Category / Investing


It’s all about AIM Shares

The contemporary UK investment scene is bustling with AIM shares, pulling in more and more investors everyday. According to market pundits, Alternative Investment Market seems to be a grand launch for LSE. AIM was founded 2 decades back in 1995 with the goal to magnet small firms from all over the globe- to ensure they get adequate capital for a flourishing growth. It launched with simply 10 constituents (homegrown) with a net market worth of 82m pounds.

Growth of AIM

Cut to 2015 February, AIM is boasting around 11oo firms with 217 names from overseas. The market reports reveal that over the last 2 decades, over 3,000 firms have signed up with Alternative Investment Market in between, raising over 60bn pounds of capital.

Easy listing criteria

Dubbed as the entry-level platform of LSE, AIM is usually tagged as “junior market” that stresses on small firms. For the investors, it’s also referred to as (quite often) “lightly regulated”. It’s because the very admission regulations for the firms looking to be listed on AIM list are comparatively less onerous compared to main market listing.

You should know that when a company is looking to join main market, it has to declare its audited finance records for minimum 3 years & should carry an overall worth of 700,000 pounds. But when it comes to AIM, there is no such rigid trading record obligation & also no restrictions on minimum mandatory market capitalisation. Moreover, with AIM-listed firms, the shareholder approval would be required for largest transactions chiefly. Reporting requirements and financial disclosure are usually less demanding compared to main market.

It’s tax free

One of the major reasons behind the popularity of AIM shares is their tax-free status. The Government has removed the stamp duty from the AIM shares in 2014 and AIM sticks have been placed under tax-free Isas. Additionally, a fair share of the stocks here has been exempted from the inheritance tax obligation. The main idea is to get investment in the minnow Brit companies which might emerge as corporate giants tomorrow.

Though some of the AIM shares are considered to be risky given that you would be investing in small companies- yet the contemporary market status has brought to light investment opportunities in several good firms which boast solid management, prospects & profitability. The most successful companies over AIM are Stanley Gibbons, Majestic Wine, James Halstead, ASOS, Mulberry & Domino’s Pizza.

If you are planning to try your luck with AIM shares, it’s best to proceed with a specialist investment management company. The most credible names in the market undertake in-depth research on company & market so that you can land up with an informed decision.


Investing Tips That Seem Like Common Sense

Investing is something everyone should get into. Especially since it’s probably something you’ll be living off in your retirement. You’re going to want to make sure it’s still there when you get older and maybe even have a little extra to leave your kids. Here’s a few tips you should know about before you start investing in the stock market.

Before you even think of investing be sure that you can afford it. Don’t have thousands of dollars in credit card debt and start investing. You’ll never be able to beat the interest rate you’re paying on those cards. It’s a losing battle, so start paying those cards off first. But of course you can start educating yourself so that you’ll be ready when you don’t have that debt any more. Looking over Online Trading Academy Reviews can help you decide your course of action. Having a great teachers showing you the way can help you in the long run.

When you do start investing, be sure to think about diversity. Don’t throw all of your money at one stock. You’ll statistically have a bad time. Spread the love around so that you have a better chance of keeping your money. That way when one stock is down, your other ones will probably be up. This way you wont be a slave to the whims of the market and your emotions won’t take over your investing strategy.

Slow and steady wins the race. Just keep down the road of investing. Each month just keep putting money into your portfolio of stocks so that it averages out the highs and lows. That way you’re not worrying about when the stock is high or low and letting your emotions take over. Remember, you’re in this for the long haul. Rome wasn’t built in a day.


Trading Terminology 101: What Are Securities?


binary optionsBecoming a trader can sometimes feel like you’re taking up a second language. There is a lot of terminology in this industry, which means you should really make a point out of learning as much of it as possible whenever you can. Start today by reading about securities, it’s a very common term you’ll hear for the rest of your life as a trader.

A Basic Definition of Securities

Securities are a broad term for various financial instruments. This could refer to an option, a stock in a publicly-traded corporation and a bond from a company or government. Therefore, a security really just represents some kind of financial value. Whoever issues this security, and it could be a company or some other kind of entity, is known as the issuer.

A Closer Look at Issuers

Given their relationship to securities, you’ll want to understand what an issuer is exactly. Again, all they do is provide the security to an interested party. For instance, it could be a municipal government that is issuing bonds to help raise funds. These traders buy securities for the sole purpose of later selling them. Wholesale investors do something similar, although they usually buy and sell bonds for clients. Of course, there are also institutional investors. They include pension funds, investment banks, insurance companies, and managed funds. All of these groups are issuers and they have that name because, at some point, they issue securities, whether those are bonds or stocks.

The Two Types of Securities

There are two basic kinds of securities: debt securities and equities. The former represents capital that is borrowed and must be paid back at some point. This will mean following terms that define the principal and interest rate as well as the maturity date. Government and corporate bonds, preferred stock, certificates of deposit (CDs) and collateralized securities (CMOs and CDOs) all fall under this type of security.

Equities represent a shareholder’s ownership interest in a corporation. Stock would be a good example. Unlike debt securities, where the owner usually only receives interest plus the principal back, those who hold equity securities can also profit from capital gains.

As you can probably imagine, the SEC is in charge of regulating the public offer and sale of securities. This is one more reason you should continue learning about them as much as possible if you want to deal with securities. While there are profits to be made, you have to play by the rules.


Uniqueness of binary option trading unraveled

One of the most unique aspects of binary option trading is that you as a trader will know how much money you are putting at risk and what might be your return. Also, it is much easier to trade assets in the binary market as you either win or you lose. There is no midway to the trade and that makes it much relaxed form of trading. All you have to do as a trader is understand how the market is moving and you have to apply your instinct, common sense, and most importantly your experience to judge the direction of movement of the price of the asset.

Definitely, you have the liberty to seek help from the brokers. Depending on which part of the globe you are, you can sign up with a trading platform. An important thing you must remember about the binary brokers is that not all brokers work with the US traders due to certain norms related to regulations. As such, the best brokers accepting US traders can be found on

Having said that, it is now your turn to select the asset that you think will do justice to your hard earned money that you invest in the trade. Take time to decide upon the asset as this is what will make you win or lose the trade. This is because not all assets perform in the same manner. Different parameters influence the outcome of a trade related to differing assets.

Trade different assets under one roof

Another very important aspect that you ought to keep in mind about binary option trading is that perhaps it is only in the binary option market that you are allowed to trade different types of assets under the same roof. For instance, here you can trade stock indices like currency pairs, crude oil, gold (commodity), and also large cap stocks if you wish to. If you explore other markets, you will not find a common trading platform for all these types of assets.

You will opt for a CALL option when you find that the market is bullish else you opt for PUT option, if you find that the binary market is bearish. The best part about binary option trading and selecting a suitable broker is that you have the liberty to work with more than one broker. This also means that you will be able to enjoy payouts from more than one broker. And if the brokers that you choose to work with offer handsome payouts, you are the winner in the long run.

Selecting the right broker

Selecting the right broker is one thing not everyone can do wisely. It is best not to rush into the broker you meet the very first time. Take time to compare the services, payouts, and method of working of the trading platforms. Only if you find that you will be comfortable in dealing with the broker under the terms and conditions laid down by them should you proceed and sign the contract. A wrong decision can cost you a fortune in the long run. 


An Introduction to Forex Trading

Forex trading is an investment vehicle that primarily focuses on taking advantage of currency fluctuations in the world market. Because of the inherent volatilities of currencies, forex trading is often considered one of the riskier forms of investment. However, recent advances in technology particularly in the improved accessibility to information and news that influence currency fluctuations have opened up forex trading to ordinary day traders instead of being solely in the domain of large financial institutions like corporations and national and central banks.

In a nutshell, forex trading is conducted via a foreign exchange market. The rationale behind the forex market boils down to the need to exchange cash in the conduct of various transactions. For example, suppose are based in the UK and you operate a small home-based business that sells unique artifacts from China for decorative purposes; when you purchase items from China, you need to pay for the artifacts in Chinese Yuan because this is the accepted currency there. You now have to “exchange” your British Pound in order to have the Chinese Yuan you need to pay for your goods.

Translating this into the global stage creates the forex trading platform where investors buy and sell currencies depending on the volatility of the currencies involved. For individual investors, these exchange markets include the spot market and the futures market. A spot market is where investors buy and sell currencies depending on the current price.

Transactions in this market require that you purchase a certain amount of currency and pay with another currency. You earn if, over the course of the trading day, you can manage to sell your acquired currency at a much higher value because the price for that currency went up. Conversely, you lose money when you buy currency which then devalues and you sold it at a lower price.

Forex trading in the futures market is more volatile and risky than spot trading but also offers considerably bigger payouts. In futures trading, the investor tries to anticipate where the exchange rate for any currency pair goes up or down after a certain period of time. If he or she gets it correctly, the payout can be as much as 85% of the initial investment; if he or she gets it wrongly, then payout can be zero.

Of course, the whole nature of forex trading is so much more complicated than what these descriptions can offer. Success in forex trading requires experience, whether on the spot or future markets, to be able to learn how to read the trends and news that influence the market. If you are up for it, take the time to study and learn so you can successfully put your money in foreign exchange investments.