Money

How to buy stocks in the Australian stock market

March 31, 2020 by Reporter Leave a Comment

The current stock market is in turmoil with a lot of volatility in share prices here in Australia, however there is a growing number of people who think getting in now could be profitable for them in the long term. So how do you get into the stock market ? How do you buy shares to take advantage of the current stock market tumble.

There are two different ways that you can get into the stock market and buy and sell shares

1. Sign up with bank share trading account that allows you to buy and sells shares

2. Sign up with a stock broker that specifically allows you to buy and sell shares.

There are other ways to buy shares like buying a bunch of blue-chip stocks or buying an ETF (which is also buying a bunch of shares) – but we will come to that later.

Banks as a stock trading buy and sell platform

Most big banks allow you to sign up with them for a stock trading account so that you can buy and sell shares. If you are already signed up with one of them, just enquire with them. Here is a list of banks that facilitate stock trading

1. Commonwealth bank ( Comsec – their share trading platform)

2. National Australia Bank ( Nabtrade – their share trading platform)

Below we give you further details about brokerage fees these bank charge and also prices for some popular dedicated share trading platforms.

How much money do I need to start trading the stock market?

Technically, there’s no minimum amount of money needed to start investing in stocks. But you probably need at least $500 — $2,000 to really get started right.

How do I make money in the stock market?

There are many ways to make money in the stock market, however the most simple method to understand this is when you buy a share today that cost you $500 , but its worth tomorrow is $600 and so you sold it – then you just made $100

To break that into much more realistic detail and give you an example

Eg. Say you got $500 to invest

Westpac bank shares are $15 each today, so you bought 32 Westpac shares

32 Westpac shares X $15= $480 + (add $10 bank fees for buying)

Total cost is $490 to buy the shares

Three days later (or six months later), there is a bit of recovery and Westpac share price rises and is $20 each share.

You had bought $32 shares earlier; you sell it today for $20 (that’s a $5 increase in the share price)

32 shares x $20 =$640 – $10 bank fees

You have $630 from your sell

Sell price $630 – Bought price $490 = Your profit $140

The bank does not charge you anything for holding the shares, but charge you for each buy and sell, which bring us to our next point -broker fees.

Now say if that investment was $5000 instead of $500 your profit could be $740 in one trade

How much does it cost me to buy and sell shares?

Every broker and every bank have different set of prices for buying and selling shares. It really comes down to ease of use, broker fees and availability of stocks to trade on each platform. Here is short comparison of some top bank and broker fees

Share trading fees – Banks

Commonwealth Bank – Comsec Fees:

For shares under $1000 in value – $10 each transaction

For trades between $1,000 and $10,000 – $19.95 each transaction

This is called the brokerage fee

Website https://www.commsec.com.au/support/rates-and-fees.html

National Australia Bank – Nabtrade Fees:

Up to and including $5,000 – $14.95 each transaction

From trades between $5,000.01 – $20,000 – $19.95 each transaction

Website https://www.nabtrade.com.au/investor/pricing

Share trading fees – Brokers

Two popular brokers apart from Banks are Self wealth and Ig markets. They both allow trading in Australian stocks as well as international stocks and CFD.

Self-wealth trading fees:

Brokerage fee for every trade, regardless of size – flat $9.50 (Only Australian Shares)

Website https://www.selfwealth.com.au/online-trading/

IG markets Trading fees:

Trading Australian shares – $8 per trade or 0.1% whichever is higher

For US markets – US$10, or 2 cents per share

Website:https://www.ig.com/au/charges

With IG markets you can do Australian and US stock market trading and also trade in CFD’s for which you have to sign up separately with them.

Other share trading platforms worth mentioning are ANZ share trading, Bell Direct and CMC markets.

Most banks and stock trading brokers provide additional data and tools for company and stock analysis, creating watchlists, setting price alerts, creating specific set price buys and more. Features offered can differ from platform to platform.

With Comsec and Self wealth – All trades are CHESS sponsored

There are two ways for shares to be held:

CHESS Sponsored Shares – Shares that are registered with a stock broker (CommSec or another broker). CHESS Sponsored Shares are allocated a Holder Identification Number (HIN) by the broker.

