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Traders look for brokers with better leverage

Leverage, Leverage, wherefore art thou Leverage?

Like Juliet searching for her Romeo, traders are on the hunt again.

On March 29th 2021, Australia will reduce the leverage rates offered to retail clients to match that which the European Securities and Markets Authority (ESMA) imposed exactly 32 months ago to the day, back in 2018.  Traders flocked from the UK and Europe, across half the globe to open accounts with Australian brokers and now find themselves in the same boat of searching for a broker that still offers higher degrees of leverage without these tightening restrictions, and there are fewer and fewer options for them.

A large proportion of traders do not meet the requirements to be deemed as professionals and therefore aren’t privy to the extended leverage options professionals are afforded, so where should they go next?

It is likely that many clients will continue to search for brokers offering 200:1 leverage but with these options being greatly reduced there should be some key criteria that retail clients should consider when choosing their next broker:

  1. How long have they been trading for?
  2. Where are they based?
  3. Who are they regulated by?
  4. Do they have independent client reviews?
  5. Do they offer negative balance protection?

How long have they been trading for?

Do they have a long-standing history of servicing clients, receiving and sending client funds, and managing the day-to-day responsibilities that inherently come with being a reputable broker?  Or have they just started up in a new jurisdiction to try and cater for this migratory business?

Where are they based?

Is the country they do business in a recognized region for financial services? Is there recourse in that region should the worst happen?  Do they have client service which covers the market hours you wish to trade and do they speak your language? As trading is not always a straightforward business and timely, clear communication is key when your broker’s assistance is needed.

Who are they regulated by?

Are they licensed by a reputable regulator and how do you know who is reputable?  There isn’t a list of who is good or bad but doing your homework to feel more comfortable is worthwhile. This can be paired with the real-life user experiences from the following point…

Do they have independent client reviews?

There is a great deal of “pay for” review sites whose reviews could be misleading as they are paid for by the very broker the review is about.  To avoid these biased websites, it is best to find independently verified review sites such as Trustpilot (there are a few others as well) and check out what the clients really have to say.  Don’t just read the 5-star reviews but filter on the one and two-star reviews to see how bad it can get.  Everyone may have angry clients for one reason, or another, so check to see if the company bothers to reply to their reviews and most importantly, the manner in which they reply. This can tell you a lot about how the company treats and values its customers. 

Do they offer negative balance protection?

Clients are at risk of losing more money than they have deposited if this is not offered and with market volatility as it has been over the last year or two, this is an important feature.

There are other points such as ensuring they offer the trading platforms and instruments that you require along with requesting sufficient detail from you which you would come to expect when opening any financially related account.

So now you are armed with the information to find yourself a broker offering you as much protection as possible while still giving you the benefits you are accustomed to, there aren’t that many of us.

                  

Tradeview’s Daily Digest – 14th July

U.S. Indices sell off on Tuesday

“What goes up, must come down” After Monday’s record breaking day, the NASDAQ dropped, as some sell offs within the tech heavy index took place.

After reaching a peak of 11,080 yesterday, which created a record high, the index fell to a low of 10,369 today.

This comes as markets fear a recent  surge in COVID-19 cases, which have created business restrictions, particularly in Florida and California, two of the most impacted states.

As a result, intraday trading today saw the NASDAQ drop close to 6% from its record high on Monday.

UK GDP Growth Comes in less than Expected

Today, it was reported that the British economy has begun to bounce back from COVID-19 crisis, however not at the pace most expected.

GDP data showed that in May, the economy grew by just 1.8% from the previous month, as the gradual easing of lockdowns saw some sectors moving back to work.

Overall the UK economy is still 24.5% smaller than it was before the pandemic.

Sterling fell against USD to an intraday low of 1.247.

JP Morgan kicks off earning season

America’s largest bank reported its Q2 earnings, however the bank surprised some by delivering stronger-than-expected results in the midst of the pandemic.

Although net income fell by 51%, the main takeaway was revenue coming in at $33.83 billion vs $30.57 billion expected.

