InstaForex now cooperates with Autochartist

June 17th, 2014

InstaForex is pleased to announce its cooperation with Autochartist, an award-winning provider of graphical models analysis.

The Autochartist services allow every InstaForex client to trade more efficiently on financial markets as the system’s software helps to analyze more than 500 trading instruments in online mode with the purpose of identifying the best trading opportunities for a trader.


All customers of InstaForex can download the Autochartist service free of charge. The program can be used either as a web application or a plug-in.

Reliability and efficiency of the Autochartist service was acknowledged by the Best Technical Analysis provider 2013 award from UKForexAwards.

We believe that our cooperation with Autochartist company will help our clients to make more profitable deals on financial markets and achieve still more success in their trading.

Balance of power shifting from U.S. To Russia and China

June 10th, 2014

611x395_G7_4fcdb15a7f78eThe G7 group’s foreign ministers decision to boycott a planned G8 meeting in Moscow was a grave mistake. First of all, the U.S., Germany, and the United Kingdom are responsible for that. If only the G8 summit were held this summer amid the current geopolitical crisis, it would be as welcome as summer rain on hot skin. However, instead of several days of a constructive dialogue and search for ways out of both political and economic issues, the global community preferred to dive headfirst into harsh consequences of economic sanctions imposed on Russia.
Let us consider some potential implications of economic sanctions against Russia. Lithuania and Latvia are the first nations whose economies would collapse losing almost 50% of their exports. Furthermore, they risk ending with zero GDP growth, negative trade balance, and overall budget deficit. The fact that Lithuania is set to adopt the euro in January 2015 could add fuel to the fire. get_img
Going forward, almost all European countries would suffer from surging gas prices if fortunate enough. In the worst-case scenario, the EU states would face insufficient/ in gas supplies.  About 25-30% of German industrial production directly depends on the Russian gas and 60% of industries are partly dependent. In case of disruptions in natural gas deliveries, the declining German economy could have a domino effect across the entire euro area. When that happens, the EU could wave goodbye to Greece, Portugal, Spain, and perhaps Italy that have been kept afloat by Germany so far.  Moreover, the Russian Federation is the fourth largest exports market for the German machinery and equipment industry. If Russia exits some contracts and projects, this would seriously affect German exports. So sanctions against Russia are a double-edged sword hitting the economy of Germany and the whole Europe. This is the way the U.S. pushes the European Union to take decisions that would be advantageous solely to it, not the EU. The U.S. dares to put pressure on Europe and use Cold War rhetoric because it is not as dependent on Russia as the EU. The EU is going through a paradoxical situation with its businesses being either fence sitters or favorers of Russia when the EU’s government is toeing the U.S. line on sanctions. For example, Germany’s entrepreneurs send very clear signals that quarrelling with Russia would deal a fatal blow to some European businesses and even entire economic sectors.
3e58de2c5f0dHowever, those who think that this political and economic conflict would no way affect the U.S. simply do not understand how it works. The risk does exist. And it is called “the China factor”. It was China that voted against imposing sanctions on Russia at the UN Security Council, thus making it clear it would not play the U.S. political games. Moreover, China is the world’s largest energy consumer firmly tied to Russia. So pressure from the West, whatever strong it may be, would not make the People’s Republic of China dance to U.S. tune.
The U.S. has opened a real can of worms with its attempts to isolate Russia. Thus, at live broadcast nationwide phone-in, Russian President Vladimir Putin highlighted the growing strategic partnership between Moscow and Beijing. The U.S must have struck a note of warning about that. China, the biggest foreign creditor to the U.S. holding the lion’s share of its foreign debt in dollar reserves, has every right to demand the United States to pay it off in full. It is theoretically possible that China would bring down the American empire, say to the level of Uganda or Bangladesh. But the Chinese would not do that since it would rather look like an economic war. 2469_1
Yet, China is willing and will be friends with Russia. In its turn, Russia is ready to organize an unofficial bloc with China and ease conditions of energy provision for its Eastern neighbor.  In such a situation, Europe would better either take a neutral position so that not to worsen its economic situation or take a risk and back the East, on which the global economy would depend in the next 20 years. Russia in no event would lose the U.S. as its partner since it has never been like that. As for the relations with Europe, the nations’ economies are so interdependent that cool heads should prevail in solving the issue. Contrariwise, Russia’s partnership with China could dramatically change global balance of power. Who stands to gain from it? Obviously, China and Russia. And who would lose out? The U.S. and all the rest. As they say, whoever digs a pit will fall into it.

