iFOREX’s Protective Measures Against External Financial Crisis | Business Wire

LIMASSOL, Cyprus–(BUSINESS WIRE)–iFOREX (Cyprus) Ltd., a leading on-line trading service provider, has

recently stated that in relation to the current Cypriot banking crisis

and the proposed measures to be taken by the Cypriot government, iFOREX

wishes to reassure its global client base that it has in place

substantial risk management and security means in order to prevent such

measures from affecting its business and more importantly, its clients’

funds.

The aftermath of the Cypriot banking crisis is still being felt in many

industries and with numerous Forex service providers based in Cyprus,

some brokers not only incurred losses, but their clients’ funds were

also affected. Clients of Cyprus based Forex brokers that kept their

funds within certain Cypriot banks lost between 60 and 100 percent of

their funds above €100,000 and found that their accounts had been

blocked not allowing any withdrawal or deposit of funds. Although iFOREX

is based in Cyprus, client funds and account access remained unaffected

during the crisis through shrewd risk management and prudent management

on their part.

Relying on iFOREX Group’s 16 years’ experience in the foreign exchange

field, http://www.iforex.com has

implemented several precautionary measures to ensure that any financial

actions taken by the Cypriot government, including any levy imposed on

deposits held in Cypriot banks, would have no effect on funds deposited

by its clients with iFOREX and that the provision of financial services

would continue without interruption.

When asked about the measures iFOREX takes to secure company and client

funds, a risk manager for the company, Lakis Agathocleous was quoted as

saying “As one of the largest and most respected firms in the industry,

one of the ways we have stayed ahead of our competitors and flourished

through any global financial crisis is by constantly managing our risks.

In the specific case of Cyprus, all company and client funds have been

deposited in segregated bank accounts held with various reputable

European banks keeping the vast majority of funds outside of Cyprus. In

addition, we are a registered Cypriot Investment Firm that is regulated

by the Cyprus Securities and Exchange Commission and by adhering to the

strict regulations set out by CySEC in accordance with EU directives, we

promise not only to protect our clients’ interests and funds, but also

to offer a transparent service so that clients know where they stand at

all times. We believe that, above all else, our clients deserve to have

and should have a safe and secure environment that allows them to invest

and we would like to assure them that their funds are protected with us.”

You can learn more about safety of clients’ funds and related procedures

and to discover more about the services and products iFOREX provides in

a variety of languages including Italian, Spanish and Polish that can be

found at http://www.iforex.it, http://www.iforex.es

and http://pl.iforex.com respectively.

Leveraged Forex/CFD trading involves considerable risk. Territorial

restrictions may apply.

Forex Trading: Great Opportunity or Scam?

(PRWEB) June 10, 2005

A lot of interest has been generated recently in FOREX trading, hailed by some as the great new investment opportunity. There are even companies running TV infomercials, offering sure fire systems that will bring massive profits in an easy fashion.

So what is forex? Is it something new? The exchange of currencies is said by some to be the world's second oldest profession and as long as there has been two sovereign states that have issued their own currencies, there has been foreign exchange as a facilitator for trade.

Forex, as foreign exchange has been abbreviated to, has been conducted for centuries and has become a global market with a daily turnover according to a recent Bank for International Settlements survey of $1.9 trillion (billion, billion) per day. Essentially it is a global market place with no physical exchange building where all claims on foreign currencies are settled – between governments, corporations, investors and speculators among others. Banks have traditionally been the middlemen who provide the liquidity to this gigantic market, which incidentally is traded on an almost continuous 24-hour basis.

Then came the Internet and suddenly it became possible for everyone to get a piece of the speculative action. Brokers sprouted up with their electronic trading platforms and high 'leverage'. Essentially the brokers lend clients funds to speculate with, 100:1 or in some cases up to 400:1 ratio, or leverage. This means that $10,000 can 'control' up to $4,000,000 in the market. This is far higher than is possible in the stock market.

Many people have been attracted to the possibilities of earning fast profits from forex. There are often sharp movements that can turn your $10,000 to $20,000 in a matter of minutes. You can also get wiped out, but the lure of a fast buck has turned would-be speculators into out-and-out gamblers.

The Internet has also made it possible for the individual to obtain so-called 'charts', that allow them to do 'technical analysis' on their own PCs. The theory is that price movement patterns repeat themselves, so if you have a system of analysis, you can predict a future move in the market.

This may well be the case, but it does not address the problems of the psychology of trading – the fear and greed that drives many to irrational behaviour. People are often taken in by the seller of a system, often paying $5,000 for a piece of software that shows a green light to buy and a red light to sell. However, they don't tell you how to manage your money.

So speculators lose. It has been estimated that 90% of new investors in forex lose their capital in the first year – an appalling figure. What can one do to avoid being a victim? Well, forex is a business like any other business and planning is required. It is also a profession and as such, adequate training is necessary so that you understand fully what forex trading is all about.

Many are prepared to invest thousands in forex trading without really knowing what it is all about. Just think if franchises were offered in a major hamburger chain without the franchisees having a clue how to run a restaurant or even make the burgers. The failure rate would also probably be 90%.

As with all investing, it is all a matter of risk and reward. Investing in Government securities is considered low risk, therefore they carry the lowest return. Increase the risk (the probability of loss on the investment), the higher an investor is rewarded in terms of return. An individual trading forex decides his own level of risk, which should dictate the level of reward. However, in the hands of an inexperienced trader, the two factors are impossible to reconcile, meaning in stark terms that traders cannot control the risk or the reward levels.

People attracted to forex trading often have an unrealistic expectation of what can be earned. To start with an investment of $5,000 and expect to be making $100,000 a year after the first year is unrealistic. It is not impossible; then again, neither is winning the lottery.

If the parameters for trading are laid down and adhered to combined with knowledge of forex trading, success is possible. It does not take much in the way of 'enhanced' returns to be able to double an investment. 26% per annum is required to double your investment within 3 years.

Who is going to teach you? There are some very good courses available, but these will only give you the theory, in itself very important. The ideal way is to have a mentor, or guide to show you the way.

Getting mentored is a wise move because it makes it possible to draw on the experience of a veteran expert and avoid making the common mistakes that cause the unwary to suffer catastrophic losses. After a while under guidance, a forex trader will gain the experience

The bottom line is that forex is not in itself a scam. There are for sure scam artists who prey on individuals' greed as there are in any other business. If it is approached in a sensible and realistic manner and the trader is prepared to work hard, forex can provide a good living both financially and materially.

Steve Pickering is founder and owner of Forex Trader Mentor and has been engaged in the forex markets since 1971. http://www.forextradermentor.com