Issuer Sponsored Shares – Shares that are managed by the issuer of those shares via the issuer’s Share Registry. Issuer Sponsored Shares can be traded through any broker, providing conditions set out by that broker are met. Issuer Sponsored Shares are allocated a Security Reference Number (SRN).

In reality it does not make much difference to your trading profit, if it is chess sponsored or issuer sponsored.

Risky Stock Trading with penny stocks

There is a difference between big companies and small companies (smallcaps) and with small companies come more risk in comparison with blue chip stocks like BHP, Westpac.

Some traders can get lucky and pick a small company stock that can become a winner.

Take for example FMG – Fortescue Metals Group (iron ore miner)

This stock was once trading for between $2 and $3 – Today the price is $10

Say you dropped $5000 when it was $2, so you got 2500 shares of FMG

You sold it when it reached $10 today x 2500 shares=$25,000

You just made $25,000 from $5,000, however this is very rare- though people have gotten lucky with their stock picks and made money.

FMG was once a small cap with lot of debt and considered risky, but now they have paid up their debts and are considered much safer than they were before.

ETF’s

Another popular method of buying into shares right now is called ETF’s . With buying an ETF you have options like buying into a group of shares where you can also invest by putting money in a regular basis as low as $50 a month/week. Some providers/brokers also allow you to invest in ASX 50 or a lumpsum into a group of blue chip stocks.

ETF’s are available through bank trading platforms

Learning how to trade the stock markets is essential, before you decide to have a punt on your hard-earned money.

The stock market can make you money, but it can also take your money and put you at a loss. Doing dummy trading, joining stock trading groups and researching companies for three to six months is a good idea before jumping right in. Good luck!

Article written by Jeff – I blog about stock trading – Check my stock market blog over here

Passive Perfection – The 5 Passive Income Streams With The Best Returns

February 6, 2020 by Reporter Leave a Comment

Photo by Alexander Mils from Pexels

Working smarter, not harder, is the mantra of the day. People are no longer willing to spend most of their lives at work. We want our jobs to enrich our lives and fund our personal pursuits. Now more than ever, we want to spend our time in a fulfilling work environment with minimal stress. Below are some ways that you can invest in passive income sources so that even while you are sleeping, you can be making money.

Real estate

Have you considered investing in property but been put off by the idea of all the hassles involved in renting out a house? The good news is that you can generate passive income from real estate by investing in commercial property management. In this type of arrangement, you can reap the rewards without too much initial effort.

Many people decide that they want to be a silent partner in this type of venture because all it requires is that you invest some initial capital. If, however, you want to take a more active role, you can choose to take on the property management yourself. Either way, by owning property and leasing it out, you can earn a significant amount of extra income.

The stock market

Another way to earn passive income with an initial startup cost is through dividend-paying stocks, EFTs, and other investments such as lending clubs. These types of investments can help you earn money around the clock with no work on your end. It does take time to build up a strong and legitimate portfolio, but with the proper guidance from a reputable investment firm, you can be sure that your dividend investments will pay off.

Affiliate marketing

If you are a heavy internet user (like most of us), then there are several ways you can leverage your online presence to create passive income for yourself. Affiliate marketing is an income idea that requires you to have one or more platforms on which you can promote products for other companies. This works extremely well on social media platforms within your local community where you can see what people are after and provide affiliate links that help them while earning you a commission. When someone uses the promotion link on your site or post to buy from another company, you get paid.

Website ads

In conjunction with affiliate marketing, you can also leverage your internet space by displaying ads on your website. Again, this does require you to set up a site, but the more visibility you can create, the more money goes straight into your pocket. This can be so profitable that it’s often called owning online property. Advertisers pay to display ads on your site, and you get paid simply for attracting traffic. How easy is that?

CPC ads

The final way to leverage your online property is to go with cost per clicks (CPC) ads. Unlike affiliate marketing and display ads, you get paid every time someone views or clicks on an ad versus only when someone buys something after clicking on the ad. You can make money simply by driving traffic to your website and letting the adverts sell themselves.

Whether you choose one or all of these methods to generate passive income, you can earn a significant amount of money by investing in ideas that will help you down the road. You may not see an immediate influx of funds into your bank account, but hold out for the long haul, and you’ll eventually be able to live without working.

