finance
monthly
Personal Finance. Money. Investing.
Contribute
Newsletter
Corporate

In many cases, traditional banks are unable or unwilling to offer products to meet the needs of these businesses - capping their potential and their contribution to the economy.

“Companies with high-growth potential, particularly tech businesses or those with complex payment flows, can struggle to open a current account with traditional banks. Even when those businesses are regulated entities, they are often considered too high risk or too much of an ‘unknown quantity’ for mainstream providers.” Says Alan Smith, UK Managing Director, at fintech company Andaria, a new entrant to the UK market.

“For those who do manage to open an account, it can still be a lengthy process and result in an account setup and fees that aren’t ideal for the business. For instance, standard charges for BACS and CHAPS transfers and especially for those international payments made via SWIFT are too costly for many startups and SMEs.”

“Unlocking the growth potential of these overlooked and underserviced sectors is vital to ensure continued innovation for businesses and their customers. Companies in almost any sector can be caught in this situation but the issue particularly impacts those in the hospitality, insurance, crypto, and gaming sectors. That's why Andaria has launched in the UK - to offer a more suitable and easily accessible alternative to traditional business banking providers.” He concluded.

Andaria offers a set of pre-built account packages with transparent pricing and an online application and KYB process. This allows businesses to easily get their current account up and running. They also offer tailored services and pricing for those who have more complex requirements.

Andaria’s current accounts are now available across both Europe and the UK, supported by dedicated account managers and an online self-service portal. This enables businesses of all sizes to easily manage their payments from one central hub.

Andaria is backed by a team of world-leading fintech and banking professionals. The company is a regulated e-money institute in the EU and the UK, authorised by the Malta Financial Services Authority (MFSA) and the Financial Conduct Authority (FCA) respectively. 

Today, anyone can open a trading account and start buying and selling securities from the comfort of their home or office. 

However, behind every successful trading experience lies a robust and reliable trading platform that handles a vast amount of data and transactions in real time. In this article, we will dive into the world of trading platform software development, exploring the key features, technologies, and best practices that make them stand out in the crowded fintech landscape.

Key Features of a Trading Platform

A trading platform is much more than a simple website or app that allows users to place trades. It is a complex system that integrates multiple components, from market data feeds to order management systems, risk management tools, and compliance checks. Here are some of the key features that a modern trading platform should have:

Technologies Used in Trading Platform Development

Developing a trading platform requires a diverse set of technologies, including programming languages, frameworks, databases, and infrastructure. Here are some of the most commonly used technologies for fintech development services:

Best Practices for Trading Platform Development

Developing a trading platform requires a deep understanding of the financial markets, trading workflows, and user experience. Here are some best practices that can help ensure the success of a trading platform project:

#1. A trading platform must be intuitive, easy to use, and visually appealing to attract and retain users. Developers should prioritize user-centric design principles and conduct user testing throughout the development process.

#2. Trading platforms deal with sensitive financial data and must comply with strict regulatory requirements. Developers should follow industry standards and best practices for security, data privacy, and compliance.

#3. Trading platforms must handle high volumes of data and transactions in real time without compromising performance or availability. Developers should use scalable architecture patterns and performance testing tools to ensure the platform's resilience and reliability.

Final word

The future of trading platforms will look promising in the second half of 2023 and beyond. As more people embrace trading to invest and grow their wealth, the demand for reliable and feature-rich trading platforms will continue to increase.

Moreover, trading platform software development will benefit from technological advancements, such as artificial intelligence, machine learning, and blockchain. These technologies can help improve the accuracy of market analysis, automate trading strategies, and enhance the security and transparency of trading transactions.

However, with the increasing competition in the fintech industry, trading platform developers must continue innovating and providing unique value propositions to stand out. They must also prioritize user experience, security, and compliance to earn and maintain the trust of their users.

Overall, trading platforms are poised for growth and innovation in the second half of 2023. As technology evolves and more people enter the trading world, trading platform software development will remain a critical area of focus for fintech companies.

Author Bio: Oleg Dats

Co-Founder & CEO at TechMagic. Leading a full-stack development company that scales engineering teams and builds software products from scratch. Passionate about AI and innovations.

https://www.techmagic.co/blog/ 

 

Right now there is a huge push for people to start buying electric vehicles. Some governments have even gone as far as to say that in the next decade, fuel-powered vehicles will be outlawed. You don’t have to be a genius to know then that installing electric vehicle charging points at home can add significant value to your property’s potential sale price. Having charging points installed will mean that if you decide to sell your house in the future you can get a much better deal for it. Charging points are by no means cheap to install, however; they are not cheap to run.

Increasing your property’s value can help you to get more for it if you decide to sell. A house is an investment, not something you should hold onto forever. Adding charging points is just one way of increasing your property’s value; there are many others. This post will explore this topic in more detail, telling you how charging points can boost your home’s sale price as well as telling you about some other things you can do to maximize your property’s value.

