FOREX SCAMS

Unfortunately there are some people on the Internet (as wel as in real life) that wil give their best to take advantage of
others. Forex market is very lucrative and tempting opportunity for anyone and therefore most scam artists wil use it to
lure people into their schemes and steal money from them. That is why I decided to dedicate this entire chapter to forex
scams.
Why is it easy to get scammed on the Internet?

1. Because everyone and I mean EVERYONE can purchase a domain name and set up a website for less than $100.
Even if they decide to hire someone to create professional website design for them, they stil can get it done for no
more than $200 - $300.

2. Most people don’t know much about forex market which makes them easy targets for potential scammers as it is
very easy to promise dreams and manipulate the numbers and information presented on websites.

3. It is also very easy to hide from public and, once you are scammed, geting your money back can be very dificult or
imposible.

The most common schemes relating to forex market are various investment programs, also known as High Yield
Investment Programs or HYIPs. The owners of these programs often present themselves as financial experts that can
bring unrealistic income through investing in forex, stocks, sports beting, etc. and ofer potential investors a chance to
profit on their “expertise”.

People who visit their websites see great opportunity for quick cash and decide to invest money hoping to make a
profit. Unrealistic returns they ofer are sometimes 200% - 400% within days! But there is a catch. Every investor must
wait a certain period of time before he can withdraw money. For example, if the program says the return is 200%
within 5 days, it means that if you invest $100, you have to wait 5 days before they “earn” you $200. During that time
your investment is locked which means that you can’t withdraw even single cent. Of course this time is necessary for
owners to “trade with invested money” and “generate profit” to investors.

What is realy happening nobody knows for sure, but here is most likely scenario:

You invest certain amount of money and have to wait for 5 days before you can withdraw any money. During that
time, scammers promote their program to find more potential investors. Scammers also ofer you and others
commissions for every new investor you bring to their program which makes promotion of their website easy.

Each and every one of new investors decides to invest certain amount of money and each and every one of them has to
wait 5 days to withdraw any money. After first 5 days scammers usualy colect enough money to pay you your profit
and to pay their first investors. You and other first investors are happy for your profit and decide to tel everyone you
know about this program.

The number of investors grows exponentialy and the money scammer is receiving grows also. At one point of time,
scammer has enough money to retire young and cannot aford anymore to pay investors their profits and usualy HYIP
colapses.

In this scenario only first investors made profit, while many more that joined this program later lost their money.

There are also scenarios where no one gets paid and scammer just colects money, makes empty promises and
disappear with his program. Also many scammers return later with new looking program, under diferent name and scam people again.

Some of them even ofer realistic income and use that to atract more investors. But one thing you never know about
these programs is WHEN it wil stop making payments or WHEN it is going to disappear.

You may probably wonder if there are any honest investing programs that realy trade with forex or stocks and make
profit to their investors. There are, but probably les than 1% of al HYIPs and these programs are usualy private and
rarely accept new investors. Also their returns are low.

If you wonder whether you should invest in HYIPs or not, know this that it is nothing more than a gamble with a lot
more chances of losing money and NEVER geting it back!

Besides High Yield Investing Programs there are also other programs, that may seem legitimate, but with only one goal
– to take your money.

These programs involve various companies and shady brokers who ofer foreign curency futures and option contracts,
unregistered firms no one even heard about that ofer unrealistic return or absolutely no risk involved. Be also very
careful of any “opportunity” that guarantees success as there is no such thing.

Source: forex-trading-secrets.net

Forex Experimental Analysis

Buying and selling stocks and derivatives have increased
enormously over the last decade. An occupation, earlier restricted
to a few well-situated capital owners, has now become almost a
national movement, involving a majority of the Swedes. There are
reports estimating 80% of the Swedes, 16 years of age and above,
to be shareholders, directly in the markets or indirectly by pension
funds (Modig, 2001).
The stock market is a popular subject of discussion at work, at
home, and in the tabloids. Media are reporting of people gaining
huge amounts in the markets, but also giving hindsight descriptions
of how one could have made millions, or more recently, how much
capital that was lost in the latest decline. During the last quarter of
1999 and first quarter of 2000, when stock market indices around
the Western world soared to new highs, there seemed to be one
question on everyone’s mind; what stock should I buy to get the
best profit? However, since March 2000, during the decline, the
focus has somewhat changed to how one should avoid getting
ruined. Why do some people succeed in the markets, while others
are going bankrupt? Some possible clues can be found when
reviewing the psychological research that has been made within
the domain of behavioral finance.
When participants of the markets are studied in real life, they seem
to present a number of shortcomings, one of them can be
characterized as overconfidence (Scott, Stumpp & Xu, 1999).
Camerer and Lovallo (1999) found that overconfidence presented
by business managers leads to excessive business entry. When the
results were based on the participants' abilities, individuals tended
to overestimate their relative success and enter more frequently.
This was not because of irrational information processing or
neglecting the competition they were up against. They were just
overconfident about their relative skill. Studies made by Kahneman
and Tversky (1973) show that humans have a tendency to
overestimate the probability of one’s forecasts. Among other
reasons, such as a prolonged bull-market, huge financial resources
and numerous media reports of rising markets and big gains, an
overconfidence effect could be a contributing factor to the great
number of “new” and inexperienced investors entering the stock
and derivatives markets.
Investors adjust their expectations slowly (Daniel, Hirshleifer, &
Subrahmanyam, 1998), and as a possible effect, they did not see
when the bull-market turned into a bear-market, leading to holding
on to their positions longer then expected.
Further, when we as humans make decisions under uncertainty,
our choices are influenced by the way we describe, “frame”, the
situation rather than the absolute value of the result. When we
perceive the situation as a loosing scenario, a negative framing, we
tend to be risk seeking. Consequently, if a scenario is perceived as
positive we will become risk-averse (Kahneman & Tversky, 1979).
This could have caused investors to take greater risks during the
big decline than they otherwise would judge as reasonable.
Altogether, these human foibles make investing or trading in the
stock markets a difficult task. How could one possibly become a
successful market player?
One of the recipes of success, at least according to non-academic
literature, is to control one’s risk and utilize proper “money
management”. The definition of money management is not
perfectly clear and according to trading coach Van K. Tharp, it is
not “risk control” per se, “diversification" or “how one makes
trading decisions” as sometimes stated (Tharp, 1998). Risk control
and maximization of profits is rather a result of implementing
money management strategies. Tharp emphasizes that money
management or position-sizing (this term will be used in the
following) answers the question: “How much?” or “How many?”
(Tharp, 1997). In the meaning of “how much of available capital is
to be put at risk?” or “how many contracts or shares are to be
bought?” In this paper the following definition of money
management will be used: Money management determines how
much of available capital is to be allocated in a specific market
position, that is, the number of shares bought or percentage of
total capital spent.

