Zero Discounted Currency Exchanges

Currency exchanges happen all the time and every banking business day. If you are going to travel to Europe and have US dollars then you may need your dollars exchanged into German Marks. What about the internet broker deals where the exchange is at a discount? Is it for real or not? Currency exchanges at a discount, like 15/10 or a fifteen percent discount happen in very rare instances where the client “losing” money on the exchange needs fast action to the other currency and is willing to lose some in return. On the other hand, the chance of this happening in the broker community is miniscule or nil.

Why do you see so many currency deals on the internet today? Two reasons, ignorance and greed. The currency deals you see within the realm of the internet or your “in-box” are for the “hope” to make a lot of money on the “currency swap” from brokers. Brokers are ignorant to the fact that their chance of ever doing a discounted currency transaction is nil by the reason someone told someone they are doing currency transactions all of the time. They will mention names such as, the Treasury Department, the Feds, or some “group” which needs to have Euros instead of Dollars. The reality is more myth than fact and defies common sense.

Here are the numbers for your review:

Client A has 100 million dollars and would like to have the currency exchanged into Euros.

Client A has a somebody that will exchange the currency for the “broker” 15/10 or fifteen percent discount.

Client A, according to the brokers, would like to have the Euros, even though the Client loses money.

As of the 1^st of August, 2011 the exchange rate is one US dollar to .70 Euros, therefore Client A will have the equivalent of 85 million Dollars except it will be in Euros which is 59.9 million Euros after the currency exchange, or to state, Client A will lose fifteen million dollars.

If you were Client A, would you do it? Does it make sense to lose money on behalf brokers and other that believe you can do currency exchanges with 15 percent discounts all the time?

Welcome to Zero Discounted Currency Exchanges.

Real currency exchanges take place within the private banking realm and the client never loses any money. Using the example above, Client A with 100 million dollars will have 70 million Euros instead of 59.9 Euros. As stated before, would you, as Client A rather have 70 million Euros or 59.9 million Euros at the end of the day?

Now a surprise to the brokers which claim to have done numerous currency exchanges. How do you think you will be paid if there is a zero discount currency swap?

In summary, Client A really doesn't need a broker, but if there is a broker on the horizon, it is in the best interest of the broker to take care of their client and make sure Client A does not lose money. So you have to ask yourself, are you in business to help your clients? Or are you in business to line your pockets with the mystical, discounted currency swap which will hurt your client?

And we ask the brokers again, “How do you think you will be paid for a zero discounted currency exchange?”

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Alternative Investmest Regulations and Forex

In the choice investment world, there are many markets, whether its private placement, managed futures, foreign-exchange or any other niche, one thing's certain, alternative investments are showing up everywhere with disinformation. With this trend now clear, the large issue is, why would you not broker alternative investments? Well, if you can follow the guidelines, brokering could be a rewarding profession. As you'll see, there's lots of money in investment brokerage, but there's also harsh regulation. Since you can't broker deals with insufficient education, we are providing the best info on alternative investment education to aid you in succeeding. To get you going, we'll review some of the basic legal facts for brokers, covering all of the major markets during the process. This will enable you to shield yourself and others while brokering, making your transactions more successful. Most vital, if you choose to broker non-public placement investments, you have to act within the law. First, you need to typically reach financiers indirectly without solicitation. This is terribly critical due to the hard laws connected with private placement programs. If you solicit for speculators before they ask about particular investments the reality is, you are breaking the law. To remain effective and legal, you need to often contact backers mentioning project finance as your most vital goal.

Once trust opens up the conversation and they request information, you can debate any investment you want. Also, when providing paperwork to an investor, a brokering agent you never send it. It should come straight from the program and the documentation will never state yields or commitments. By referencing yields either verbally or through forms, you are breaking the law again, and this time it much more serious.

 

If you'd like to become an introducing broker for a managed currency exchange investment, there are two routes you can take. First, you could become an introducing broker for a foreign exchange trader in the United States, earning commission for each banker you find. Though this sounds great to most, you have to have a license before it's possible to start soliciting stockholders. There is some studying, however it can pay off great in the ultimate analysis. Against that you can become an introducing broker for FX traders using offshore Forex brokers. Once again, you would be collecting commissions for banker referrals. By working with traders who exploit offshore currency exchange brokers, you are not subject to the laws in the States. This does allow you to earn residual payments, but the truth of the case is, accomplishing Forex shareholders can be extremely difficult if you're unapproved. Overall, whether you'd like to broker domestic or offshore Forex investments, you need to always keep the law under consideration. Though managed Forex is highly rewarding, one mistake can be drastic. If you make a decision to broker managed futures investments, you can take one of two routes. First, you can broker managed futures in the States, raising capital to earn commission. This requires a NFA license, which adds firm oversight into the picture. Though there are failings to having an NFA license, the reality is, authorized futures brokers have the capability to earn millions every year. For this awfully reason, it's frequently a good idea to get a NFA license if you are working in managed futures. Since the license is recognized by backers around the world you can raise never-ending equity if you're smart.

 

Against that if you choose to broker a managed futures investment without a license, the trader must be offshore. In this example, since you are working with an offshore futures trader , USA laws don't apply to you, unless you are working with residents of the USA. Remember, always keep the SEC on your side and comply with regulations and laws of the pertinent country.

 

Though it'd appear appealing to broker deals without regulation, actually it's stronger than it sounds. For more info about a NFA license. If you would like to broker investment related products, you have to go outside of your niche.

 

If it is REO's, private equity, hedge funds, loans or maybe more, there's always a deal to broker. Though you can become loaded brokering investments, you have to know one thing above all, the law. In each investment market, there are laws you want to consent to if you would like to attain success in business.

 

Do yourself a favor, and completely research your alternative investment niche before following it. The reality is, you may need a license, or else you will decide to work with private investments. Remember, alternative investments are good, but just like the rest in life, there are ground rules.

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