FXstreet.com breaks the rules of currency exchange introducing FXstreet.com Global Transfers

http://www.fxstreetgt.com

a service which offers exchange rates and services that are normally reserved for large corporations. When it comes to transferring money internationally, the costs can often be prohibitive due to high transaction charges and uncompetitive foreign exchange rates.

OzForex, the provider of the FXstreet.com Global Transfers service, was launched in 1998 to bring a better deal to individual as well as small to medium sized business clients. Offering 24-hour access to Corporate and Private Client Dealers, the OzForex Group completes over 200,000 funds transfers per year on behalf of clients.

OzForex is a subsidiary of Macquarie Bank Limited, one of Australia’s leading financial organizations.

I’m really proud of this partnership and I hope it will get a great acceptance among our visitors as I’ve been requested many times to referr to a competitive exchange rate service. Well, here you have one that it’s one of the best.

I want also to thank Matt Gilmore, Founder and Joint Managing Director at OzForex for his interest in FXstreet.com and for being there for us many times during the last 10 years.

Thanks Matt!

Francesc

I’m happy to announce here today that FX Solutions UK is joining our pool of brokers participating in our Pip Rebate Program for active Forex traders.

http://www.fxstreet.com/brokers/rebate-sharing/

For FXstreet.com is important to have FX Solutions UK on board as it reinforces the offering of UK based brokers along FXCM UK and Forex.com UK.

Welcome on board FX Solutions UK

Francesc

Participating Brokers

• ACM Advanced Currency Markets SA
• FXCM (Forex Capital Markets, LLC) U.S.
• FXCM (Forex Capital Markets, LLC) UK
• FX Solutions LLC U.S.
• FX Solutions LLC UK
• FOREX.com U.S.
• FOREX.com UK
• MG Financial Group

Gold that has gained the big attention of investors pushed to yet another all-time record this week.
As you know, gold is used as a reference against some currency prices, especially Australian dollar (AUD) which has a strong correlation with gold prices.

We FXstreet have added Gold and Silver live quotes in the Rate and Chart section.

They are now available at the following applications.

Rates
Streaming Forex Rates http://www.fxstreet.com/rates-charts/forex-rates/
Live Currency Rates http://www.fxstreet.com/rates-charts/currency-rates/
Tradable Rates http://www.fxstreet.com/rates-charts/tradable-rates/

Charts
Live Charts Window http://www.fxstreet.com/rates-charts/live-charts/
Advanced Forex Charts http://www.fxstreet.com/rates-charts/advanced-charts/

Gold = XAU/USD
Silver = XAG/USD

I hope you will make use of them.

Francesc

As it states in the contest web site:

“The “Man VS Machine” Competition is a Forex trading contest that pits humans against automated bots(”Expert Advisors”) in a 10 week competition to see who earns the most! The competition begins Jan. 10, 2010, and lasts ten weeks.”

Interesting….

Francesc

Retail Forex Industry - Where Are You Heading To?

Here you have Michael’s view:

Francesc,

It’s an interesting article.

Though I have to disagree with several statements. Here are the main points I’d like to argue:

Maturity: The industry is indeed in its maturity stage. But in the US and Western Europe only. Middle East, Asia and Australia are booming and there is much to grab there.

Volatility: I have no idea how can anyone expect a higher or a lower volatility in 2010. The one expecting a higher volatility in 2010 has 50% chance of being right.

Brokers going public: It remains to be seen how successful Gain’s IPO is going to be and how the stock price will behave in the ensuing weeks and months. But this doesn’t mean that 3 more brokers will go public.

There is a reason why Gain is going public in this very volatile period and this is because it is backed by Venture Capital firms. These firms HAVE TO liquidate their investments sooner or later in order to pay back their investors and therefore they push their firms to an ‘exit’. The only other firm to receive a similar investment is Oanda. I doubt if any other brokers will go public any time soon.

M&A: I also don’t believe that the M&A stage is approaching - most of Forex brokers over evaluate themselves and there are not too many of them anyway. In this climate massive M&A process is simply not going to happen. There is also not a lot of sense in acquiring a broker completely (too many question marks) - there is much more sense in acquiring its clients when it goes out of business or moves offshore. Just like what FXCM did very successfully recently.

Education: What is happening now, and is going to dramatically change the brokers landscape, is the increased education that the traders are receiving and demanding. If a few years ago a trader, any trader, just clicked a banner and started trading right now they research the subject first, then research all they can about their chosen broker and only then sign up and trade. This affects their losses, the cost of their acquisition and forces the industry to shift to more transparent way of doing business. Subsequently STP/ECN execution methods, which were only available to very large and sophisticated investors, are available and much more accessible to any retail trader.