Money Management : Rules Of The Road

In the first installment of this series we stressed the importance of money management, illustrated through drawdown and percent to recover analysis. We mentioned that money management ranges from simple, commonsense approaches to complex portfolio theory.
The good news is that for most traders money management can be a matter of common sense rather than rocket science. Below are some general guidelines that should help your long-term trading success.
1. Risk only a small percentage of total equity on each trade, preferably no more than 2% of your portfolio value. I know of two traders who have been actively trading for over 15 years, both of whom have amassed small fortunes during this time. In fact, both have paid for their dream homes with cash out of their trading accounts. I was amazed to find out that one rarely trades over 1,000 shares of stock and the other rarely trades more than two or three futures contracts at a time. Both use extremely tight stops and risk less than 1% per trade.
Use real stop orders—“mental stop” don’t work
2. Limit your total portfolio risk to 20%. In other words, if you were stopped out on every open position in your account at the same time, you would still retain 80% of your original trading capital.
3. Keep your reward-to-risk ratio at a minimum of 2:1, and preferably 3:1 or higher. In other words, if you are risking 1 point on each trade, you should be making, on average, at least 2 points. An S&P futures system I recently saw did just the opposite: It risked 3 points to make only 1. That is, for every losing trade, it took 3 winners make up for it. The first drawdown (string of losses) would wipe out all of the trader's money.
4. Be realistic about the amount of risk required to properly trade a given market. For instance, don't kid yourself by thinking you are only risking a small amount if you are position trading (holding overnight) in a high-flying technology stock or a highly leveraged and volatile market like the S&P futures.
5. Understand the volatility of the market you are trading and adjust position size accordingly. That is, take smaller positions in more volatile stocks and futures. Also, be aware that volatility is constantly changing as markets heat up and cool off.
Never add to or “average down” a losing position
6. Understand position correlation. If you are long heating oil, crude oil and unleaded gas, in reality you do not have three positions. Because these markets are so highly correlated (meaning their price moves are very similar), you really have one position in energy with three times the risk of a single position. It would essentially be the same as trading three crude, three heating oil, or three unleaded gas contracts.
7. Lock in at least a portion of windfall profits. If you are fortunate enough to catch a substantial move in a short amount of time, liquidate at least part of your position. This is especially true for short-term trading, for which large gains are few and far between.
8. The more active a trader you are, the less you should risk per trade. Obviously, if you are making dozens of trades a day you can't afford to risk even 2% per trade--one really bad day could virtually wipe you out. Longer-term traders who may make three to four trades per year could risk more, say 3-5% per trade. Regardless of how active you are, just limit total portfolio risk to 20% (rule #2).
9. Make sure you are adequately capitalized. There is no "Holy Grail" in trading. However, if there was one, I think it would be having enough money to trade and taking small risks. These principles help you survive long enough to prosper. I know of many successful traders who wiped out small accounts early in their careers. It was only until they became adequately capitalized and took reasonable risks that they survived as long term traders.
This point can best be illustrated by analyzing mechanical systems (computer-generated signals that are 100% objective). Suppose the system has a historical drawdown of $10,000. You save up the bare minimum and begin trading the system. Almost immediately you encounter a string of losses that wipes out your account. The system then starts working again as you watch in frustration on the sidelines. You then save up the bare minimum and begin trading the system again. It then goes through another drawdown and once again wipes out your account.
Your "failure" had nothing to do with you or your system. It was solely the result of not being adequately capitalized. In reality, you should prepare for a "real-life" drawdown at least twice the size indicated in historical testing (and profits to be about half the amount indicated in testing). In the example above, you would want to have at least $20,000 in your trading account, and most likely more. If you would have started with three to five times the historical drawdown, ($30,000 to $50,000) you would have been able to weather the drawdowns and actually make money.
10. Never add to or "average down" a losing position. If you are wrong, admit it and get out. Two wrongs do not make a right.

Money Management :Controlling Risk and Capturing Profits

Money management is the process of analyzing trades for risk and potential profits, determining how much risk, if any, is acceptable and managing a trade position (if taken) to control risk and maximize profitability.
Many traders pay lip service to money management while spending the bulk of their time and energy trying to find the perfect (read: imaginary) trading system or entry method. But traders ignore money management at their own peril.
The story of three not-so-wise men
I know of one gentleman who invested about $5,000 on options on a hot stock. Each time the stock rose and the options neared expiration, he would pyramid his position, plowing his profits back into more options. His stake continued to grow so large that he quit his day job.
As he approached the million-dollar mark, I asked him, "Why don't you diversify to protect some of that capital?" He answered that he was going to keep pyramiding his money into the same stock options until he reached three to four million dollars, at which point he would retire and buy a sailboat.
I recently met a second gentleman at a dinner party. He told me that six months ago he began day trading hot stocks. It was so profitable, he said, that he quit a flourishing law practice to trade full time. Amazed at his success, I asked him, "How much do you risk per trade, a half point, one point?" He replied, "Oh no, I don't like to take a loss."
A third gentleman was making his fortune buying the hottest stock(s) on the momentum list(s). He, too, was on the verge of quitting a successful business. When asked about his exit strategy, he replied "I just wait for them to go up." When asked, "What if they go down?" his reply was, "Oh, they always come back."
What ever happened to these "traders?" Gentleman number one is now homeless, and the other two are about to be. They are on the verge of financial devastation and the emotional devastation that goes along with it. This is the cold, hard reality of ignoring risk. How do we avoid following in the footsteps of these foolhardy traders? Three things will prevent this from happening: 1) money management, 2) money management, and 3) money management.
The importance of money management can best be shown through drawdown analysis.
Drawdown
Drawdown is simply the amount of money you lose trading, expressed as a percentage of your total trading equity. If all your trades were profitable, you would never experience a drawdown. Drawdown does not measure overall performance, only the money lost while achieving that performance. Its
calculation begins only with a losing trade and continues as long as the account hits new equity lows.
Suppose you begin with an account of $10,000 and lose $2,000. Your drawdown would be 20%. On the $8,000 that remains, if you subsequently make $1,000, then lose $2,000, you now have a drawdown of 30% ($8,000 + $1,000 - $2,000 = $7,000, a 30% loss on the original equity stake of $10,000). But, if you made $4,000 after the initial $2,000 loss (increasing your account equity to $12,000), then lost another $3,000, your drawdown would be 25% ($12,000 - $3,000 = $9,000, a 25% drop from the new equity high of $12,000).
Maximum drawdown is the largest percentage drop in your account between equity peaks. In other words, it's how much money you lose until you get back to breakeven. If you began with $10,000 and lost $4,000 before getting back to breakeven, your maximum drawdown would be 40%. Keep in mind that no matter how much you are up in your account at any given time--100%, 200%, 300%--a 100% drawdown will wipe out your trading account. This leads us to our next topic: the difficulty of recovering from drawdowns.
Drawdown recovery The best illustration of the importance of money management is the percent gain necessary to recover from a drawdown. Many think that if you lose 10% of your money all you have to do is make a 10% gain to recoup your loss. Unfortunately, this is not true.

Dope, Dollars & Deficits

DO DEFICITS MATTER? Right around the time that English missionaries produced the first Bible in Chinese, the British Empire found... ... itself with a trickier kind of translation problem.Exporting the English language to China – and a little Protestant godliness besides – was proving much easier than exporting British-made goods.Imports from abroad, in contrast, just kept on growing as the industrial revolution steamed ahead at home, sucking in the new consumer favorites – tobacco, sugar, coffee, calicoes, porcelain and silk.By the early 19th century, of course, Britain owned the plantations of the West Indies and the factories of Bengal. So those deficits didn't even exist, let alone matter. But "the British were spectacularly unsuccessful in finding trade goods that the Chinese wanted or needed," as Jonathan Spence, professor of history at Yale, noted in his Reith Lectures for the BBC earlier this week. Thus "there was the problem of trade imbalances." And stuck for consumer items to ship back across the oceans, London's merchants were forced to pay in cash.For the British, money meant gold, just as it did until the last gasp of the Gold Standard one hundred years later. But the Chinese wanted silver.(They never did get round to using gold, in fact. And while Britain recovered early from the Great Depression by abandoning gold for credit-money in 1931, one theory holds that China side-stepped it entirely by sticking to its silver standard...)Translating English pounds into Chinese yuan in the 1830s meant selling gold for silver, and that meant dealing on Europe's precious metals market. Paying a commission to the bullion dealers of Paris or Prussia – as well as shipping it all back and forth – only added further to the transaction costs of running up that yawning trade gap.What to do? A little of the British Empire's raw cotton found a market in China, but it wasn't nearly enough to close the trade gap. Gold bullion continued to flow out of London, aggravating the "bullionist" school of economists and policy-makers. They feared a shortage of coin in the domestic British economy, plus a fall in the Pound Sterling's international value...as well as giving work to foreign laborers, and paying profits to their foreign masters...while leaving the London exchequer impoverished should it ever need to fund a military defense of the home front.And so "it was this melancholy failure of the balance of trade that led to the under girding of the opium business in China," explains Prof. Spence. Opium grown in India "started to be sold to the Chinese by British traders, and later by American traders, because the West simply could not find enough products to attract the Chinese in a sort of barter exchange at the time."Widespread dope-smoking and the social breakdown it can invite rarely chimes with government policy – not domestically, at least. Opium had long been banned by imperial decree from Nanjing. But after ten years of trying to fend off Britain's drug dealers without damaging the inflows of silver, the Qin authorities finally cracked and made a stand, seizing 20,000 chests of the drug – some 1,200 tonnes – landed in Guangzhou.London responded first with a gun-boat, and then the all-out Opium War of 1839. It ended three years later with the Treaty of Nanjing. Britain's military might won the island of Hong Kong, plus reduced trade tariffs, freedom from Chinese law for its ex-pats, as well as "most-favored nation" status.