Finding Properties for Sale

You may have found this page not because you are interested in getting an electric vehicle charger installed but instead because you want to buy a house with one. In order to cater to individuals like yourself (if that is why you are here) then this post will first tackle how to find a house to buy. You can of course search homes for sale at eXp Realty or on one of the other online property marketplaces. Using realty sites is perhaps the easiest way to find a property. These sites exist solely to help people find their dream homes.

1.    Realty Sites

As mentioned previously, the first thing you need to do to find a house for sale is to sign up for a realty site. On a realty site, you’ll be able to see all of the listings in your area. The good thing about realty sites is that they are abundant and all have their unique listings, meaning different sites will show different properties. You should sign up for more than one if you want to buy a house. Avoid sites like those run by the Zillow Group as they are notorious for selling people’s personal information to marketers.

2.    Hiring a Realtor

An alternative to using a realty site is hiring a private realtor, ideally, one that works for a reliable and trusted company in your area. Finding realtors to hire is not difficult since they exist in most of the world’s towns and cities. If you cannot find any in your immediate area then you will certainly be able to find some to hire online. Before you hire a realtor you need to conduct extensive research and read their reviews. A realtor’s reviews can give you a clear idea about what it is going to be like working with them.

Right now there is a huge push for people to start buying electric vehicles.

3.    Determining Needs

What specifically do you need your new house to have? Obviously, because you are here in this article you need an electric charging point. Beyond charging points, what else do you need? Do you need a garden or a two-car garage? Will you need your new house to be in a good school district? Thinking about these things before you start searching will help you to find a house that’s right for you. A lot of people make the mistake of trying to come up with their needs after they start searching.

4.    Considering the Location

Location is everything. If you buy a house in a bad area then your life will be plagued with crime and chaos. Avoid deprived areas if you can. If you are on a budget then you can find a house that’s not in an impoverished area by buying rurally. Rural properties tend to be significantly cheaper than urban ones. When you buy a rural property you need to make sure that you are getting one in an area with good transport links, however. Otherwise, you could end up being completely cut off from the town or city where you work.

Electric Charging Points

Moving away from how to find the house that’s right for you and onto how electric charging points can boost your home’s value (because they most certainly can); the first thing you need to think about is installation. Installing electric charging points is by no means cheap, as stated already. The installation of charging points can cost thousands of dollars. Individuals who’re on tight budgets can still get them installed by paying for them on credit. The vast majority of contracting firms accept credit.

Why can electric charging points increase your property’s value, you might be wondering? As mentioned earlier, in the near future, fuel-powered cars are going to be illegal in many countries, including the United Kingdom. Further production of them is going to cease in other parts of Europe. In the United States no definitive plans have been drawn up yet, though climate advocates and people who’re very passionate about the environment are arguing for them to be banned. Installing a charging point on your property somewhere will mean that if in the future fuel-powered cars get banned where you live, people will be more interested in buying your house.

Installing electric charging points is by no means cheap.

If everybody’s driving electric cars then everybody’s going to need charging points. However, because charging points are only going to get more expensive as demand increases, the average person isn’t going to be able to afford to install them at their homes. By installing them now while they are reasonably affordable (or while credit is a possibility) you will be able to avoid high future costs and boost your property’s resale potential. Make sure that you hire a professional team of contractors who have received good online reviews to install charging points for you.

Electric Vehicles

Electric vehicles are much better for the environment than cars that use fuel. Studies show that if all of the world’s countries collectively begin using more electric vehicles then global carbon emissions will fall exponentially. It should be noted that at this time the production of electric cars is not exactly good for the environment and the batteries used in these vehicles can be very harmful. That being said, electric cars are a lot better than petrol- or diesel-powered ones. Beginning to use them could be your way of contributing to the environment and fighting climate change.

Electric vehicles are very expensive but analysts predict they are only going to rise in price. It’s theorized that in the future people will not own cars but instead, they will rent them, mainly because of how expensive they are. If you are somebody with a lot of disposable income right now then you might want to buy yourself an electric car so that in the future you can guarantee that you own one. Make sure you conduct a lot of research and find a reliable company to buy from like Tesla, so you can get a car that’s going to retain its value and perform well in the future.

Increasing Property Value

Interior Design

One of the first things you should do if you want to boost your property’s value is to redesign its interior. A lot of people’s homes look terrible inside. The main reason so many people’s houses look awful within is that they have absolutely no knowledge whatsoever of how to design a house. The average person’s idea of what a good house looks like is a design copied straight from an interior design magazine. Your house should be a reflection of you. A house that’s copied from an interior design magazine will look hollow and empty. A house you design based on your interests will look characterful, warmer, and more desirable to homebuyers.

One of the first things you should do if you want to boost your property’s value is to redesign its interior.

If you have no idea how to redesign your house and are not confident decorating it yourself then instead of attempting to do it independently, hire an expert interior designer. Interior designers are not exactly cheap but can be very helpful and can add a lot of value to your house for you. They may also be able to make suggestions about other areas of your house like its façade or the backyard.

Landscaping Yard

Your home’s backyard should be one of your main focuses if you are interested in upgrading it and improving its value. A lot of people overlook the fact that a landscaped and cared-for backyard can add significant value to your property’s sale price. Landscaping is not something the average person can do on their own, however. Instead of attempting to landscape your yard yourself, you should hire an expert to do it for you. A professional gardener will be able to add trees, flowers and plants to your backyard that improve its appearance and of course its value.

