The Role Of A Stockbroker In The Financial Market

The Role Of A Stockbroker In The Financial Market

If you are interested in working in a fast-paced environment and having a keen interest in numbers, then you need to consider the job profile of a stockbroker. While many of us are aware of the term stockbroker, hardly few of us understand their role in the financial market. Stockbrokers are the agents who buy and sell securities for and on behalf of the clients and earn a commission for each trade or transaction executed. They are also called the investment advisors as they assist, provide guidance and help investors in investing in the right security to earn lucratively.

Trading in the stock market isn’t a child’s play. A stockbroker needs to learn the basic skill of trading and the trading tactics to trade efficiently in the stock market. Of course! Investors do look for an experienced stockbroker as he might have better insights into the stock market compared to a broker with lesser experience. Typically, it takes 7 – 10 years for a stockbroker to get well established in the market. The first few years would be grueling with less or no business and profits.

What is their role?     

To put in simple words, the role of a stock broker is to buy and sell securities on behalf of the clients in return for a commission. Thus in order to buy and sell, a broker must be up to date with the trading information and market conditions. As brokers are the authorized persons to trade in the stock market, they have a large scope in the financial market. However, the challenging factor apart from trading that every broker will face is finding their clients. Higher the clients higher would be the profit as brokers earn commission for every trade entered into. Every broker needs to market themselves to attract clients.

A workday for a broker begins long before the opening of the stock exchange. They start their day early by updating themselves with the financial news, trading secrets, doing research on the assets available, seeking for a source that gives them a better trading approach, finding clients and understanding their needs. Brokers begin to trade when the stock market starts to function in a day which is usually 9.30 am. They advise their clients on the best way to maximize their investment.

While trading is the primary motive for a trader, customer service and satisfaction are the factors that every broker must consider pivotal. In fact, trading and customer services both go hand in hand. As customers are unfamiliar with trading knowledge, they completely rely on the stockbrokers to deal with their investment. Every broker must maintain a high level of trust and reliability with their clients. These two are the essential role for any stock brokers.

 

Beware of Scams

Beware of Scams

Wherever there is an opportunity to make money, unscrupulous people are not far behind; they often come up with brilliant schemes to dupe people of their hard-earned money. Hence it is the responsibility of individuals to safeguard their interests. Take the example of the online trading platform which provides an opportunity for the layman to make a foray into the world of trading. This field is rife with scams and innocent and ignorant people are often the victims. Hence, you must do your research and identify genuine platforms like the Q Profit System to dabble in online trading. You can Read more about QProfit System and then decide for yourself if it is a scam or not.

 

The latest scam to hit the people is the phone scam. Despite people becoming more cautious with whose phone calls they attend, they are falling prey to this scam. Close to $9 billion was duped by phone scams in 2017 alone.

 

Why are phone scams on the rise?

People ignore emails that are not from known address and appear fishy; hence email scams have reduced in number but the same is not the case with phone scams. With the amount of technology available currently it is easy to spoof numbers and scammers are doing just that. As a result, even those who do not pick up numbers that they don’t recognize are not safe as the caller ID can be spoofed and made to look familiar.

 

Who is at risk?

It is generally the elderly and the less technically savvy people still rely on their phones for all their communication. So, once they attend a call, the scammers can smooth talk and convince them that they are from the IRS and they have some unpaid tax dues or claim to be next to an accident victim who is a friend or relative. The ideas to cheat are mind-boggling and often they sound so genuine that people fall prey without too much trouble. They often create a sense of urgency and eek out valuable financial information.

 

How can you safeguard your finances?

Of course, the best thing is to not attend any phone calls but it is not practical and you might miss out on the genuine calls of distress. Ideally, if you suspect anything always tell the caller that you will call back before divulging any information. There are several apps that filter scam calls, you can install those and reduce the menace to an extent but to stay really safe you must be alert and not give your credit card details or bank account numbers to anyone under any circumstances.

 

Reducing The Forex Trading Risks For A More Stable Progress

Reducing The Forex Trading Risks For A More Stable Progress

Everyone who starts trading might have a different perspective on the methods to be used. Based on the actual financial goals set the approach might differ. Everyone likes to make profits. And everyone likes to receive support in trading. It could be either in the form of trading bots like QProfit System or it could be through convenient online brokers. Whichever method you choose, you would also need to work on understanding how the market moves. Technical analysis learned from a reliable source and fundamental analysis acquired about the company, on the whole, will help you make the best decision. When we talk about a decision being good or bad it takes into account the number of risks you have to bear and the type of profits you make for the risks carried. Forex trading has been there for a really long time and it still continues to be one popular way to make money. If you are a new forex trader looking to lower the risks then here are some pointers for you –

Never stop placing stop-loss orders

Stop loss orders are those that are placed automatically when the falling price reaches a set value. When the prices begin to fall the trader would define a particular value. The sell order would be placed automatically when this price is met. The key here is to identify the right stop-loss limit. Stop loss orders for a particular trade should not be a fixed value. You should continuously monitor the price changes and alter the levels based on the profits made. This would ensure that you do not lose too much and that your profits are covered as well.

