history of Swiss Finance Corporation

(SFC) was founded in 1988 as a broker on the International Petroleum Exchange (IPE). Very soon, SFC accounted for a large proportion of the IPE’s daily turnover, broking for global institutional clients as well as sovereign names.

Buoyed by this success, we looked for opportunities to expand our operations. In 1991 SFC became an interbank market maker in the fast developing foreign exchange market. The company began quoting on all major futures and option exchanges worldwide.

As the foreign exchange market developed, we began to position the company to better service our clients' specific needs in this market.

In 2001 we moved out of the IPE and LCH to concentrate on developing our expertise in the foreign exchange market.

Operating in London today – the pre-eminent foreign exchange location in the world – SFC continues to deliver the benefits of its experience and collective knowledge to an ever-increasing number of clients.

About GFX Group SA

GFX is a Forex broker based in Geneva, Switzerland. Our powerful and easy-to-use software, secure trading environment, and superior trading conditions have made GFX one of the leading Forex dealers in the world. GFX is by many financial websites dedicated to forex.

The GFX "GlobalTrader" software sets new standards in online trading functionality, performance, and ease of use. GlobalTrader takes only seconds to download and install, and performs flawlessly on Windows operating systems. Clients can trade 49 currency pairs, as well as gold and silver. Other advantages include instant online fills, free charts, real-time profit and equity tracking, fractional lot size capabilities, hedging capabilities, and 0.5% margin requirements. Try a free demo.

With 35% of the world's private assets managed by financial intermediaries based in Switzerland, the country has a long established tradition as one of the world's largest financial centers. Customers are assured that GFX consistently meets the strictest standards of financial stability and proper handling of client funds. Furthermore, client funds are maintained segregated from GFX's capital, thereby offering security of funds.

GFX encourages clients to conduct as much due diligence as possible in their trading activities and in their choice of broker. We welcome client visits to our headquarters in Geneva, whether to meet our professional staff or simply see our operations first-hand.

GFX is supervised as a Financial Intermediary according to Swiss regulation with regards to anti-money laundering.

During the course of 2009 GFX plans on becoming a Swiss Bank, thereby offering its valued clients an even wider spectrum of financial products.

Swiss Finance Corporation

Swiss Finance Corporation (SFC) is an independent brokerage firm founded in 1988. The company acts as a market maker in "interbank" foreign exchange and precious metals, and as a broker in futures.

From our head office in Central London we have built an international reputation, with representatives in place in key locations throughout the world. Today hundreds of professional investors and institutions profit from SFC’s truly global access to the foreign exchange market place.

Independent Foreign Exchange Specialists

SFC is a specialist principal and price-maker in foreign exchange markets. As an independent trading firm SFC operates without traditional constraints and moves fast to service our clients’ needs.

South Korean Won Slips To 9-day Low Against Dollar

The South Korean won lost ground against the dollar after hitting a 2-day high of 1382.10 at 9:25 pm ET Wednesday. The dollar-won pair that closed yesterday's New York session at 1390.40 reached 1398.65 by about 11:05 pm ET. This set a 9-day low for the won. If the Korean currency weakens further, it may likely target the 1402.5 level.

Carbon Emitters Hold Global Warming Talks In Tokyo

TOKYO (AFP)--The world's major carbon emitters were in "full negotiation mode" Thursday as they met in Tokyo with the clock ticking to draft a new U.N. treaty on fighting global warming.

Representatives from 22 countries, including major CO2 emitters China, India and the U.S., as well as the European bloc are taking part in the informal two- day session.

It marks one of the first negotiating opportunities on climate change since the inauguration of U.S. President Barack Obama, who has pledged to step up efforts by the world's largest economy to help slow down the planet's warming.

"We are now changing gears and entering a full negotiating mode," said co- chairman Sergio Barbosa Serra of Brazil, which organized the event with Japan.

The other co-chair, Akihiko Furuya of Japan, voiced hope for "ideas for a breakthrough" during the closed-door session, the beginning of which was open to the press.

U.N. climate chief Yvo de Boer is also participating in the session, which comes ahead of a December meeting in Copenhagen meant to approve a new treaty on global warming.

The Copenhagen treaty will cover the period after the Kyoto Protocol's obligations to curb carbon emissions expire in 2012.

"This year 2009 is of course of critical importance," Furuya said. "We have now only less than 11 months before Copenhagen."

"So it is important for all of us to work hard, even harder than before," he added.

Japan, host of the Kyoto Protocol, is badly behind in meeting its own targets as the government hesitates at restricting industry amid an uncertain economy.

During this week's meeting, WWF International said, Japan would outline six options for its mid-term emission reduction target, which would "range from a 5% increase of emissions to a reduction of 25% by 2020, compared to 1990 levels."

Kim Carstensen, director of the environmental group's Global Climate Initiative, said these options were too weak.

Japanese Prime Minister Taro Aso "will be seen as a laggard in the U.N. climate talks who also fails to set his country on track for a green economy boom," Carstensen said.

Japan, which has pledged to reduce carbon emissions by up to 80% by 2050, will announce its mid-term target by June, Aso said last month.

Indian Govt. To Infuse Rs.3.8K Cr. Into Three PSBs For Re-Capitalization

The Indian Cabinet approved on Wednesday a re-capitalization package under which, the government would infuse Rs.3,800 crore in three public sector banks, the UCO Bank, Central Bank of India and Vijaya Bank, reported the PTI. This would help the banks to have more than adequate capital against various risks.

The Home Minister P. Chidambaram reportedly said that the government would infuse Rs 1,650 crore into these banks this fiscal and Rs 2,150 crore in 2009-10. Central Bank of India would get Rs.1, 400 crore and UCO Bank and Vijaya Bank would get Rs.1,200 crore each in tranches.

This fiscal, Central Bank would get Rs.700 crore initially and Vijaya Bank Rs.500 crore and UCO Bank Rs.450 crore. In the next tranche, UCO Bank will get Rs 750 crore, while Central Bank of India and Vijaya Bank will receive Rs 700 crore each.

He further said that the capital infusion would help the banks raise capital adequacy to over 12%, much above the Basel II norms of 9%. He said the amount would form a part of Tier I Capital, adding that the infusion would increase the government holding in the three state-owned banks.

MARKET SNAPSHOT: Did Investors Simply Sell The News Of Bank Bailout?

A debate raged among market analysts Wednesday about whether the prior day's sell-off was based on sheer disappointment with the U.S. Treasury Dept.'s bank rescue plan, or was a simple "sell the news" event.

On Tuesday, the Dow Jones Industrial Average (DJI) slumped more than 380 points, or nearly 5%, marking the blue-chip average's worst drop in more than two months.

The sell-off came after Treasury Secretary Timothy Geithner unveiled the latest attempt by the government to rescue banks and the financial system.

"The response from Wall Street in response to [...] Geithner's non-plan plan was a resounding 'No,'" said Dan Greenhaus, market strategist at Miller Tabak, in a note.

Many analysts and media reports explained the market reaction as disappointment that the plan was short on details, specifically, on how the government would deal with the toxic assets that have plagued banks' balance sheets and the financial system for more than a year and a half.

"Nonsense," said market veteran Barry Ritholtz, CEO and director of equity research at Fusion IQ.

"If you look at the run-up in the market prior to the announcement, for three days there was already a big boom in all these [financial] stocks," he said. " The second [Geithner] started to speak, the market just fell apart, a classic 'sell-the-news' type of reaction."

On Wednesday, stocks first seemed to regain some footing. But the Dow industrials recently fell 10 points to 7,878, the S&P 500 index (SPX) was down 2 points, or 0.3%, at 825, and the Nasdaq Composite (RIXF) was down 10 points, or 0.7%, at 1,514.

The financial sector of the S&P 500, which slumped 12% on Tuesday, still rebounded, gaining 1.5%. Shares of Bank of America (BAC) gained more than 7%, J.P. Morgan Chase (JPM) was up 3% and Citigroup (C) rose 5%.

"People are looking at yesterday, [and thinking] they overreacted too much," said Todd Leone, managing director at Cowen & Company, I think people expected too much." Listen to Leone.

All in the mind

While the truth about the market's reaction probably lies, as usual, somewhere in the middle, the mix could be quite revealing about the state of mind of investors and the short-term direction for stocks.

Have investors priced in most of the bad news out there and are ready to move forward on any positive sign? Or will lingering uncertainty about government fixes keep the market vulnerable to what most expect to be consistently bad economic news for the foreseeable future?

Over the past few weeks, investors have been buying stocks on the back of dismal economic news, including the January employment report, which showed the biggest monthly loss of jobs since 1974.

Analysts have interpreted this trend to mean that the market has already largely discounted a terrible outlook for the economy and earnings this year.

But just how much worse things could get remains an open question, and many analysts and investors have turned to the government's plans for banks and the economy to provide the answer.

