Posted in: Must reads

Online trading: understanding the business from all the angles

 “My own business? From home? Good profits? Yes! I accept!” Wait! Do not jump to conclusions; let’s understand this online trading era.

Along with the online trading era and its recent changes, traders have been given the right to make all their decisions by themselves, and this is such a great thing considering the independency it provides in a society ruled by technology.


Hands in action for online trading…

Independency on your own business decisions as an online trader differs from using a stockbroker, as what generally happens. A broker usually provides input and advice, and this is not a bad thing at all, but there is nothing like the freedom of choice and the comfort it results in on a great decision taken; besides, some brokers in ABN AMRO have a biased opinion.

Regardless of the way anyone decides to trade, something must be clearly said: risk is always present, and that is why the rules of the game have to be clear. Knowing the advantages and disadvantages of trading is essential to make better decisions and get better profits; that is a fact.

It has been seen that online trading has come to significant growth in recent years, and it seems not to stop in its increasing popularity. Numbers say that over 14 million households in the U.S. have signed up online trading service, according to highly respected statistics companies. At a significant amount, then, it is crucial to where we are standing on, either on positive or negative aspects.

First things first, online trading can be very positive…

On the one hand, some of the positive aspects can be that online trading represents lower fees in general, and this is one clear advantage. The traditional brick-and-mortar brokerage firms that generate high fees in business and finances reduce a lot in transaction costs and high fees associated with them.

Also, with the structure of the online trading every user has a lot more control and flexibility in the business, the speed that online trading portals provide is a benefit to many investors, a trade can be executed almost immediately. Opposite to what traditional brick-and-mortar brokers mean over online, phone, or personal appointments to initiate a trade.

As said before, and without any negative connotation per se, brokerage bias is also possible in traditional trading; with the online concept, this is not necessary. Prejudice happens when a broker provides financial advice that benefits the broker, and this is logical; after all, it is business. Such a thing is eliminated with totally independent online trading.

Another good thing about online trading is that there is the accessibility to a universe of online tools. When we are trading online, it is easy to see that a lower cost doesn’t necessarily mean a shoddy product. Then the tools to make decisions over such a thing are very helpful. Very respected online trading companies can offer customers an impressive suite of tools so they can have valuable information and optimize their trades better.

Last but not least, on the functional aspects of online trading is the possibility to monitor all of that in real-time. With the technology of today, many online trading sites offer stock quotes and trade information; with all of the elements existing, it easy for people to see the performance of their investments in real-time.

…not all that glitters is profits!

Another harmful and hazardous thing that some people do not see is that in online trading and without a complete vision of the performance of the market,
it is very easy to invest too much too fast, this is because online trading is so easy, practically everything is one click away, so if we do not look back for a
second, at that same second, we could end up overinvesting or making poor investment choices.

On the other hand, it is also imperative to know all the possible disadvantages of the online trading business; this is first to be clear on what could happen to your investments at any extent, and also to be ready to face any situation and make the best results possible.

We have all heard about the risks from the worldwide economy business, and that is what we are doing, as there are many points in the economy when inflections may be harmful (or positive at times) for traders and investors. Take the case of the very relevant example of ABN AMRO that is running on some problems now that can, of course, affect the people investing in its platforms.

Another harmful and hazardous thing that some people do not see is that in online trading and without a complete vision of the performance of the market, it is very easy to invest too much too fast, this is because online trading is so easy, practically everything is one click away, so if we do not look back for a second, at that same second, we could end up overinvesting or making poor investment choices.

Also, and as another negative point, there is a very distant or even no existing relationship with brokers. Even when before there was an element of a biased perception in their suggestions, brokers are there also as a great deal of help. Traders are generally pretty much left to their own devices, from getting advice on how to make investment strategies to literally understanding what the effect of the results of feedback mechanisms in their market is. Of course, it all depends on how anyone feels about this kind of autonomy. If anything, the advice of experts is that it is vital to research, particularly in the case of new traders. It is essential to learn as much as possible about the companies in which investment is being made.