Advantages of Forex

Although the Forex market is by far the largest and most
liquid in the world, day traders have up to now focused
on seeking profits in mainly stock and futures markets.
This is mainly due to the restrictive nature of
bank-offered Forex trading services.
Unlike others, NorthFinance offers both online and
traditional phone Forex trading services to all
investors, with minimum account opening values starting
at 100 USD.
There are many advantages to trading spot Forex as
opposed to trading stocks and futures.
In the peoples mind there is this opinion that brokerage
firms and analysis’s can change the flow of the
currency. But in reality, FOREX is an independent
international foreign exchange market which can be
influenced by many factors but NOT by the wants(wills)
of traders and brokerage firms.
Because of its diversity you are able to trade FOREX 5
days a week, 24 hours a day. US, Europe and Asia the
major trading sessions enable you to trade on your own
schedule and make a quick respond to breaking news from
all continents of the world no matter where you are
located.
Complied benefits from both high leverage and potential
profits from both rising and falling market, Forex is
very interesting for speculators from every point of
view.
For example, with $10,000 cash in a standard account
that allows 1:100 leverage (1%), you can control up to
$1,000,000 in notional value.
NorthFinance charges NO commissions or fees, simply take
all your profits with you. Commission-free trading is
one of the most attractive features of NF. The dealing
spreads are as low as 2 pips(for EUR/USD). Providing a
more comfortable environment when trading. Versatility
all around
The overall volume of FOREX market is $2 trillion.
Almost all the amount of the volume involves trading of
the major currency pairs, NorthFinance clients enjoy
tight spreads on these pairs.
NorthFinance clients have the ability to trade in both
directions, compared to other equity markets where it is
more difficult to make certain trades. This gives an
advantage to all our clients.
It is simple to open an account, you can do it on-line
within 10 minutes. With multiple means of
funding/withdrawing you can start trading within one
hour. Access your trading account from anywhere in the
world. Our company serves clients, from over 150
countries and with a large network of world wide located
offices and representatives it makes contact us easy.
Trader Y opened an account of USD 50'000.
He buys EUR/USD 500'000 @ 1.3500 at the market and
places a stop loss order at 1.3460.
This point shows that his maximum risk is USD 2'000 and
his margin utilization is 10%, well above the minimum.
During the trading day the Forex market fluctuates and
initially moves down to 1.3480.
At this point trader Y has an unrealized loss of USD
1'000 and his margin utilization has fallen to 98%
reflecting the effect of the downward move on his margin
capacity.
Later the price moves back up to 1.3600 and trader Y
decides to take profit.
He sells at 1.3600 making a USD 5'000 profit which
represents a 10% return on his account value.
Note that trader Y took only a risk of USD 2'000 and
made a return of USD 5'000 this equates to a risk/reward
ratio of 2.5. A high risk reward ratio is what every
trader should be aiming for.
Please note that the example above is arandom case and
in no way is meant to illustrate that the potential for
profit is always greater than the potential for loss in
foreign exchange trading.

Why Trade Forex

Take control of your own finances.Beat the returns from mutual funds, hedge funds or managed funds.
Start-up costs are low when compared with day trading stocks or futures.
Forex is the world’s largest market. No one can corner the market.
With a trading volume of around $1.9 trillion dollars a day, no single entity can control the market for an extended period of time.
You can make money when the market is going up or down.
Forex markets trade 24hours a day. There is no waiting for the opening bell.
Technical analysis works very well and the market trends well.
Forex offers up to 100:1 leverage but it is wise avoid very high leverage if you can afford it. Stocks offer 1:1 or 2:1.Futures offers 15:1 leverage
The forex market is the most liquid in the world. Traders can almost always open or close a position at a fair price.
You can make big money working only a few hours a day or week on your computer.
You can trade from anywhere in the world where there is an internet connection.
You can gain experience without risking your own money by using a free demo account.
When trading stocks, there are over 40,000 stocks to choose from. In forex, you can choose one or two currency pairs and focus your analysis.

Forex for Beginners

Forex is an international market that buys and sells currencies of the world; the mechanisms of the marketplace are very similar to that of other markets such as the stock market. The purpose is to buy low and sell high to maximize profits. There are various Forex strategy and Forex options to utilize, some investors find researching past trends and fluctuations helpful. By reading trends appreciating and depreciating patterns can be recognized. There are steps new trades can take in order to ensure their introduction to the marketplace is straightforward as well as rewarding. On joining this global trading arena it is necessary to maintain constant analysis while recognizing the value of time. There are numerous Forex strategy and Forex options to choose from, being familiar with these working makes Forex for beginners comprehensible.

10 Tips for Online Forex Traders

Without a doubt, trading is more than a few quick tips for success. You need experience, fortitude, capital and, above all, a solid trading system. However, for beginners and those who are perhaps losing their focus amid significant drawdowns, keeping things simple can introduce much-needed focus into your trading. To that end, here are 10 tips for trading e-forex that can help you get a handle on these exciting markets.
For small accounts especially ($25,000 and under), trade with the trend. Many beginners look for trades in any direction. While forex trading easily permits bi-directional trading, trading in the direction of the trend improves your odds over the long run.
Have two accounts. One real account and the other a demo account. Learning doesn't stop when trading real dollars begins. Keep the demo account and use it to test alternative trades, alternative stops, etc. For example, you can shadow your real trades with identical ones in your demo account, but widen your stops in the demo in an effort to see if you're being too conservative.
Stop looking for leading indicators. There aren't any. While some firms make a lot of money selling software that predicts the future, the reality is that if those products really worked, they wouldn't be giving the secret away.
Examine daily charts, four-hour charts and one-hour charts to time your trades. While trading at 30- and 15-minute time increments is doable, it takes a great deal of dexterity.
Don't trade the time frame. Trade the pattern. Reversal patterns, hesitation patterns and breakout patterns appear often. Learn to look for the pattern in any time frame.
If you're properly funded, trading two lots is safer than trading one. Trading three lots is safer than two. Trading is a synthesis of emotions, technical analysis and money management. One lot makes it difficult to weigh these elements in deciding to enter or exit. Two lots is easier and, providing you have the capital, three lots is optimal.
Extreme trading can be the most conservative trading. Trading at the extremes ? when prices touch or break or bounce off trend, support or resistance lines ? increases the odds that you have chosen the correct direction.
Scan the Big Five - the dollar/yen, euro/dollar, Swiss franc/dollar, euro/yen and pound/dollar ? before you decide to take a position in any one of them. There might be something obvious you're missing.
Follow the Upside Down Rule. If you can turn a chart upside down and it looks the same, stay away.
Don't count profits in your first 20 trades. Keep track of the percentage of wins. Once you know you can pick direction, profits can be increased with multi-plot trading and variations in using your stops. In other words, now is the time to get serious about money management.

Introduction to Foreign Exchange Markets

The forex market is a non-stop cash market where currencies of nations are traded, typically via brokers. Foreign currencies are constantly and simultaneously bought and sold across local and global markets, hence investments appreciate or depreciate in value based upon currency movements. Foreign exchange market conditions can change at any time in response to real-time events. The main enticements of currency dealing to private investors and attractions for short-term forex trading are:
24-hour trading, 5 days a week with access to global forex dealers
An enormous liquid market making it easy to trade most currencies
Volatile markets offering profit opportunities
Standard instruments for controlling risk exposure
The ability to profit in rising or falling markets
Leveraged trading with low margin requirements
Many options for zero commission trading Forex trading The investor's goal in forex trading is to profit from foreign currency movements. Forex trading is always done in currency pairs. When trading currencies, trade only when you expect the currency you are buying to increase in value relative to the currency you are selling. If the currency you are buying does increase in value, you must sell back the other currency in order to lock in a profit. An open trade (also called an open position) is a trade in which a trader has bought or sold a particular currency pair and has not yet sold or bought back the equivalent amount to close the position. Private investors can trade in forex directly or indirectly through:
The spot market
Forwards and futures
Options
Contracts for difference
Spread betting It is estimated that anywhere from 70% to 90% of the forex market is speculative. In other words, the person or institution that bought or sold the currency has no plan to actually take delivery of the currency in the end; rather, they were solely speculating on the movement of that particular currency. Exchange rate Currencies are traded in pairs and exchanged one against the other when traded, so the rate at which they are exchanged is called the exchange rate. The majority of the currencies are traded against the US dollar (USD). The four next-most traded currencies are the euro (EUR), the Japanese yen (JPY), the British pound sterling (GBP) and the Swiss franc (CHF). These five currencies make up the majority of the market and are called the major currencies or "the majors". Some sources also include the Australian dollar (AUD) within the group of major currencies. Margin Banks and/or online trading providers need collateral to ensure that the investor can pay in case of a loss. The collateral is called the margin and is also known as minimum security in forex markets. In practice, it is a deposit to the trader's account that is intended to cover any currency trading losses in the future. Margin enables private investors to trade in markets that have high minimum units of trading by allowing traders to hold a much larger position than their account value. Leveraged financing Leveraged financing is the use of credit, such as a trade purchased on a margin. It is very common in forex trading, and results in being able to control $100,000 for as little as $1,000. Risks Although Forex trading can lead to very profitable results, there are risks involved: exchange rate risks, interest rate risks, credit risks, and country risks. Approximately 80% of all currency transactions last a period of seven days or less, while more than 40% last fewer than two days. Given the extremely short lifespan of the typical trade, technical indicators heavily influence entry, exit and order placement decisions.