The lower your leverage the better are your chances of sustaining in the market

Most people might recommend setting your leverage high. The problem here is that with a high leverage, though you might gain a lot there is also the chance of losing badly. So set the leverage low so that your losses would be reduced.

Know how much you can afford to lose

Identify an ideal risk percentage which could be accommodated in your trade. Most experts recommend not going beyond a 1% account value for one trade, especially as a new trader. You can always increase your trade value as you start getting a hang of how forex trading works. But even then you should have limits on the value invested in one trade.

 

 

Saving Accounts And Its Types

Saving Accounts And Its Types

We are all very familiar with the word savings account in our day-to-day life. Because we people have the habit of depositing the amount we earn in the savings account. Anyone can open the savings account in the bank they want to. Now, the technology has emerged so much and the result is an online savings account. There is no need for traveling to the bank and open the account directly. The online savings account is fully online and it requires a very stable internet connection to open and do transactions. There are three types of savings account available and it is listed as follows.

  1. Basic savings account
  2. Online savings account
  3. Money market accounts

Basic savings account:

The basic savings account can be opened by any person in any banks through online itself. There is no rules and regulations for opening a savings account. The savings account mainly requires the customers to maintain some minimum balance to do transactions with the bank. The interest rates will be very less for the basic savings account.

Online savings account:

It is similar to the basic savings account but the only difference is that it can be created only through online and there is no age limit for the members to open an online savings account. We can deposit the amount we want to, in the online savings account, but everything is done through online here. So, it needs a stable internet connection and if not the transactions will not be done.

Money market account:

Money market account is the best account which will pay a very higher interest rate when compared with the other two accounts. There are some registration fees when opening a money market account.

Automatic savings plan:

Saving is a very good habit because it will help us in our future. But many people will not have this habit and hence some banks have this automatic savings plan which will be very useful for the people. What the banks actually do is it will take some amount from the savings account and put it in the savings plan account. This will be informed to the customers and this really helps the customers to save money.

Conclusion:

Thus conclude that everyone should try to open a savings account in some banks to deposit our money. QProfit System is the application which will help us to open an online savings account. The money we deposit in the banks will be kept very safe and there is no need of having fear on that amount.

 

Practical Measures To Take So As To Have A Stress Free Retirement

Practical Measures To Take So As To Have A Stress Free Retirement

Planning for your retirement is not as scary as you might perceive. When you start early you can reduce the friction and improve the stability of the assured income. You have plenty of choices to accumulate funds for your retirement period including passive trading strategies like the use of automated trading systems like QProfit System.

Plan your investments from more than one angle

You should have a clear picture of the types of expenses you might have to handle during the retirement period. This would help you understand the types of bulk fund distribution required and the assured regular incomes required.

Keep the health and medical needs in mind

When you calculate the regular expenses accommodate the medical expenses as well. During the retirement age, medical expenses might be regular and these might be occupying a major portion of your expenses. You can, of course, start by staying healthy and monitoring your health needs right from a young age. But then be ready to meet unplanned expenses as well. Have emergency funds planned so as to be used during such instances.

Accommodation arrangements cannot be ignored

If you own a property where you would reside during your retirement age then the expenses on accommodation would be avoided. But then there is the property tax to be considered along with the expenses and pending loan repayment if any.

Never underestimate the benefit of hiring a financial advisor

When you seek the assistance of a financial advisor you would be able to get an outside opinion on your current retirement plan. If there are any suitable pension schemes that you have missed then your financial advisor would also help you include that in your retirement plan.

Retirement accounts

The types of retirement accounts available in your country might also have to be studied. The differences might be in terms of the tax terms as well as the liquidity and distribution plans. Some of them allow you to pay taxes in advance so as to enjoy a tax-free income during your retirement period.

Finally, take into account the social security schemes that you are eligible for. Though these cannot be your only source of income, these are very useful for the retirees. Another benefit here is that these are predictable plans where you would be given an insight into the size of funds to expect during the retirement period.

What Are Mutual Fund Distributions?

What Are Mutual Fund Distributions?