You also need to think about your home’s façade. A lot of people make the mistake of thinking that they only need to worry about their properties’ interiors but this is not true. Your home’s façade can have just as much impact on its value as its interior can. Do not be one of those people with an immaculate house inside but a horrid one outside. A good way of improving the outside of your house is by repainting it. If you do not have the skills to repaint an entire house then you can hire somebody to do it for you.

Smart Gadgets

Another highly effective way of boosting the value of your house is to invest in smart gadgets. A lot of people underestimate how much money they can add to a house’s sale value. Smart gadgets are great because they work fantastically with electric charging points in that the same people who’re interested in investing in charging points and who have electric cars tend to be forward-thinking, technologically savvy individuals. Investing in smart gadgets for your house can be a good way of making it more desirable.

If you are unsure what gadgets you should be adding to your house then ideally they should be ones that improve its general functionality. Many smart gadgets today can be connected to smartphone apps and you can operate home appliances from your mobile device. Security gadgets are great investments too. Do not make the mistake of thinking that your house will protect itself. Fraud and crime are through the roof right now. Investing in gadgets designed to look after your house while you’re not there like smart locks, alarms, and cameras can make it a much safer place for your family and for the families of people who buy it in the future.

[ymal]

Timing Sales

If you are planning on selling your house in the future then you need to try and learn about market conditions at the time that you are selling. The property market is constantly fluctuating and changing; people who have never sold houses before underestimate how complicated the process can be. A good way to learn about how the market’s currently performing is to read guides or blogs. If you do not have the time or energy to read realty guides then hire a professional realtor and ask them to help you sell your house. A realtor will be able to work with you to figure out when’s the best time to sell it.

In addition to knowing what market conditions are like in your country or state, you can also use realty platforms to find out how many houses are selling in your area. Getting an idea of current sale prices in your area will help you to figure out how much you can sell yours for. Make sure you factor in the additions you have made to your house when you are working out a price you want to list it for.

Electric car chargers can add value to your house but so can the other things mentioned here. Individuals who’re interested in selling their houses need to spend a lot of time improving and upgrading them so they can get the best price possible. Never sell your house without making a profit on it.

AutomatePro's patented software is aimed at removing mundane and repetitive tasks from development teams, ensuring software remains up to date and runs efficiently. The software is particularly useful for companies operating in heavily regulated industries, including financial services and pharmaceuticals, enabling them to maintain robust, compliant documentation and adhere to strict quality control and audit standards.

YFM's investment will fund AutomatePro's sales, marketing and customer success functions, develop new product modules, and help the business expand into the US to meet the growing demand from ServiceNow's existing ecosystem.

The YFM team consisted of Roshan Puri, Ben Pitt and Jamie Roberts. The AutomatePro team included Paul Chorley, Wayne Devonald, Steven Zhang, Martijn Leentjes, Andy Cooke and Dan Ellis.

Advisers to YFM on the investment included Irwin Mitchell (legal), Pegafund (financial due diligence), Confidas People (organisational due diligence), Sales Blueprint (commercial due diligence), Code&Co (technical due diligence), DTE Group (tax due diligence) and Philip Hare & Associates (VCT advice). Advisers to AutomatePro included K&L Gates (legal) and Mountside Ventures (corporate finance).

Q&A with Jonathan Hollis

As the Managing Partner at Mountside Ventures, Jonathan Hollis works with early-stage companies looking to raise their next round of funding and helping them increase their chances of getting funded. He qualified with PwC as a Chartered Accountant (ACA) and co-founded their early-stage corporate finance practice, and Series A accelerator, whose alumni have raised over £500m with a combined valuation of £3bn, before leaving the firm three years ago to set up Mountside.

What do you love about AutomatePro?

Tell us more about the round.

The team received plenty of interest from UK investors and chose YFM to lead their £5m round. YFM have previously invested in the DevOps space through investments in Quality Clouds and Plandek, and so are well placed to understand their thesis and bolster the team’s expertise.

How do you work with companies?

We partner with the most ambitious entrepreneurs raising their next round of funding, minimising the disruption to their business. We do this by helping them get investor-ready, introducing them to relevant investors and supporting them in closing their round with terms that are right for them.

This is what we did with AutomatePro.

What’s your advice to other founders?

The fundraising environment is particularly challenging at the moment so it's important to ensure you are absolutely ready before going into a funding round. You should ensure you have a fit-for-purpose pitch deck, a five-year financial model, a strong investor FAQ and a completed data room.

“As technical founders, we needed trusted experts to help guide us through the institutional investment process, which was completely new to us. The Mountside teams’ experience and expertise in all aspects of the investment process, in everything from preparation through to negotiating heads of terms, was invaluable and always delivered in a friendly and professional way.”