How To Handle Employee Payments As A New Business

January 28, 2020 by Reporter Leave a Comment

Setting up a new business is filled with uncertainty and lots of learning. Many new business owners may start out with a great idea and a solid business plan but run into the harsh reality of bringing that plan to life. Things like payroll processes, for example, can seem like a trivial detail but they require careful attention to get them right.

Heeding the advice of a professional payroll service provider is a good option for new business owners with little payroll experience. However, for an overview of some of the most salient things to consider when setting up your payroll, let’s look at the best ways to handle employee payments as a new business.

Make A Budget

As a new business, it can be tricky to know where your money is being spent. There are a lot of capital costs that need to be covered right at the outset including securing an office and furnishing the place if you have a brick and mortar shop, or website design fees and the like if you are going the e-commerce route. With all of this, you may quickly become overwhelmed and wind up with insufficient funds to pay your employees.

Making a budget will help you avoid this disastrous scenario. If you want to retain your staff, then you will need to maintain a set amount of your budget for payroll. As an added bonus, set a maximum cap for your payroll expenses to keep enough money around for all of the other expenses. The more work that you can do yourself, the fewer staff you will need to hire, and the higher your profits will be.

Inform Yourself About Payroll Legislation

It is important to be fully aware of payroll rules and regulations that apply to your business. Complying with these for your employees will allow both you and them to stay on the right side of the law. This includes things like making the appropriate deductions for social security and keeping track of benefit payments. Paying your employees under the table may seem like an easy way to avoid extra tax expenses, though this will end up with you in hot water.

These details can often be overwhelming for new business owners, so be sure to seek out professional guidance from someone who knows the ins and outs of these topics.

Use Payroll Software

If you lack the funds to hire a professional accountant or payroll manager, make sure to invest in high-quality payroll software that works for your business. Contemporary payroll software is easy to use and can be customized to the needs of your payroll structure. Even the least computer-savvy business owners will be pleasantly surprised at the ease of use and flexibility of these programs.

Consider Wage Or Salary Payment

There are many different payment and payroll structures to choose from when deciding on how to compensate your employees. Salary payments can make the matter much more straightforward, as your employees will receive the same amount each year and each pay period. Wage payments are a bit more labour-intensive, as hours need to be tracked and verified on a regular basis.

As another option, you can also hire freelance workers on a project basis for a bit of extra help when you need it.

Take Your Time To Learn The Basics

As a new business owner, it is important to set aside enough time to learn the basics of payroll processes before you get started. Having a solid background in best practices and legal requirements will allow you to launch your business and get it off of the ground without running into any hiccups along the way.

What the digital banking revolution means for Australian banks

January 23, 2020 by Reporter Leave a Comment

The future of banking is digital, and the Australian financial services industry needs to brace itself for a transformative year ahead.

“A digital transformation is inevitable in the Australian marketplace,” says Myles Bertrand, Managing Director APAC for Mambu, “however many of our established institutions are in dire need of a cultural overhaul before they can really embrace this brand-new world. Banks need to start thinking and operating like fintechs in order to maintain their position at the forefront of the Australian financial services industry.”

Mambu – launched in Germany but operating globally, including in Australia – works with banks, fintechs and telcos to help create a technology-first approach to banking, opening up new opportunities to optimise operations, ensure regulatory compliance and increase customer acquisitions.

In Australia in particular, it is the impact on regulatory compliance that is a key area of interest when it comes to the new era of digital banking.

“The good news is that digital banking is actually going to make it easier for financial institutions to comply with all of the different regulations,” says Bertrand. “It’s going to make it easier to track transactions, keep data safe and will also reduce duplication. So those organisations that make the transition from less secure legacy systems to cloud-based digital platforms, where security improvements are constantly made, can boast greater peace of mind and set themselves ahead of competitors.”

To stay in the game, banks need to be able to roll out products and services at a rapid pace, adding new features to platforms, while simultaneously enhancing existing ones. This kind of agility is next to impossible to achieve with most institutions’ legacy systems. However, composable banking architecture – the quick and flexible assembly of independent systems on a cloud platform – can provide the opportunity for organisations to create a dynamic platform with intuitive, responsive features that can be quickly and continuously updated.

A truly agile platform undergoes short, regular updates with a constant pipeline of improvements that are automatically layered on top of existing cloud technology and allows business to run uninterrupted on the front end. This allows financial institutions to make minor changes regularly, rather than major, infrequent updates that can cause significant disruption and draw the ire of customers, as has been the case with some traditional transformations.