Quote of the day:  “We want to perceive ourselves as winners, but successful traders are always focusing on their losses.” – Peter Borish


Biggest Bull

EURGBP: More action in GBP pairs today. EURGBP  has continued yesterday’s rally by climbing from 0.894 to 0.911.

Source: Tradeview MT4

Biggest Bear

NDX (Futures): The NASDAQ looked as though it is set for a downwards cross of the 10 and 25 day moving averages. Markets dropped to a day low of 10,369 on Tuesday.

Source: Tradeview MT4

Tradeview’s Daily Digest – 2nd June

Gold drops as Stocks Reach 3-month high

The price of gold dropped by $24 on Tuesday, as the global stock markets hit their highest levels since March. Usually the flight is “to” the safe haven, however today, traders flew “from” the metal in favour of equities positions instead.

The highs come as markets continue to discount the risks’ associated with arguably the worst civil unrest in the United States in decades. The tech-heavy Nasdaq currently sits only  3% below its pre-pandemic all-time high. Japan’s Nikkei was up 1.2% and the FTSE 100 up 1% showing strength in global stock markets led by the DAX’s 3.75% gain as automotive shares surged in Germany.

Sterling Rallies as Brexit Flexibility Grows

After yesterday’s moves, Cable continued to climb above $1.25, seeing the pair reach its highest point since April 4th. This comes as reports suggest that the UK might be willing to compromise on previous sticking points in Brexit negotiations with the European Union.

Brexit which has fallen down the pecking order of priorities for both the UK and EU due to COVID-19, still seems to create volatility for traders, when updates are announced.

Bitcoin Briefly Above $10,000

Do you recall in March, when BTCUSD dropped by 50% in only 2 days of trading? That low saw Bitcoin trading at $3,750, where do you think it is now?

Today Bitcoin continued its recent rally by finally crossing the $10,000 mark, well for a 6 hour period at least. Similar to Gold which sold off as stocks continued to outperform expectations. Digital gold was also a casualty of equity bulls, who likely rotated out of their crypto positions into stocks.

Biggest Bull

Crude Oil: The news that OPEC and Russia are considering further talks to discuss production cuts continues to boost Oil prices. Crude was up over  3% on Tuesday.

Biggest Bear

Gold: Gold dropped from quoting $,1745, to a low of  $1,721 all in the space of several hours. $1,745 which has long been a resistance level, saw bears once again prevent a break out.

“You never know what kind of setup the market will present to you, your objective should be to find an opportunity where the risk reward ratio is best.”

Jaymin Shah

Tradeview’s Daily Digest – 28th May

Stocks rally as US Jobless Claims Decline

Since peaking at a record 6.867 million in late March weekly initial jobless claims have decreased for the eighth straight week The total number of people receiving benefits shrank for the first time during the coronavirus pandemic in a sign people are starting to return to work, even as 2.123 million more Americans filed for Government support during the week ending May 23. 


The S&P gained close to 1%, as the current four day run pushed US stocks to a 12-week high. As the US moves to reopen its economy, some recent economic data points have been better than many investors feared.

UK Drugmakers lead FTSE Rally

For a second day running the FTSE 100 rallied by 1.21% as talks of a vaccine continue to drive market optimism. Drugmakers AstraZeneca and GlaxoSmithKline (GSK) led the rally on Thursday as it was announced that they will soon be trialing their respective vaccines. With GSK laying out their plans to produce close to  a billion doses of vaccine efficacy boosters by next year.

The FTSE as a result now trades at a three month high heading into June, after going up to as high as 6,300 on Thursday.

€750 billion Recovery Fund continues to boost EU markets

The sun has both literally and metaphorically been shining in Europe this week. This comes as the €750 billion fund announced by the EU to support the region’s virus-hit economies continues to ease tensions in the market. 

Heavily impacted nations like Spain, are looking for a speedy finalisation of the deal, with Finance minister Arancha Gonzalez Laya stating, “We have to be sober and act quickly.”