InstaForex is the best retail broker in Eastern Europe

May 19th, 2014

Nowadays, InstaForex is a powerful participant of the international forex market. The company went down in history of the forex business and occupied the leading position rendering its brokerage services. In the brokerage community, awards for expertise and reliability are considered to be a criterion of popularity and established reputation. More than once, InstaForex has been recognized by influential financial journals and has been fairly distinguished by prestigious international awards in Singapore, Guangzhou, Abu Dhabi, and other financial hubs. Indeed, awards embrace literally the whole geographical scale of the company’s activities.

InstaForex has gathered the vast collection of various titles. The company has won in such categories as the Best Broker in Asia, the Best Global Retail Broker, the Best Broker in CIS, and others. This year, one more award has been added to its rich collection. So, InstaForex has been awarded in the category the Best Forex Broker, Eastern Europe 2014 by IAIR, the popular business journal in Italy. Importantly, InstaForex was given the award of the best Broker in Eastern Europe in 2012.
IAIR journal held the high-profile ceremony of award giving for 2014 in Hong Kong. Over 30 companies were awarded for their achievements at this international event. Each of the companies made their own contribution to the forex business development.

IAIR Awards is one of the respected awards in the worldwide rating focusing on the global economy and sustainable development of its sectors. The Italian business journal IAIR honors annually the most advanced financial companies around the world. The main gauge to pick winners is the robust business development and introduction of innovative services. The editorial staff applies its own long-lasting system to determine the best high-fliers in their business. The editorial board carries out their own surveys on performance and high reliability of companies. Besides, the journal readers have the right to vote. The journal annually polls tens of thousands people from different corners of the globe.

InstaForex frequently gains various awards and trophies which prove that the company has been evolving in line with modern needs. Traditional victories in contests are a sign of stability, high expertise, and premium quality of its services. The assessment of the company performance is made on the basis of independent and unbiased criteria.
InstaForex is honored to win an IAIR Award once again. The company is keen to develop all its activities and to become the benchmark among other brokerage companies.
You can find out more about the event in Hong Kong in this video:

Two months left before Lotus Evora campaign is over

April 18th, 2014

gS0B04AXO-cIn case you have not registered yet for participation in the Sports Lotus is Your Trade Bonus campaign, you still have a chance to be among the contenders. But hurry up and, maybe it is you to become the proud owner of the new creation of Lotus Cars, the British car manufacturer.
Still dreaming of having luxury sports car Lotus Evora in your garage? Well, your dreams might come true. All that you need is to deposit at least $1,000 to your trading account and register for participation at the corresponding page of the InstaForex website. The winner will be chosen by the Lotus number containing 5 last digits of 5 major currencies exchange rates. The Lotus number will be automatically generated on June 27, 2014 at 23:59. The procedure is absolutely transparent. Nobody can predict who is going to be the lucky one until that time.

What is more, you can boost your chances to win by opening several trading accounts.
Join and win InstaForex campaigns and contests!

How crisis in Ukraine affects global economy in 2014

March 31st, 2014

It has been several months since the unrest in Ukraine started. The mercury is rising day by day. Nobody knows when the crisis will be over. World’s analysts and scientists are looking for the real reasons why the chaos ensued. The situation is considered from many different angles inevitably resulting in polar opinions .

Who benefits from crisis in Ukraine?original-1360309340

Jim Willie, the American newsletter writer and statistical analyst in marketing research, is of the opinion that the situation developing in Ukraine is nothing more than a struggle between the West and the East for the financial supremacy. “I believe what we got with Ukraine is an absolutely desperate situation where the U.S. government realizes we have to stop Ukraine from becoming a central transit point for energy pipelines in the fast developing Eurasian Trade Zone.  They need to stop the Eurasian Trade Zone because the United States and England are largely going to be excluded,” he wrote. Dr Willie, who has a PhD in statistics, thinks that “the manufactured crisis in Ukraine is an act of desperation by the United States.”