With so many new players arriving in the marketplace looking to capitalise on the impending digital transformation of the industry, the key to successfully transitioning to digital banking is to look for proven, reliable fintech partners with experience and a successful track record in helping financial institutions make the switch. By working collaboratively with a proven digital engine, banks and financial institutions can build innovative integrations into new or existing product channels, creating simple, streamlined and automated customer experiences.

“I think the whole financial services industry – globally, not just in Australia or the APAC region – is going to be turned on its head over the next 12 to 24 months,” concludes Bertrand. “We really want to help banks take the leap and make the necessary changes to embrace the opportunities that digital banking can offer and set themselves up for success.

“As the looming fintech age forces institutions to digitise, innovate and scale to adapt to customer needs, those banks and financial institutions that can move at the pace of a technology company while remaining committed to strength, security and service will be the leaders of this new era.”

Myles Bertrand is the Managing Director, Asia-Pacific, for Mambu, the market leading cloud-based banking platform.

What do you need to become a profitable trader?

October 3, 2019 by Reporter Leave a Comment

Many traders are concerned about the required timeframe to become a profitable trader. They try to get a basic idea of how much time it takes to become a proper trader. It must not be the main concern of the rookie trader. Instead of thinking of the timeframe to ensure a decent profit, you need to think of the trading quality. It is necessary to think of the trading plans. If not you, someone else will take your place with an improved trading mindset. He or she would work with a proper trading plan. There can be a good risk management plan for the trades. With the two important things for the trading business, it is possible to manage a decent profit from the trades easily.

All of it is not possible unless you ask the right question related to becoming a profitable trader. In this article, we will discuss the necessary aspects of trading properly. You will get the idea of preparing a proper plan for the trades. Besides, you also will get a decent idea of risk management.

Take care of the risk exposure properly

To become a profitable trader, you will need a proper risk management plan first of all. It will improve a proper trade setup for the executions of the trades. The risk management plan helps you to create a proper order for the trades. Being concerned about the safety and security of the trading business, the traders think of the least investment into the trades. Then they also decrease the investment with simple leverage. You need to know a decent risk management plan so that the risk exposures get a consistent setup every time of executions.

If you use a 1% risk management policy and leverage it with a 1:10 ratio, it will be good for your business. It helps to work with a proper position sizing. From the influence of decent risk management, you will also think of decent profit potential. So, the market analysis will be easy for you to handle. With all things covered for quality execution of a trade, it is possible to expect a decent profit. Make sure you use the best SaxoTraderPro trading platform to filter the best trades. Keep things simple in trading to reduce the risk exposure.

Use an effective trading plan

From the risk management plan, the pro AU traders will hold the trading money properly. But, the actual execution of the trades will need a proper plan. That is why the position sizing and market analysis needs a proper plan. The traders need to be consistent with every single procedure of trading. Along with the risk per trade, it is also necessary to trade with profit target. When you have a decent profit target like 2R as compared to the risks, use the other strategies for the position sizing. Try to find a proper signal which can satisfy the pip count necessary for your profit target. Also, try to use the fundamental analysis to understand the market condition properly.

After every necessary element is being used for a quality trading approach, you can expect profits. Even if the market behaves the opposite of your assessment, you can handle the losses with proper stop-loss. For a rookie trader, it is the first duty to learn to be safe in Forex trading.

The position sizing is very important

If the traders can define a position sizing for the trades, it is possible to set the stop-loss and take-profit. They are both useful to keep your trading business safe from losses. The stop-loss helps to protect a trading position from losing too much. On the other hand, the take profit helps to be safe when sudden price movement tries to turn your profit into a loss. Both of the tools are good with the executions of the trades but traders need to learn using proper position sizing. If they can learn the best market analysis strategies, it will help them to set proper entry and exit points for the trades. Thus you can use the stop-loss and take-profit properly.

7 Steps for Starting a Non-Profit in Australia

February 7, 2019 by Reporter Leave a Comment

Do you want to start your own non-profit? Do you have a specific cause that you want to teach the community about? Here are some things you should consider before beginning your journey. The following tips will help you avoid making any potential mistakes and get your organisation off and running.