Forex Articles

Forex articles about issues such as New York Stock Market and 1987 Stock Market Crash.
New York Stock Market
New York Stock Market (NYSE) is the largest stock exchange in the world by dollar volume.
New York Stock Market
1987 Stock Market Crash
1987 stock market crash happened on "Black Monday", October 19, 1987, when Dow Jones Industrial Average (DJIA) dropped by 508 points to 1739 (22.6%).
1987 Stock Market Crash
German Stock Market
German stock market has, alltogether, ten stock exchanges.
German Stock Market
Brazil Stock Market
Brazil stock market is centered around Sao Paulo Stock Exchange, the country's and Latin America's largest stock exchange.
Brazil Stock Market
Stock Market Results
One of the easiest tools to analyze stock market results is the Google Finance portal.
Stock Market Results
Currency Exchange Rate History
Currency exchange rate history resources include online forex databases and central bank websites.
Currency Exchange Rate History
Mazo Currency Exchange
There are currently no Mazo currency exchange locations available, and your better bet is to go to change currency at either Los Llanos de Aridane or Santa Cruz de la Palma.
Mazo Currency Exchange
Property Investment New Zealand
Property investment New Zealand has been increasing due to political stability, great weather, and good living standards pulling investment money and people to the area.
Property Investment New Zealand

Euro Currency Exchange

Euro currency exchange rates can be found from resources such as Marketwatch for live rates, and ECB for historical rates.
Marketwatch - Euro Live Rateswww.marketwatch.com/tools/stockresearch/globalmarkets/
The Marketwatch live ticker is one of the best live tickers for EUR/USD rate and many other rates against the US dollar.
You can also see the historical progression of the rate against the US dollar at
marketwatch.com/tools/quotes/intchart.asp?symb=C_EUR&sid=127354
The live rates for Marketwatch are in fact produced by Global Forex Trading (www.gftforex.com), which is an online forex trading house.
European Central Bank - Historical EUR rateswww.ecb.int/stats/exchange/eurofxref/html/index.en.html
European Central Bank (ECB) is the central banking unit for the whole of European Union. It also acts as a data storekeeper for official rates of EUR against other currencies.
These historical rates can be accessed from the ECB website. There are also interactive charts to see how the currency has changed in value against a range of other currencies in the world.

Stock Market Timing System

Stock market timing system providers include TimingCube, StockMarketTiming.com, and EminiForecaster.
TimingCubewww.timingcube.com
According to the company who makes this system, their investment system combines trend following techniques to time market movements with momentum rankings to target the strongest U.S. and international markets.
They rely on a Trend Timing Model to detect major trend changes in the broad market and to issue Buy and Sell signals, on average three to five times per year.
In addition, their World Index Ranking points out the best markets and diversified index funds to be invested in, in 100% mechanical way.
StockMarketTiming.com
According to this website, their system combines mathematical models of technical analysis and a proprietary methodology to produce results that aim to beat the buy-and-hold strategy of investing.
Their system produces, on a yearly basis, about 20 to 25 signals (i.e., buy long, sell short, or hold cash) for each ETF (DIA, SPY, and QQQQ).
EminiForecasterwww.eminiforecaster.com
This company has a method of forecasting that calculates different cycles in the market and their computers use them to forecast the following week. These forecasts are best suited for swing trading and even daytrading.

Forex Trading Systems and Solutions

Once you’ve covered the basics of foreign exchange operations, you might also want to know the ways currency trading is done, through brokerages, forex trading systems, and with different currency trading systems.
The tools and services you’ll need for you own forex trading or operations will depend on your particular approach to forex.
In fact, many corporations do not want to take any risks with forex fluctuations and will hedge their positions. Others, traders and speculators, seek to profit from the fluctuation with their systems and views.
From this site, you’ll find information on resources that will help you understand better the complex world of investments for forex markets and currency trading.

Ways to Learn About Forex Markets

There are many ways you can learn about forex markets. If you’re a business student, many universities have classes in foreign exchange operations and macroeconomic mechanisms that affect currency fluctuations.
Outside of the formal education field, you can learn about forex and currency trading from traders, salespeople, and analysts. Moreover, you can learn foreign exchange operations from educators through specifically arranged seminars, courses, and mentoring.
And don’t leave out forex magazines and books for background information and latest news to keep you ahead of the curve.

Forex ?

Forex market is the biggest financial market in the world. Moreover, currency trading is one of the fastest growing forms of investing.
Here’s how to find information and resources to deepen your knowledge about the fast and exciting world of foreign exchange and how to use it for trading purposes.
Internet has changed the way people view forex markets. No longer are the best currency analyst reports unavailable to the public, live real-time data too expensive for common investors, or capital requirements too high.
In fact, many companies have introduced mini forex accounts, with starting capital requirements for selected accounts in some brokerages under $1000. These smaller accounts have made currency trading available to everyone, increasing the need to be educated on forex and currency trading.

Travel Insurance

It's surprising how few people take out travel insurance, or pay attention to what is covered by their travel insurance policy. Given the cost of travelling, hotels and tours and the likelihood that you will be delayed or injured or have belongings or important documents stolen or lost, a good travel insurance policy is an easy way to minimise the disruption and distress caused by such events. Anyone who has ever had an airline lose their suitcase was probably shocked to learn the paltry amounts the airlines are, by law, obliged to reimburse travellers for their lost goods. Similarly, air or rail delays may mean you miss an important connection, and even if the delay was no fault of your own you may still find yourself paying for a whole new ticket. If the worst happened and you were to fall ill or be injured, medical costs in foreign countries - the United States is one example - could be crippling without insurance to cover medical expenses and repatriation. Travel insurance policies come in many term lengths, ranging from the specific length of your trip, to one-month coverage for an extended holiday, to several months' coverage for travellers such as backpackers, all the way up to annual coverage for the most frequent travellers. Different policies will cover varying amounts of loss and expense and have different exceptions and deductibles. Not all travel insurance policies are appropriate for all forms of travel, however. An annual policy may be too much coverage for a couple going to the Costa del Sol for two weeks each year; similarly, a cheap policy from an online travel agent may not cover longer periods of travel or certain activities, such as skiing or scuba diving. There are many types of travel insurance policy and many travel insurance providers, but only Moneynet.co.uk can direct you to the best travel insurance deals around. As a financial data comparison site, Moneynet.co.uk helps you sort through the deals to find the package that best suits your travel needs.
What should your travel insurance cover?Probably the most important coverage you need to arrange is for medical expenses. However, countries in the European Economic Area - which includes EC countries as well as Norway, Liechtenstein and Iceland - provide reciprocal health services. You need to take a completed E111 form (available at the Post Office) with you when you travel. The E111 does not, however, provide repatriation coverage. Travellers should check the Department of Health website (http://www.doh.gov.uk/) for more details, as during 2005 the UK will be adopting the European Health Insurance Card (EHIC) in place of the E111 form. Some other countries have different forms of reciprocal health services, but you will need to check with the DoH before travelling to establish what medical services you will be entitled to under the agreement. If in doubt, travellers are advised to take out travel insurance to be safe. Travel insurance policies will have clauses dealing with existing medical conditions, and many will not cover any illness related to existing conditions. Heart patients, people with HIV and those suffering from other illnesses may have difficulty finding coverage; the elderly may have difficulty as well, even without existing medical conditions. Check with a specialist company like Saga for the best deals for older travellers. Many people will want to make sure their travel insurance covers them for sporting accidents, such as for skiing. Winter sports cover is usually available at extra cost, as is cover for specialised activities such as scuba diving. If you plan to partake of any so-called extreme sports, however, your policy is less likely to cover them, so always check before taking part in an activity. You may need to speak to a specialist provider such as Activesure.co.uk or look at 'extreme activity' policies from companies like Endsleigh. It's also important to ensure your policy covers your length of trip. An annual policy, though covering various trips throughout the year, will likely not cover individual trips of more than 31 days. If you're buying a single-trip policy, or travel frequently on small or local airlines, be sure your travel insurance provides adequate cover in case of delays, cancellations and lost baggage. Even having to pay the cost of staying in a hotel an extra night can be expensive; paying for entirely new flights after a delay and missed connection can be prohibitive.
Who should I buy my travel insurance from?Contrary to what many people are told by their travel agent, it is not required by law to carry travel insurance. However, it is highly recommended. If you are holidaying on a package deal, your agent or operator will probably try to sell you their own travel insurance for the trip; although convenient, this is one of the most expensive coverage options and travellers are advised to arrange travel insurance separately instead of paying up to twice as much through a travel agent. Since January 2005, it is especially important to avoid the travel agents when buying travel cover; from that date, the insurance industry falls under the regulation of the Financial Services Authority, giving that body the ability to investigate and take action on behalf of consumers. Tour operators and travel agents, however, are not subject to this regulation, so if you have a complaint about travel insurance purchased from a travel agent, the FSA and the Financial Ombudsman Service will not be able to intervene on your behalf. Luckily consumers have a great many options when it comes to purchasing travel insurance - from the big financial service providers to high street providers. Insurance companies and banks offering different types of travel cover include Churchill, Columbus Direct, Direct Line, Go Sure, Kingfisher, Norwich Union, the Royal Bank of Scotland, AXA, Lloyds TSB, Egg, Abbey, Halifax, Nationwide, Britannia and NatWest - to name only a few. Check with your other insurance providers to see if they offer travel cover - many companies such as the AA, Auto Direct or BUPA, which focus on other types of insurance, offer travel insurance policies as well. If you'd like to buy your travel insurance while you go about your daily errands, consider the various policies offered by such high street names as Tesco, Marks & Spencer or the Post Office.
What do I need to know about making claims?First of all, don't be one of the nearly 50% of people surveyed by the Association of British Insurers who would be willing to submit a fraudulent travel insurance claim - this only leads to higher premiums for everyone. Inflating your claim makes the process of getting the payout harder for everyone else, and it could also be a criminal offence leading to prosecution. The first step with any travel insurance claim is to ensure that the policy you hold covers you for the particular loss. For goods, there will likely be maximum amounts for each item, and loss may not be covered. As for medical claims, check what your coverage is for emergencies, longer-term care and medications, and again be sure to declare any pre-existing medical conditions when you buy the policy. Find out if your insurer expects to be told of every activity you plan to take part in on holiday. It may seem silly to let them know about a little hiking, golfing or sailing, but insurance companies need little excuse to wriggle out of paying, so don't make it easier for them to do so. Take your policy with you when you travel - or a copy of it - and list details of any very expensive item (camera, jewellery, etc.) you plan to take as well. Ensure your valuables, passport and extra cash are locked in the hotel safe as much as possible. If and when something is stolen, if you plan to claim for it, report it to the police immediately. Many companies will not pay out without a police report. For medical claims, make sure you keep all the paperwork, receipts and forms involved in your hospital. Again, take a copy of your policy with you on holiday and familiarise yourself with the steps they require you to take when making a medical claim.