                                                   - Paul Chorley, Co-Founder, and CEO of AutomatePro

A major lender to tech firms, the bank faced "inadequate liquidity and insolvency" as it scrambled to raise money to plug a loss from the sale of assets affected by higher interest rates, according to banking regulators in California. Its struggle set off a series of customer withdrawals and sparked fears for the wider banking sector.

The Federal Deposit Insurance Corporation (FDIC) said it had taken charge of the roughly $175 billion in deposits held at the bank, the 16th largest in the US. Many firms with money tied up in the bank have been left in uncertainty regarding their futures.

The bank's UK branch was put into insolvency from the evening of Sunday 12 March but swiftly rescued by HSBC for only £1 in a move praised by Krista Griggs, Head of Financial Services & Insurance at Fujitsu. “The UK technology industry is thriving and it requires a commitment to long-term success if the country is going to achieve its ambition of becoming a scientific and technology superpower," she said in a statement.

“HSBC’s fast response is a welcome move that will ensure continuity for businesses at risk from the collapse of Silicon Valley Bank. It shows commitment to innovation and I expect to see more involvement from traditional banks as they look to provide stability during disruption - as well as further union between them and FinTech companies as this sector continues to rapidly evolve."

Cryptocurrency, like gold, has a similar impact on investors. They have turned the people from rags to riches, the same as gold. The prices of Bitcoin soar high with time. This creates an opportunity for comparison between both of them. Why not? After all the Bitcoins are accepted as business transactions, the same was done in archaic times with gold. So gold or Bitcoin? Let's find it out here.

Gold vs. Bitcoin: Who wins?

We all are aware of gold; the entire world runs with the help of gold. But they are such powerful and defining metals. On the other hand, the rise of Cryptocurrency is meteoric! So let us make a comparative analysis between both of them. 

Gold

Gold has performed well historically during some economic unrest. This is because the metal has a great ability to keep value steady. Know that investors move from stocks to gold if they experience a recession. 

During the great recessions in the USA as well as the Covid-19 Pandemic, many investors moved into buying gold. Increased demand for the metal increased value. The price of gold went from as high as $1300 in 2019 to that $2100 in the middle of the years 2020 and 2021. 

Bitcoin

Bitcoin is a digital currency launched in 2009. It is the oldest Cryptocurrency and holds the highest percentage in market capitalization. The present share of the Bitcoin market is 38.2147%. 

During the Covid-19 pandemic, when everything went into a veritable shutdown, the price of Bitcoin did not decrease. Then continued to pour capital into the hands of the investor. By April 2021, the price of Bitcoin hit $ 61000. Therefore, the advent of Bitcoin is one of the significant developments in the capital market. 

Regulations

You can not acquire as much gold as you want. You will have certain restrictions with the storage of the metals. You will be answerable to the government. The government regulates this. Moreover, the government also keeps gold reserves in its treasury. You can buy and sell gold in the market, and the government will be able to know it.

The regulation of Bitcoin is made based on the country. For example, El Salvador has ratified Cryptocurrency as a legal tender. But on the other hand, China banned Cryptocurrency in the year 2021. So if you trade on Bitcoin, then no one will be able to know how much you trade. By the way, are you trading Bitcoin? You could do it using Cryptocurrency trading platforms to facilitate Bitcoin trading and investment. To learn more, click here. 

Usage and Utility

Gold, since antiquity, has been a means of exchange. The metal is not used extensively across different industries. However, many products are made with the help of gold. 

On the other hand, if you consider Bitcoin, the utility or usage is quite limited. This is because Cryptos are virtual assets, and they are used as a mode of investment or in buying and selling assets. Therefore, Bitcoin usage is quite limited compared to that of gold.

Arguments in Favour of Cryptos

There are a few arguments that you can produce in favor of Bitcoin against that of Gold. Firstly goldGold does not support any kind of storage option available in the digital world. But on the other hand, Bitcoins are digital assets. Therefore, being intangible, they are safer compared to gold. 

Another argument (though logically not so compelling) is that gold can not be traded easily; you can not take it anywhere. But if you use Bitcoin, you can do it easily with just a few fingertips.

The third argument is that Bitcoin has more adoption compared to that gold. Around 47 million people trade in Cryptocurrency, which is quite big compared to Cryptocurrency. So You can trade on Bitcoin as they are the future.

But why a second passport is a smart investment for high-net-worth individuals? What do they get from it? Well, dual citizenship offers many benefits, from traveling without a visa to more than a hundred countries to working and living abroad, just to name a few.

There are plenty of investment opportunities for business owners and entrepreneurs to take advantage of and expand their businesses. Let’s see why investing in dual citizenship is important and can be a smart decision.

What is Dual Citizenship?

First things first, let’s analyze the term “dual citizenship” and learn more about its nature. A dual citizen is a person who is a legal citizen of more than one country. The person will have rights and duties in each country and can legally reside in both.

These individuals usually get the passport by investing in the nation’s economy via programs called CBI - Citizenship by Investment. The programs assist individuals in getting a second passport legally and quickly without waiting for years to obtain dual citizenship.

Caribbean countries are famous for their CBI programs and the great benefits each country offers. For instance, the Citizenship by Investment Grenada Program grants the Grenadian passport that enables visa-free traveling to more than 140 countries worldwide. This exotic island nation is one of the most appealing destinations for many wealthy individuals who decide to spend their retirement days there.