Maybe the market sold the news on Wednesday, said Michael Farr, market analyst at Farr, Miller, and Washington. But "Geithner's speech raised more questions than answers," he wrote in a note.

And one thing markets hate is uncertainty.

Auto Insurance Quotes

AIGAuto
American International Group, Inc. (AIG) is the world's leading U.S.-based international insurance and financial services organization, the largest underwriter of commercial and industrial insurance in the United States, and among the top-ranked U.S. life insurers. Its member companies write a wide range of general insurance and life insurance products for commercial, institutional and individual customers through a variety of distribution channels in approximately 130 countries and jurisdictions throughout the world.

21st Century Insurance
21st Century Insurance (NYSE: TW) is the seventh largest personal auto insurance company in California and insures over 1.4 million automobiles.21st Century Insurance offers personal automobile, motorcycle, and umbrella insurance in California and automobile insurance in Arizona, Illinois, Indiana, Nevada, Ohio, Oregon and Washington. The company receives much of its new business through referrals from current policyholders; the average annual renewal rate of existing policyholders is over 93%. At year-end 2003, 21st Century Insurance Group had $1,219 million in net premiums written, $1,246 million in revenues, and assets totaling $1.7 billion.

4freequotes
4freequotes.com has been in operation since 1997 and is currently visited by an average of over 75,000 people per month. We strive to provide consumers with the easiest route to requesting insurance quotes and to provide insurance professionals the forum necessary to meet the needs of web savvy consumers. We encourage your suggestions.

points on auto insurance

Low-Risk Job or Occupation Insurance adjusters collect information about what type of people get into accidents. Historically, data suggests overwhelmingly that people with certain professions get into far fewer car accidents than other people. For example, a teacher is far less likely to be involved in an accident than someone who is unemployed. Your job may entitle you to lower insurance rates because you are at lower risk for an accident. It is important to shop around for this discount, as different insurance companies use different criteria.

Professional Organizations and Auto Clubs A membership with auto clubs, such as aaa or professional organizations offered through your employed may save you money on your car insurance. It is important to ask your insurer if any of these discounts are offered while also pursuing them through your employer.

Combined and Renewal Discounts If your car is insured by the same company that provides you with house or life insurance, you may be entitled to significant discounts on both policies.

You may not have to switch insurance companies to save money on your policy. If you have been with the same provider for an extended amount of time and had no accidents, you are entitled to renewal discounts, which provide incentive to remain with your insurer.

Automobile Safety Features Many states have laws that require lower insurance rates for cars equipped with safety features. Some industry-standard features such as ABS anti-lock brakes, airbags, and automatic seat belts may qualify you for insurance discounts. You should research if you live in one of these states or if your specific provider offers discounts for such safety features.

Assuming More Risk There are two ways in which you can drastically reduce the cost of your car insurance. First, if you have an older, less-valuable car you may drop your collision insurance. In trying to save money by owning an older car it does not make sense to spend more on insurance. If your car is worth less than $2000, you are most likely spending more on insurance than it is worth. Dropping collision coverage will create significant savings on your policy.

If you are not driving an older car, it might make sense to request a higher deductible. A deductible is the amount you pay out-of-pocket before the insurance company compensates the rest. Increasing your deductible from $500 to $1000 could decrease your monthly payments by as much as 30 percent. You might pay more for small fender-benders and dings but will save significantly while still being covered in the case of large accidents.

Low Profile Cars If high insurance costs are burying you, consider it while shopping for your next car. Insurance companies charge more for high-performance cars because of their increased susceptibility to accidents and being stolen. It might make sense to buy a more modest vehicle and use your savings for other adventures.

Auto Insurance-The cost of auto insurance

Prices for auto insurance can vary by hundreds of dollars between companies, so it pays to shop around.
You should get several quotes before you buy a policy.
Don't shop price alone, service is just as important as price.

The carrier you select should offer both good prices and quality service.
Auto insurance is an investment and you should feel comfortable about your policy.
Quality service may cost a bit more. You should try to balance the service and price.
Nowadays, most major companies offer comparable quality customer service, of course they want your business.

You are likely, right now, to be paying too much for your auto insurance. The odds are even greater that you could get the coverage you need from another insurance company for a better rate.

However, consumers are generally shown not to put the energy into shopping for their insurance that they would into buying a new car.

The rise of the internet has radically changed the buying and comparison of auto insurance policies. Not only has competition between insurance providers increased, driving down policy prices, but it is easier and faster than ever to find the auto insurance perfect for you. There are several ways to save money in your search for better, more affordable car insurance.

Here are a few ways to save money on auto insurance: 1. Be thorough in researching and requesting all discounts you qualify for
2. Maintain a clean, up-to-date driving driving record
3. Assume more risk in your coverage
4. Choose to drive a “low profile” car with specific money-saving features
5. Find a low-cost insurance provider that can meet your needs

Insurers jockey to cover State Farm gap in florida

For nearly two dozen insurers in Florida, State Farm Florida's decision to stop selling homeowners insurance means opportunity.

After the announcement last week, one Boca Raton insurer took out a newspaper ad aimed at State Farm customers. Others solicited them on their websites. One company hopes to recruit State Farm agents.

But the holders of State Farm's 1.2 million policies, covering mostly homes, condos, boats and even businesses, won't be able to rely on their State Farm agents to help them find another insurer -- they are not allowed to write policies for any other company except the state-run Citizens Property Insurance.

More than 800 State Farm agents and their employees could lose about 37 percent of their revenue if all the policies migrate to other private insurers. That has private insurers worried that agents have an unfair incentive to send customers to Citizens.

Despite urging from state officials and agents, State Farm so far isn't changing the rules for its agents. It's the last national insurer with so-called captive agents that can write for only one company.

Allstate Floridian, which has reduced homeowners policies on its books since the 2004 hurricanes, lets its agents write for several Florida-based firms. Nationwide Insurance let its Florida agents work as independent agents as it also decided not to renew thousands of policies in the past four years.

State Farm says it is concerned about its brand, said company spokesman Chris Neal. ``Regardless of who the insurer is, [policyholders] associate with their State Farm agents. If an insurer were to go broke or if policyholders have a bad claims experience, it would reflect badly on our brand.''

Late Tuesday, Alex Sink, Florida's chief financial officer, sent a letter to Jim Thompson, State Farm's Florida president, asking the company to allow its agents to write policies for other insurers immediately.

Introduction to Forex

The Foreign Exchange Market (Forex) is the arena in which a nation's currency is exchanged for that of another at a mutually agreed rate. It was created in the 1970's when international trade transitioned from fixed to floating exchange rates, and is now considered to be the largest financial market in the world because of its huge turnover.


All currencies are traded in pairs and each is assigned with an abbreviation. Here are some of them (Table 1):
EUR Euro
USD US Dollar
GBP British Pound
JPY Japanese Yen
CHF Swiss Franc
AUD Australian Dollar
CAD Canadian Dollar
NZD New Zealand Dollar
SGD Singapore Dollar

'Base' currency is the first currency in the pair. 'Quote' currency, or 'term' currency is the second currency in the pair.
USD / JPY = 120.25
Base currency Quote currency Rate

This abbreviation specifies how much you have to pay in the quote currency to obtain one unit of the base currency (in this example, 120.25 Japanese Yen for one US Dollar). The minimum rate fluctuation is called a point or a pip.

Most currencies, except USD/JPY, EUR/JPY, CHF/JPY and GBP/JPY where a pip is 0.01, have 4 digits after the period (a pip is 0.0001), and sometimes they are abbreviated to the last two digits. For example, if EURUSD is traded at 1.2389/1.2391 the quote may be abbreviated to 89/91.

The currency pairs on Forex are quoted as the Bid and Ask (or Offer) prices:
� � Bid � Ask
USD / JPY = 120.25 / 120.28

Bid is the rate at which you can sell the base currency, in our case it's the US dollar, and buy the quote currency, i.e the Japanese Yen.

Ask ( or Offer) is the rate at which you can buy the base currency, in our case the US dollar, and sell the quote currency, i.e. the Japanese Yen.

Spread is the difference between the Bid price and the Ask price.

Pip is the smallest price increment a currency can make. Also known as a point. e.g. 1 pip = 0.0001 for EUR/USD, and 0.01 for USD/JPY.