This, as delicate as it may seem, is a very well-conducted study from the journal Addictive Behaviors. There is a substantial similarity between the feeling of people gambling and the people trading, of course, talking about excessive trading. This financial activity has to be seen like that, and when the coloring goes out the line, then we have to step aside, think, and get back on track.

Another minor but yet necessary to mention elements noticed at a disadvantage side is the fact that we become dependent on the internet connection. When it is not reliable, then problems may start. Also, errors of clicking twice or assuming over the completion of transactions even when there is no confirmation message at sight has cost significant investment to some traders. 

At the end of the day, we can all say that online trading is a business (as any other) with highs and lows, and it all depends on how well we are taking it can be very profitable for its investors. Trying online trading will, for sure, be an excellent thing for those wanting to have some independence in the system.

ten thing to know before investing in ICO’s

Investing in ICO’s : Ten things that every investor needs to know

If you’re going to be investing in ICO’s, then you need to be well-informed. There have been too many stories about people who threw all of their money into an ICO that promised them good returns only to lose all of their investment either because the ICO was an outright scam or because they couldn’t deliver the product that they said they would.

ten thing to know before investing in ICO’s

ten thing to know before investing in ICO’s

Investing in ICO’s can be both exciting and rewarding, but you should know these 10 things before you put any of your hard-earned money into one.

#1- What Countries Do They Allow?

Before you are  invest in a ICO, the first thing you need to know is if citizens from your country are allowed to invest in the first place. Due to various laws, and to prevent the possibility of a “pump and dump” many ICO’s restrict ICO’s to a few select countries.

#2-Bitcoin or Ethereum?

Currently, every ICO either takes Bitcoin or Ethereum. Sometimes they offer bonuses depending on which currency that you invest with. If you read the ICO’s whitepaper, it should clearly outline what currency you should invest with and what address you should send it to.

#3-Do You Need A Wallet?

Most exchanges don’t allow you to deposit cryptocurrency directly to a known ICO address. It’s usually a violation of their terms and conditions, and doing so can result in you losing your entire transfer. Because of this, you will need to have a digital wallet from which to transfer your funds before investing in ICO’s.

#4-Do They Offer Bonuses?

Most companies offer bonuses to individuals who are investing in ICO’s. Usually, the more money you invest initially, the greater return you will get when their token launches. This is a way to reward the heavy hitters who are seeking to make long-term investments into the technology.

ten thing to know before investing in ICO’s

ten thing to know before investing in ICO’s

#5-Do They Solve Problems?

Much of an ICO’s success depends on their ability to solve a problem. Sometimes they seek to fix a real-world problem such as decentralizing the power industry, or sometimes they try to fix a problem with the blockchain by speeding up transaction times.

Before investing in an ICO, you need to make sure that they can be successful in the long run. The most successful ICO’s are the ones that solve problems and benefit both people and the blockchain industry.

#6-Do They Have A Roadmap?

A business without a plan is doomed from the beginning. Before you invest in ICO’s, always make sure that they have a roadmap outlining their future goals and how they plan on achieving them. The more detailed, the better.

#7-Do They Have A Good Reputation?

Before investing in ICO’s, you want to be sure that they have a good reputation. This is the best way to protect yourself from getting scammed by shady individuals who set up proxy ICO’s, and then run off with peoples investments. Because of the decentralized and anonymous nature of cryptocurrency, it’s often impossible to find scammers like this.

#8-Do They Have Any Backers?

One way to gauge an ICO’s potential is to look and see if they have any reputable backers. If the company is recommended by notable figures in technology, the government, or blockchain, then the chances are that the ICO is legitimate and has a decent future ahead of it. Big names usually will not risk tarnishing their reputation recommending bad ICO’s to people.

#9-What Is Their Price Prediction?

This can be hard to tell, but you can usually speculate what the token price is going to be once it hits the market. Of course, nobody can ever put a 100% accurate price on this, but if you look at the charts, graphs, and market cap, then you should be able to make an average prediction of the value of a token in the coming months.

ten thing to know before investing in ICO’s

ten thing to know before investing in ICO’s

#10-Do They Have A New Idea?

Possibly one of the best indicators to look for before investing in ICO’s is if they have a new idea. An ICO can have a great idea, but if it’s been done a hundred times before, then it’s not going to have much chance of long-term success.