Why is it a Smart Idea?

Investing in dual citizenship is smart because it allows high-net-worth individuals full access to the country’s economy and its various benefits.

1 - Increased Mobility

For those who often travel, whether business-related or vacation, a second passport is a perfect solution for avoiding the visa application process and all of the paperwork. With the second passport, individuals can travel without a visa to many countries, plus it will save money on visa application fees.

If you want to work and live abroad, having the freedom to travel without a visa to many countries is a huge advantage. People with a second passport can also access some countries with a visa on arrival, depending on the power of their passports.

Let’s check some of the passport’s rankings from the Caribbean countries:

These rankings make these passports so powerful and allow dual citizens in each country to travel to 157 and 144 countries, respectively. Once obtained, the passport is valid for 10 years, and the applicant doesn’t need to reside in the country before the application.

2 - Many Opportunities

Wealthy people can take advantage of the many entrepreneurial opportunities and have access to emerging and established markets. A second passport opens the doors to new clients and business partners. This is an excellent opportunity if your business depends on international clients and you need a successful outreach strategy.

Getting a second passport in the Caribbean countries will open the doors to lucrative niche markets. Moreover, the fantastic location of these island countries is wealth in itself.

3 - Educational Opportunities

Access to quality education is an excellent benefit for wealthy individuals and their children. Their children can attend high-quality Universities, Colleges, and high schools and advance their economic, social, and personal well-being.

4 - Better Lifestyle

Imagine a life with no economic issues and the comfort of knowing that immediate relocation is possible within a matter of days. This is especially significant in worst-case scenarios like war, political instability, or civil unrest. It’s a valuable asset, emotionally and financially. It’s a source of satisfaction and pride knowing that the person can live and work in more than one country and is a legal citizen of both.

You and your family will have a better lifestyle, peace, and safety in another country. For some wealthy individuals, owning a second passport is seen as a status symbol leading to higher societal rankings and better treatment.

Investing in Dual Citizenship is Smart

Overall, dual citizenship offers plenty of benefits and opportunities that can improve the individual’s lifestyle. If you’ve been considering applying for a second passport, now it’s the right time to do that.

Now that we’ve analyzed the benefits of obtaining dual citizenship and why it’s a smart idea to opt for one, it’s time for you to find a legal entity or an authorized agent and apply for it. Make sure to learn more about the benefits, privileges, and advantages of dual citizenship you want to apply for, so you can determine the best option.

 

If you want to obtain the coveted CFA charter, you have to pass the challenging three-part exam. Obtaining this widely respected charter comes with several advantages, including pay and job prospects.

Historically, less than 50% of test takers pass the first two levels, while little over 50% complete the third level. To pass each level, the CFA Institute advises candidates to put in at least 300 hours of study time, which might be difficult for some candidates.

The following simple steps will help you prepare for your test and give you the extra push you need:

1 - Choose the Right CFA Study Materials

Having a variety of learning techniques will keep your attention sharp and make it simpler for you to retain the information. Join a preparation course that will offer you more reading material, activities, and practice exams rather than participating in a passive study.

Online learning tools are available that could greatly improve your learning and help you prepare for the CFA exam. They give you quizzes, study guides, videos, and questions. Their practice exams will give you a clearer understanding of what to expect. By taking practice exams, you can gain confidence so that the real exam won't scare you.

Keep in mind that practice improves performance. Therefore mix the standard curriculum study notes with actual practice exams.

2 - Create a Study Schedule

CFA Institute advises studying at least 300 hours to pass the test. Level I candidates typically need 303 hours to study for the test. Therefore, you ought to design a productive study timetable.

Divide the 300 hours into more manageable study periods. Set aside a specific number of hours each week. For instance, assuming you had six months, you would need to study roughly 12 hours per week. This is manageable.

Consider your responsibilities and how much time you can set aside each day for learning. It is strongly advised that you get started as soon as possible. Your roadmap will be a study schedule. You won't have to deal with the procrastination and nervousness most applicants frequently encounter if you follow it through.

3 - Don’t Leave Out Any Topics

Nobody anticipates you to be an expert on every facet of every subject. However, it is not a good strategy to skip Learning Outcome Statements (LOS), believing they won't be tested. Cover all content, but pay special attention to the questions that will be tested.

The LOS and the most recent topic weights are available on the CFA Institute website. You may have noticed that some themes, like "Ethical and Professional Standards," are mentioned more frequently than others, like "Portfolio Management." Consequently, you can devote more effort to honing those subjects.

Remember that trying to predict what will or will not appear on the exam will not get you a pass. But a thorough understanding of all the material and extra attention to the subjects that come up most often will.

4 - Improve Your English Proficiency

Speaking and listening abilities are not necessary for the CFA exam. However, intermediate English writing and reading abilities are crucial. English can be difficult, even for a native speaker, due to its complex nature. 

Therefore, you must improve your English language proficiency in reading for all CFA levels and writing for level three. 