Currency Rate is the value of one currency expressed in terms of another. The rate fluctuation depends on numerous factors including the supply and demand on the market and/or open market operations by a government or by a central bank.
1.0 lot size for different currency pairs (Table 2)
Currency 1.0 lot size 1 pip
EURUSD EUR 100,000 0.0001
USDCHF USD 100,000 0.0001
EURUSD EUR 100,000 0.0001
GBPUSD GBP 100,000 0.0001
USDJPY USD 100,000 0.01
AUDUSD AUD 100,000 0.0001
USDCAD USD 100,000 0.0001
EURCHF EUR 100,000 0.0001
EURJPY EUR 100,000 0.01
EURGBP EUR 100,000 0.0001
GBPJPY GBP 100,000 0.01
GBPCHF GBP 100,000 0.0001
EURCAD EUR 100,000 0.0001
NZDUSD NZD 100,000 0.0001
USDSEK USD 100,000 0.0001
USDDKK USD 100,000 0.0001
USDNOK USD 100,000 0.0001
USDSGD USD 100,000 0.0001
USDZAR USD 100,000 0.0001
CHFJPY CHF 100,000 0.01
Spreads & Margins

Alpari (UK)’s mission is to provide innovative currency trading technology combined with quality execution, and competitive margins.

Margin is the collateral required by Alpari (UK) to open and maintain a position:

*
o
+ An open position of less than 3,000,000 USD (3M) nominal value carries a maximum leverage of 1:500.
+ An open position of 3M - 5M USD carries a leverage of 1:500 for the first 3M and a leverage of 1:200 for the remaining 2M.
+ An open position of 5M - 10M USD carries a leverage of 1:500 for the first 3M, a leverage of 1:200 for the next 2M and a leverage of 1:100 for the remaining 5M.
+ For open positions higher than 10M USD, the first 3M carries a leverage of 1:500, the next 2M carries a leverage of 1:200, the next 5M carries a leverage of 1:100. Everything above carries a leverage of 1:33.

For example, a client opens a position of 12 million USD (for example, 120 lots in USDCHF). His margin requirements will be the following:
Nominal value of open position Funds required to open position Maximum leverage offered
First 3 million = 3,000,000 / 500 = 6,000 USD 1:500
Next 2 million = 2,000,000 / 200 = 10,000 USD 1:200
Next 5 million = 5,000,000 / 100 = 50,000 USD 1:100
Remaining 2 million = 2,000,000 / 33 = 60,606 USD 1:33
TOTAL: 12 million = 126,606 USD

Balance is the total financial result of all completed transactions and deposits/withdrawals on the trading account.

Floating Profit/Loss is current profit/loss on open positions calculated at the current prices.

Equity is calculated as balance + floating profit - floating loss.

Free margin means funds on the trading account, which may be used to open a position. It is calculated as equity less necessary margin.
Calculating profit/loss

For example, EUR/USD exchange rate is 1.2505/1.2507 and your leverage is 1:100. You believe that EUR/USD will go up and buy 0.1 lot of EUR/USD at 1.2507 (Ask price) - for the contract size refer to Table 2. As we can see from Table 2, 1.0 lot of EUR/USD is 100,000 EUR, which means that 0.1 lot (our example deal size) is 10,000 EUR.

So, you buy 10,000 EUR and sell 10,000*1.2507=12,507 USD. In fact to fund this position you do not have to have 12,507 USD but only 125.07 USD. The rest of the money (in our example 12,381.93 USD) is leveraged to you by Alpari (UK).

The leverage (or gearing) mechanism allows you to open and hold a position much larger than your trading account value. 1:100 leverage means that when you wish to open a new position, you need to support a deposit 100 times less than the value of the contract you are interested in.

For example, you believe that EUR/USD is moving higher and buy 10,000 EUR and sell 12,507 USD. Assuming you are right and EUR/USD goes up to 1.2599/1.2601 and you decide to close the position: when you close a long position you sell the base currency (10,000 EUR in our example) and buy the quote currency (10,000*1.2599 = 12,599 USD):
Transaction EUR USD
Open a position: buy EUR and sell USD + 10,000 - 12,507
Close a position: sell EUR and buy USD - 10,000 + 12,599
Total: 0 + 92

NB: When you close a short position you buy the base currency and sell the quote currency.

To fund this position you only need 100 EUR (approximately 125 USD) not 10,000 EUR. The profit on this position is 92 pips (1.2599-1.2507=0.0092). A pip or point is a minimal rate fluctuation. For EUR/USD 1 pip is 0.0001 of the price (see Table 2).

This example shows a favourable outcome. If EUR/USD had fallen you would realise a loss and not a profit. This loss will be magnified as a result of leveraging. For example, if you close the position at 1.2419, your loss would be $88. Should you have doubts about your understanding of risks, please consult a qualified financial adviser.

Lot Size is the number of base currency, underlying asset or shares in one lot defined in the contract specifications. For details refer to the Table 2.

Lot is an abstract notion of the amount of base currency, shares or other underlying asset on the trading platform.

Transaction (or deal) size is lot size multiplied by the number of lots.

Long Position is a buy position whereby you profit from an increase in price. In respect of currency pairs: buying the base currency against the quote currency.

Short Position is a sell position whereby you profit from a decrease in price. For currency pairs: selling the base currency against the quote currency.

Completed Transaction consists of two counter deals of the same size (open and close a position): buy then sell or vice versa.

Leverage is the term used to describe margin requirements: the ratio between the collateral and the value of the contract. 1:100 leverage means that you can control $100,000 with only $1,000 (1%).
Rollover / Interest Policy

Foreign exchange trading at Alpari (UK) is dealt on a "Spot" basis only. This means that all trades settle two business days from inception, as per market convention. The settlement date is referred to as the value date. Alpari (UK) does not arrange physical delivery of currencies hence, all positions left open from 10:59:45 p.m. to 10:59:59 p.m. (London time) will be rolled over to a new Value Date.

As a result, positions are subject to a swap charge or credit based on the webpage.

Please note that since 03 June 2007 Alpari (UK) Limited no longer closes and reopens the positions which are open at 11:00 pm London time. Instead we have introduced a more convenient method of rollover which involves debiting or crediting a customer’s trading account when he/she holds open positions overnight.

The cost of rollover is based on the interest rate differential of the two currencies. Let’s assume that the interest rates in the EU and USA are 4.25% p.a and 3.5% p.a respectively. Every currency trade involves borrowing one currency to buy another. If you have a buy position of 1.0 lot in EUR/USD, then you earn 4.25% on your Euros and borrow USD at 3.5% per year.

In other words:

* If you have a long position (i.e. bought) and the first currency in the currency pair has a higher overnight interest rate than the second currency, then you receive a gain.
* If you have a short position (i.e. sold) and the first currency in the currency pair has a higher overnight interest rate than the second currency, then you lose the difference.
* If you have a long position (i.e. bought) and the first currency in the currency pair has a lower overnight interest rate than the second currency, then you lose the difference.
* If you have a short position (i.e. sold) and the first currency in the currency pair has a lower overnight interest rate than the second currency, then you receive a gain.
Please note that if you open and close a position before 10:59:45 p.m. (London time) you will not be subject to a rollover.


The act of rolling the currency pair over is known as tom.next, which stands for tomorrow and the next day.

NB: When you roll an open position from Wednesday to Thursday, then Monday next week becomes the value date, not Saturday; therefore the rollover charge on a Wednesday evening will be three times the value indicated on the "Rollover/Interest Policy" webpage.

Why trade Forex?

Unlike other financial markets Forex has no physical location, like stock exchanges, for example. It operates through the electronic network of banks, computer terminals or via telephone. The lack of a physical exchange enables Forex to operate on a 24-hour basis, spanning from one time zone to another across the major financial centres (Sydney, Tokyo, Hong Kong, Frankfurt, London, New York etc). In every financial centre there are many dealers, who buy and sell currencies 24 hours a day during the whole business week. Trading begins in the Far East, New Zealand (Wellington), then Sydney, Tokyo, Hong Kong, Singapore, Moscow, Frankfurt-on-Maine, London and ends in New York and Los Angeles. Below there are approximate trading hours for regional markets (London time):

Japan	00:00-06:30
Continental Europe	06:30-13:00
Great Britain	8:30-15:30
USA	14:30-21:30

Forex has some advantages which make it very popular among investors:

• Liquidity. Forex is the largest financial market in the world, with the equivalent of over $3-4 trillion changing hands daily whereas traded volume on the stock markets equates to only 500 billion US dollars.
• Flexibility. Forex is a 24-hour market, which offers a major advantage over other markets, for example, stock exchanges which are only open during regional business hours. You can respond to breaking news immediately if the situation requires it and customise your trading schedule.
• Lower transaction costs. Traditionally there are no commissions or charges on Forex, except for the spread.
• Margin. Our 1:100 leverage (only for deposits below $ 100,000) is a powerful tool. You need to support a deposit of 1,000 US dollars to make a deal with $100,000. Such high leverage combined with rapid rate fluctuations can make this market profitable but at the same time risky: please see Risk Warning below.

Risk Warning

Under margin trading conditions even small market movements may have a great impact on the customer's trading account. You must consider that if the market moves against you, you may sustain a total loss greater than the funds deposited. You are responsible for all the risks, financial resources you use and for the chosen trading strategy.

