By Olena Zimolová Investing

Global Currency Trading on Forex for Startups

Foreign exchange is a claim for payment in a foreign currency – mostly in the form of credit balances on accounts with foreign banks or as other foreign currency claims. Cash in foreign currency that is in circulation outside the country of origin is referred to as denominations. In general usage, however, a distinction is often not made between currencies and varieties. Here “forex” generally stands for money in a foreign currency.

Global currency trading on Forex
Foreign exchange is traded on the global foreign exchange market – also known as the Foreign Exchange Market or Forex for short. Currencies are exchanged on the foreign exchange market. With a daily trading volume of several trillion dollars, Forex is the largest global financial market. Trading no longer takes place on physical stock exchanges, but via electronic trading systems to which the market participants are directly connected. Important players in Forex are banks, large companies, private foreign exchange dealers, foreign exchange brokers, and trading houses, as well as the central banks – for example, the European Central Bank (ECB).

Private individuals do not have direct access to the market but have been able to participate in foreign exchange trading through high leverage brokers in the forex market for a number of years. This business is highly speculative. It takes place preferably via contracts for difference – CFDs – in order to benefit from the short-term exchange rate volatility. Chart technique and chart analysis play a major role. Professional foreign exchange trading is not purely speculative. This is often also about hedging against currency risks. Central bank actions on the foreign exchange market are usually motivated by monetary and currency policy.

Read also: 4 Reasons Why Forex Trading Is Like Starting A Business

Different types of foreign exchange transactions

The following types of foreign exchange transactions are distinguished:

  • Spot foreign exchange transactions: Buying and selling foreign exchange takes place at the spot rate with very real-time booking of the equivalent value (“real-time currency exchange”). One also speaks of spot transactions (“on the spot” = “on the spot”);
  • Forward foreign exchange transactions: buying and selling foreign exchange forward (in the future) at an exchange rate agreed today;
  • Currency swap transactions: Combination of a currency spot transaction and a currency forward transaction. Spot purchase and forward sale are swapped or vice versa.
  • Currency options: give the right (but not the obligation) to buy or sell currency at a specified price within a specified period or on a specified date.

The Central Role of the US Dollar

The US dollar is of central importance in global currency trading. It is still considered the most important reserve currency in the world. The six most traded currency pairs on Forex have the US dollar as a part. The currency pair US dollar/Euro achieves the greatest turnover. His share of Forex trading is between a quarter and a third. Other important exchange currencies are the Japanese yen, the British pound, the Canadian dollar, the Australian dollar, and the Swiss franc.

The exchange rate as the price of currency

The “price” of foreign exchange is the exchange rate. It expresses how much a unit of the domestic currency is worth in units of the foreign currency (volume quotation). An exchange rate of €1 = US$1.13 for the euro means that one euro is worth $1.13. The reverse quotation (price quotation) is also possible, but less common. In the example, it would be: 1 US$ = 1/1.13 = 0.884956 €.

In the case of international money transfers, financial institutions, online banks, and online payment services often do not use the “officially” calculated exchange rate, the so-called exchange rate, as a basis, but calculate premiums or discounts. These represent an indirect – because not obvious – fee.

There are various theories to explain exchange rates and exchange rate changes in floating currencies. Interest rate differences, different purchasing power, current account imbalances or different economic developments are then important factors that can be responsible for more fundamental exchange rate changes. In addition, there are always short-term influences.

By Olena Zimolová Business/StartUp

Is Real Estate An Ideal Business

Real estate is the best investment opportunity for many people. It can be lucrative, and it’s never too late to invest in the property market. Visit housing market predictions 2022.

The opportunity to buy property has never been better for those looking for a return on investment and a way to grow their retirement funds.
Property investors often dream about the day they will be able to retire and live off the proceeds from their investments. The real estate market is changing, but that does not mean that there are no opportunities for investors with a knack for negotiating deals.

Do you want to invest in a business that is growing and will continue to grow in the future? There is no better option to do it other than investing in real estate.

Can you believe that investing in real estate has been one of the most common investment opportunities since people started using currency?
Real estate is an ideal business as it provides a high rate of return on investment when compared to other assets.

While risky and costly, real estate investments can be lucrative over the long term. Investors should also understand that there are limited investment opportunities available in this sector.