Determine the Need

Your sole reason to start a non-profit isn’t because you want to feel better about yourself. That’s never a good reason to start one. Determine your need for a starting a non-profit. Make sure you’re filling a need in the sector or you’ll be up against competitors that deliver a need to a certain community or group.

Do a simple Google search for other non-profits like yours in Australia. Or, you check out the website Pro Bono Australia to find out what other charities are doing in your area. This can help you determine a need and find out what you can do better than them. You should figure out if there’s already an organisation that’s doing what you’ve been wanting to do.

Engage With the Community

if you’re going to start a non-profit, you’re going to have to engage with your community. That means getting yourself out there in the public eye. Most organisations and non-profits work directly with the communities they serve. Make sure that your team members are involved with your organisation before getting involved with your community. Your non-profit could quickly fail if no one puts effort in it.

Create a Strategic Plan

The next thing you should do is come up with a strategic plan. These plans help you find out what these organisations exist and what goal they’re trying to achieve. Creating a strong strategic plan can help your organisation stay on track in its first years of operation. Your business plan should include your goals, mission statement, objectives, and vision that can help you meet these goals.

If you never created a strategic plan before, reach out to a business colleague to help you through the process. Even Pro Bono Australia has a website called Volunteer Match that connects people with non-profit who are looking for specific services.

Don’t Get Founders Syndrome

When you start your non-profit, you don’t want to get founders syndrome. This happens to a lot of founders of non-profits, organisations, and startups. Some common symptoms of founders syndrome include hiring your friends and colleagues to work for you. The identity of your non-profit becomes your sole personality. You may also prevent others who want to be involved with your non-profit. In other words: don’t let your organisation go to your head and only hire people who are qualified to perform the job.

Protect Yourself Legally

If your non-profit delivers services or goods to your community, you want to make sure that your organisation has insurance and is incorporated. You should also receive a deductible gift recipient (DGR) before you receive donations, grants, or other types of funding. Donation software can help you determine your donation goals, accept monthly donations on your website. You can accept donations via Apple Pay, ACH bank transfer, credit cards, and PayPal.

Assign Team Members

You want to hire a group of people who are diverse, talented, and committed to your cause. They should be interested in helping you reach your goal. Some founders want to do everything themselves while others want to hire their friends and family members. You can’t do everything yourself and it’s something dangerous to work with those closest to you.

Before you start your non-profit, you should have an administrative and financial department. These group of individuals should help you with the accounting, budgeting, and adopting a code of conduct for how you operate as an organisation. It’s important to establish policies and procedures and ensure that everyone follows them.

Set Yourself Up for Failure

Starting a non-profit can be a complicated process if you don’t go through all of the steps. Many organisations don’t last after a few years of operation. Come up with an exit strategy for yourself and the stakeholders who work with you. Plan for failure even if it doesn’t happen right away.

Remember to make the most with what you have. You can use your voice to bring awareness to a specific cause. It can be made possible as long as you take the right steps to start your non-profit organisation. The Internet has plenty of resources that can help you out. Whether it’s creating an online presence or writing content, there’s a resource for everything.

5 Strategies to Minimize Abandonment of Shopping Carts for Your Online Store

November 6, 2018 by Reporter Leave a Comment

Once a customer makes a few purchases from your store, they are bound to be loyal. However, abandoned carts are always a problem for most online stores. Luckily, it is easy to manage them and get back your loyal customers to their buying behaviors. Some of the tactics you can use include:

Follow up on abandoned carts

Regardless of how strong your SEO strategy is you need a plan moving forward. Following up on abandoned carts is the first strategy you can make a follow up on. Once you have a SEO agency set up the framework to drive more traffic to your site, you can proceed with your core skills. Follow up on customers who were once buying from your store and lure them back to continue doing the same.

Manage your leads from the start

It is a long road from the time a person visits your online store to when they choose to buy. Most of the time potential customers will give up along the way or take a lot of time before they can buy from your store. Luckily, you can close a sale within a short period if you choose to manage your leads from the start. Once you drive quality traffic to your site with help from the best SEO agency, you can start managing them from there. Allow yourself to ask them for help as soon as they show up on your site. You can offer to help them find an item with ease and close that sale within a few minutes.

