Tag Archives: Euro

Sci-Tech

Eligibility Criteria for a Professional Trading Account to Bypass EU Leverage Restrictions

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The European Union (EU) isn’t known for its intelligence, fairness, or competence to govern and it more than proved this when it changed financial regulations limiting the amount of leverage contract for differences (CFD) brokers could offer their clients.

A few years ago, there were no limits on forex trading leverage with some brokers offering up to 1,000 times leverage to clients who eagerly accepted these terms as the returns were often highly favorable. In August 2018, however, the EU imposed a 30X restriction on leverage to retail investors, damaging their ability to make great returns from forex trading and investing.

The regulations were implemented by the European Securities and Market Authority (ESMA). Any country that was within the EU at that time had to enforce them regardless of whether they thought they would make a positive or negative impact within their borders. It is how the EU works.

ESMA stated that the leverage restriction was to protect retail investors from overexposure to the market. It could be argued that there is some validity in this position, but a good counterargument is that leverage should be left in the hands of the individual to take responsibility for their decisions.

It also has to be said that as EU politics is dictated by lobbyists, you would have to be very naive not to rule out lobbying from big financial institutions to prompt the change in leverage limits. Larger brokers played the PR game and said they welcomed the decision but the market reaction was mixed.

So what do you do now if you are a retail investor and want to utilize forex trading leverage for higher returns and advantage when investing?

Become a Professional Trader

The solution is to become a professional trader as they have no limits on leverage. To become a professional trader is not an easy thing to do as you have to meet strict criteria. See below:

  • Experience – You have to have worked in the financial sector in a professional capacity for at least a year and can demonstrate expertise and knowledge of the forex markets including services and risks.
  • Portfolio – Your financial instrument portfolio exceeds €500,000 (at time of publication 1 euro = 1.3 CAD $) or equivalent in your local currency. Your portfolio can consist of your stock portfolio, cash savings, trading accounts, mutual funds, stock portfolio, stocks and shares ISA, and SIPP financial instruments. Non-tradable assets such as property, luxury cars, jewelry, and company pensions are not eligible.
  • Trading Experience – Over the last four quarters you can prove that you have carried out at least 10 large market transactions over each quarter. This can be related to any asset.

To achieve professional status, you need to demonstrate at least two of the above.

To become a professional trader you need to apply for a professional trading account from your broker. There are disadvantages with professional trading accounts as you may lose some forms of investor protection, but you’ll enjoy higher leverage from day 1. In some circumstances, you may even qualify for lower fees. As you are an experienced forex trader, you’ll know the fees eat into your investment returns.

Final Thoughts Forex Trading Investing

When the EU imposed regulations on forex trading and investing, many retail investors were impacted negatively. Retail investors were no longer treated like adults, and were treated as if they needed protection from themselves. Through opening a professional trading account, ESMA at least for now is treating you like an adult. So become a pro trader and trade as you want to.
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Travel

NightSwapping Is New Euro Model of Sustainable Tourism

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In a time when the sharing economy is generalizing eco-friendly solutions for a sustainable development, a European startup has brought up to date one of the oldest tourism ideas in the world to lower the carbon footprint on your next vacation. It’s called swapping or more precisely, NightSwapping.

A simple idea that is enjoyed for its human dimension, authenticity and the absence of money between members.

NightSwapping1

It is therefore with the utmost respect for traditional cultures, local territory and people that NightSwapping represents a new model for a sustainable tourism.

Has it not become common for travelers to stay at a local’s rather than hotels or resorts?

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These new behaviors seem motivated by the desire to draw closer to local cultures and pass down certain values to our young ones…

Within this changing industry, a European concept has found a way to challenge the giants from the Silicon Valley. NightSwapping  is the Sharing Economy at its core: no money exchanged, just sharing and authentic experiences.

NightSwapping3

A promising idea that continues to convince travelers around the world. For the Silo,  Quentin Mittelett.  

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Have you tried this? Would you try this? Let us know in the comments below.

Sci-Tech

VisaNet Connects Two And A Half Billion Credit Cards

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One of the many ways the Internet is driving the global economy is through digital payments, making it easy for consumers to buy just about anything from anywhere. VisaNet is the largest payment processing network in the world, connecting 2.4 billion credit cards at 36 million locations across 200 countries.

Reviews

Supreme Analog Vinyl Record Weights Trending

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“If there is no sound philosophy in making the audio gear, then all product you make is plagiarism.” Zoran Mihajlovic
Having grown up around record players of dubious quality, I remember very clearly my first ‘real’ turntable. An audiophile friend of the family helped my father put together an entry level system for my 15th birthday. The system included 3 way Acoustic Research speakers, Sansui integrated amplifier, Sansui 3 head cassette deck and my first decent turntable- a gently used Sansui direct drive with a shiny S-arm and what looked like a strange silver hockey puck.

At 15 I was into my second year of drumming and with this turntable was now able to play along to LP records without having to worry about the inevitable skipping that the cheap family record player performed almost every time I hit the bass drum hard. I later learned that the puck was actually a custom made record clamp that the previous owner had fashioned to squeeze every last bit of performance out of the record player.

There is a surprising amount of science behind the advantages of using record clamps to ‘push’ the vinyl down onto the slipmat and platter and people that use them swear by them. In general terms, the added mass from the fitted clamp flattens warps in the record and a beneficial flywheel effect takes place once the record is spinning at speed.

Today, turntable designs have advanced and exotic materials and technologies are incorporated into high end models. This has translated into a need for ultra high quality clamps designed to properly secure records to all kinds of esoteric spindles and platters.

Enter Zoran Mihajlovic- a man devoted to producing the highest quality record clamps such as the Model 1 via his Serbian company Supreme Analog. At 3000 euros (at time of this article, 1 euro = 1.5 Canadian dollars) , this is a record clamp (Supreme-Analog calls it a record weight) that is produced on order only and commands attention.

Supreme Analog Model 1 record weight
70mm wide, 50mm high, 460g weight
Swiss stainless steel and Serbian sinked wood

Supreme Analog Basic Line Record BL006 stainless steel
If you are on a more modest budget, they also offer the BL-006 for 250 euros. Also made from Swiss stainless steel, the more basic model weighs in at 950g and ships world wide for free in a solid wood box.

It’s easy to tell that Supreme-Analog have a real passion for audio and they make a number of interesting products including jewel like tonearms and gorgeous horn speakers. Check them all out.  For the Silo, Jarrod Barker.