You can study with a greater understanding of the material by identifying the teaching strategies or learning preferences that are most effective for you. For instance, employ extra resources and approaches, like flashcards or questions with thorough explanations of all possible answers, rather than attempting to read a book from cover to cover.

Your last month should be dedicated to mock tests, a ton of practice questions, going over all of your errors, and concentrating on the subjects you feel you need to improve on. 

Redo all the questions you got wrong, make notes on anything you had trouble remembering, and review them several times. Think about taking a few weeks off work to commit fully, just as athletes do before a race. 

 

This international group is dedicated to advancing investor literacy, competency, and integrity. It is widely recognized as a hallmark of professional excellence in the area of investment analysis. So, if you want to become a part of it, you should read the best CFA exam prep materials and educate yourself on time. The examinations are a once-in-a-lifetime opportunity for a chartered auditor or financial scientist. It's the first step on the ladder to even greater professional success. On the other hand, it's also among the hardest tests they'll ever take. 

Three challenging ones, a Bachelor's diploma, and at least three years of real work experience are normally required for CFA certification. A finance expert's status and salary potential might both benefit from it. Investment firms, buy-side speculators, and sell-side exporters may all benefit from having it. This certification is useful for those working in economics, central policy, and financial advice. Now, let’s check out what can you do with a CFA and use it in the best possible way.

Why Should You Choose the Investment Sector?

Fairly said, CFA careers imply several positions for which you can use your diploma. Recipients of its designation are in high demand for a variety of professions in the international financial sector. They are highly sought after as advisory experts due to their dedication to raising the bar. But what makes this specialty so appealing to them? Financial services firms and their employees are trusted stewards of their customers' capital because they advise them on where to put their money and how to manage it. Trading, wealth management, and oversight of these platforms are all among the jobs for CFAs. Consequently, earning your designation can position you favorably for a wide range of employment opportunities in the financial services sector.

Finances Are Always An Option

Let's take a high-level look at the structure of the economic industry and the reasons there is so much employment in the financial institution sector, where your CFA career path might bring you. It can help you realize why your certification is suitable for this particular niche.

● People, businesses, and even governments may all benefit from the financial system because it facilitates the connection of those with spare cash to those who can put it to use in pursuit of many objectives.

● Shareholders often require the assistance of mediators (i.e., financial services experts) to aid in the analysis, planning, and execution of saving and spending behaviors since they can’t do it alone.

● The investment administration sector facilitates the transfer of wealth throughout the economy by providing various goods and activities to both savers and rentiers. Many other things, including real property, may be invested in.

● When it comes to organizational planning, financial services providers may play a significant role in areas like mergers and privity of contract and startup financing, for example. From investment firms to conventional banks, they may play an important role in reducing risk and promoting ethical business practices and adherence to relevant rules and regulations.

Auditing And Portfolio Management

Some of the CFA career options your degree is surely suitable for are auditing and portfolio management. Only 4% of people with the same certification as you collaborate and continue to work in administration or auditing, even though 9% of the applicants come from these professions. This is consistent with the assumption that participants working in accounting and auditing take their examinations to open doors to other fields of finance. Managing investment portfolios is another common goal for these candidates. Since just 6% of them are already working in the field, your certification is likely an efficient approach for applicants to enter this matter.

Understand The True Value Of Your Certificate

Examining salary comparisons between CFAs and individuals with other credentials is one approach to learning which sectors and firms appreciate them the most. In several countries, they undertake evaluations, but only their members have access to the results. Contact your regional analytic society to learn more about the salary gap between them. It can help you realize what CFA job opportunities you can seek and which to avoid. In regions where participation is expanding, the association's worth rises. Enrollment in the CFA Institute is on the rise in both the United States and internationally as more nations recognize the value of employing these people.

Conclusion

The Chartered Financial Analyst is a mark of financial expertise, professionalism, dedication, and endurance that is acknowledged across the world. Earning your designation is a great way to advance in the financial services industry. Candidates for this sector come from various educational and professional disciplines. Some already work in the desired fields, while others do not. Non-finance graduates should still consider getting it since it's valuable even if career prospects aren't as good as they would be for someone with a finance background. Luckily, there are many chances you can utilize with your certificate. Just make sure to pick the right ones!

Small Business Investing: Opportunities, Risks, and Due Diligence 

There’s a new business in town, and everyone’s talking about it? Always consider the odds when you’re trying to decide whether or not to invest in a young company. According to research, 90% of startups fail before they make any profit. However, the remaining 10% who succeed are usually worth that kind of risk. 

Whether you’re a private equity investor, a venture capital firm, or something in between, the rules of investing are more or less the same – never miss an investment signal, and always do your due diligence.

Here’s everything you need to know before you embrace the risk. 

The Basics of Small Business Investing

Besides funding your startup, there are two other ways to invest in a small business. You can either lend your money to be returned with interest or buy a part of it for some percentage of future profits. 

You need to decide whether you will go with debt or equity investment. 

Debt investment doesn’t make you a partial owner of the growing company you’ve decided to fund. Whether or not the startup succeeds and starts making money or fails and bankrupts, a debt investor gets paid back an agreed-upon sum, traditionally the initial principal balance plus interest. 