Utilize email marketing for buying customers

Email marketing is what every online store should use not only manage abandoned carts, but also to increase the conversion rate. The returning customer is your major asset as they guarantee that you will have sales in future. Always treasure that and by using email marketing, you can win every day for loyal customers. To maintain that spirit of buying, you will need constantly send promotional emails to customers and remind them of the best offers they are missing out on. Consult a SEO agency with expertise in email marketing to optimize your email content for objective marketing.

Keep track of the customers ‘buying behavior

The buying behavior should have an even pattern for a loyal customer. If you identify any deviation from the norm, then you should move in to find out what went wrong. Did the customer change stores, or did the customer move? It helps you to keep a record and remind the customer to come back now and them. If they went to another store, then they might come back when they hear from you.

Respond to views and responses from customers

Since you are running an online store where people are spending their real hard earned cash, then you have to respond to their queries. Whether positive comments or not, you need to keep your composure. It is all about making the customers happy. If the customer is not happy then your business will be in danger or losing revenue. You have to make sure that you follow up on any issue and respond as fast as possible and assure a better service. Also, respond to complements from customers to a cordial relationship.

Find Out Why Dealing In Scrap Cars Can Earn You Real Money And A Bright Future

September 21, 2017 by Reporter Leave a Comment

Do you consider yourself as an aspiring entrepreneur?

Do you wish to invest your sweat and money in a world-changing business idea?

Then scrap cars can be your deal!

Scrap cars are not necessarily 100% damaged cars. Period!

Scrap cars are damaged cars which the owners do not wish to own it anymore. Hence, scraps. There are over 1 Billion vehicles around the world, but only a few scrap car businesses because it is capital intensive and moreover, no one really understands what to do with scraps to make some real money.

What you can offer that no one else can?

This is a question that you need to ask before you even think of entering the scrap car removal business. Please do not think of giving sellers the option of car removal for cash or preferably more cash than your competitors because that model has long been tried and has only resulted in failed or heavily loaned businesses.

You need to find that one thing which can help you recycle and resell the purchased cars efficiently.

Selling the car part by part?

Remodelling it completely to sell it off?

Modifying it for the Collectors?

Keeping it long term to sell to the vintage fanatics?

Doing something environment friendly with the scraps to avoid tons of metal being dumped?

These are not the only solutions, but a hundred more can be formulated with the right mind and team members. The possibility is endless because the number of cars do not seem to reduce, rather increase exponentially in the near future; proving that the industry is growing and investing in the initial stage can result in some sweet results in the future.

Steps towards Success

In order to run a profitable car scrap removal business in the long run, you need to focus more on the services that you can offer and charge your customers on them, such as:

● Allowing your customers to call you for a pickup and drop of their car from anywhere they want.

● Selling (auctioning) individual parts of the car to Collectors.

● Safekeeping the car and remodelling it can help you charge some extra bucks for the storage as well.

The fact that you do not have to keep your products in perfect condition makes the whole proposition a little more interesting because you cannot damage a scrap car anymore than it usually is (mostly).

You need to have a digital presence for your potential customers to reach you at the click of a button, plus the digital aspect will act as a platform on which you can display different kinds of products that you might be selling. The scrap car business requires you to build a network in different areas of the world because it usually is first-come-first-serve and the collectors do not wait when they see a genuine piece.

Start Now to Make Profits in Future

This kind of business can also be profitable in smaller regions because where there are people, there is a large number of cars. Scrap car removal in Newcastle, Scrap metal in York or scrap car body parts in Manchester etcetera is not just common, but also growing rapidly.

These kinds of businesses require immense hard work and capital in its initial stage, which makes it difficult for every entrepreneur to invest in it. But if you can make real money from scraps, then you can be the best entrepreneur in the world.

The road to success isn’t smooth and a few bumps will only make you shine brighter- Dhoundhu

Is it the end of pay day loans in Australia

November 10, 2016 by Reporter Leave a Comment

Payday loans, which is a popular concept in the USA now has a flourishing and growing industry in Australia. It has grown in popularity in recent times in the US due to the failing economy and jobs situation in United States. In Australia recent job losses with the downturn in mining industry, random corporate job cuts and poor financial management has led to a growth in pay day loan companies.

There has been a spurt in growth of online payday loan companies that lend based on people filling in forms online and getting a loan with ease. These companies have got millions of dollars in loan books and are now coming under scrutiny for unfair lending practices by the regulatory body(ASIC).