Motor Insurance

Arranging motor insurance is vital for every motorist - not only because you are legally obliged to do so, but because accidents can and do happen every day on UK roads. Being in an accident not only puts you at risk of paying for your own vehicle repairs, but you may have to pay for another driver's repairs as well. Being legally obliged to carry motor insurance doesn't make you equally obliged to pay too much for it, but many people could secure a better deal on their insurance by shopping around, and some studies suggest that many of us do not bother to do so and pay too much based on a low initial premium. As the UK's premier financial data comparison site, Moneynet.co.uk can direct you to the best insurance providers and policies to meet your needs. Though many insurers claim to have the cheapest deals going, Moneynet.co.uk makes it easy to see which deals best suit you and your vehicle.
What kinds of motor insurance are there?Comprehensive insurance Comprehensive car insurance covers any damage to your vehicle - it is, in effect, an all-risk policy. The only exclusions to the policy will be those you agree on with your insurer, and which may or may not be items like breakdown coverage, medical or legal fees. Comprehensive coverage is popular because it not only covers damage caused by accidents, but also by more minor events like scratches or damage by other motorists when your vehicle is parked. There will be some exceptions to what the policy will cover, such as regular wear and tear. It's important to check a policy carefully for a full list of exclusions before you sign the contract. Despite its convenience, comprehensive insurance coverage is not the best option for everyone. For example, if you drive a second-hand car that is not worth very much money, and if you are in a higher-premiums category (ie. if you are young), you may pay out more in comprehensive insurance than your car is worth. Third party insurance Third-party-only car insurance is the minimum level of insurance permitted under the Road Traffic Act, and covers only your liability to other drivers - it does not cover damage to you or your vehicle. Some policies may also cover your legal fees in case of litigation following an accident. For slightly more than the third-party-only option, you can cover yourself for third party, fire and theft, which will also pay out if your car is stolen or destroyed in a fire. Specialty insurance Specialty vehicles such as sports and kit cars, classic cars, 4x4 vehicles, motorcycles and other less common vehicles may command much higher premiums than regular cars. If you find you are being quoted more than you expected to pay for a new sports car, for example, you may wish to check a specialty insurer such as Adrian Flux for a quote. Similarly, motorcyclists and caravan enthusiasts should check dealers such as Swinton, and classic car owners may find a more appropriate quote from classic car specialists Lancaster.
What does vehicle insurance cost?There are likely as many possible quotes for car insurance as there are vehicles on the road. However, certain factors will ensure you pay more to insure your vehicle - some of which can be avoided, and some that cannot. Two factors which are entirely out of your control are your age and gender. Young drivers are statistically at a much higher risk of having an accident than those who have been driving for longer - the combination of inexperience and youthful impetuousness leads to more accidents, and more insurance claims. Being added to a parent's insurance policy is the best way to keep young drivers' insurance down, but if they have their own car then they will need to buy - and likely pay much more - for their own policy. Young drivers can keep costs down by sticking to third-party-only insurance, buying an inexpensive and/or second-hand car, and keeping a driving record clean of speeding and other violations. You may also find better quotes from specialist providers such as 4 Young Drivers. Older drivers, on the other hand, are generally given preferential rates due to their experience and extra caution on the roads. Specialist insurers such as Senior Car Insurance or Saga may offer the best rates. Having an extra X chromosome may seem an unfair way to keep vehicle insurance costs low but statistically, women take fewer risks than men, are more cautious and drive more slowly, resulting in less expensive insurance claims. As a result they are generally offered lower premiums and are catered to by a large number of specialist insurers such as Diamond, Girl Motor, Diva Female Car Insurance and Women on Wheels. As with other types of insurance, the cost of your premiums will also be highly dependent on whether you have made claims in the past. However, in the case of vehicle insurance, you may have had to make a claim even though the loss or damage was not your fault. Some insurers, such as Bell, aim not to penalise drivers for such claims. Many factors that can affect the cost of your vehicle insurance are well within your control, however. A more expensive car with modifications will cost more to insure, as will one that is parked on the street instead of in secured parking. Paying attention to security within your car, via the use of alarms, immobilisers or steering locks, will help keep premiums lower. Using your car to commute will increase your premiums, as will having a job in certain 'higher-risk' industries such as entertainment or the media. You also have some control over the cost of vehicle insurance premiums even if you don't drive a car. Motorcyclists can keep costs down by keeping the size of their bike down; a smaller, less powerful bike is unable to accelerate as quickly as a large one, and cannot reach the same speeds overall, so is deemed safer. Drivers of 4x4s can, oddly, keep insurance costs down by not going off-road, and it is extremely important for owners of these vehicles to check their coverage to see if they are covered off the public highways before they venture into the woods. Finally, no matter what you drive, one simple way to keep your premium costs down is to keep your speed down. Not only are you less likely to have an accident, a speed conviction can double or even treble your insurance premium. Not all insurance providers will necessarily charge more for a convicted speeder, though, so it pays to shop around.