Bitcoin Private: A Cryptocurrency Review

When Bitcoin was developed, it had problems in regards to privacy and transaction speeds. While its possible to create privacy-centric elements to it, it’s not easy and requires a hard fork for it to happen. Bitcoinprivate is a hard fork between Bitcoin’s algorithm and Zclassic’s advanced privacy features. Specifically, it will use z-snarks to remain private. We’ll introduce you to this new cryptocurrency and how you can benefit from using it today.




What are The Advantages and Disadvantages of BTCP?

Peer-to-Peer Network

Bitcoinprivate is a peer-to-peer network that specializes in private and decentralized transactions. As a result, there are no intermediaries needed to when conducting trades with this coin.The transactions are verified via nodes before they are sent to miners for their approval. Since it has a larger block size, and peer-to-peer capabilities, it’s designed to scale. This means that the more users who are on Bitcoinprivate’s network, the more effective it becomes.

Fair Start

Some new cryptocurrencies are premined, which can leave new users at a disadvantage. Bitcoinprivate is released in a fair manner for its entire userbase. The coins will be sent out on a 1:1 basis to ZCL (Z-Classic) and BTC (Bitcoin) holders.

Open Source

Plus, bitcoinprivate’s codebase is open for verification and viewing by everyone. This allows for experienced programmers to find existing problems within its system, and fix and create changes within them. Rest assured that Bitcoinprivate will be maintained protected by an ever-growing community.

Block Size

Its main disadvantage is its large block size. Even though its block size is 2MB (in comparison to BTC’s 1MB block size), this means that it will take longer for miners to process it. The larger block size will take up more bandwidth, which can lead to more energy costs in the long run.


How to get BTCP?

How to get BitcoinPrivate

How to get BitcoinPrivate

There are two ways that you can obtain BTCP. Since it’s not currently out yet, investors will have to buy it via obtaining Z-Classic. Due to its 1:1 token distribution ratio, if you own 15 Z-classic, you’ll have 15 BTCP in your wallet after the fork takes place. Right now, you can buy ZCL through Cryptopia, Bittrex, and Alternatively, you can mine some ZCL to obtain some BTCP. Make sure that you install Zclassic’s official desktop wallet to ensure that you’ll receive BTCP after the fork. For more info go to: BitcoinPrivate site


What makes BTCP So Special In Comparison to BTC and BCH?

Here is a table that highlights the difference between the three main cryptocurrencies:


Fork Compare Bitcoin Private (BTCP) Bitcoin (BTC) Bitcoin Cash (BCH)
Max Supply 21 Million 21 Million 21 Million
Privacy Z-snarks (Zero Cash) None None
Block Size 2 MB 1 MB 8 MB
Block Interval 2.5 Mins 10 Mins 10 Mins
Replay Protection Yes No No
Difficulty Adjustment Each Block 2 Weeks 2 Weeks


Now, we can see the noticeable differences between Bitcoinprivate, Bitcoin, and Bitcoin Cash. While it does have a larger block size than Bitcoin, it has the highest level of privacy out of the three. Because of that, users should look into Bitcoin private as it provides a safer network that conducts faster transactions and keeps each user’s information protected while it’s in use.



What makes Bitcoin Private so special? Not only is it forked by Z-cash, one of the most private cryptocurrency networks in the market, but it’s also backed by Bitcoin’s existing algorithm. This means that it is a reliable coin to invest in due to its owner’s previous history, and its future growth potential. Do you have any additional questions regarding Bitcoinprivate?

Tell us in the comments below.







Ethereum: What is it? And why is it getting more popular?



The month June 2017 has been a crazy month for crypto currencies. The ETH went crazy, going in prize massive as Bitcoin did. If you have been watching Ether  for the last few weeks. Then you would have spotted a few really good trading opportunities that would give you a huge profit. So in this blog we are going take a look at Ethereum and Ether. What is Ethereum and why is it getting more popular?

What is Ethereum?