Everyone who wishes to secure his or her finances is an investor. And there is no restriction on the budget or knowledge when it comes to making an investment. For the sake of adding automation and for making investments more manageable many investors resort to using trading bots like QProfit System. These bots are useful when you choose to trade in a particular market. But for those cases where you are not sure about the market to pick and when you need variety in your portfolio mutual funds are easy choices.

Mutual fund distributions

Mutual fund distributions are the earnings made from a chosen mutual fund. Every mutual fund company would earn profits from the pooled funds from its investors and it then returns to the investors the cumulative profits it makes. While there are various types of mutual funds the following are the different types of distributions you might earn from a mutual fund-

Dividends

These could then again be classified as ordinary dividends and qualified dividends. Qualified dividends are better in terms of tax savings. Much like investing in stocks individually, you might also have your funds invested in dividend stocks even within a mutual fund. These dividends from your funds might be assigned to you periodically. Taxes are applicable on these dividends as they are periodic earnings.

Interests

Mutual funds invest your capital in a variety of securities of which certificates of deposits and bonds are popular choices. These fetch regular interests which are again credited to your account on a regular basis. These might be taxed in a similar fashion as the dividends.

Capital gains

These are the gains that are very much similar to the profits you might make as an individual trader or investor when you sell the securities you own. So the difference in the price from the time of purchase to the time of sale would be your gain. Long-term holding fetches long-term capital gains which are relatively more favorable in terms of the taxes. Short-term capital gains, on the other hand, are those on securities sold within a year and these are taxed at regular income rates which might be slightly higher than long-term gains.

Studying the different types of distributions offered by a mutual fund and the schedule when these are distributed would help you identify the best time to purchase a mutual fund. This would also go a long way in helping you calculate and work on saving your taxes.

Impact Of Inflation And IIP Numbers On The Market

Impact Of Inflation And IIP Numbers On The Market

Inflation happens when there is a rise in the price of services and goods. When there is inflation it erodes the purchasing power of money. So if the price of goods and services rises then this is caused because of inflation.

Inflation is apart of the economy but when the inflation level is very high then this leads to uneasiness in the economy. When the inflation rate is high then this is bad for the market. The government then interferes to manage the level of inflation. The rate of inflation is measured using an index. This index is used to measure inflation. If the index value is going up, then this means that the inflation is rising. If the index is falling down then inflation is easing.

The inflation is further divided into two kinds.

Wholesale price index (WPI)

The wholesale price index is the price movement at the wholesale price level. The WPI measures the increase or the decrease in the price when the goods are sold between organizations and not to consumers. The WPI is a good tool to calculate the rate of inflation. The inflation that is measured here is at the organization level and this may not necessarily be a true representation of inflation at the lower level.

The central bank aims to balance the interest rate and inflation. When there is a low-interest rate then it causes the inflation to increase. High-interest rates cause the inflation to decrease.

Consumer price index (CPI)

The CPI captures the effect of the price changes that happen at the consumer or retail level. The CPI number is an important tool and this is what actually matters. The CPI is calculated by classifying the consumption of products across many sub-categories as well as across the rural and the urban regions. Each of the categories is formed into an index and thus when the financial amount of CPI is calculated then this is a representation of many of the indices. The CPI is a very detailed figure and is a very important metric that is used in economics.

Index of industrial production or IIP

TheIIP or the index of industrial production is a representation of how the industries are performing in a country. The IIP numbers are released every month and it measures the industrial sector production. This is measured against a fixed reference value which is the figure of a base year.

The different industries, read the source,  submit their data of production and this data is collated to release the IIP number. When the value of the IIP is going up, then this means that the economy is doing good. When the IIP figures are decreasing then this is negative for the economy.

So an upward move in industrial production is beneficial for the economy. A downward move is bad for the economy. When the IIP figures are very low then the central bank is forced to cut interest rates.

Trading Successfully Online Ensues From Choosing The Right Broker

Trading Successfully Online Ensues From Choosing The Right Broker

Choose software with registered brokers only:

It is possible that you may have come across stories on the internet and outside about the various scams and frauds that are related to trading in binary options. If you have paid enough heed to the trend, a majority of the frauds happen only because the broker that the trading website assigns to its client trader is a bogus or a fraud one.

How do you recognize if the broker is not the right kind?

This is one of the biggest reasons why traders both beginners and the experts fall prey to online frauds. As soon as a person opens a trading account on a trading platform and connects his bank account with the software, the software will connect him to a broker of its choice as soon as the minimum required a balance of $250 is credited in his trading account.