Home insurance - building and contents

Considering how important our homes and possessions are to us, it's surprising that more people don't put more consideration into their building and contents insurance. Could you afford to replace your home if it burned down? Insuring your home is so important that most mortgage providers won't grant a mortgage without buildings insurance; however, it's worth shopping around for policies, as your mortgage provider may not be the best insurance provider. Buildings insurance will usually cover both the structure and the permanent fixtures such as plumbing, baths, toilets, doors and cupboards. You will need to check your policy to see if it also covers what are considered 'outbuildings' such as garages, garden sheds and the like. The policy may cover for damage from a number of causes, which may include fire, landslide, flood, falling trees, vehicles, earthquakes or lightning. Equally important should be insuring your home's contents, which are your possessions - your appliances, electronic goods, furniture and clothing. A surprising one in four households doesn't carry contents insurance, though - many of them renters - leaving them liable for loss or damage due to burglary, smoke, fire or flood and water. Some contents insurance policies may also cover you for legal liability - the loss you would suffer if someone injured themselves in your home due to your negligence or lack of upkeep of the property, and sued you for damages. Building and contents insurance policies may be sold together, but it's worth investigating the cost of separate policies to ensure you're getting the best price for your coverage.
What does home insurance cost?With both buildings and contents insurance you will have a choice between basing the cost of your premiums on the number of bedrooms in your house - a convenient, but potentially costly method - and working out the exact value of rebuilding your home and replacing its contents on the sum-insured method, which may be more accurate but is also more complicated and time-consuming. Both methods carry the risk of over-insuring yourself and paying higher premiums; the sum-insured method also carries the risk of underestimating the value of your home and belongings, and therefore running the risk of being unable to replace everything should it be lost. If you underestimate the value of your belongings in order to save money on premiums you will lose out on any claim, so be as accurate as possible when estimating replacement values. It's important to work out the amount of buildings insurance you require based on what it will actually cost to rebuild your home, and not simply on the resale value, as these two figures may differ widely and you may be able to rebuild your home for much less than it would cost to buy in a strong real estate market. It is recommended that homeowners contact a chartered surveyor to assess the correct insurance replacement cost of a home. Premiums on building insurance policies will vary widely from house to house, so don't expect to get the same deal as your neighbour. Your postcode will be one of the first factors to determine your premiums, as some high-crime areas may be at greater risk of burglary. Buildings insurance may also be index-linked, which means premiums will rise in line with the Retail Price Index (RPI). The style of your house will also be a consideration. Do you have a thatched roof, or similar uncommon construction? Insurance companies will often charge more for unusual features. Listed buildings will also be more costly. Lastly, as with all insurance policies, your previous claims history will also be taken into account. Your postcode will also be a factor for your contents insurance, but the cost of premiums will vary even more widely due to your individual contents and how much they are worth. In addition, you will need to check whether you have indemnity cover or new-for-old cover. New-for-old insurance is likely to cost more, but it ensures that you are given the amount it costs to replace an item with a new one if it cannot be repaired. Indemnity cover takes into account the age of the item and wear and tear, and only gives a fraction of the new replacement cost. You will also pay more for your insurance premiums if you wish to cover certain items which will not be kept in your home at all times, such as jewellery or a laptop computer. Homeowners generally insure the contents of their homes with theft or disaster damage in mind. However, you're probably more likely to damage or destroy an expensive item by accident, so accidental damage cover is a wise idea - it covers you for items that may be dropped and broken, scratched or otherwise damaged.
ExclusionsIt is crucial to check the fine print of your building and contents insurance policies to see what is and is not covered, or you may suffer a nasty and expensive shock. The most common buildings insurance exclusions relate to damage from ordinary ageing and wear and tear; damage caused by your own neglect of the property, or by your pets; or damage you intentionally cause to the property. Most insurance polices will also have limits on what you can claim for individual items, and for the total value of your contents, but you may be able to negotiate more coverage for higher premiums. Homeowners who travel a great deal need to ensure that their home insurance policies cover them for extended periods away from the property. Many policies will not cover theft or damage if the property is left vacant for 30 days or more, but again, for higher premiums you may be able to arrange special cover.
Who offers home building and contents insurance?There are a great many home insurance providers, so establish first what sort of coverage and policy you want before shopping around for quotes. Providers include esure, the Post Office, More Than, Lloyds TSB, Saga, Norwich Union, Zurich and the AA.

Insurance Guide

Introduction
Have you got it covered? These days, you probably have. Insurance is now available for nearly anything, covering the most important - and probably the most expensive - possessions in your and your family's lives: your home and its contents, your vehicle and your holiday. Just as with life and health insurance, arranging cover for your expensive and/or treasured possessions provides peace of mind should the worst happen - theft or fire loss in your home, an accident that destroys your car, or a loss of luggage or difficulty abroad which has the potential to ruin your dream holiday. And while insurance can never replace the loss of a family heirloom, it can help to ensure you are not bankrupted replacing a necessity. Depending on what you're insuring, policies and premiums will differ greatly - some will be short-term and cover only emergencies, while others like motor or house and contents insurance will be more long-term in nature and will likely adapt to your changing circumstances during the term of your policy. There is no shortage of companies wanting to sell you insurance - insurance companies and brokers now have to compete with banks, supermarkets and travel agents to sell you a policy, and the wide variety on offer can be confusing. How much coverage do you need? And how do you know that you're getting the policy you need at the best possible price? As a financial data comparison site, Moneynet.co.uk can direct you to the best insurance deals to meet your needs. The Internet makes it easy to shop around for low premiums, but you need to ensure that your choice of home, car or travel insurance really suits you, your belongings and circumstances.

Student Finance Guide

According to data from National Statistics and The Times Higher Education Supplement, students now make up around 4% of the total UK population, making them a significant market. The UK population is also aging, as a result of a decline in fertility rates and the mortality rate (people are living longer and healthier). According to money education charity Credit Action, the vast majority of students are going to end up in debt, whilst according to 2004 Natwest Student Money Matters, graduates will now leave university with debts of almost £13,000.
These are significant figures, but with a little financial planning, they can be put into context.
If you (or your child) are about to start university, here are a few factors to bear in mind before departure:
Assume you will accumulate a certain amount of debt over your period of study, but don’t unduly worry about it.
If you can, take a gap year or some time out to earn money before going to university and where possible obtain a job that may have some relevance to your course
It helps if you take on a part time job at university, though this isn’t meant to distract from the studying. There are a number of employers who provide jobs for students, including universities. Many universities have schemes where students can volunteer (and get paid) as ambassadors, lab assistants, campus helpers and mentors: a part-time job doesn’t have to be off-campus
If you have to borrow , make sure you always establish the cheapest forms of credit available such as interest free overdrafts and student loans. However, remember to check your contracts when you graduate, it doesn’t take long for the Student Loans Company or your bank to start claiming back what was free money at university.
Don’t take out a credit card, you’re a student remember? That iPod and summer ball dress can wait! Keep it simple with a current account, savings accounts and your student loans. If you really find yourself considering taking out a credit card, seek advice before doing so and ensure you know when you can pay it back. As a student, credit cards should always be your last resort.
Budget if you can, and if nothing else avoid paying for everything on plastic (especially credit cards), you’ll keep better track of your spending by using cash and checking your balance regularly. Check your current account over the internet with online banking
Don’t just budget on the essential – rent, food, bills and books. The costs of those coffees between lectures will mount up, not to mention text (mobile phone) costs, printing, transport prices, gym subscriptions and membership fees to student clubs and societies
Do your financial homework online with moneynet, have you got the best current account and savings account?
Shop around for your insurance; moneynet can help you here too. Students are frequent victims of crime, not just with theft between students, but the anonymity of campus life means that wallets, laptops and mobile phones are easy to steal and if they’re not insured, you will lose the value of the stolen item and may have to pay for any damage incurred
Student grants, in the mainstream, were phased out many years ago, but there may be grants, hardship funds and bursaries available to specific courses and individuals. Do your homework in advance and don’t make assumptions.
Know what you want from your course and time in higher education, your finances and studies will benefit from a sense of purpose. There is nothing worse than graduating from university with debt and a minimal idea of where to move next, especially when those debts are being claimed back.
Invisible savings
OK, so there’s nothing like re-discovering a ten-pound note in your pocket, which you’d forgotten about, but below are a few tips which could contribute to finding a few extra quid each year at university.
Insurance: check out the different insurance options on moneynet to get your best quote. Household, motor and travel insurance will be likely considerations at some point during your course and you will find quotes vary considerably, so look at the different choices available.
Exploit your student card where possible and always investigate whether a company offers a student rate or student discount
Bulk buy and divide the cost between your flatmates
If you have to have a mobile phone, are you sure you have the best deal?
Do you pay the bills in your household? A quick search on moneynet will reveal whether you are with the cheapest supplier for you domestic bills, though remember to check with your landlord before changing suppliers
Savings
Stretch your student loans and birthday / Christmas cash gifts out as long as possible. Open up a savings account that would you give you reasonable access to your funds, whilst providing a higher rate of interest than you may get in a current account. If you have saved significant funds, which you believe you won’t need access to in the intermediate term, consider low risk options such as ISAs. Certain ISAs will also allow immediate access to funds and still give high rates of interest, so review the different options.
Dos and don’ts of student finance
Don’t lend money to other students, you may not get it back
Don’t borrow money from other students, if you have to borrow then you can’t afford it
Don’t give anyone else access to your PIN number, you will not be covered for missing funds
Be careful when putting your name on the gas, electricity or phone bill in a shared house. Draw up an agreement and if you doubt anyone’s commitment to pay then don’t share the bills. Standing orders are useful in a shared house, as financial contributions go automatically and directly to the bill-payer and they provide a form of commitment from all parties concerned
Look beyond freshers’ week when it comes to spending your student loan
There will always be students with more money than you, be philosophical about this and don’t try to keep up with unrealistic spending habits. If you have to borrow money for ‘good times’, remember it is your name on the credit card, your name on the overdraft and your credit record. Financial mistakes made when you’re a student may come back to haunt you in graduation