When you look at indices and the main stream news about the Ethereum, you might think that Ethereum is just another alternative crypto currency of Bitcoin. But if you do some more research on Ethereum, you will find out that it is not true. Ethereum is more then just a crypto currency. It is a very big highly advanced innovative platform for programmers and developers. On this platform you can build all kinds of apps such as games, financial app, social networks, basically everything you can imagine off. What makes Ethereum so special is that the platform is build on a decentralize system. Which means that there is no Authority that is holding all the information that is been used to create those apps. This platform was created with the intent that people can build programs that we may or are using every day. So this way there no middle man, and no central server to house that information. Without a central server, there is no main authority to change or shut down these programs without the entire community knowing about it.

Because of this advantage many programmers are hyped to build their apps on Ethereum platform. In order to program apps and run it smootly,you willl need Ether. Ether is like gas for car. Without ether, your app  can not function basically. There is only two ways of getting Ether. One is through mining and the other one is through buying ether on the market.So when you see Ethereum price quote on the markets it is really Ether actually. As the platform can’t be bought.

For a better understanding of Ethereum please watch this video of Vitalik Buterin (inventor of Ethereum) below.


How can I start in Trading Ether?

Speculation on the short term

Right now there is a lot of movement in the price of Ether. If you want to take make a profit on all those price movement. There is a option to speculate on the price of Ether. Ethereum coins are very volatile at the moment. As a trader you can take advantage of that. When the price of Ether goes up then you will automatically make a profit. But did you know that you can also make a profit when the price of Ether goes down? Because this happens all the time. You can make money by going short on Ether with a good online broker. This way you can earn a good profit too.

A really good online broker that gives you the opportunity to trade in Ether is Plus500. At Plus500 you can open a practise account for free in a very simple way. You can use this practise account to explore the opportunities in trading Ether. With the Plus500 software you can invest/trade in Ether with one mouse click. Because of this you can easily take advantage of all kinds of price movement of Ether. Click here to try out trading Ether at Plus500 for free.

Why is Ethereum getting more and more popular?

One of things that I like about the platform is that it gives you the possibility to create your own crypto currency. But there are many other advantages that Ethereum offers to programmers. That’s why this innovative platform is getting more and more popular. Because it is unique in his own kind. The more and more programmers that are choosing Ethereum to build their apps, the more ether will be needed. As the ether mining takes a long time and you need to know the right knowledge. So I think that on the short term the supply of  ether will be smaller then the demand for ether. Which will probably result into a higher  price value for Ether. But in all honesty I think that the recent rally of Ether was because of Bitcoin. Bitcoin went crazy in price value this month. Which surely took many other crypto currency including ether into a up trend at a higher speed. Because many investors doesn’t want to miss their chance like they had on Bitcoin. That’s why many jumped in the other alternative crypto currencies.


After taking a look at Ethereum. I am confident that Ethereum can stay for a very long time. I am not sure if the value of Ether will surpass the value of a Bitcoin. Because you can produce ether unlimited while Bitcoin is limited. However if more and more programmers and developers are going to use this platform then the demand for ether will increase. As you all know if the demand is higher then the supply then price will increase. In this case the price of ether will increase as long the demand is higher then the supply. As far as I know that it takes on average a month to mine 5 ether. Right Bitcoin and Ether are trade and invested in high volumes. If you don’t have the stomach for the dailey huge changes in prices then don’t trade but invest for long term. Keep an eye on our website because from now we will keep an track on Bitcoin and Ether.


Amazon Whole Food Market

Amazon Whole Food Merger

Amazon Whole Food Merger

Amazon Whole Food Merger

Hi guys, in this blog we are going to talk about the Amazon Whole Food Merger. In this blog you will find what we think what the effect of Amazon Whole Food merger will have on Amazon stock price. On Friday the 16th Amazon announced that it would take over Whole Food.

Amazon Whole Food Merger: What are the advantages?

On Friday the 16th of June Amazon announced that they would take over Whole Food company for 13.7 Billion USD. It basically means that Amazon is paying 42 USD per Whole Food share. What are the possible advantages from this acquisition?

#1 Whole Food Market customers

With this take over, Amazon will gain more access to high end customers. Like Amazon Whole Food Market served high end customers who demands top quality for every dollar they spend. With this merger Amazon can gain more prime members. For those who don’t know what high end customers means. High end customers are customers who are willing to pay top dollars for premium products that is worth their money.