The Gold Exchange and the Bretton Woods Agreement

In 1967, a Chicago bank refused a college professor by the name of Milton Friedman a loan in pound sterling because he had intended to use the funds to short the British currency. Friedman, who had perceived sterling to be priced too high against the dollar, wanted to sell the currency, then later buy it back to repay the bank after the currency declined, thus pocketing a quick profit. The bank’s refusal to grant the loan was due to the Bretton Woods Agreement, established twenty years earlier, which fixed national currencies against the dollar, and set the dollar at a rate of $35 per ounce of gold.

The Bretton Woods Agreement, set up in 1944, aimed at installing international monetary stability by preventing money from fleeing across nations, and restricting speculation in the world currencies. Prior to the Agreement, the gold exchange standard--prevailing between 1876 and World War I--dominated the international economic system. Under the gold exchange, currencies gained a new phase of stability as they were backed by the price of gold. It abolished the age-old practice used by kings and rulers of arbitrarily debasing money and triggering inflation.

But the gold exchange standard didn’t lack faults. As an economy strengthened, it would import heavily from abroad until it ran down its gold reserves required to back its money; consequently, the money supply would shrink, interest rates rose and economic activity slowed to the extent of recession. Ultimately, prices of goods had hit bottom, appearing attractive to other nations, who would rush into buying sprees that injected the economy with gold until it increased its money supply, and drive down interest rates and recreate wealth into the economy. Such boom-bust patterns prevailed throughout the gold standard until the outbreak of World War I interrupted trade flows and the free movement of gold.

After the Wars, the Bretton Woods Agreement was founded, where participating countries agreed to try and maintain the value of their currency with a narrow margin against the dollar and a corresponding rate of gold as needed. Countries were prohibited from devaluing their currencies to their trade advantage and were only allowed to do so for devaluations of less than 10%. Into the 1950s, the ever-expanding volume of international trade led to massive movements of capital generated by post-war construction. That destabilized foreign exchange rates as setup in Bretton Woods.

The Agreement was finally abandoned in 1971, and the US dollar would no longer be convertible into gold. By 1973, currencies of major industrialized nations floated more freely, as they were controlled mainly by the forces of supply and demand. Prices were floated daily, with volumes, speed and price volatility all increasing throughout the 1970s, giving rise to new financial instruments, market deregulation and trade liberalization.

In the 1980s, cross-border capital movements accelerated with the advent of computers and technology, extending market continuum through Asian, European and American time zones. Transactions in foreign exchange rocketed from about $70 billion a day in the 1980s, to more than $1.5 trillion a day two decades later.

How does the foreign exchange market work?

The forex market allows you to buy and sell currencies against each other and speculate on the differences in exchange rates. Making a transaction on the forex market is simple: the procedures are identical to that of any other market so switching to trading currencies is straightforward for most traders.

What is Forex (Foreign Exchange, FX) ?

ACM offers online forex trading services for traders wanting to make speculative transactions on the exchange rate between two currencies. These rates may be influenced by world economic and political events, currency rate differentials, as well as many other factors including extreme weather conditions (hurricanes), acts of terror etc. Forex is the largest marketplace in the world with more than 3.2 trillion dollars changing hands daily and so making it one of the most attractive and lucrative markets.

What is Forex (Foreign Exchange, FX) ?

For those of you that are new to the foreign exchange (forex) market, it is important to familiarize yourselves with this market’s characteristics and unique attributes. The forex market allows traders to buy and sell distinct currency pairs. No commission is charged per trade, the broker is compensated through the buy and sell price differential – commonly known as the “spread”. Below are a few guidelines to start trading with Advanced Currency Markets – your gateway to the largest and most liquid market on earth.

Forex currencies quotation system

Currencies are quoted in pairs, for example – EUR/USD or USD/JPY. The first currency in the pair is called the base currency and the second is called the counter currency. The base currency is the ‘basis’ for purchases and sales. For example, if you buy EUR/USD, then you acquire Euros and sell Dollars. You do this if you expect the Euro to grow against the Dollar. It is also possible for a currency pair to be quoted as USD/EUR, but this method is used extremely rarely. Each transaction must have 2 sides – a buy and a sell (or a sell and a buy). By this we mean that it is impossible to buy 100.000 EUR/USD and then exchange it for another currency pair (i.e.: EUR/JPY) without closing the first position. Also please note that no physical currency delivery will be made. For these purposes banks and exchange companies, which specialize in low-rate currency conversions are available.

Forex currencies quotation system

Currencies are quoted in pairs, for example – EUR/USD or USD/JPY. The first currency in the pair is called the base currency and the second is called the counter currency. The base currency is the ‘basis’ for purchases and sales. For example, if you buy EUR/USD, then you acquire Euros and sell Dollars. You do this if you expect the Euro to grow against the Dollar. It is also possible for a currency pair to be quoted as USD/EUR, but this method is used extremely rarely. Each transaction must have 2 sides – a buy and a sell (or a sell and a buy). By this we mean that it is impossible to buy 100.000 EUR/USD and then exchange it for another currency pair (i.e.: EUR/JPY) without closing the first position. Also please note that no physical currency delivery will be made. For these purposes banks and exchange companies, which specialize in low-rate currency conversions are available.

Shift in dollar sentiment

The dollar made further gains against the Euro during Thursday on the back of continuing favourable US data. The dollar strengthened to a high of 1.2680 against the Euro in late New York and retained these gains in early Europe on Friday before attempting a fresh rally. The Dow Jones index was weak with another decline of over 100 points, but this failed to dampen dollar optimism, especially as there was a decline in oil prices with a move to below US$49 p/b. A sustained downturn in stock prices would, however, potentially cause some damage to the dollar.

The US retail sales report was stronger than expected with a 1.4% increase for April compared with expectations of a 0.7% increase. The underlying increase was also strong at 1.1%. Jobless clams rose to 340,000 in the latest week, but this did not receive any significant attention. It may, however, become more of an issue within the next few weeks if claims remain higher as it would create doubts over the US employment outlook.

The strong retail sales data built on the much lower than expected trade deficit on Wednesday to boost confidence in the economy and dollar. Fears over a slowdown in the economy have eased and there will be some fresh speculation over a more aggressive Fed stance on interest rates. The more likely outcome is that the Fed will continue with a policy of 0.25% rate increases, especially as the seasonal considerations have probably overstated economic strength. Structural fears have also eased, but caution is still required as the data throughout May is being distorted by seasonal considerations. This will, however, be of secondary importance in the very short term and the dollar will retain a firm bias, especially as there is likely to be a significant shift in sentiment. There will also be the potential for a capitulation of short dollar positions against the Euro which could encourage a further advance.

Russia announced that it would be likely to increase Euro weightings in the currency basket, but again this did not have a significant impact. The longer-term implications are still potentially significant and will offer Euro support.

Euro targets record highs

The dollar was again unable to push through the 1.3550 level against the Euro and weakened back to lows around 1.3640 after weaker than expected US data, close to the record dollar low seen in December 2004. The US currency also weakened to a two-year low on a trade-weighted basis with markets looking to challenge record Euro highs. The dollar remained under pressure in early Europe on Wednesday with lows around 1.3650.

The US data was weaker than expected with existing home sales falling by 8.4% in March to an annual rate of 6.12mn, the lowest reading since June 2003. There was a further rise in inventories which will cause concern, although prices held firm.

Consumer confidence weekend to 104.0 in April from 108.2 the previous month with the present conditions and expectations components both weakening.

The data overall will reinforce market concerns over US economic conditions and maintain fears that the housing-related difficulties will undermine the wider economy. Expectations of a third-quarter interest rate cut increased after the data and the lack of yield support will keep the dollar on the defensive. Confidence will also be damaged if there is a weak reading for durable goods orders as it would suggest that the manufacturing sector is still struggling.

Dollar dependent on defensive support

The Euro pushed to highs of 1.27 as Wall Street secured opening gains. The Euro and US stocks were both unable to sustain opening gains and it weakened back to the 1.26 region. Headline consumer prices should also decline sharply on Wednesday which will given the Fed some degree of policy flexibility.

The latest NAHB housing index weakened further to a record low of 9 in October from 14 the previous month. The association noted that lenders had pulled back from new financing while consumer confidence had also weakened sharply. The housing starts data will, therefore, be watched closely on Wednesday amid fears of a further downturn in housing activity.

In this environment, there will be additional pressure for fresh policy measures to support the economy and Fed Governor Stern suggested that the Fed Funds rate could be cut to below the current 1.0% if conditions warrant.

Congressional negotiations surrounding the auto sector will continue to be watched closely while Treasury Secretary Paulson defended the switch of emphasis for the TARP programme. Acrimonious discussions would tend to unsettle the dollar.

Limited scope for Sterling gains - 25-11-08

The UK currency tested support below the 1.49 level against the dollar on Monday while it also weakened to beyond 0.85 against the Euro. In the pre-budget report, the government confirmed that the VAT sales tax rate would be cut by 2.5% to 15.0% until the end of 2009 while there was a total tax cut package of GBP20bn. There were further measures to underpin companies while there were plans to raise taxes in the medium term.