Family Finance Guide

Whilst you might not be able to buy love, you can at least protect it with a little financial planning. If you and your partner are contemplating moving in together and merging your finances or even getting married or starting a family, here are few suggestions to keep the love alive over the years! Decide on your financial priorities, such as:
Would an emergency fund be helpful?
Do you need to protect either your own or your partner’s income in the event of illness? At least considering cover of joint expenses?
Do either of you want to consider life insurance, as security for the other?
How much borrowing will you need to do to buy a home?
If you have children, how much planning do you want to do? Is private education an option, do you want to start saving for university fees?
Are you already saving for a pension? Do you want to incorporate your partner in your pension plans? If you’re not already saving for a pension, when do you intend to start doing this?
Will you be saving for short-term family events – such as birthdays, holidays or Christmas?
If you are likely to have surplus funds, are you likely to invest these? If so, will you invest in medium or long term options?
Available resources for parents:
Child Benefit:
Child Benefit is paid for a child or young person who is:
under 16 years old or
16, 17 or 18 years old and at school or college studying fulltime
16 or 17 years old and has left school recently and has registered for work or training with one of the following:
Careers Service, or Connexions Service
Ministry of Defence
Department for Employment and Learning (in Northern Ireland)
An education and library board (in Northern Ireland)
The young person must be actively seeking work or training place and have not yet started work, or training for which a training allowance is paid.
Free dental care & free prescriptions to all mothers-to-be and new mothers (within first year of birth)
Statutory Maternity Pay (SMP)
According to the Department for Work and Pensions:
SMP provides the mother with financial assistance to take time off at and around the birth
SMP is paid by the employer, up to a maximum of 26 weeks
SMP is regarded as earnings and the employer will deduct tax and National Insurance accordingly
Child Tax Credits All families with children can claim Child Tax Credits if their income is less than £58,000 (up to £66,000 if the child is less than a year old). You can still claim this benefit even if you are not the biological parent, but you must be the main person who is responsible for the child. More information about credits and benefits: Tax credit enquiries: 0845 3003900 (UK Tax Credits enquiries) 0845 6032000 (Northern Ireland Tax Credits enquiries) Child benefit enquiries: 0845 302 1444 0845 603 2000 (Northern Ireland)
Available resources for children:
Child Trust Funds (CTFs) Child Trust Funds are long-term tax-free savings and investment accounts into which the Government will pay ‘endowments’ when a child is born. A further payment of an undisclosed amount will also be paid at the age of seven. This means that each child born on or after 1st September 2002 will receive an initial lump sum payment of (currently £250 or £500 for poorer families) from the government. This will be sent in the form of a voucher which can then be used to open a CTF account with the investment provider of the child’s guardian’s choice. Parents will be able to pay up to £1,200 a year into the fund, until the child reaches 18 when the account will cease to be a Child Trust Fund account, and will usually be transferred into an easy access account. Preferential tax treatment will then cease, and any further growth in the fund after this time will be subject to normal tax legislation. Savings in a Child Trust Fund account will develop into an asset which can then be used by the child, and no-one else, when they reach the age of age of 18 (not before) to help cover some of the large expenses encountered at this time of a person’s life, and is intended to contribute towards university fees, first mortgage, etc.
Education Maintenance Allowance (EMA) An EMA is a weekly payment of £10, £20 or £30, depending on the household income and is paid directly into the student’s bank account. The money is intended to help with the day-to-day costs generated by staying on at school or college, such as travel, books and equipment etc. Additionally, £100 bonuses available for students who remain committed to their course and get good marks. A student can get an EMA if:
Their household has an income of £30,000 or less and
Their course involves at least 12 hours of guided learning per week Courses eligible for EMAs include school sixth forms, sixth-form colleges or further education colleges and encompasses ‘A’ levels, GCSEs, GNVQs, NVQs or other vocational qualifications. More information can be found at: For more information about the Education Maintenance Allowance, call the Inland Revenue on 0845 300 3900. If you have any suggestions on how family finances could be improved, please feel welcome to email: info@moneynet.co.uk

What is ethical investing?

Ethical investing is just like any other type of investing, be it in funds, shares, bank accounts or otherwise, except that the company that invests the money for the consumer undertakes not to use that money to fund certain activities or behaviour that are believed to be harmful to the environment, to people or to animals and wildlife. This may mean, for example, that a fund management company will not purchase shares in arms companies or firms that develop harmful pesticides, or that a bank will not lend money to or otherwise facilitate business for such companies. Financial companies that practice ethical investment may not focus on such negative criteria, but positive criteria instead, meaning they will seek out businesses that benefit the environment or the community. The range in policies is sometimes labelled by colour: a 'light green' company will avoid businesses whose actions or products are harmful to the environment, while a 'dark green' company will actively seek out enviro-friendly or community-based businesses to invest in. An increasingly common term for ethical investing is 'socially responsible investing', or SRI. SRI focuses on the positive rather than the negative, and instead of blacklisting entire industries, it prefers to pick the company within the industry that is doing the most to improve its business practices, and give that company encouragement in the form of investment. This positive reinforcement is seen as more likely to improve business practices overall. It's important to remember that even though you may not directly invest your money - ie by buying shares - you may be indirectly investing it via a mortgage, pension or savings account, and by investing ethically you can have a say in what sort of activities your money supports. It is also important to know that the term 'ethical' is largely self-awarded - there is no standard to which companies must conform before they can label themselves ethical. Organisations such as EIRIS, the Ethical Investment Research Service, provide information into companies' ethical behaviour for independent investors, fund managers and charities alike.

Ethical Investing Guide

Introduction
Do you want to get rich, but not at the expense of the poor? You're not alone. Ethical investors in the UK are growing in number each year along with public awareness of pollution, fair trade, child labour, arms sales and similar contentious issues. Ethical investing has gone from being a 'fringe' activity - previously seen as the practice of tree-huggers and sandal-wearers - to a going concern that offers clear-conscience alternatives for the full range of financial products including mortgages, bank accounts, utilities, investments and pensions. Now, more than ever, it's easy being green. But just because a product is deemed 'ethical' doesn't mean it is necessarily a wise financial choice. Given the relatively small number of companies engaged in ethical activities, there are a restricted number of stocks that funds can be invested in - a situation that often caused poor performance in the past. These days, however, UK ethical funds perform on a par with regular funds, according to Standard and Poor's. This is a far cry from 1984 when Friends Provident's Stewardship Fund had to carry a 'wealth warning' so that investors knew the rewards of ethical investment might not have stretched far beyond a clear conscience. It is important to get advice from an independent financial advisor to help you make the right choice of ethical investment for both your financial goals and your ethical ideals.