Many people who have never considered themselves businessmen or women have started investing in real estate as an alternative for other assets. In some cases investing in commercial property instead of stocks or bonds can produce higher returns.
The risk is that there is insufficient capital available for many potential investors (particularly new entrants).

Real estate is an investment business with a high potential for profits. A real estate investor purchases properties, renovate them, and sells them to others.

The significant advantage of buying a property as an investment is that there are tax deductions associated with this investment. The drawbacks include higher initial capital, more work, and the need for tenants to make it economically viable.

By Olena Zimolová Investing

4 Reasons Why Forex Trading Is Like Starting A Business

Forex Trading

 

For some, Forex trading is truly a full-time business – and one which will truly make someone rich. Basically, if you’re trading on 海外FXおすすめ (recommended Forex overseas) with the most effective forex brokers and manage your risks and your capital properly, you’ll make a real business out of Forex trading.

One of the most and most vital arguments to support this claim is the undeniable fact that one must treat trading as seriously a business irrespective of what it actually is to you. Whether or not you’re a beginner trader, you want to still study Forex trading as you’d look at a business that will go bankrupt!

1. It Provides Free Leverage

Anyone who would attempt to borrow tens or many thousands of dollars without a clean log or proof of past reliability would probably not be very successful. The identical applies to businesses. One may have minimal capital and a few basic ideas, but nobody will fund them right off the bat without some convincing.

Forex trading will be considered a business because it provides leverage. It allows you, the trader, to massively increase your borrowing power as it acts like an already established and reputed business. Be careful, however, as major financial risks are translated from increased borrowing power.

2. Decreased Downside Risk

Both traditional businesses and Forex trading include downside risk. This suggests that you just stand to lose what you’ve got invested and, in some cases, even go into debt.

Luckily, significantly decreased downside risk is what Forex trading comes with. In fact, it comes with one in every of the most effective downside risk characteristics within the market. Namely, traders can’t lose quite what they need to be invested, in unless they create some really bad decisions.

 

ALSO READ: Opening An Offshore Foreign Exchange Account

 

3. Massive Flexibility

Forex trading is taken into account by many to be the right business. Well, the subsequent is one in every of the most reasons why this can be.

Unlike the same old brick & mortar businesses, Forex trading has enough room for flexibility. If you don’t sort of a certain currency pair or desire its profitability has run out, you’ll be able to simply change your niche, so to talk.

Obviously, you can’t do the identical with an actual business. Moreover, you’ll be able to even change your broker if you discover that you simply really don’t like something. Then, after a fast search of the highest forex brokers online, you’ll retreat to within the business.

4. No Inventory/Staff, No Problem

Some people like to manage staff and inventory – but others really don’t enjoy that side of the business. The latter can just join the globe of Forex trading and begin their trading business, and chuck having to house inventory and staff – forever.

This also implies that there’ll be no paychecks handy out nor any issues associated with inventory or HR. The sole product or equipment that a trader has got to manage is their computer, laptop, or the smartphone that they trade from.

The Bottom Line

As you’ll be able to see, there are quite a few reasons why Forex is often considered not only a real business but the simplest business model out there. It provides leverage, flexibility, less risk overall, still as scalability.

Ultimately, the simplest thing about trading, in general, is the indisputable fact that it’ll never die. Regardless of age or trends, trading will always be one of the most actions that move the markets around the world.

 

By Olena Zimolová Business

The Corona Pandemic – A Challenge To Startup Businesses

The corona crisis hits startups particularly hard. More than 90 percent are affected.

In the end, it got worse than feared: In the survey on the effects of the coronavirus, it was assumed that many startups were affected (nine out of ten). The scene had never been so existentially affected. Startups are often small companies that depend on private capital. If that doesn’t happen, they have a problem. The current crisis also hits startups particularly hard because many have no financial reserves.

Corona crisis: State aid does not benefit all startups

The federal association surveyed over 1,000 startups. The result: Around 91 percent of companies are affected by the corona pandemic. With only a few exceptions such as the construction industry, all sectors are affected equally often. Over 80 percent of those questioned are also at risk of their existence due to Corona. The measures against the coronavirus are causing companies to complain about more and more delivery failures.