The budget deficit estimates were revised up sharply with the fiscal 2009/10 deficit forecast at a record GBP118bn which would be at least 8% of GDP. The package may underpin sentiment to some extent on hopes for a boost to spending, but fears over the underlying fundamentals will certainly continue and are liable to increase given the severe budget pressures.

A sharp rally in the UK stock market index pushed the UK currency to highs above 1.5150 against the dollar and was consolidating close to 1.51 on Tuesday.

The latest mortgage-lending data continued to indicate a weak market while Bank of England Governor King was generally downbeat over the economy and stated that the bank would take all action necessary to meet the inflation target

best times to trade currencies

Forex is a 24 hour market and there will be good setups for profitable trades in the Asian, European and US sessions. It pays to look at historical price data on forex charts to see what time of the day you could be watching the market and what time you could be doing something else. The aim is to trade when the average trading range is worthwhile and stay out of the market when price is in a narrow sideways range.

There are good online and downloadable tools at forex market.

The market opens on Monday morning in Wellington New Zealand .8 am Wellington time is 8pm GMT,9pm BST,4pm EDT (Sunday evening New York time)

MARKET OPEN TIMES

(Summer Northern Hemisphere)

GMT	Sydney	Tokyo	Frankfurt	London	New York
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0000					2000
0100					2100
0200					2200
0300					2300
0400					0000
0500					0100
0600					0200
0700					0300
0800					0400
0900					0500
1000					0600
1100					0700
1200					0800
1300					0900
1400					1000
1500					1100
1600					1200
1700					1300
1800					1400
1900					1500
2000					1600
2100					1700

The market closes for the week at 4pm EDT on Friday.

where BST is British Summer time ,EDT is Eastern Daylight Time USA.Check your local time at http://forex.timezoneconverter.com

The most active pairs during the London session are EURUSD with 39% of the trading volume, GBPUSD with 23%, USDJPY with 17%, USDCHF with 6% and USDCAD with 5%.

New York is the second largest forex market place. The busiest time is 8am to noon EST. News releases can result in a volatile market.

Sometimes volatility is low in the Tokyo session and sometimes good moves occur. The USDJPY is the most active pair with 78% of the volume followed by EURUSD with 15% and EURJPY with 5%.

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What Drives Currency Prices

The key to making money in the forex is understanding what makes currency pairs move. Ultimately, it is investors who make currency pairs move as they buy and sell different currencies, but these investors buy and sell for a reason. Either they see something happening fundamentally in the global economy that makes them believe a currency is going to get stronger or they see something happening fundamentally that makes them believe a currency is going to get weaker. In other words, they watch the fundamentals and make their decisions according to what they see.

Fundamentals make currency pairs move. If the economic fundamentals in the United States are improving, the U.S. dollar (USD) will most likely be getting stronger because forex investors will be buying dollars. Conversely, if the economic fundamentals in the United States are declining, the U.S. dollar (USD) will most likely be getting weaker because forex investors will be selling dollars.

Gross Domestic Product

The Gross Domestic Product (GDP) is the broadest measure of aggregate economic activity available. Reported quarterly, GDP growth is widely followed as the primary indicator of the strength of economic activity.

GDP represents the total value of a country's production during the period and consists of the purchases of domestically produced goods and services by individuals, businesses, foreigners and the government.

As GDP reports are often subject to substantial quarter-to-quarter volatility and revisions, it is preferable to follow the indicator on a year-to-year basis. It can be valuable to follow the trend rate of growth in each of the major categories of GDP to determine the strengths and weaknesses in the economy.

A high GDP figure is often associated with the expectations of higher interest rates, which is frequently positive, at least in the short term, for the currency involved, unless expectations of increased inflation pressure is concurrently undermining confidence in the currency.

Working with statistics Trade Balance

The trade balance is a measure of the difference between imports and exports of tangible goods and services. The level of the trade balance and changes in exports and imports are widely followed by foreign exchange markets.

The trade balance is a major indicator of foreign exchange trends. Seen in isolation, measures of imports and exports are important indicators of overall economic activity in the economy.

It is often of interest to examine the trend growth rates for exports and imports separately. Trends in export activities reflect the competitive position of the country in question, but also the strength of economic activity abroad. Trends in import activity reflect the strength of domestic economic activity.

Typically, a nation that runs a substantial trade balance deficit has a weak currency due to the continued commercial selling of the currency. This can, however, be offset by financial investment flows for extended periods of time.

HISTORY Brief history of Forex trading

Initially, the value of goods was expressed in terms of other goods, i.e. an economy based on barter between individual market participants. The obvious limitations of such a system encouraged establishing more generally accepted means of exchange at a fairly early stage in history, to set a common benchmark of value. In different economies, everything from teeth to feathers to pretty stones has served this purpose, but soon metals, in particular gold and silver, established themselves as an accepted means of payment as well as a reliable storage of value.

Originally, coins were simply minted from the preferred metal, but in stable political regimes the introduction of a paper form of governmental IOUs (I owe you) gained acceptance during the Middle Ages. Such IOUs, often introduced more successfully through force than persuasion were the basis of modern currencies.

Before World War I, most central banks supported their currencies with convertibility to gold. Although paper money could always be exchanged for gold, in reality this did not occur often, fostering the sometimes disastrous notion that there was not necessarily a need for full cover in the central reserves of the government.

At times, the ballooning supply of paper money without gold cover led to devastating inflation and resulting political instability. To protect local national interests, foreign exchange controls were increasingly introduced to prevent market forces from punishing monetary irresponsibility.

In the latter stages of World War II, the Bretton Woods agreement was reached on the initiative of the USA in July 1944. The Bretton Woods Conference rejected John Maynard Keynes suggestion for a new world reserve currency in favour of a system built on the US dollar. Other international institutions such as the IMF, the World Bank and GATT (General Agreement on Tariffs and Trade) were created in the same period as the emerging victors of WW2 searched for a way to avoid the destabilising monetary crises which led to the war. The Bretton Woods agreement resulted in a system of fixed exchange rates that partly reinstated the gold standard, fixing the US dollar at USD35/oz and fixing the other main currencies to the dollar - and was intended to be permanent.

Market size and liquidity

The foreign exchange market is unique because of

its trading volumes,
the extreme liquidity of the market,
the large number of, and variety of, traders in the market,
its geographical dispersion,
its long trading hours: 24 hours a day except on weekends (from 5pm EST on Sunday until 4pm EST Friday),
the variety of factors that affect exchange rates.
the low margins of profit compared with other markets of fixed income (but profits can be high due to very large trading volumes)
the use of leverage

Main foreign exchange market turnover, 1988 - 2007, measured in billions of USD.As such, it has been referred to as the market closest to the ideal perfect competition, notwithstanding market manipulation by central banks. According to the BIS,[1] average daily turnover in global foreign exchange markets is estimated at $3.98 trillion. Trading in the world's main financial markets accounted for $3.21 trillion of this.

This approximately $3.21 trillion in main foreign exchange market turnover was broken down as follows:

$1.005 trillion in spot transactions
$362 billion in outright forwards
$1.714 trillion in forex swaps
$129 billion estimated gaps in reporting
Of the $3.98 trillion daily global turnover, trading in London accounted for around $1.36 trillion, or 34.1% of the total, making London by far the global center for foreign exchange. In second and third places respectively, trading in New York accounted for 16.6%, and Tokyo accounted for 6.0%.

In addition to "traditional" turnover, $2.1 trillion was traded in derivatives.

Exchange-traded forex futures contracts were introduced in 1972 at the Chicago Mercantile Exchange and are actively traded relative to most other futures contracts. Forex futures volume has grown rapidly in recent years, and accounts for about 7% of the total foreign exchange market volume, according to The Wall Street Journal Europe (5/5/06, p. 20).

Market participants

Financial markets
Bond marketFixed incomeCorporate bondGovernment bondMunicipal bondBond valuationHigh-yield debt
Stock marketStockPreferred stockCommon stockRegistered shareVoting shareStock exchange
Foreign exchange market
Derivatives marketCredit derivativeHybrid securityOptionsFuturesForwardsSwaps
Other MarketsCommodity marketMoney marketOTC marketReal estate marketSpot market
Finance seriesFinancial marketFinancial market participantsCorporate financePersonal financePublic financeBanks and BankingFinancial regulation
v • d • e
Unlike a stock market, where all participants have access to the same prices, the forex market is divided into levels of access. At the top is the inter-bank market, which is made up of the largest investment banking firms. Within the inter-bank market, spreads, which are the difference between the bid and ask prices, are razor sharp and usually unavailable, and not known to players outside the inner circle. As you descend the levels of access, the difference between the bid and ask prices widens (from 0-1 pip to 1-2 pips for some currencies such as the EUR). This is due to volume. If a trader can guarantee large numbers of transactions for large amounts, they can demand a smaller difference between the bid and ask price, which is referred to as a better spread. The levels of access that make up the forex market are determined by the size of the “line” (the amount of money with which they are trading). The top-tier inter-bank market accounts for 53% of all transactions. After that there are usually smaller investment banks, followed by large multi-national corporations (which need to hedge risk and pay employees in different countries), large hedge funds, and even some of the retail forex-metal market makers. According to Galati and Melvin, “Pension funds, insurance companies, mutual funds, and other institutional investors have played an increasingly important role in financial markets in general, and in FX markets in particular, since the early 2000s.” (2004) In addition, he notes, “Hedge funds have grown markedly over the 2001–2004 period in terms of both number and overall size” Central banks also participate in the forex market to align currencies to their economic needs.