Europe’s largest index the DAX rallied to 11,820 on Thursday, which was the highest level since February.

Biggest Bear

Bitcoin: Another day and another $300 move in Bitcoin.  As we noted yesterday, Bitcoin currently trades in a range where bulls have been known to frequent. The question is what next, for the largest digital currency?

Biggest Bear

USDJPY: After hitting the 107.878 resistance level on Thursday, USDJPY fell to a low of 107.595. After this drop, the pair began to consolidate  at that floor, and now trades at 107.669. Will this break the floor or head back to resistance tomorrow?

Quote of the day:

“The market can stay irrational longer than you can stay solvent”

John Maynard Keynes

Tradeview Marketview (Week Commencing March 23rd 2020)

Week Commencing March 23rd 2020

TradeviewSpreads2020

Market Overview

Last week saw Central Banks step in again to help calm the COVID-19 panic. This started by the FED once again cutting rated, the ECB coming in with a €750bn asset purchasing package, and the UK Treasury led by Rishi Sunak announcing further fiscal tools to be used to help all those affected by the on-going crisis. Markets which kept falling, saw some of these drops turn into consolidation, as the moves made started to somewhat ease concerns.

Gold which has been one of the big gainers on these concerns hit a 4 month low as fiscal policies began to take effect, meaning traders were back to looking for short and longer term opportunities in money markets, as they hope to take advantage of recent dips in price.

Market Preview

This week, the US has announced that the National Guard will be present in up to 28 cities, including New York State which now has over 15,000 reported COVID-19 cases. This news along with the Senate not finalising the stimulus plan, saw the futures market suffering huge sell offs, with limit downs put into effect.

Although this current crisis has acted as one big fundamental event, this coming week also sees several key announcements set to take place. UK CPI numbers and US Durable Goods orders come out on Wednesday, with the BoE having a super Thursday, where rates are to be decided along with Asset Purchase targets.

Irrespective of any of these potential moves, you are welcome to follow the trade opportunities they create on TradeGateHub!

Fundamental view

Wednesday: USD Durable Goods Orders (FEB P)
Thursday: GBP Bank of England Bank Rate (MAR 26)
Friday: USD U. of Mich. Sentiment (MAR F)

See more

Technical view

GBPUSD – Daily Chart

After a huge gain by GBP last week against USD, mainly led by the actions of Rishi Sunak, cable hit lows not seen since 1985. This drop has also meant that lows in volume have surpassed the 30 oversold level. This may mean that bulls are awaiting the perfect time to reenter. The moving  averages which have now firmly crossed over downwards also sees the momentum starting to show signs of consolidation. However what we have noticed in recent times is that with such markets, there may be further downwards moves, and bull traps may be set, to avoid them, traders may want to look at the longer term time frames.

02-21

XAUUSD – Monthly Chart

The safe haven instrument for traders, Gold which initially took off in the storm of the Crisis, has been on the decline. We have seen the recent action by the FED in cutting rates twice in 3 weeks start to increase market confidence, and as a result traders have fled shelter.  With markets now in the $1500s range, this has historically been a support point. Many now wait to see if there will be a breakout of this point into lower levels, or will we see a bounce up. The momentum and volumes seem as though we could be positioned for furter falls, as we have passed overbought territory, could we be heading to as low as $1100 if this crisis begins to stabilize?

03-20

Crude Oil – Monthly Chart

Crude Oil has had one of its worst months in recent years, maybe since the 2014 price crash. This decline mainly owing to the fact that demand for the energy has reduced, plus Saudi ramping up supply and cutting prices.  Now trading at $22 per barrel, many believe that volumes could go to as low as 27 on the RSI, a point which was reached 4 years ago in March 2016. If history were to repeat we may see prices fall to as low as $17 per barrel.

04-15
To stay up to date with the many possibilities, we encourage traders to view our Trade Gate Hub, for more daily insight into Crude, and many other markets.

