakes directly in American banks, a move that was reminiscent of European-style nationalization.
As recently as a few days ago, Treasury officials insisted that they still intended to buy up the troubled assets. But by late October, it had become clear that Plan A had become little more than a sideshow. more