When the same educational practices reach Middle East and Asia too most of the small bucketshops will go out of business. Here is the big short term opportunity for scammers and long term opportunity for fair brokers.

Forex Portals: I’m surprised that the acquisitions in the Forex portals market haven’t happened yet but I’m sure this is an ongoing process. The only reason I can think of is the exact reason I gave above about the forex brokers M&A process: Here too the portal owners overestimate their valuations and there aren’t too many of independent portals anyway.

My advise to portal owners (Francesc it’s a hint ;)) - if you get a nice offer with nice multiples - take it. Nobody is going to come back with x2 offer because it losses any economic sense.

Michael Forex Magnates

The last few weeks I’ve had the opportunity to speak with top management of some of the most important firms in the retail Forex industry about the present and the future of both sides of the industry, the retail Forex Brokers and the Forex Portals and Forex sites with high traffic.

These are the conclusions I took based on their feed-back:

1. The industry has begun its first cycle of maturation. Real consolidation and a changing landscape are inevitable soon. Signs are now undeniable.

2. The unprecedented volatility of 2008 stalled this year but it will begin in 2010.
Lower volatility on average will only serve to increase consolidation as it will become harder for brokers:
A. To get new clients as ad results and demo conversions to live plunge when volatility dies.
B. Clients trade less when volatility is low.

3. Forex volumes peaked in 2008. They are down from 30 to 50 percent in 2009 versus peaks.

4. Regulation is changing fast around the world in the US, Japan, Switzerland, etc. Regulators are squeezing out players and will continue to do so.
Players will have to be bigger, richer, and most likely not to take the other side of client trades.

5. Gain Capital is the beginning trend of Forex providers going public, others will follow. IG Markets, which is already a public company, has an advantage in consolidation so far but by the end of 2010 there will be 4 public companies in the space.

6. Consolidation so far was mostly that small firms were disappearing. Going forward you will see half or more of the middle firms to be merged or acquired. The big Forex firms will become much larger acquiring the smaller and who knows maybe we see M&A between large firms.

7. Financially the big firms - except one - made money so far in 2009 but much less than in 2008. One of the biggest firms saw profits declining 25 percent but others are down 50 to 85 percent.
Although they expect 2010 to be better than 2009 it’s unlikely to repeat 2008 or even 2007.

This should reinforce the idea that M&A are the way to grow.

8. Of the middle firms, very few made money, as many grew too fast in 2006 to 2008 and they now find that market does not have enough capacity for them.
This should explain what what we have been seeing recently about massive account opening bonuses, lower spreads and other incentives.

If 2010 does not repeat the volatility of 2007 or 2008, some should give up. Survivors will join the prior group and become big themselves.

This struggling landscape for middle firms could dramatically change if non-English speaking markets keep growing at their recent fast pace. Some are finding overseas the clients generation rates they are lacking at home.

9. Most relevant to us Forex Portals and Forex sites with high traffic is that as firms in this space become public they get the “cash” to do acquisitions that were not affordable before.

10. As the changes outlined above take place, us Forex Portals and relevant Forex sites will become more realistic about valuations, future prospects alone, etc. And this will allow smoother and cheaper roll ups of firms.

11. Borrowing money will remain challenging and expensive. Venture Capital firms are squeezing as industry and will be very selective.

12. Size will matter in attracting money and all firms in the space - even FXstreet.com who is the biggest - are too small to merit attention of many financial players.

What do you think?

I will welcome your feed-back and if you are an industry player that would like me to publish a post with your view, please do not hesitate to ask.

All views are here more than welcome.

Francesc

Currency traders flock to Dubai
By Emirates Business
Dubai is fast emerging as a major trading hub for foreign exchange with traders from the United States and Europe coming to the emirate to tap those wanting to hedge their currency risks.
The news comes as Dubai’s local commodities exchange, the Dubai Gold and Commodities Exchange (DGCX), reported an 88 per cent year- on-year increase in its currency trading volumes.
Full Story

I found this critic to Shares Magazine 2009 Awards in the Times Online this morning.

The author Martin Waller states:

“I am sorry to have to report a degree of cynicism at Shares magazine’s annual awards the other night. As luck would have it, of the 20 awards up for grabs, five went to sponsors of the event…
Full Story

Do you have any further information on this?

Francesc