The assigning of the broker is randomly done:

The broker is randomly assigned but a big part of the responsibility lies in the hands of the software. The trading software may be in a close nexus with the unregistered and unlicensed brokers and are equally responsible for any siphoning off money that takes place.

That is the reason why QProfit System is so reliable:

I read more about QProfit System on its website. The website claims that all its brokers are registered with the regulating authorities. There is no scope that the website allows for any unregistered broker to be assigned to any trader. This is one of the main reasons that this software is a genuinely legit one and not an iota of fraud that most of the others are. ‘

It is important that you have to be able to choose software that only allows for genuine brokers because then you can be sure that the money that you invest in is safe.

I have traded with bogus brokers and I have lost a chunk of money to them. But with QProfit System, my experience has been awesome. It has almost made up all the losses that I suffered in the past. I am really looking forward to having a great time on this software because I do not see myself platform shopping at all after knowing how genuine this particular software is.

I have blogged extensively to spread the good word and I hope every trader hits upon genuine software like this one and does not have to lose any money to the spineless scamster.

Do You Want To Know More About Online Trading?

Do You Want To Know More About Online Trading?

A trend that is picking up:

It was only in the year 2008 that trading in binary options started off. Even though it looked like obscure, it picked up in a big way. There were a few naysayers who predicted that this was a bubble only. That it would burst in a couple of years. But I am so glad that all of them have been proved terribly wrong.

The great recession was one of the reasons that it picked force:

The timing was correct. It was during the 2008 global meltdown. The recession was a nightmare for most of the people who were in the middle and the lower management and they had to seriously fall back onto something concrete to be able to make a living else they perish.

Jobs were being listed by thousands and every day the future looked bleaker. It was during this time that online trading in binary options came about like a messiah.

Statistics prove categorically that from 2008 to the current year, traders in the online medium have increased yearly by one thousand percent. That is a big number to cross every year.

There are skeptics galore:

Of course, even today there are thousands of people who will tell you that you cannot really make money trading in binary options because there are more scams than legit platforms there. But I have only one question to ask them: suppose that a trader does his research really well and ends himself up on the right platform, will they take their doubtful words back?

A good amount of research on the net will definitely yield a list of legit software names:

And I am sure that QProfit System’s name leads all the rest. I personally have traded on this awesome software and seriously have to come across any other such legit software that puts its trader’s interest beyond itself. It is hard to find such kind of dedicated trading software anywhere in the world! Mark my words today!!

I read more about QProfit System from a lot of review sites that regularly come up with reviews on the best and the worst ones. There are positive testimonial galore on the internet about this software and I feel that it probably has the biggest number of traders on it.

Worth a try!

Before you log on to any other trading software, I request you to give this one chance. I am so sure that you will be so hooked to its integrity that you will think that this was your original destination. No more hunting for legit software then!

 

   How do Blockchain and Cryptocurrency work together?

 The very existence of cryptocurrency is through the blockchain technology which is so rampant in the financial trading markets today that less said is more. As a medium of exchange, the cryptocurrency uses the digital and encrypted techniques to verify and create the money to buy, sell and transfer money in digital trading. As cyber currency cryptocurrencies have:

  • no physical form and they exist on virtually
  • there is no central authority monitoring its inflow and outflow
  • being in a decentralized network the regulation on them is not very high
  • It cannot be redeemed or exchanged for other commodities like silver, stocks, etc.
  • use of cryptocurrency has reached a very far network including financial services, healthcare, risk management, government for voting purposes with immediate results  and automotive industries to manage the ownership details

The main purpose for the cryptocurrency market to thrive was the fact that money is not an object anymore, and does not have to be in a physical form which has settled in the minds of traders, investors who are using various trading platforms like Ethereum Code to buy/ sell in the electronic medium. Now once the buying/ selling happen and the profit is booked, where is the money or the coin equivalent? It is simply lying in the exchange and how to claim it into the trader’s account, is just by transferring the coins in the digital wallet which one has to open for holding their keys private without being hacked or stolen.

How blockchain in Cryptocurrency?

  • someone request for a transaction using the blockchain, high power computer network the validation of the transactions happens in the nodes using the algorithms, once verified the transaction becomes either a crypto contract, currency or other data
  • the data once verified creates a new block of ledger, which attaches into the existing blocks which are unalterable and permanent making it a highly transparent and cost-effective way of storing data in the virtual space

Taking advantage of this technology has benefitted the traders, investors and the creators who have worked relentlessly to provide easier modes of using the blockchain technology in their software platforms which enable the users to take the added feature of trading with automated trading robot, and make their life easy while the trading happens in the background of the computer screens.