If you decide that equity investment is a better option for you, funding a business will make you a key stakeholder. Depending on what you and the startup have agreed upon, you will either get a portion of its profits or a return on capital while also getting a say in how the business is run. 

The Small Business Investor’s Checklist 

If this is your first time funding a small business as a private investor or if you’re considering starting your venture capital firm, the following checklist will help you grasp the investment basics. Note that investment decisions require knowledge, experience, and instinct, so take your time to learn.

Discover New Investment Opportunities

First things first – how do you keep track of new investment opportunities?

We have two words for you – business insight. 

While business insight means different things to different types of investors, it ultimately encapsulates the entire well of knowledge you must possess before you can start making smart investments. That includes your understanding of entrepreneurship in general, relevant markets, and investment signals.

Successful venture capitalists get business insights and actionable data from multiple sources. Constant involvement keeps them in the loop with emerging companies and market trends and helps them track their progress. It takes a lot of networking and research – or a dedicated feed of promising businesses.

Make Sure the Investment Is Worth It

Second, an investor must always do their due diligence. 

In this context, due diligence refers to business insight, too, only more detail. Before you invest in any business, you must make sure the investment is worth it by looking at its future business plan, model, and strategy. As an investor, you need a holistic picture of the market, industry, and financial projections. 

Understand that Investing Implies Risk

Even with all due diligence, there’s always a certain percentage of risk that investors must count in. The biggest one, of course, is losing all the money. If the new venture fails, you might not be able to get your money back for years because your investment will stay illiquid, or you might not get it back at all.

That’s why investment experts always recommend diversification. 

In simple terms, diversifying your portfolio means making different kinds of investments. Your portfolio should include various types of markets, industries, and businesses. That way, if one of them fails, the chances will probably be more favorable for the other ones. Diversification takes a lot of experience. 

Pick a Small Business Funding Avenue

Both equity and debt investors have multiple funding options to choose from: 

●      Direct investments – approaching the business you want to fund directly;

●      Indirect investments – investing through a professionally managed fund;

●      Online investments – via crowdfunding and co-investment platforms.

When it comes to small businesses, the most frequently used investment avenue is the fund called SBA Loans (Small Business Administration Loans). However, there are other funds and ways to invest in a small business, too, such as credit unions and banks. You can even invest using your business credit card. 

Meet the Best Investment Candidates

Unless you’re a professional investor with a hectic schedule and a lot of experience, taking the time to talk to the entrepreneurs you want to fund is always a good idea. You should get to know the people behind the business plan and allow them to walk you through their assets and goals before you decide.

Negotiate Terms and Close the Deal

After carefully considering all the opportunities, risks, and options after you’ve done your due diligence and ultimately decided it was safe to make an official offer, don’t just start celebrating just yet. It’s important to navigate the negotiations well and go home with the best possible deal on your hands.

Stay in the Loop with Your Investment 

When you finally do invest, there’s no rule saying that you need to stay invested in the ups and downs of the business you’ve just funded. As a key stakeholder, you might get some control over the business or not. In any case, you shouldn’t shy away from being actively involved in its progress. 

Depending on how the wind blows, it might be a good idea to reinvest or flee.

Conclusion

Every first-time investor faces potentially ruinous temptations, and you will probably face them, too. Whether you take big risks and potentially reap big rewards or invest small and stay safe, due diligence is vital for success. Never underestimate the importance of insight and research.  

Michael Kamerman, CEO of Skilling, shares his opinion on what stock you should watch this week.

Home Depot

Home Depot is the multinational giant of home improvements, tools, building materials and a paradise for DIY enthusiasts. The first wave of the Covid-19 pandemic might already seem like a lifetime ago to some, but Home Depot was one company that did in fact benefit from the Covid-19 lockdown restrictions.   

The pandemic ‘DIY boom’ that occurred as a result of populations being restricted to their homes sent shares in the company soaring, with the earnings per share (EPS) metric initially peaking at $4.02 in Q2 2020. The performance of shares since has remained respectable, albeit erratic with quarterly EPS fluctuating between $2.65 in Q4 2020 and $4.53 in Q2 2021. 

The share price has recovered from the lows and is testing resistance, with the 200-day moving average not out of sight either.

Q1 2022 proved to be better than expected: earnings per share reached $4.09, up from $3.86 a year earlier and higher than analysts’ predictions of $3.69 per share.

However, it remains to be seen whether this solid performance can continue. As housing markets across the US and Canada continue to slow, how robust will the demand for home improvement be? 

It’s not only a matter of choice. In the red-hot pandemic housing market, many buyers waived the usual due diligence and checks to get ahead of the pack and ensure their offer was accepted. In further good news for Home Depot, home improvement isn’t solely driven by the cycle of the housing market, especially in today’s new working paradigm when working from home has become far more commonplace. 

As much of the current slowdown in the property market has been attributed to the increase in mortgage rates, this could also incentivise people to stay put, ride out the storm, and improve their existing homes rather than looking to trade up and pay a higher mortgage rate.