#2 Physical Stores

Amazon also gets 432 physique stores of Whole Food Market. With the experiments of Amazon on what a customer pick, pay and how they get their grocery delivered in the recent years. Amazon has now the opportunity to change and shake up the grocery industry. It is the reason why nearly every supermarket stocks went down when the Amazon Whole Food merger was announced. Just take a look below what kind of store Amazon Go is. ( They launched the store this year.)

#3 Reducing delivery time

By acquiring Whole Food Market, Amazon got more physical places to distribute their products. For example customers can pick their Amazon products during their grocery time at any Whole Food Market store.

Amazon Whole Food Merger

AmazonWhole Food Merger source : bloomberg

# 4 Extra Profit

The final advantage is that Amazon get the revenue and profit from Whole Food Market. In 2016 the revenue of Whole Food Market was 15.7 billion USD.

Amazon Whole Food Merger: What are the disadvantages?

#1 Fierce Grocery industry

Whole Food Market has been struggling for the last few quarters. Their profits has been slinking. And their profit margin isn’t exactly super great either. If  Whole Food Market continue too struggle in the grocery industry then their profit will turn negative eventually. So there is a chance that Amazon will lose more money in this deal.

Amazon Whole Food Merger: How does this effect the stock price?

I think on the short term the trend of Amazon will be bullish. Because it feeds the market the idea that Amazon can do something really amazing in the grocery industry. Some analyst are believing that Amazon will change the whole grocery industry. The grocery market was worth around 606 billion USD in 2016. So there is a lot of money to be made in the grocery industry. If Amazon can disrupt the grocery market with the help of Whole Food Market like they did with the book industry then the stocks of Amazon will sky rock a whole lot more!

facebook stock

Facebook stock is moving into a Bullish Trend

Facebook stock

Hi guys,

Today we are going to take a look on Facebook stock. We are going to look at three things.


Number one:  Facebook stock performance


Number two: How is the company doing in term of business


Number three: How to make money on Facebook stock


Facebook Stock Performance

Facebook stock screen-shot-2016-09-06-at-15-33-49

Facebook stock screen-shot-2016-09-06-at-15-33-49


Facebook stocks have been doing good this year, in comparison to  the general stock market is facing challenges during the year. Facebook stocks remained steadily in a bullish trend. How ever if you look at the table.

You will see that FB stocks are currently moving in range of 123 usd and 126 usd. Which is a pretty small price range movement. And with this movement it indicates that we are in a sideway trend.


How is Facbook doing in term of business?

Facebook mission is to give people the power to share and make the world more open and connected. So far Facebook has been doing really well to executing that mission. If you take a look at the table then you will that they are succeeding in getting  new people to use their social network platform and getting more people to stay engage and being active on their platform.

Facebook stock active users screen-shot-2016-09-06-at-15-42-29

For example in June their daily active users rose to 1.13 billion active users. That is pretty impressive. If you compare that to the competition like twitter, who are struggling on getting more daily active users.

For Facebook business it’s that the more active users they have , the more advertisers are willing to spend. The more profit can be made which leads into a increasing value of the Facebook stock.

And Facebook is trying to get more users all over the globe and building his presence in the 3th world countries. So that as soon as people have internet they can open a Facebook account. And they are  doing that by offering free internet in those countries.

Recently a rocket exploded at SpaceX. That rocket was supposed to launch a new satellite for Facebook. That satellite was suppose to give internet to area’s where it is difficult to get internet. With this rocket explosion it will probably cause a delay in the plans of Mark Zuckerberg  to get new users for his platforms.

Back the business side. Fb is has increased his revenue in the 2nd quarter with 68%. And if you continue to look at the table then you will see that in overall they increase their revenue and profit.