Charts analysed and narrated by Eliman Dambell – edambell@tvmarkets.com

Tradeview Marketview (Week Commencing March 9th 2020)

TRADEVIEW MARKETVIEW Week Commencing March 9th 2020

TradeviewSpreads2020The continuation of the Coronavirus crisis was the main theme last week. All impacted nations around the globe scattered to find possible solutions to ease the panic of not only the general public, but all those of the markets. In looks for solutions several fiscal and political moves were made. In Italy we saw quarantines employed, with the government creating a stimulus package for businesses who have suffered revenue losses of over 25%.

In the US, which all are still discussing, we saw the FED announce a
surprise emergency rate cut, which sent the markets into further panic.
With Gold and other safe havens gaining on the news. Staying with the
US, we also saw NFP numbers come out better than expected, which had
little to no effect in the grand scheme of things as markets only reacted
briefly to the news, before panic once again resurfaced

Market Preview

This week started off with a bang. As OPEC failed to agree on Oil
production cuts, Crude Oil prices fell by over 20%. Saudi Arabia not only
opted to increase supply, but also offer Oil for April at a discounted rate,
which many believe could incite a price war with Russia. Could this week
see a response from Russia, Iran and other producing nations looking to
boost price?

The volatility surrounding the Coronavirus spread looks set to continue,
as the infection rate keeps rising. Last week we saw FED cuts rates, as the
FTSE 100 fell by over 8% today, many are looking to see what the ECB do,
with a rate decision due on Thursday.

Irrespective of any of these potential moves, you are welcome to follow
the trade opportunities they create on

Irrespective of any of these potential moves, you are welcome to follow the trade opportunities they create on TradeGateHub!

Fundamental view

Tuesday: CNY Consumer Price Index (YoY) (FEB)
Wednesday: USD Consumer Price Index (YoY) (FEB)
Thursday: EUR European Central Bank Rate Decision (MAR 12)

See more

Technical view

CrudeOil – Monthly Chart

Crude Oil started the week on a tear as markets slipped to a 20% decline.
Looking at a longer term monthly chart shows us that the low in which it
reached of $27.25 per barrel had been in fact a floor in the price. Also the
markets have now very clearly reached oversold within the RSI. Will this be
enough to contain prices? If a price war ensues, there me still be more potential
moves in this.

01-27

XAUUSD – Monthly Chart

Gold briefly traded at $1,700 on Monday as the markets reacted to the tensions
not only within Oil prices, but the volatility that caused. Several index markets
like the SP500 issued a limit down, where trading was effectively paused for a
few minutes due to losses. Looking at the long term monthly chart, we see that
Gold is nearing all-time highs of close to $2,000. Although around $500 away,
the momentum of the moving averages, highlight the potential for more gains.
However are volumes too close to overbought to see another run?

02-19

FTSE 100 – Monthly Chart

The FTSE was another one of the big index markets to suffer on Monday. Now
trading at a 4 year low of 5870, which also looked like a long term support area.
Looking at the monthly time frame gives us the historical insight, as we are
currently seeing historical type moves take place. Or have they already taken
place? The chart shows that we may be at a point of reversal as all indications in
price and volume show us that we are currently oversold. However if the
volumes of the RSI past the current floor, could a panic ensue leading to more
buying?

04-13
To stay up to date with the many possibilities, we encourage traders to view our Trade Gate Hu, for more daily insight into Crude, and many other markets.

Charts analysed and narrated by Eliman Dambell – edambell@tvmarkets.com

tradeview-marketview-week-commencing-november-18th-2019

Tradeview Marketview (Week Commencing November 18th 2019)

Week Commencing November 18th 2019

01-1Market Overview

After the huge moves we saw the week before, many anticipated, if not hoped the same would continue this week as we head into the holiday season. After a $30 drop to close off last week, Gold started to consolidate at the $1446 floor, bouncing to a 5 day high of $1472. On the contrary the consolidation which we saw with Crude last week, turned into rally on Friday, with a breakout on further news of the Saudi Aramco IPO deal. In other news the Bitcoin dropped continues, with it’s 10 day of declines reaching $8400, which is a 4 week low.

In currency news, GPUSD once again headed up towards the $1.29 level as strong US retail sales data came out. This also led to a rise of the SP500 crossing over the 3100 level, setting more and more all time highs.

Market Preview

Next week looks set to be the quietest so far in terms of forecasted fundamental data. FOMC on Monday is due to be a big one, as it could be the catalyst to ending or continuing the historic bull run we are currently seeing in US equity and index markets. Many will always pay close attention to Gold o see if the consolidation from this week, could potentially lead to another bull run, which could be the case if the FOMC report shows that economic weakness was the reason for the 0.25% rate cut in October.

3 weeks till the UK election and GBP gaining in strength, markets will likely see what affects this has on the FTSE which suffered a huge drop of almost 100 points on Friday.

Economic Data View

  • Wednesday: USD FOMC Meeting Minutes (OCT 30)
  • Thursday: JPY National Consumer Price Index (YoY) (OCT)
  • Friday: EUR ECB President Lagarde Speaks in Frankfurt
    See more

Technical view

XAUUSD – Daily Chart

Every run, bullish or bearish a some point comes to an end, and that’s what we saw this week with Gold. After a run which saw the metal fall from $1518 to $1446, this market had some much needed rest, consolidation. Although brief and only for 4 days, the sideways trend which took place at the 33 level RSI which has seemed to be the long term floor in terms of volume, posed the question could this overselling lead to buyers to re-enter? With Gold now back firming in the $1465 floor which has been known for buying, many may also want to look at the Fibonacci indicator to see if this is positioned in either the 38.2% or 50% zones, which may be reasons to anticipate some upcoming longs.

02-1

SSP500 – Daily Chart

Record high after record high, when will it stop? Many expected this week to be the week where the consolidation would turn into weakness. However as the week was at an end, that sentiment turned out invalid as we saw huge buying volume leading this index past the 3100 level, nearing a close of 3120. So what is next? This run of Friday mainly led by a stronger than expected US retail sales number, means many will be carefully looking at the next economic announcement as a means to gauge further direction. We don’t have to wait long however, as FOMC this Wednesday could provide this guidance. On a technical perspective, all indications still show that yes this is oversold, the momentum of the moving averages should at some stage slow and potentially cross downwards, however as the 2020 election is nears, many see runs as politically charged, so be careful leaning too much to technicals alone.

03

Crudeoil – Daily Chart

The Oil market clearly loves a streak. From the 20% overnight jump on news of attacks in Saudi, to the 30% drop which was to follow immediately after. After such moves a traditional market would usually trade sideways in consolidation, and although it can be argued that’s what we have seen in Crude, the consolidation was done in a way which created higher highs. This essentially created an ascending triangle which led us to the $57 resistance, however as we got the news that the Saudi Aramco deal was valued at $1.7trillion, we saw a run which lead to that resistance being partially broken on Friday. Now heading into the $58 mark, we see that buying volumes are still low, at 56 on the RSI, with many bulls seeing the target of 67/70 as the level to resist further longs. Monday will be interesting to see if this was a false break, or if in fact we could continue upwards towards the $60 mark.

04

Charts analysed and narrated by Eliman Dambell – edambell@tvmarkets.com

Adam Saward & Eliman Dambell
Tradeview LTD
1 St Katherine’s Way
London
E1W 1UN
Direct: 0203 2392987

The January Effect

The January Effect refers to a possible pattern or phenomenon that stocks exhibit, in particular small-cap, whereby the tendency is a rise during the last several trading days in December and then a continued rally throughout the first week of January. This rally is generally attributed to an increase in buying, which follows the drop in price that typically happens in December when investors, seeking to create tax losses to offset capital gains, prompt a sell-off. Once the New Year rolls around, they buy back the same stock, pushing up prices.