For Home Depot, it doesn’t really matter what their customers’ motivations are. If they’re still making improvements, they’re still buying. Therefore, the bigger risk is a downturn in consumer spending altogether; likely the biggest headwind with inflation continuing to rise across the globe.

There’s been plenty of talk of ‘squeezed’ consumers, but companies haven’t yet reported a huge squeeze on profits this earnings season, with consumer spending having held up far better than expected. 

Home Depot surpassed estimates for its quarterly results, published on 15th August. Investors have eagerly been anticipating this upturn to continue and are expected to home in on the company guidance, both from the consumer perspective and the profitability point of view. Many raw material and input costs have fallen back from their peaks, which could relieve concerns about profit margins soon coming under pressure. 

Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. 

Not investment advice. Past performance does not guarantee or predict future performance. 

 

The situation appears stark for consumers. For major oil and gas companies, on the other hand, recent weeks have been far rosier. BP posted profits of £6.9bn, their largest quarterly profit in fourteen years. Shell did even better, announcing profits of £9.5bn. 

All of which has led to increased government scrutiny of the oil and gas sector, and a reaffirming of the commitment to the Energy Profits Levy, or Windfall Tax, which has been heavily maligned by the industry’s biggest players. 

What has not been reported to the same extent is the opportunity that the Energy Profits Levy offers prospective investors in new North Sea projects. The Levy includes a 75p immediate tax saving on every £1 invested into the domestic oil and gas industry. In time, once the field is producing the rebate can rise to a total of 91.25p in the pound. This support, after years of being ground down by protestors, is a fantastic incentive for would-be investors. The tax relief is designed to encourage investment from existing producing companies into the North Sea, but will also drive more interest from private investors. 

The introduction of the Energy Profits Levy reflects the challenges the domestic oil and gas sector has faced in recent years. 

Since 2018, the flow of money into the sector has dried up, with more focus on renewable energy as part of the UK’s drive to net zero, and oil and gas companies switching to “harvest” mode, meaning cutting back on new investment and running down existing fields. Companies producing oil and gas now have a huge incentive to reinvest their profits in new projects rather than pay dividends or buy back shares. We might now see the pendulum swing back towards a focus on domestic oil and gas. 

As the winter cost-of-living crisis worsens, the importance of greater domestic energy security becomes more apparent by the day.

Having to import energy in an international market that is distorted by the war between Russia and Ukraine gives the UK little room for manoeuvre to reduce costs. The fuel bills people are facing this winter are unsustainable, and this will make domestic production more important than ever as the months go on. This in turn means that new North Sea projects are ripe for investment.

New North Sea projects might seem paradoxical in the march towards meeting net zero by 2050, but new technologies ease those concerns. It is a common refrain to hear Just Stop Oil protesters demanding that the government cease all new oil drilling projects in the UK for the good of the planet, but they miss the benefits that new technologies can bring. 

Older reservoirs with older technologies decline in performance over time, so replacing them with more efficient, new platforms should be a priority. New platforms with new technologies can produce 40 times less CO2 in the extraction process than some of the platforms that are currently operating. That number rises higher still when compared with low production wells in the US and other countries we are importing energy from, whose restrictions around emissions are less robust. 

Contrary to what we hear from protesters, new North Sea projects are better for the environment, and will support the transition to net zero. The environmental bar for new developments in the UK is among the highest in the world. New projects are adopting innovative new technologies, such as polymer flooding, to make the extraction process faster, more efficient and more environmentally friendly. 

Partnerships are also being forged with renewable energy technologies, specifically with offshore wind producers. If we are to reach net zero by 2050, wind will need to produce the same amount of energy that oil does now. If these offshore wind partnerships are successful, the positive implications for accelerating our use of renewables are huge. New North Sea facilities that incorporate offshore wind technology successfully will reduce emissions even further and diversify our streams of energy supply. 

The government has thrown its weight behind the North Sea oil and gas business. They recognise that we must balance our commitments to achieving net zero with a transition that is conducted in a responsible and affordable way. Renewables are the future, but with costs rising and oil and gas still key to our supply, the North Sea holds the key to achieving domestic energy security in the coming years. 

If the Energy Profits Levy is here to stay, along with the associated tax relief incentives, we could see a wave of private investment deals flowing into a North Sea well that looks to have run dry in 2018. For investors, this is a moment of immense opportunity. 

About the author: Steve Brown is CEO of Orcadian Energy.

Disclaimer: This article does not constitute financial advice. All investments are made at the reader's own risk.

About Finance Monthly

Universal Media logo
Finance Monthly is a comprehensive website tailored for individuals seeking insights into the world of consumer finance and money management. It offers news, commentary, and in-depth analysis on topics crucial to personal financial management and decision-making. Whether you're interested in budgeting, investing, or understanding market trends, Finance Monthly provides valuable information to help you navigate the financial aspects of everyday life.
© 2024 Finance Monthly - All Rights Reserved.
News Illustration

Get our free monthly FM email

Subscribe to Finance Monthly and Get the Latest Finance News, Opinion and Insight Direct to you every month.
chevron-right-circle linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram