A stockbroker company performs an intermediary function for the access of its clients to international financial markets, opening and closing transactions, depositing and withdrawing funds to and from client accounts. The broker is not allowed to provide his analytics or any other recommendations on opening or closing of deals, as this may affect the result of trading.
The main difficulty of exchange trading is psychological pressure caused by the fear of losing money. If you insure your account, the trader gets confidence in trading and, respectively, the psychological burden is reduced, which leads to increased concentration and courage in trading. The results of the trader increases to the profitable side. According to the conditions of insurance trader is obliged to trade with stop loss, i.e., he is obliged to limit the risks, which is one more factor because if the market turns around and goes the other way the deal will be closed with minimal loss which also positively influences the profitability of trader. The only disadvantage of this product is the fact that it is issued only once and only to the traders, who passed qualified training. Deposit insurance is recommended only to beginning traders who face psychological pressure for the first time. A broker earns on spreads, so it is profitable for a trader to trade his whole life. That is why the broker, risking its funds, offers the product to beginning traders which will help them to get rid of psychological pressure quicker and help them to become professionals quicker.
All brokers earn on spreads, there are special brokers who offer their funds for asset management and are constantly on the lookout for profitable traders. Pelliron is one of such brokers who offer their funds for management. So, there are literate people who do not have the funds to start their career in the financial markets, but they are good at trading and earning, in such cases Pelliron is ready to finance the success of these traders.
A gap is a price gap, there is no price in this range, all orders to buy/sell financial contracts can only be executed at existing prices.
A broker does not give a bonus for free, the broker's profit is spread, the broker gives his money under the guarantee of a certain amount of spreads (closed lots). In most cases, the given amount is considered as 100 spreads (closed lots) for every thousand dollars of given bonus. Thus, the broker motivates its traders by giving them knowingly non-repayable funds in exchange for spreads (closed lots).
There are risks everywhere. In the world of exchange trading, brokers who share their profits with their clients enjoy great authority. Brokers earn on commissions (spreads). By investing money in the traders' accounts, the company motivates them to be active traders. The broker often re-insures the account in case the trader increases the risks on his account.
Today, there is an extensive search for good specialists in the field of stock trading. There are Brokers who provide their funds for management by hiring traders for work. By concluding a cooperation contract under the stipulated terms, the traders receive a minimum of $10,000 for the management of their accounts. The company gives the best traders accounts starting from $100,000. The trader's remuneration can be a fixed rate or an agreed percentage of the trader's profit.
To begin with, we need to define what an offshore zone is. Offshore is a country or territory that provides foreign companies with special conditions for doing business. Low taxes, simple rules of reporting and management of companies.
It should be noted that offshore areas are registered not only brokers but also the majority of large companies in any field of business, from manufacturing giants such as BMW or Mercedes and ending with IT giants. The main objective of each business is to get the highest possible profit, reducing costs as much as possible, without compromising the product of the company. In other words, every company is trying to optimize its costs to get more profit. Taxation plays one of the key roles in the formation of the final profit, and if there is a possibility to optimize the expenditure part legally, then every company will use this opportunity. Brokers are not an exception and thanks to the simplified taxation system clients all over the world have an opportunity to use services and products at their optimal cost.
There are remunerations for certain work or performance of services. In the business world, all commission or remuneration is stipulated in advance and only in exceptional cases do the terms of the remuneration change. With brokers, the remuneration is the spread. There are two types of spreads: fixed spread that does not change and floating spread that changes its value depending on the market situation. Most professional traders choose the pre-agreed fixed spread, which does not change its value. Unfortunately, fixed spreads always seem to be larger, i.e., the broker's reward is more expensive. As a result, the trader pays less, as the fixed fee does not change.
A trader is a person who carries out transactions to profit from price differences. He can operate directly with the market or through an intermediary. A commission (spread) is charged for intermediation. The broker benefits from active trading every day. If a trader as a result of trade makes profit he becomes more active, but if he loses the loss he stops his trade in few days and accordingly the broker remains without reward. Based on the above, we can conclude that the broker is only profitable and active trader.
Competition exists in any business. There are companies that invest heavily in advertising and marketing to attract new customers. And there are those who, to save money, create websites and write negative reviews on their competitors to win over an existing client. It is not fair fight for the client, but unfortunately also effective. The company is attacked by the negative reviews, sues and through the court blocked sites with negative reviews. Such a procedure takes from 3 months to 2 years. After the court decision sites are closed, but unfortunately after the closure of the competitors create new clone sites with the negative and again the procedure repeats. Every competitive company has a list of blocked sites with defamation.