The loan market for small loans or micro loans (payday loans) has gained notoriety not only in the Australia market, which is more recent, but has come into regulators scrutiny in many other countries like India and US and New zealand.

This market caters to people who are in desperate need of money and who most of the times are already in financial strife. Lending to such a group becomes a tricky situation where lending companies needs to grow their loan books, yet can’t really take undue advantage of the person’s poor financial position. Lending to them can put them at more risk and put them customers in more strife.

The question of balancing responsible lending and growing your business at the same time is a very fine line in this niche and local micro lending companies like cash converters and nimble have been taken up by ASIC for not being upto scratch on their lending practices.

Recently, following an ASIC investigation, payday lender Cash Converters (online website at www.cashconverters.com.au ) will refund $10.8 million to consumers who received small amount loans under approximately 118,000 small amount credit contracts. Cash Converters has paid a $1.35 million penalty following the issuing of infringement notices by ASIC.

ASIC had concerns that Cash Converters did not take reasonable steps to verify consumers’ expenses in accordance with its responsible lending obligations and subsequently entered into them in breach of the credit legislation.

Many customers of Cash Converters Loans may be eligible for a refund

· Refund eligible consumers $10.8 million in fees through a consumer remediation program overseen by an independent expert who will report to ASIC; and

Consumers who had two or more small amount loans in the 90 days before taking out another small amount loan through Cash Converters’ website during the period 1 July 2013 to 1 June 2016 should expect to be contacted in due course with information about their refund.

If you think you may have entered into a loan contract with Cash Converters (either in-store or online) that was unsuitable, you are encouraged to lodge a complaint with the Credit and Investments Ombudsman. If you need help lodging a complaint with the CIO, you can talk to a free and independent financial counsellor by ringing 1800 007 007 during business hours.

ASIC’s MoneySmart website has useful guidance on how payday loans work and alternative credit options.

How to Stay Competitive in the Forex Market

August 9, 2016 by Reporter Leave a Comment

The forex markets have changed a lot in the past few decades, becoming ever more competitive for individual traders and brokerages alike. In order to be successful when exchanging currencies these days it is important that traders maintain a competitive edge. There are many ways in which this can be done for both traders and brokers.

Who is the Competition?

Firstly, it is important that you know who the competition is. For forex brokers this is simple, it will just be all the other forex brokers on the market. Working out their strengths and weaknesses can help you to fine tune your own forex brokerage, by building on their successes and finding solutions to their weaknesses.

For individual traders, working out the competition can be a little trickier, but it does exist. High priced brokers charging a high spread are the obvious ones, wanting to ensure that you plough as much money into their firm through losses. The other competition can be yourself. Blaming yourself for failed trades, letting emotions get involved and risking large losses are all down to yourself.

Build a Successful Trading Plan

As a trader you should have a quality trading plan already to hand, and it should be developed to be as competitive as possible. Still, it is important to factor risk into this strategy, as if things do go wrong then you will need to maintain enough capital to continue trading forex in a competitive manner.

Seeking out expert financial advice can help in this respect. Forex brokers need a successful business plan themselves, to ensure that they aren’t losing out when helping traders. Put this together with your aims in mind and building on the strengths of competitors.

Use Efficient Trading Platforms

Competent forex trading platforms allow for competitive trading, as currency can be exchanged quickly and accurately. They also provide the most up to date information, news and analysis to keep traders well informed. If you’re a trader, then investing in a flexible forex platform is essential to stay competitive.

For forex brokers, developing and offering such platforms is a necessity to stay ahead of the competition. Mobile and tablet trading apps are now offered by almost every brokerage firm, so to keep up with the competition your company must have developed these as well. To stay ahead of the competition, it will need to be using the latest technology in its products.

Forex Broker Offerings

As well as staying up to date with the latest forex trading technology, brokers need to be offering attractive rates to traders that still fit in with their business model. This will help them draw in more traders.

The days of charging large brokerage fees are going, as more and more traders exchange currencies independently thanks to the advancements in technology. This is making it harder for brokers to survive and remain competitive, so they are having to look at new and innovative approaches. Whether you’re a trader or work for a brokerage firm, staying competitive in the forex game is essential.

Money

How to buy stocks in the Australian stock market