Life assurance: policy types

Term life assurance is the simplest form of policy, offering basic cover for a set number of years, usually at low cost. A term policy requires a regular premium payment and pays out a lump sum on the policyholder's death. If the policy expires and the holder is still alive, no payment is made; the policy pays out only if you expire before it does. The cost of the assurance premiums will vary from person to person depending on factors such as age, health and occupation, but for all policies it is crucial to ensure you keep up the monthly premium payments to keep cover in place. Term assurance policies may also offer the option to pay an extra premium and receive a payout in the event the policyholder is diagnosed with a critical or terminal illness. Critical illness cover can include debilitating but not necessarily fatal conditions such as heart attack or stroke, cancer, multiple sclerosis, loss of limbs, etc., and the cover pays a lump sum on diagnosis - not for treatment of the condition, as you would expect with a health insurance policy. As with any coverage, it is important to be sure exactly which conditions the policy covers, and which it doesn't. A policy will be very specific as to the illnesses it will pay out for; critical illness policies can also range from basic coverage, which will include just the main critical illnesses such as cancer, to comprehensive policies that cover a more extensive range of conditions. Full disclosure of any and all existing medical conditions and history is vital when arranging critical illness cover. Failure to disclose could result in denial of payment when an illness is diagnosed - just when that payment is needed most. Policyholders wishing to provide for their families in the event of their death can choose Level Term assurance, which pays a lump sum if the holder dies during the term of the policy. The payout amount is guaranteed and remains the same throughout the policy; you only need to choose how much you wish the amount to be, and the length of the policy term. There is no payout, however, should the policyholder outlive the term of the policy. Decreasing Term assurance sees the amount to be paid out decreasing over the term of the policy. Most often used to cover mortgages, this type of term life assurance has the payout sum reducing over time just as the amount owing on the mortgage reduces. Some mortgage providers will not release mortgage funds without the debtor securing some form of life assurance, guaranteeing repayment should the worst happen. Whole-of-life assurance removes some of the guesswork from life assurance by guaranteeing a payout of a lump sum when the policyholder dies, at whatever time that may be. As long as the premiums are maintained, the cover is assured. However, because a payout is virtually guaranteed, this assurance is generally more expensive than basic term assurance and is generally more likely to be used in Estate Planning as a tool to meet Inheritance Tax liabilities. Endowment life assurance policies are essentially savings schemes that have life assurance attached; they are most often carried with mortgages and pay out any accumulated returns at the end of the policy term, or if the policyholder dies before the end of term, a payout sum plus any returns so far. Generally endowments are taken out with decreasing term assurance, where the payout sum decreases throughout the term of the policy to cover the remaining mortgage debt, but the endowment investment is hoped to make up the difference and even perhaps surpass it. However, this happy outcome requires the cooperation of the investment markets - the performance of which is not, of course, guaranteed. With Convertible Term assurance, you may convert a term policy to whole-of-life or endowment assurance at the end of the term of the policy, without necessarily having to provide new medical details. Family income benefit provides a slightly different payout; the benefit upon your death is provided to your family in regular payments rather than in a lump sum, giving them a regular income over a selected period of time. The term is chosen at the outset of the policy, and this type of policy would usually be taken to replace a lost salary or to provide an income for a particular purpose, such as children's education expenses. With Family Income Benefit, you decide the term ahead of time, perhaps to match your expected income-earning years. So if you die with five years to go on the term of the policy, it pays out the benefit to your dependent for the next five years. If you die with only six months to go to the end of the term, your family will only receive six months' worth of benefit.

life insurance guide

Introduction
What will happen to your loved ones after you die? Will they be able to support themselves? Can your spouse manage the mortgage payments and ensure your children are able to attend university? Arranging life assurance cover is the best way to ensure your family is taken care of in the event of your death, giving both you and them peace of mind. Many of us are superstitious about planning for after our death, believing it to be a morbid topic and one that might even hasten the inevitable. But knowing you have a comprehensive life assurance programme in place will provide peace of mind for both you and your loved ones. Life assurance, put simply, is a policy provided by an insurance company that pays your family either a lump sum or a series of smaller sums in the event of your death. Policies vary widely; some may guarantee a payout, others expire after a certain period of time. Some have premiums and payouts set in stone, while others offer more flexibility. There are many factors to consider when choosing a life assurance policy. What sort of cover do you need? How much cover should you arrange? Do you need basic life assurance or more extensive critical illness cover, and what about tax? As a financial data comparison site, Moneynet.co.uk can direct you to the best life assurance deals to meet your needs. The internet makes it easy to shop around to find the best deals, but you need to ensure that a deal really suits you and your family.

What is best for me - A personal loan or mortgage?

The more you borrow, the lower the rate of interest. And at the top end of the borrowing scale, personal loans are competing with mortgages, which usually have a lower interest rate. While personal loans typically have rates between around 6 per cent and 18 per cent, it's possible to find a fixed rate mortgage at 5 per cent.

personal loan searchpersonal loan best buyspersonal loan guide If you're borrowing £15,000 for some major work on the house, it's worth thinking very carefully whether it would be cheaper to get a mortgage than a personal loan. Mortgage lenders are more than ready to extend existing mortgages or to tempt customers over from other lenders, particularly when increases in property prices have left many people with large amounts of equity in their home. You can arrange an extended mortgage over a period similar to a personal loan, and the repayments, like loans, are structured to pay off the debt at a fixed time. But beware. Borrowers always have to be aware of the risk of losing their home if they can't keep up with the bigger monthly repayments.

What are the pitfalls in arranging a personal loan?

Banks and building societies and other lending institutions are keen to compete for our business because there is big money to be made from personal loans. When we borrow money, be it on a mortgage or credit card or bank overdraft, the lender makes profit from the interest charged. The interest rate applied is known as the Annual Percentage Rate (APR), and your first consideration when arranging a loan is to compare the APRs of different products as a means of determining how competitive they really are.If it's presented as a monthly rate of interest, look for the annual equivalent, which will allow you to compare it with other lenders. There's a wide variation in the rates available - and there's nothing to be gained by paying any more than is necessary. So don't think that just because your own bank or other lender says it has a special offer for customers this is going to be the best available.There's nothing to stop you going elsewhere - and there's every reason to shop around as widely as possible. When you're looking at interest rates, it's also important to consider any other factors that might be making them cheaper. For instance, a 'secured' loan might have a lower interest rate but it will represent a much higher risk, because if you default on repayments you could lose your home. It is not unusual for lenders to offer different APRs depending on the method of application e.g. applications by telephone may receive a higher APR than those done online, so it's well worth shopping around for the best deal.If you are looking for a low cost loan, comparing the APR is always a good place to start. Lenders do quote interest rates in different ways, and it's worth familiarising yourself with these before you start.If your loan is a truly flexible product then you may also be able to withdraw funds from the account on a rolling basis, providing you stay within your credit limit. Lenders also offer repayment holidays or payment breaks, allowing you to take a break from your monthly repayments either at the start of the loan (known as 'deferred repayment') or at an agreed point during the term. Interest will continue to accrue on the outstanding balance and this may result in increased monthly payments so your debt is still repaid over the term agreed at the outset.

Secured or unsecured: Which kind of loan is best for me?

Secured or unsecured are the two options available to most people, although by far and away most people arrange their personal loans on an unsecured basis.Secured loans are - as the name suggests - arranged on the assumption that the borrower is going to put up some kind of surety to the lender. Generally this is the borrower's property. This means that the lender has the right to take ownership of the asset if you fail to make the repayments that are due under your loan agreement. While most of us would baulk at the prospect of putting our homes on the line, there are advantages to taking out a secured loan. For example, the lender's risk of default is reduced, which usually means a lower interest rate or perhaps a longer repayment period. One of the key differences between secured and unsecured loans is that it is usually possible to borrow far more by going down the secured route. Lenders will consider much higher sums if they know they have a security over your property and it is possible to arrange up to £100,000 - but you'll typically need to put the deeds to your home on the table. The amount borrowed is repaid monthly over an agreed term agreed at the outset, which will usually range between three years and twenty five years. You may be charged a penalty if you repay your loan earlier than agreed, and you should check each lender's individual policy.But the key issue here is that, when you see that bleak warning notice 'Your home is at risk if you fail to keep up with repayments', it really does mean that. Consider therefore the risk of losing the asset, were you to fall into arrears with the required repayments, against the advantage of paying slightly lower regular payments.It will probably come as no surprise to learn that around 90 per cent of all loans arranged fall into the unsecured category.
Put simply, you do not have to put up any surety for the loan, and the lender trusts in you and your ability to repay the debt.The rates of interest charged are normally higher or the maximum loan terms are significantly shorter than those available for secured loans, but even so, five years - or 60 months - is usually long enough to cater for most borrower's needs. And if you are able to arrange a loan at less than 6 per cent, then you can see why levels of personal borrowing are today higher than at any time previously - even during the consumer boom of the late Eighties.Most people will prefer to take out a fixed interest rate, which effectively means it will stay the same throughout the term of the loan, regardless of any changes in the bank base rate.In much the same way as arranging a fixed rate mortgage allows you to determine your monthly repayments, allowing you to budget accurately, so does the fixed rate personal loan.But go for a variable interest rate, and you will find your repayments will rise and fall in line with any changes to the bank base rate. Although lowest APR is one factor that contributes to a 'cheap' loan, you should always pay attention to the small print as any additional costs will be found there. Remember also that if your credit rating is not as good as it might be, lenders will see you as a higher risk and may not offer you the lowest APR on their personal loan products. That said, do not be too thrown if you have to pay a slightly higher APR. The difference between one or two per cent on repayments spread over three years is very little in the overall scheme of things.Some lenders do apply an early settlement charge (also known as a redemption penalty) if the debt is repaid in full before the agreed end date. This can be up to 2 months interest so it pays to check this out before you commit. If you think you'll clear the debt before the end of the term then your best bet will probably be a loan with no early settlement costs, even if the APR is slightly higher. Whatever you decide, you'll need to do your sums before you sign on the dotted line.