[edit] Banks
The interbank market caters for both the majority of commercial turnover and large amounts of speculative trading every day. A large bank may trade billions of dollars daily. Some of this trading is undertaken on behalf of customers, but much is conducted by proprietary desks, trading for the bank's own account.
Until recently, foreign exchange brokers did large amounts of business, facilitating interbank trading and matching anonymous counterparts for small fees. Today, however, much of this business has moved on to more efficient electronic systems. The broker squawk box lets traders listen in on ongoing interbank trading and is heard in most trading rooms, but turnover is noticeably smaller than just a few years ago.

[edit] Commercial companies
An important part of this market comes from the financial activities of companies seeking foreign exchange to pay for goods or services. Commercial companies often trade fairly small amounts compared to those of banks or speculators, and their trades often have little short term impact on market rates. Nevertheless, trade flows are an important factor in the long-term direction of a currency's exchange rate. Some multinational companies can have an unpredictable impact when very large positions are covered due to exposures that are not widely known by other market participants.

[edit] Central banks
National central banks play an important role in the foreign exchange markets. They try to control the money supply, inflation, and/or interest rates and often have official or unofficial target rates for their currencies. They can use their often substantial foreign exchange reserves to stabilize the market. Milton Friedman argued that the best stabilization strategy would be for central banks to buy when the exchange rate is too low, and to sell when the rate is too high — that is, to trade for a profit based on their more precise information. Nevertheless, the effectiveness of central bank "stabilizing speculation" is doubtful because central banks do not go bankrupt if they make large losses, like other traders would, and there is no convincing evidence that they do make a profit trading.
The mere expectation or rumor of central bank intervention might be enough to stabilize a currency, but aggressive intervention might be used several times each year in countries with a dirty float currency regime. Central banks do not always achieve their objectives. The combined resources of the market can easily overwhelm any central bank.[4] Several scenarios of this nature were seen in the 1992–93 ERM collapse, and in more recent times in Southeast Asia.

Other Non-bank foreign exchange companies offer currency exchange and international payments to private individuals and companies

Non-bank foreign exchange companies offer currency exchange and international payments to private individuals and companiesThese are also known as Foreign Exchange Brokers but are distinct from Forex Brokers as they do not offer speculative trading but currency exchange with payments. i.e. there is usually a physical delivery of currency to a bank account.
It is estimated that in the UK, 14% of currency transfers/payments are made via Foreign Exchange Companies[7]. These companies' selling point is usually that they will offer better exchange rates or cheaper payments than the customer's bank. These companies differ from Money Transfer/Remittance Companies in that they generally offer higher-value services.
Money Transfer/Remittance Companies perform high-volume low-value transfers generally by economic migrants back to their home country. In 2007, the Aite Group estimated that there were $369 billion of remittances (an increase of 8% on the previous year). The four largest markets (India, China, Mexico and the Philippines) receive $95 billion. The largest and best known provider is Western Union with 345,000 agents globally.

Trading Forex

A currency trade is the simultaneous buying of one currency and selling of another one. The currency combination used in the trade is called a (for example, the euro/US dollar, or the GB pound/Japanese yen.). The most commonly traded currencies are the so-called “majors” – EURUSD, USDJPY, USDCHF and GBPUSD.

The most important Forex market is the spot market as it has the largest volume. The market is called the market because trades are settled immediately, or “on the spot”. In practice this means two banking days.

Forward Outrights

For forward outrights, settlement on the value date selected in the trade means that even though the trade itself is carried out immediately, there is a small interest rate calculation left. The interest rate differential doesn't usually affect trade considerations unless you plan on holding a position with a large differential for a long period of time. The interest rate differential varies according to the cross you are trading. On the USDCHF, for example, the interest rate differential is quite small, whereas the differential on NOKJPY is large. This is because if you trade e.g. NOKJPY, you get almost 7% (annual) interest in Norway and close to 0% in Japan. So, if you borrow money in Japan, to finance the trade and buying NOK, you have a positive interest rate differential. This differential has to be calculated and added to your account. You can have both a positive and a negative interest rate differential, so it may work for or against you when you make a trade.

State insurance advocate: Ban credit scoring for car coverage

LANSING -- Auto insurance companies would have to receive state approval before raising rates and be prohibited from using credit scores, occupations or educational attainment levels to set policy costs, under recommendations outlined this morning by the state's insurance advocate.
"Michigan consumers pay the highest auto insurance rates in the country when they can least afford it. The insurance industry has raised rates 69 percent since 1991 while enjoying virtually no regulation for 30 years," said Butch Hollowell, who was appointed last year by Gov. Jennifer Granholm to review the state's insurance climate and see what changes could be made to provide fairer, more affordable insurance.
The long-awaited report is certain to set off vigorous debate in the Legislature.
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The governor, in her State of the State speech Tuesday, urged auto insurers to voluntarily freeze rates for 12 months to allow time for the Legislature to consider comprehensive insurance reforms. Of particular concern to Granholm is the skyrocketing cost of insurance in Detroit and other urban areas which has contributed to the decision by many drivers to simply go without insurance.
Another recommendation in the 328-page report: Allowing consumers with collision coverage to recover repair costs from at-fault drivers who collide with them, and require insurers to get insurance commissioner approval before raising rates.
"This report will be a blueprint for achieving my longstanding goal of affordable, reliable and fair rates for Michigan citizens," Granholm said in a statement.
For their part, insurance companies say part of the reason for higher insurance costs here is because Michigan provides the nation's highest level of benefits. Michigan's no-fault law requires insurances to provide unlimited, lifetime medical benefits to a crash victim. They point to a report from the National Association of Insurance Commissioners that found Michigan's average auto insurance premium ranks 12th highest among the states -- and that the 11 states with higher premiums provide fewer benefits than those provided in Michigan

Internet can help you drive a good bargain in auto insurance

Smart consumers are accustomed to comparing prices online for all kinds of goods and services, and insurance is no different. The spokes-gecko on TV is right: Regularly shopping for auto and homeowner's insurance is a great way to save money. And using the Web can help.

''Many people stick with the same insurance carrier year after year without ever shopping for a better deal,'' Consumer Reports said in the car-insurance guide on its Web site. ''Blind loyalty to one insurer can cost you dearly.''

A survey by the magazine found that some drivers were paying twice as much for a policy than they would have with another insurer.

Shopping online for home and auto insurance can be a bit complicated, which means many people might benefit from the hand-holding of a human broker. But using the Web can be a good idea.


In part, that's because many sites offer not only online quotes but also personalized help via phone or online chat. And, if nothing else, you will be able to see other premium quotes, which lets you know whether your current insurer is competitive on price.

Auto insurance is more important than home to compare prices on, because premiums vary widely. Premiums on homeowner's insurance are relatively similar, and there's no way yet to get a variety of instant quotes on home insurance because it's so specialized, said Sam Belden, vice president of Insurance.com.

It's easy for insurers to offer coverage for a Toyota Corolla whether you live in Pennsylvania or Illinois because the cars are generally the same. But ranch-style houses in those areas can be quite different, as can the contents of the houses.

You often can obtain a discount for having both auto and home insurance with the same carrier. For that reason, a good strategy is to actively shop for auto insurance and, essentially, tack on home insurance from the same company, Belden said.

Here are some issues about shopping for auto insurance.

Why should I compare premiums? Rates for auto insurance vary considerably, not only because of the usual price variations among companies, but because insurers calculate your risk differently.

For example, some insurers heavily base premiums on your credit score, which is why you're often asked for your Social Security number. Others care about how long you've held a job or lived in a house. Still others care more about a clean driving record, Belden said. So, it's a matter of finding an optimal fit for you.

Why should I shop online? The benefit of comparing online is time and hassle. On comparison sites, you can input the information once and obtain quotes from multiple carriers.

It also helps in comparing apples-to-apples quotes, so you don't mistakenly compare auto liability coverage of $100,000 per person in one policy to $250,000 in another.