Another finding of the study: The threat to startups will be acute for both large and small startups in the next six months. Startups with an upcoming round of financing are particularly affected. Some government aid, such as short-time work helps startups – but not all. Many startups are classified as “not bankable” and therefore cannot apply for a loan but sort to alternative financial solutions (https://looselending.com/). Nevertheless, two-thirds of the startups plan to use government aid measures.

State aid: The startup association proposes this measure

Larger companies with a capitalization of 50 million euros will probably receive support from the planned economic stabilization fund. An estimate of around 150 to 200 startups fall into this category. Smaller companies with few employees can rely on emergency aid from the federal and state governments. For example, there are 9,000 euros for affected companies with less than five employees.

According to the WHO, Europe is the region most severely affected by the coronavirus pandemic in the world. However, medium-sized companies are left behind for a while. According to the study, startups need help over the next few weeks to avoid bankruptcies. The federal association has therefore drawn up a four-stage plan to hopefully be able to avert the disaster.

These include so-called matching funds, in which not only the state but also private investors help – mostly in a ratio of 70 to 30. An estimate states that the startup scene needs a single-digit billion amount to be able to catch all healthy startups. It is in hope that the federal association can do this together with politics.

By Olena Zimolová Business

10 Ways To Fund Your Start Up Business

Financing a business is a challenge for many businesses. You may have extra cash from your investment in Stocktrades best dividend picks in Canada. But for some, there is a need for more for various reasons.
Need financing? You can often go to the bank for this, but there are also other options. Here, we have laid out ten options to find the money for your start-up company.

Startup Funding Explained: Everything You Need to Know

1. Private investors
Private investors (Informal investors) want to invest part of their equity in a start-up company. In the business world, they are also sometimes referred to as business angels. They are often former entrepreneurs who also bring knowledge and expertise in addition to capital (money).
Remember that many typical investors prefer to stay intensively engaged in all business processes even following the launch of the business itself.
2. Traditional Financing via Banks
Most entrepreneurs are still financed by the bank. In order to qualify for this, in most cases, you must first write a good business plan. In this plan, you show that you have a promising idea in the current market.
3. Guarantee credit
Suppose you have been active as an entrepreneur for less than three years and you need a business credit (money). At the moment you cannot offer banks enough collateral when it comes to collateral. The bank is therefore at extra risk.
In that case, the bank with which you have approached for financing can make use of a special government scheme: a guaranteed loan. The government then takes over part of the risk. Do you want to know more? This Rabo page gives you access to more information.
4. Family and acquaintances
Some business owners are a bit wary of this. But if you make clear agreements with each other, your environment can indeed be a good stepping stone to a successful start of your company. You can borrow from family and friends and avoid disagreements in the future by laying down clear agreements like specific repayment schedule and interest payments.
5. Financial lease
Starting entrepreneurs don’t always have the luxury to purchase necessary equipment, machines, or vehicles to sustain the business. This is where financial leasing comes in place. Financial lease is increasingly used by starting entrepreneurs and freelancers. Moreover, the assets are just yours, which in turn offers tax benefits.
  • You can write off the business asset.
  • You can reclaim the VAT paid.
  • The interest you pay is deductible.
  • You benefit from an investment allowance (often 28% of the purchase price).
Did you know, for example, that you often do not need annual figures for a lease? And that you can also lease second-hand goods? You can calculate within one minute what the lease of your desired business asset will cost you per month.
6. Venture Capitalists and Funds
Venture Capitalists are private equity companies that manage the so-called “venture capital” of large investors and/or lenders. They prefer to invest in somewhat established entrepreneurs with a well-founded business plan.
Financing through funds
At first sight, funds are very similar to private equity companies but generally have a special objective. There are regional funds, starter funds, and funds for innovative and sustainable initiatives.
Funds are usually set up with government support, but they simply finance under commercial conditions. Depending on the type of company and the industry in which you operate, the support a fund can give you that final push to grow into a company of size.
7. Crowdfunding
Crowdfunding – literally: funding (investment) by the crowd (mass) – is becoming increasingly popular. Entrepreneurs and potential investors can come into direct contact with each other via online platforms.
With a good crowdfunding campaign, you quickly attract more interest in your plans and increase the chance that someone wants to invest in them. Although it is important that your project is shown on the right crowdfunding websites. Read here how to set up such a campaign.
8. Guarantee credit for agriculture
The government strives to support farmers financially so that it is possible for them to invest in innovation and to produce more sustainably and efficiently.
The Ministry of Economic Affairs supports these farmers by guaranteeing an additional loan. You can think of a loan for investments, with which production costs can be reduced or animal welfare can be improved.
9. Innovation financing
There are many other government financing schemes that you can make use of in this area, such as the SEED Capital scheme and Innovation Credit. Keep in mind that not every company or project can qualify for innovation credit.
Rabobank offers entrepreneurs with good innovation the opportunity for a Subordinated Innovation Loan (AIL). You do not have to pay repayment for the first two years.
10. Stacked financing
You don’t necessarily have to choose. Many starting entrepreneurs mix and match different forms of financing. This is called stacked financing. For example, you can make combinations with Financing via the bank, Crowdfunding, and Own capital
By Olena Zimolová Business

How to Write A Simple Business Plan

Writing a business plan takes time. And it should be properly written especially if your intent is to take out a business loan regardless if it is No Guarantor Loans For Bad Credit (UK) | £50 – £5,000.

Take the smart approach to such a business plan and get started with these simple steps.

How to Write a Business Plan

The purpose of your business

In the first chapter, you can immediately grab attention. So try to describe your business goal in one clear sentence. With this, you immediately give a good description of the purpose of your company. Why are you starting this company? For whom? What do you think you can achieve that? The main purpose of this first point is simple: how do you arouse the reader’s interest? Short but sweet. That is the common thread throughout your entire business plan

Also know who you write for, banks or private investors usually don’t have a lot of time to read comprehensive business plans extensively. The more concrete your business plan, the greater the chance that it will ultimately be looked at carefully. Good to keep in mind: the ideal length is around twenty pages.

Find your client

In this section, you describe the current situation of your future customers and/or clients in the region. What problems do they encounter? How are they dealing with this at the moment? Click on ‘Preview’ to see what this looks like in practice.

Example of the current situation. Of course, you must be able to substantiate these claims with the right facts, for example from Statistics Netherlands. Or take a look at Figures and Trends at Rabobank. Here you will find up-to-date information about, for example, the opportunities, threats and perspectives about your industry.

Your added value

The title actually indicates it: here you tell about what your product or service adds to the customer. What will you do to offer these customers and / or clients a good alternative to the current situation? And is this financially feasible?

Keep a few things in mind here:

  • Make sure you describe these issues clearly.
  • Do not avoid potential obstacles.

Therefore always state briefly which problems you may encounter and how you expect to be able to circumvent or solve them.

How relevant is your company?

You use this part of the business plan to convince the reader that this is an excellent time to start the business. Support your story again with accurate data about the developments of the last years in your industry and region. Which developments make your company relevant now?

From market research to a marketing plan

No business plan is complete without the results of market research even if you know you are starting a brilliant tech company. As an entrepreneur, you have to know how your market works and you want to stay informed of the latest developments in the sector. 

Added-value of your product or service

Just like a potential investor, the customer will soon have to be convinced of the added value of your product or service. A marketing plan helps you gain more insight into your market, with which you can then sketch a clear profile of the target group via the marketing mix.

Then take a look at the possibilities of drawing up SWOT analysis.

The competition

Here you write about the established companies in your field and region with whom you will soon be competing. In this competition analysis, also briefly indicate to each competitor what your company will do differently (and better).

The product

In this section, you can describe your product or service in detail. What is the goal? How is the product made? For example, would you like to write or translate web texts for companies from Dutch to English or Russian?

  • Describe step by step how you will proceed exactly and what the costs will be.
  • Is a possible second correction included in the price or do you charge extra hours for this? And what about copyright, for example?

If you want to start manufacturing, importing or exporting products with your company, this is the place to explain the exact import or production process in clear terms.

Business model

The business model helps you display certain aspects of a company. From the expected turnover, price, potential customers, target groups, the maximum size of the assignment or job that you can take on, and the sales model. This is a way to visually represent the aspects of your business model. 

Sole trader or large team?

Are you going to set up a sole trader? Then you just have to put your own name here. But when you start a business together with others, you have to record this on paper:

  • Who are the founders?
  • Who is responsible for operational management?
  • If relevant, who is the management board?

Financial information

Finally, the business plan must also include financial obligations. For example: Making a realistic estimate of the cash flow

A profit and loss account, the balance, what you can offer the acquired investor financially, and when do you think you will reach the break-even point?