The Concept has been widely debated for decades, and recent research has shown that if the effect offers any trading edge at all, it is slight and short lived. This article aims to offer the trader and investor an explanation of where the hype comes from and why it matters.

So how does it work?

A number of theories try to explain the reasoning for the rally in stock prices in January. The most obvious being the practice of “Window Dressing”. This idea holds whereby Mutual Fund managers will go “shopping” at the end of December to buy stocks that greatly appreciated during the year. The listing of these stocks in the fund’s annual report would look good to the shareholders, whereby the portfolio is “dressed up” to contain a few extra valued stocks. The prices of the stronger stocks rally even further due to the high demand, hence the rally in January.

Conversely, the opposite holds for weaker stocks that year, where again, as the year end approaches many investors and fund managers will look to offload poor performing stocks so as to trim the fat off portfolios and get rid of their ties to bad investments.

Primarily, however, the heavy trading volume is influenced by tax considerations, whereby much of the selling of stocks is done in order to realize capital losses that can be used to offset capital gains elsewhere. As the New Year begins the gains from these sales are more often than not reinvested into the market prompting stocks to rally.

It is often argued, however, that stocks typically rise in January due to trader psychology. The very simple idea that a new year brings new hope, and for some a way to invest in the market some end of year bonuses.

This historical trend, however, has been less pronounces in recent years, some believing the expected rally has already been priced into the market, and has adjusted for it. Tax-sheltered retirement plans have also grown in popularity, ending the need for many investors to sell and rebuy stocks for tax reasons.

RORY COLLINS : Trader rcollins@rhino-report.tradeviewforex.com

Tradeview Ltd. is not a portfolio manager or an investment advisor. This Market Report is for informational purposes only. Any statements made or opinions voiced in this Market Report do not constitute investment advice. The Tradeview Ltd. Market Report does not constitute a solicitation to buy or sell in the financial markets. Although the information contained in the Market Report comes from trusted sources, Tradeview Ltd. is not responsible for guaranteeing the accuracy, timeliness, completeness, or fitness of such sources. Tradeview Ltd. shall not be responsible for and disclaims all liability for any losses which may be suffered from access and use of the contents of the Tradeview Ltd. Market Report. Trading any financial instrument on margin, using leverage or otherwise involves considerable risk. Therefore, before deciding to participate in any style of trading, you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you cannot afford to lose. Consulting with your investment counselor, attorney, accountant or other professional upon whom you rely for guidance as to the appropriateness of an investment in any style of trading is recommended.

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Is licensed to carry on securities investment business and is regulated by the Cayman Islands Monetary Authority (CIMA) as a full securities broker-dealer. Tradeview conducts business pursuant to the Cayman Islands Securities Investment Business Law (SIBL) and its activities fall under the direct supervision of the Investments and Securities Division of CIMA.
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Headquarters: International Business Financial Centre at Office 5, Jamie Business Center I, Unit F10, First Floor, Paragon Labuan, Jalan Mustapha, 87000 Labuan F.T.
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Is licensed as a Category 2 Investment Service Company and is regulated by the Malta Financial Services Authority (MFSA). The Malta Financial Services Authority (MFSA) is the single regulator for financial services in Malta. MFSA is a fully autonomous public institution and reports to Parliament on an annual basis. The MFSA is a member of the European Banking Authority (EBA), the European Securities and Markets Authority (ESMA) and the International Organization of Securities Commissions (IOSCO) and is a signatory of the Multilateral Memorandum of Understanding with other European regulatory Institutions. Tradeview is authorized to provide financial services across multiple asset classes and is passported in the EU/EEA under MiFID II (EU Markets in Financial Instruments Directive).
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Is authorized to conduct business pursuant to and in compliance with the General Law of Companies (LGS) promulgated by the government of Peru. Tradeview Financial Markets S.A.C is registered with the National Superintendence of Public Registries (SUNARP), company number 13089531. Tradeview Financial Markets S.A.C provides financial services in selected OTC derivative markets in compliance with all applicable government regulations.
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