You have decided to invest in securities — this means that you cannot do this without a broker: according to the law, it is not possible to trade on the stock exchange without an intermediary. Transactions can only be carried out by legal entities that have a brokerage license — banks, investment, and brokerage companies. How to choose a reliable and appropriate broker for you.
What a broker does
A broker executes orders for transactions on the exchange; prepares reports on transactions and movements of funds, counts, and remits taxes on profits. A good example is Pelliron. The broker also develops investment and trading strategies, creates asset portfolios, and offers personal financial advisors.
What do you expect from a Pelliron.com broker or other companies?
Think about why you want a broker, other than formal access to the stock exchange. It is better to choose a broker with a clear idea of your goals. For example, broker Pelliron.com will suit you for all purposes.
What do you need to pay attention to?
This is the first thing to check: without a license; no company has the right to conduct operations on the stock exchange. The regulator conducts regular inspections and, if it notices violations, withdraws the license.
Legislation strictly regulates brokerage activities, and any unauthorized action with customer assets entails criminal liability. Large brokers with a long history and serious turnover do not benefit from it. To study the rating and at the same time the statistics (the volume of client operations, the number of registered and active users) is available on the website of the Moscow Exchange.
Find out what markets are available. Find out what assets the broker has access to. For example, you want to invest in the securities of U.S. companies. You can do this directly on one of the American stock exchanges. In the latter case, the commission will be lower and the selection of securities will be larger.
If you are a beginner and haven’t yet figured out exactly which securities you need, you can invest in ETFs (funds that hold a portfolio of assets and trade them in pieces) or in a ready-made portfolio with predictable income and risk levels.
Some people want to earn from intraday currency trading, while others want to buy bonds and leave them untouched for several years. Portfolio composition, returns and fees depend on the choice of tariff. If you are just starting to invest, choose the easiest one.
The broker earns a commission on the transaction amount, and the commission will vary depending on the tariff. Brokers can also charge a commission for depositing and withdrawing funds, using a trading platform, voice orders for a transaction and so on.
If you are new to the securities market, a little education on the subject will be useful to you. Many brokers offer webinars, seminars, and personal consultations. Classes may be paid or free, and sometimes brokers offer promotions and give away paid classes. You can practice on a demo account.
Talk to the broker’s support service before opening an account. Pay attention to how quickly and informatively they answer you. For example, the Pelliron review states that this company cares about its clients and tries to quickly resolve any questions they may have. A prompt response is not just an important part of the company’s image, but also a guarantee that problems are resolved quickly.
- Before choosing a broker, think about what purposes you need it for, besides the obvious one — access to the exchange.
- Examine the documents confirming the reliability of the broker. First check the availability of the license.
- Familiarize yourself with the rates: different rates are appropriate for different purposes. Also, the amount of commission depends on your choice of rate.
- Free training is a good bonus if you are a beginner.
Current yuan to dollar exchange rate has fallen to its lowest since 2008
Current yuan to dollar exchange rate dropped to 7.2256 yuan per dollar. This is the lowest level in 14 years, reports RBC. The offshore yuan-dollar exchange rate has fallen to a record low of 7.2577 yuan per dollar since China began trading the currency in 2010.
The People’s Bank of China sets reference exchange rates for the yuan daily. On Tuesday it set the yuan-dollar exchange rate at 7.0722 yuan. This was the lowest since July 2020. The exchange rate of the yuan, which is traded in mainland China, is controlled by the NBK and can deviate from the reference rate by no more than 2 percent in either direction during the day. In Hong Kong and Macau, the CNH offshore exchange rate to foreign currencies may vary without restrictions.
The Chinese yuan to dollar exchange rate today fell to its weakest level since the 2008 global financial crisis amid persistent dollar appreciation against major currencies and fears that China is weakening support for its currency.
The yuan has fallen more than 4 percent against the dollar this month and may post its worst performance in a year since 1994, the publication estimated. China’s currency is under pressure as the country’s monetary policy diverges from U.S. policy, leading to capital outflows.
Earlier we reported on history low for the pound British.
History low for the pound British
Today we can observe history low for the British pound. The British pound has fallen in the international forex market by almost 5% against the dollar – to a record low of $1.0384. The pound fell 0.85% against the U.S. dollar to $1.0762.
The British currency depreciated after the Ministry of Finance of the country promised to continue cutting taxes, raising fears that the new policy will lead to a sharp rise in inflation and the national debt, Bloomberg wrote. The pound’s collapse was the biggest intraday drop since March 2020, when markets were panicked by the start of the COVID-19 pandemic, the publication estimated.
The sell-off in the currency began on Friday, after the government announced a plan for a massive tax cut in the U.K., which will affect individuals and businesses and increase the budget deficit.
“History low for the British pound shows that markets do not trust the UK,” said Saxo Capital Markets strategist Jessica Amir. – The pound is one step away from parity with the dollar, and things will only get worse from here.”
The British currency has already fallen 20% against the dollar this year. According to Bloomberg, the fall in the British pound sterling in 2022 surpassed the collapse seen after the vote to leave the European Union (Brexit) in 2016. At that time, the U.K. currency depreciated by about 16% in one year.
Earlier we reported that the dollar is getting cheaper against most currencies after rising the day before.
The dollar is getting cheaper against most currencies after rising the day before. Global money is getting cheaper
The dollar is getting cheaper against the euro, the yen and the pound sterling today after a solid rise in the previous session on the background of the fact that all the world’s money’s getting cheaper.
The dollar is correcting because investors are trying to fix profits after its significant strengthening, said Trading Economics. Experts believe that the U.S. currency will continue to strengthen on the background of a rapid tightening of monetary policy by the Federal Reserve (FRS). Also, the dollar is supported by reducing the appetite for risk in world markets.
Further growth in volatility in the financial markets will strengthen the dollar because of its status as a “safe haven” currency, said an analyst on the currency market, CBA Carol Kong.
The euro rose 0.53% to $0.9660 against the dollar, up from $0.9609 at the close of the previous session. The day before, European currencies were cheaper against the dollar by 0.8%.
The pound rose by 1.07% to $1.0803 during the trading session, compared to $1.0689 the day before. The exchange rate of the dollar against yen decreased by 0.30% – down to 144.31 yen against 144.75 yen by the end of the previous session. On Monday the American currency grew by 1.5% against the pound and by 1% against the yen.
The index, calculated by ICE, which shows the dollar trend against six currencies (euro, Swiss franc, yen, Canadian dollar, pound sterling and the Swedish krone), was losing 0.5% during trading. The day before, the indicator had updated its 20-year high.
Earlier we reported that the Nasdaq is on the plus side amid signs that growth stocks are recovering.
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