Insurance.com returns instant auto insurance quotes from a dozen insurers, Belden said. The alternative would be to call up 12 different insurers and go through an interview each time to get a quote. InsWeb.com and NetQuote.com are other popular sites.

But some of the larger, and potentially cheaper, insurers don't participate in comparison sites. So you might separately check out such companies as State Farm.

What types of comparison sites are available? Two types of auto-insurance comparison sites are available. An instant-quote site gives you a quote after filling out forms, which ask questions about you and your vehicle. You can buy insurance right away.

Others are lead-generation sites, which simply sell your completed information to insurance agents. Those agents then contact you by phone or e-mail.

You can often decipher which type of site you're looking at by going to its ''About Us'' page or something similar, which will describe how the site gives quotes, Belden said.

What should I look out for in an insurer? Price isn't the only criterion in choosing a company.

Auto and home insurance are different than life insurance, which requires very little service after you buy.
With the others, you occasionally will be making claims and seeking prompt payment.

The better comparison sites will give you the hours of operation of the insurer, customer-satisfaction ratings and financial-stability ratings from an independent ratings agency.

You also can check with your state insurance department, which might track consumer complaints for insurers operating in the state.

things u should know about auto insurance

It is important for every driver to understand the fundamentals of auto insurance before being involved in an accident and before hiring a personal injury attorney.

Liability Coverage
The basic auto insurance coverage is called Liability Coverage and it pays for any property damage or injury you cause to another person.

You can purchase the minimum amount of coverage required by the law of your state (in Arizona the minimum is $15,000). However, you can also purchase Liability Coverage in greater amounts to protect you in the event you cause a greater amount of damage.

In addition to whatever amount of coverage you choose, the insurance company will also pay for an attorney to represent you if you get sued by the injured person.

Uninsured Motorist Coverage
The next type of auto insurance coverage you can buy is Uninsured Motorist Coverage which pays for damage or injury caused to you or your passengers by an uninsured motorist. This coverage can be purchased in different amounts as well.

Underinsurance Motorist Coverage
You can also purchase Underinsurance Motorist Coverage which pays for damage or injury caused to you or your passengers by a driver who doesn't have enough coverage of his own to fully compensate for the damage or injury he causes. This coverage can be purchased in different amounts as well.

Collision Coverage
There is also Collision Coverage you can buy to pay for your property damage, regardless of whether the damage was caused by someone else's fault or not.

Medical Payments Coverage
Finally, you can purchase Medical Payment Coverage which pay for medical care caused to you or your passengers as a result of a car accident.

In the event you are involved in an auto accident with injuries, having proper insurance in an adequate amount will enable your personal injury attorney to obtain a recovery sufficient to fully compensate you and your passengers.

Resource
Martin J. Solomon is a past president of the Arizona Trial Lawyers Association, exclusively practices in Personal Injury Law, and represent clients throughout the State of Arizona.

Don't overlook insurance agents

CONSUMERS SHOULD be reminded that buying auto insurance policies from direct sellers is only one way to purchase insurance and not always the least expensive way ("Shopping auto insurers can really pay off," Feb. 1). There is no question that consumers can save money when shopping around. But the most efficient way to find the best bargain is to speak with an independent insurance agent. Agents understand the local market and will take the time to navigate the numerous available options, finding coverage packages best suited to protect the consumer's most important assets, and then comparison shop to get the right price and coverage.

The two companies mentioned in your article offer a one-size-fits-all approach and will tell you only about their products even if their offerings aren't the best fit for your needs.

Better deals are indeed found when consumers shop around. But a good agent can do the legwork for you and achieve even greater savings

If You Have an Accident----ur car INSURED??

Your automobile insurance policy specifically spells out your duties to the company if you have an accident, as the following sections outline.

Notification
You must promptly notify your insurance company of any accident you are involved in, regardless of who you think is at fault. The reason for this is so that the company can conduct an investigation of the incident before the trail gets cold. When reporting the accident, be ready to advise the company of the following.

How the accident happened. Write down what happened while it is fresh in your mind. Then, send a copy of your recollections to the company, keeping a copy for your own records. In fact, you should set up your own file about the accident in case you find yourself in a lawsuit with the other party or a dispute with your own company.

Other parties involved in the accident. Your company will need the name, address, home and work phone numbers of the other party or parties to the mishap. You should also obtain the name of the other driver’s insurance company and his or her policy number, if you can. In addition, include the make, model, and license number of the other automobile(s) involved in the collision.

The name and address of any witnesses. It is common for the participants in an accident to have differing versions, often self-serving ones at that, of how the collision occurred. This often leads to a situation where it is one driver’s word against the other’s. For this reason, it is vital that you obtain the names and addresses of witnesses to the mishap who can assist in determining what happened. This is important even if your company will pay benefits, since they have the right to sue the party at fault or his or her insurance company for reimbursement for the benefits paid. This kind of lawsuit is called subrogation.......................


DONT WANT ALL THIS?? STAY AWAY FROM PSYCHOLOGICAL FEAR OF ACCIDENT. INSURE UR CAR

The behavior of the stock market

From experience we know that investors may temporarily pull financial prices away from their long term trend level. Over-reactions may occur—so that excessive optimism (euphoria) may drive prices unduly high or excessive pessimism may drive prices unduly low. New theoretical and empirical arguments have been put forward against the notion that financial markets are efficient.

According to the efficient market hypothesis (EMH), only changes in fundamental factors, such as profits or dividends, ought to affect share prices. (But this largely theoretic academic viewpoint also predicts that little or no trading should take place—contrary to fact—since prices are already at or near equilibrium, having priced in all public knowledge.) But the efficient-market hypothesis is sorely tested by such events as the stock market crash in 1987, when the Dow Jones index plummeted 22.6 percent—the largest-ever one-day fall in the United States. This event demonstrated that share prices can fall dramatically even though, to this day, it is impossible to fix a definite cause: a thorough search failed to detect any specific or unexpected development that might account for the crash. It also seems to be the case more generally that many price movements are not occasioned by new information; a study of the fifty largest one-day share price movements in the United States in the post-war period confirms this.[4] Moreover, while the EMH predicts that all price movement (in the absence of change in fundamental information) is random (i.e., non-trending), many studies have shown a marked tendency for the stock market to trend over time periods of weeks or longer.

Various explanations for large price movements have been promulgated. For instance, some research has shown that changes in estimated risk, and the use of certain strategies, such as stop-loss limits and Value at Risk limits, theoretically could cause financial markets to overreact.

Other research has shown that psychological factors may result in exaggerated stock price movements. Psychological research has demonstrated that people are predisposed to 'seeing' patterns, and often will perceive a pattern in what is, in fact, just noise. (Something like seeing familiar shapes in clouds or ink blots.) In the present context this means that a succession of good news items about a company may lead investors to overreact positively (unjustifiably driving the price up). A period of good returns also boosts the investor's self-confidence, reducing his (psychological) risk threshold.[5]

Another phenomenon—also from psychology—that works against an objective assessment is group thinking. As social animals, it is not easy to stick to an opinion that differs markedly from that of a majority of the group. An example with which one may be familiar is the reluctance to enter a restaurant that is empty; people generally prefer to have their opinion validated by those of others in the group.

In one paper the authors draw an analogy with gambling.[6] In normal times the market behaves like a game of roulette; the probabilities are known and largely independent of the investment decisions of the different players. In times of market stress, however, the game becomes more like poker (herding behavior takes over). The players now must give heavy weight to the psychology of other investors and how they are likely to react psychologically.

The stock market, as any other business, is quite unforgiving of amateurs. Inexperienced investors rarely get the assistance and support they need. In the period running up to the recent Nasdaq crash, less than 1 percent of the analyst's recommendations had been to sell (and even during the 2000 - 2002 crash, the average did not rise above 5%). The media amplified the general euphoria, with reports of rapidly rising share prices and the notion that large sums of money could be quickly earned in the so-called new economy stock market. (And later amplified the gloom which descended during the 2000 - 2002 crash, so that by summer of 2002, predictions of a DOW average below 5000 were quite common.)

Irrational behavior

Sometimes the market tends to react irrationally to economic news, even if that news has no real effect on the technical value of securities itself. Therefore, the stock market can be swayed tremendously in either direction by press releases, rumors, euphoria and mass panic.

Over the short-term, stocks and other securities can be battered or buoyed by any number of fast market-changing events, making the stock market difficult to predict. Emotions can drive prices up and down. People may not be as rational as they think. Behaviorists argue that investors often behave irrationally when making investment decisions thereby incorrectly pricing securities, which causes market inefficiencies, which, in turn, are opportunities to make money[7].

Importance of stock market

Function and purpose

The stock market is one of the most important sources for companies to raise money. This allows businesses to be publicly traded, or raise additional capital for expansion by selling shares of ownership of the company in a public market. The liquidity that an exchange provides affords investors the ability to quickly and easily sell securities. This is an attractive feature of investing in stocks, compared to other less liquid investments such as real estate.