Facebook stock balance screen-shot-2016-09-06-at-15-42-02

Facebook stock balance screen-shot-2016-09-06-at-15-42-02


Speculation on the Facebook stock price


Currently Facbook is still in the sideway trend but is slowly moving into a bullish trend. Facebook was moving in the price range of of 123 USD and 126 USD. But recently is has breakthrough the resistance level of 126 USD. But it doesn’t to be a strong push. So let see if Facebook is going towards the close of above 127 USD. Before we can confirm that it is in  a bullish trend. So for right now I am staying on sideline for a bit or i might buy  few CFD’s on Facebook shares. Because those Facebook CFD’s shares gives me a higher profit then with the normal Facebook stocks. For more info trading Facebook CFD’s share click here: Plus500 stocks CFDs. And if you want to know more about Plus500 then check our brokers review.

v=Federal Reserve Interest rate hike

Federal Reserve interest rate hike: What is going to happen?


Federal Reserve Interest Hike

Hi all,

In this article we are going to discuss what the possible effects are after of the Federal Reserve first interest rate hike and why it was needed that the Fed had to increase the interest rate.

Federal Reserve interest rate hike for the first time in 7 years

Yesterday Janet Yellen, the chairwoman of the Federal Reserve announced the first Federal Reserve interest rate hike for the first time in 7 year. The reason why the Federal Reserve had to increase the interest rate was because they thought that US economy can start growing with lesser help of the Federal Reserve. Most of the time when a central bank increased the interest rate its because the inflation rate is too high. A increase in the interest rate should decrease the inflation rate. However in this case it is different. The increase in the interest rate is more a sign to the world that US economy is growing and it is going back to the normal growth.

The Federal Reserve interest rate hike was expected by most traders and investors as the past months the economic data from the US was getting better and better. So the interest increase was unavoidable. The question was what is the pace of the Federal Reserve for increasing of the interest rates will be like? Janet Yellen answered that question yesterday in her speech by saying that the interest rate will be gradual increased. Which basically means that increase of interest rate will be very slowly.

What is the impact of the Federal Reserve interest rate hike on the economy?

Now that the first Federal Reserve interest rate hike is a fact. What will be the effect? The first effect will be the that the borrowing cost will be more expensive. As matter in fact Wells Fargo (one of the US big banks) have announced that they will increased their prime rate from 3,25% to 3,5%. And soon other big banks joined Wells Fargo such as JP Morgan, Bank of America ect. By the actions of these banks business owners and consumers who have variabel interest rate for their loans will have to pay more interest to the bank.


On the anticipation of further Federal Reserve interest rate hike in the future people who have plans for buying their house will no long wait and start to get their mortgage while the interest rate is still low. Brokers and companies that are involved in building and decorating houses will be profiting from this first Federal Reserve interest hike. You can expect a increase in sales for companies such as Home Depot.

What is the impact of the Federal Reserve interest hike on the stock market?

Normally a increase of interest rate is bad news for the stock market in general. But in this case it will be good news for the stock market. The reason for that is that gradual increase of the interest rate. Which means that cheap money is still available for at least year. A increase of 0,25% is not much. And because of the gradual interest increase bonds, obligations will be not attractive enough to invest compared to stocks. If the commodities such as oil stays low and the Federal Reserve increase their rates gradual then consumers will still have a strong spending power. With a strong spending power it will be good for the companies. And the best way to profit from it is by investing or trading in stocks.

CFD broker

CFD trading cost: How to calculate it in simple steps

Hi all,

In this third part of the online CFD course we are going to explain what the CFD trading cost are. The first part was all about what a CFD is and what the advantages were from using CFD. The second part of the online CFD course was about how you could make money with CFD trading. If you want to read part one and part two then click on the two links below.

Part 1 of the online CFD course: CFD is one of the greatest investment instrument for trading

Part 2 of the online CFD course: How to make money on CFD trading in a simple way

CFD Trading Cost: Kinds of cost

Before you are placing a CFD there some CFD trading cost that you should consider. At most CFD Brokers you will have to pay a commission fee, spread cost and a holding cost (if you are holding a CFD position longer then one day). However at Plus500, they only charge you the spread cost and a holding cost ( if you are the CFD buyer and if you are the CFD Seller you would receive a interest).

CFD trading cost of commission

When a CFD broker charge you a commission for each trade it will always consist out of the part. The first part of the commission is the minimum fixed commission price which is usually between 7 -9 pounds. And the second part of the commission consist a percentage of a trading value. So basically the higher the transaction trading value is the more commission you pay. Luckily there are some brokers  such as Plus500 and that doesn’t charge these kinds of commission. If you want to know more about these two brokers then you can check them at our brokers review.

Spread cost

When you are  buying  and selling CFDs immediately, the spread amounts to the difference between what you paid and what you receive. If you sell share-based CFDs, you will receive interest. So basically when you begin CFD trading you will notice that the transaction fees is always related to your trade. A part of the CFD trading cost is called a spread cost which is the difference between the bid/buy price and ask/selling price.


Let’s say you want to trade in forex and that the spread is 2 pip. So which this means is that you transaction fee is 0,0002 cent per traded unit. If you are trading GBP/EURO with 100 pounds and a leverage of 1:200, your transaction fee will be ( 100 x 200 x 0,0002)= just 4 pounds.

Overnight cost

Unlike trading options CFD’s doesn’t have a expiration date. You can hold most of your CFD’s position overnight, weeks or months. However when  you hold a position overnight you will be charged interest. This interest is really small but you get charged for it because when you hold a CFD position overnight it will be seen as an investment that has been made with borrowed money. So in this case your broker(lender) have to charge you a little interest.


Let’s say you want to buy Starbucks CFD shares at a price of 50 pound a share with a transaction value of 10.000 pounds and you have a leverage of 1:20. With this leverage of 1:20 you will have to use only 500 pounds of your money instead of 10.000 pounds instantly. And you will hold this position for 10 days and sell those at 60 pounds per share.

So what would be your profit after deducting the CFD trading cost?

Initial trading value was £10.000,- which equals 200 Starbucks CFD shares.

Final trading value (after you have sold your position) is (£60,-x 200 Starbucks CFD shares)= £12.000,-

CFD trading cost = spread opening + spread closing + overnight cost.

spread opening cost= £20,-

spread closing cost= £20,-

overnight cost= the interest rate at most brokers is usually the Libore interest + 2,5%. Let say that the libor in this case was 2,5%. So the total interest rate for a overnight position in total is 5%. The overnight cost will be £10.000 (transaction value) x 5% (interest per night)/365 days= £1,36

The total overnight cost for holding it for ten nights will be £1,36 x 10= £13,69

In this case your net profit will be £12.000 – £10.000 -£ 20 -£20 -£13,69 = £1.946,31

So your return on the investment on CFD trading with only £500 pounds is nearly 400%!

Now your CFD trading cost could be more if the broker also charged you a commission on each transaction that you have made. Fortunately there are a few brokers that don’t charge commissions. One of them is Plus500. If you have any questions regarding this topic, please post them in the comment section below and we will answer it as soon as possible.

Read more about CFD Trading: How to make money with CFD Trading

cfd trading mindset

Trading is better! Why saving money in a bank is not always a great idea

Ever wanted to make money whenever and wherever you want? Start trading now and receive a 25 dollar welcome bonus

Are you saving up money in a bank account? Most people do, because they learn to do it that way from their parents. This isn’t profitable at all though. Trading is a much better alternative, because it is more advantageous. People aren’t trading though, because of a couple of misconceptions and unawareness. Read on to find out why you should start saving up money in a trading account.

In general people think that trading is intricate and they do not have the courage to take part of this world, because they do not know anything about it. Most people stick to the traditional savings method: saving money in a bank account and earning bank interest. Without regard that it could take over a 100 years for a savings account to double up by using this method.

According to the survey results of research agency MeMo, 55% of everyone thinks that trading is only for people that have profound knowledge of it. 11% are thinking of doing it, because they think that trading is more beneficial than saving money in the bank. However, these doubters and the others that have never traded before are too insecure to trade. They don’t trade because they are unaware that trading can be done in an easy way and that you can do it without much knowledge about it. Also, it is one of the best alternatives to a savings account.


What are the main reasons people are not trading?

Reasons people are not trading

Source: Bankrate Money Pulse survey, March 19-22, 2015


However, most reasons stated are misconceptions:


  1. You need a lot of money.

    This isn’t the case, you can already start with only 25 euro. Even if it’s just for practice, it can be beneficial in the short and long-term. It is also about priorities, if you can save up a few euros a month why not buy a stock too that can benefit you later?


  1. You need a profound knowledge of trading.

    You don’t need to be a professional to trade. Jaff Chuck from says:

    “A lack of knowledge shouldn’t stop a consumer from investing any more than a lack of knowledge about cooking should stop someone from eating”.


  2. No trust in stock brokers or advisers.

    If you are starting small, you probably don’t even need an advisor. You can trade independently and decide what you want to do with your money. It is easy these days with online trading. As for trusting stock brokers, there are ways to be sure that a broker can be trusted. Find ones that are regulated by a financial institute, like the ones we reviewed.


  1. The stock market is too risky.

    Nowadays, saving up money could cost you more money than the money you trade with. As of last year, the bank savings account interest rates has already descended to an historical low point of 1 percent. This means doubling your savings could a long, long time. People who have to pay property tax don’t even make money out of their savings anymore, they only see it vanish to the government. Saving up money in a bank account just doesn’t generate much wealth. If the economy goes down again, the money you save up wouldn’t be able to keep up with the inflation.


  1. Scared of high fees.

    Most people are unaware that nowadays a lot of online brokers offer very low-cost stocks. For example: CFD’s stock brokers.


We want to try and help people that are new to trading, because it is more beneficial and also keeps you updated with what goes on around the world. We find the trading world one of the most interesting and exciting market ever, that is why we want to share our passion and we hope you’ll share yours too. Start by learning about how to open a trading account.

Ps: Read our article on how to make a profit with just 160 EURO

Got any questions or comments? Please feel free to comment below or in our forum.

volkswagen shares

Volkswagen shares: Time to buy or not…

In this article we are going to discuss whether it is time to buy Volkswagen shares. We will outline the pro’s and cons of buying Volkswagen shares. After reading this article you can make your own decision whether you should start in Volkswagen shares or not.

What have happened to Volkswagen shares?

The American authorities caught Volkswagen cheating on the pollution test. Volkswagen had software that was able to sense when a vehicle was being tested for a pollution test. The software sensed that based on the position of the steering wheel, vehicle speed, the duration of the engine’s operation and barometric pressure. With this software Volkswagen diesel cars produce less pollution on the test while in the reality they produce more. Since the American Authorities have found that out the Volkswagen share prices have been dropping significantly. At the lowest point Volkswagen share had lost more then halve of its stock value.

Reasons to buy Volkswagen shares

Here are few reasons why you should consider investing in Volkswagen shares:

  1. The share price is really cheap
  2. The management of Volkswagen is working really hard to survive this crisis

Reasons not to buy Volkswagen shares

  1. The current Volkswagen share price is only a technically recovery from the crash.
  2. Volkswagen might receive such a huge penalties that it will be almost impossible for the company to stay profitable.

My thought

Currently is impossible for me to find solid grounding reasons to start investing in Volkswagen shares for the long-term like I have with Starbucks. With Starbucks shares I have good grounding reason to invest it for the long-term. In lesser than a year my Starbucks shares almost doubled in value. I think at this moment the only way to get profit from Volkswagen shares is by trading it. At the moment of writing this blog the current value of Volkswagen share is 103.70 Euro. I think this could be a price pivot point where the share will drop in price again.

If you are looking at the chart of Volkswagen shares, you will see that (according to our technical analysis) Volkswagen shares are still in a downtrend. Every technical analysis indicator such as the trend lines, horizontals, support and resistant lines are indicating that Volkswagen shares are in a downtrend.

Volkswagen shares downtrend

Volkswagen shares downtrend


So if you are shorting Volkswagen shares there is a good chance that you will be profitable soon. But don’t expect a huge decline. I think that the Volkswagen shares won’t go under the share price 100 Euro unless Volkswagen had cheated in Europe as well. If you own Volkswagen shares then keep it and don’t sell. Buy a few put options of Volkswagen to protect you portfolio. And if you want to make money with Volkswagen shares then start trading in Volkswagen cfds shares. By trading in Volkswagen CFDS shares you can make a lot of money with a small amount of cash investing. If you are interested in making money by trading CFDS then read this article : 1019 EURO profit with a invest amount of 400 EURO