History has shown that the price of shares and other assets is an important part of the dynamics of economic activity, and can influence or be an indicator of social mood. An economy where the stock market is on the rise is considered to be an up coming economy. In fact, the stock market is often considered the primary indicator of a country's economic strength and development. Rising share prices, for instance, tend to be associated with increased business investment and vice versa. Share prices also affect the wealth of households and their consumption. Therefore, central banks tend to keep an eye on the control and behavior of the stock market and, in general, on the smooth operation of financial system functions. Financial stability is the raison d'être of central banks.

Exchanges also act as the clearinghouse for each transaction, meaning that they collect and deliver the shares, and guarantee payment to the seller of a security. This eliminates the risk to an individual buyer or seller that the counterparty could default on the transaction.

The smooth functioning of all these activities facilitates economic growth in that lower costs and enterprise risks promote the production of goods and services as well as employment. In this way the financial system contributes to increased prosperity.

History of stock market

Historian Fernand Braudel suggests that in Cairo in the 11th century, Muslim and Jewish merchants had already set up every form of trade association and had knowledge of many methods of credit and payment, disproving the belief that these were originally invented later by Italians. In 12th century France the courratiers de change were concerned with managing and regulating the debts of agricultural communities on behalf of the banks. Because these men also traded with debts, they could be called the first brokers. A common misbelief is that in late 13th century Bruges commodity traders gathered inside the house of a man called Van der Beurze, and in 1309 they became the "Brugse Beurse", institutionalizing what had been, until then, an informal meeting, but actually, the family Van der Beurze had a building in Antwerp where those gatherings occurred [2]; the Van der Beurze had Antwerp, as most of the merchants of that period, as their primary place for trading. The idea quickly spread around Flanders and neighboring counties and "Beurzen" soon opened in Ghent and Amsterdam.

In the middle of the 13th century, Venetian bankers began to trade in government securities. In 1351 the Venetian government outlawed spreading rumors intended to lower the price of government funds. Bankers in Pisa, Verona, Genoa and Florence also began trading in government securities during the 14th century. This was only possible because these were independent city states not ruled by a duke but a council of influential citizens. The Dutch later started joint stock companies, which let shareholders invest in business ventures and get a share of their profits - or losses. In 1602, the Dutch East India Company issued the first shares on the Amsterdam Stock Exchange. It was the first company to issue stocks and bonds.

The Amsterdam Stock Exchange (or Amsterdam Beurs) is also said to have been the first stock exchange to introduce continuous trade in the early 17th century. The Dutch "pioneered short selling, option trading, debt-equity swaps, merchant banking, unit trusts and other speculative instruments, much as we know them" (Murray Sayle, "Japan Goes Dutch", London Review of Books XXIII.7, April 5, 2001). There are now stock markets in virtually every developed and most developing economies, with the world's biggest markets being in the United States, Canada, China (Hongkong), India, UK, Germany, France and Japan.[2]

Introduction to commercial auto insurance for your business’s vehicles

As a business owner with commercial vehicles, you need the same kinds of auto insurance coverages for the cars, trucks or trailers that you use in your business as you do for a car used for personal travel because the fact is that no matter where you may be driving in Canada, if you plan to drive a vehicle on public roads, the vehicle must be covered under an insurance policy with certain minimum compulsory coverages. It is the law in all provinces and territories.


Insurance is required for all of the cars, vans and trucks that your business uses, no matter how many you have. Often you’ll find that if you have 4 or more commercial vehicles, instead of simply being called commercial auto insurance it is referred to as fleet insurance. Fleet insurance is a somewhat general term that refers to things like: Motor Fleet Insurance, Van Fleet Insurance, Commercial Fleet Insurance, Truck Fleet Insurance, Delivery Truck Fleet Auto Insurance, Delivery Van Fleet Commercial Auto Insurance, Delivery Vehicle Fleet Insurance, Fleet Vehicle Insurance, Light Commercial Vehicle Insurance, Trucking Fleet Insurance, Motor Fleet Insurance, or Company Car Fleet Insurance. No matter what you call it, your business vehicles need to have insurance and certain minimum compulsory coverages in order to operate them.
What is a commercial vehicle or business vehicle?

Definitions can be dry and stuffy, but this is insurance after all, so here it is: A commercial vehicle is a motor vehicle used primarily to transport materials, goods, tools or equipment that relates to your occupation. It also includes trailers that are intended for use with said commercial vehicles.
What are the typical coverages included in a commercial auto insurance policy?

As mentioned, commercial auto insurance policies include, for the most part, the same mandatory coverages and offer the same optional coverages as the auto insurance policy you have for your private, personal-use automobile.

The following is a list of some of the most common mandatory and optional commercial auto insurance coverages that may be included in your business vehicle insurance policy (mandatory coverages and availability of optional coverages will vary by province. As well, given that each province is unique, there may be coverages not listed here. Always speak to a licensed commercial auto insurance representative when making decisions about, or to answer your specific questions regarding, commercial auto insurance):

Commercial auto insurance - Accident Benefits coverage - is compulsory almost everywhere in Canada. It varies by province but in general provides compensation for medical and rehabilitation treatments, funeral expenses, loss of income due to disability and death.

Commercial auto insurance - Third-Party Liability coverage – also known as Civil Liability in Quebec, provides coverage if while driving your company’s vehicle, the driver is held legally liable for injures to someone else, or for damages to another’s property. If the driver is held liable for more than the coverage, your company may be responsible for the balance. Third-party liability coverage is compulsory in all provinces and territories, although the minimum amount of coverage needed may vary.
Commercial auto insurance - Uninsured, Underinsured or Unidentified Motorist coverage

This coverage is universal across Canada. While it may be called something different, or split into two or more coverage types, the principles are the same. Uninsured, underinsured or unidentified motorist coverage provides payment (the amounts vary among the provinces) if the person driving your company vehicle is injured or killed through the fault of an uninsured/underinsured driver, or by an unidentified vehicle like in a hit-and-run.
Commercial auto insurance - Direct Compensation - Property Damage

In Ontario, Quebec and New Brunswick, Direct Compensation – Property Damage coverage provides for damage to your vehicle and any property inside that is permanently attached, because of an automobile accident where your company vehicle’s driver is not-at-fault or partially not-at-fault.
Commercial auto insurance - Collision coverage

Collision is an optional coverage that is the portion of your policy that protects your vehicle if it is damaged in an accident. There is usually a deductible.
Commercial auto insurance - Comprehensive coverage

Comprehensive coverage, like Collision, is optional. It protects your vehicle against loss or damage resulting from something other than a collision. Comprehensive coverage usually applies in the case of loss or damage from falling or flying objects, theft and vandalism. There is usually a deductible.
Commercial auto insurance - Family Protection coverage

Family Protection provides coverage for the vehicle’s driver from the actions of an at-fault, uninsured or underinsured driver. If available, Family Protection ensures coverage up to your commercial auto insurance policy's limits regardless of the other person's coverage levels.
Commercial auto insurance - EXTRAS

Commercial auto insurance policies may include optional coverages that you might not typically see with your personal-use car insurance policy. The reason for this is that some business vehicles may have unique, specialized needs that pertain specifically to machinery or equipment that is part of the vehicle, trailer or both.

Through kanetix, commercial vehicle insurance quotes are available for the larger cities of Ontario, Canada, like: Hamilton, Brampton, Toronto, Ottawa, Mississauga, Waterloo, North York, Etobicoke, Scarborough, Windsor, Kitchener, London, Markham, Oakville, Oshawa, St. Catharines, Barrie, Cambridge, Sudbury, Kingston, Burlington, Richmond Hill, Guelph, Sarnia, Peterborough and Whitby.

In addition, company automobile insurance rates are also available for smaller areas of Ontario like: Thunder Bay, Chatham-Kent, LaSalle, Bradford, Vaughan, Grimsby, Brockville, Owen Sound, Amherstburg, Brantford, Ajax, Pickering, Niagara Falls, Clarington, Sault Ste. Marie, Lindsay, Newmarket, Norfolk, Bolton, Georgetown, North Bay, Milton, Welland, Belleville, Aurora, Cornwall, Haldimand, Timmins, Trenton, Keswick, St. Thomas, Woodstock, Brant, Lakeshore, Churchill, Stratford, Orillia, Fort Erie, New Alliston, Lincoln, Gwillimbury, Kingsville, Tecumseh, Napanee, Kenora, Wasaga Beach, Clarence, Essex, Port Colborne, Huntsville, Thorold, Cobourg, Collingwood, Midland, Pelham, Bracebridge, Orangeville, Picton, Stouffville, Elliot Lake, Erin, Gravenhurst, Hawkesbury, Tillsonburg, Petawawa, Niagara-on-the-Lake, Pembroke, Ingersoll, Almonte and Port Elgin, and in fact, most of the other towns and villages that are not included on this list.