According to Dr Willie, if you look behind the curtain, you might realize that this is the third attack on the Russian Gazprom. “The first attack was veiled and it was Cyprus,” he continued. The second one was Syria. And now Ukraine, which became soft of bargaining chip. The Unites States and Europe believe that in case the gas pipeline valves are under their control, they will have control over the flows going to Romania, Poland, and Hungary.

Russia was entangled in the conflict, which influenced its economy a lot. That influence is reckoned to be negative. The Ukrainian stand-off affected the Russian investment programs badly. In early March, the Russian market shrunk 12%, while the risky sovereign bonds yield inched up 11%. Russia’s industry will suffer greatly from Ukraine’s unrest. In the experts’ opinion, 1 out of 2 businesses will face the output decline in the nearest future. Ukraine’s government procurement will contract and take its toll on the local consumers.

35a5d30562e4a4a31c5ea6d26403f9e1Sanctions against Russia and their possible aftermath

The recent referendum in Crimea caused quite a stir. The U.S. authorities and representatives of the leading European countries have been discussing the imposition of sanctions against Russia, including the economic ones. These sanctions can backfire and have a negative impact on the countries which enacted them. For example, London might lose its Russian investors. For the last two years, the total volume of deals Russian companies stroke has been $180 billion and yielded handsome profit to London’s bankers, jurists etc. And thanks to the U.S. and EU efforts, the bottom could drop out of that fruitful collaboration soon.

The damage is inevitable since there are strong links established between the Russian Federation and the world’s financial system. Lots of Russian corporations are governmental or belong to the billionaires, who are bound up with President Putin. Thus, even targeted sanctions could harm the international business. Analysts stress that Russia-West trade turnover, including industrial and financial sector, is huge. The stricter sanctions will be, the greater damage will be incurred.IMF Photograph

Latvia’s market is the one to be in dire straits in case the sanctions against Russia are imposed. “Three industries feel pronounced impact. The first ones are the agricultural and food industries. Russia is our second partner in terms of exports size. 43% of Latvia’s exports to Russia are food and agricultural products. Energy is the second field. For example, in the supply of natural gas, we are completely dependent on Russia. The third sector is the transport sector as 70% of all transportations related to Russia, ” Latvia’s Economy Minister Vyacheslav Dombrowki said. The Federation of German Wholesalem Foreign Trade, and Services, the BGA, also expressed concerns about the loss the country’s economy could sustain as 6,200 German enterprises are engaged in trade with the Russian Federation. The overall volume of trades constituted €76 billion.

Paolo Scaroni, the head of Eni, the Italian energy company, is of the opinion that in case political tensions between the West and Russia heighten, the latter could reduce the amount of gas piped through Ukraine. So, Europe might face not only disruptions in the Russian gas supply, but also the gas prices hike. Italy, Austria, and Germany will suffer the supply disruptions first.

The gas production in Europe is falling steadily, so in case the European Union wants to reduce its dependence on the Russian fuel, the alliance should develop its shale resources and increase the use of nuclear and coal energy in the region, Mr Scaroni continued. The EU can also buy more LNG from the United States, but that, in the Eni president’s opinion, is rather expensive solution.

The U.S. is one of the few nations that pose the smallest risk to their economies imposing sanctions against Russia. The total turnover is about $27 billion. So, Washington acts accordingly as the negative impact on the American economy is minimum. Nevertheless, the chiefs of such U.S. companies as General Electric Co, Boeing Co. are apprehensive of such strict measures since they could evoke the appropriate response from the Russian authorities. 54 aircrafts of GE Capital Aviation Services, one of the General Electric Co. subsidiaries, are in Russia.

Boeing, in its turn, is afraid to lose the demand for its airliners. That is possible given that the global economic growth could slacken amid the tense geopolitical situation in the world. A study undertook by Ernst & Young revealed that the U.S. companies dealing with technology and financial field were accounted for the lion’s share of foreign investments to Russia last year. Their presence on the Russian market increased dramatically after the country entered the WTO in 2012.

As for the banking system, punitive sanctions can affect large financial institutions, which provide Russian energy and metallurgical companies with a line of credit. “Let’s suppose such a bank will decide to freeze this line of credit. Then, the companies that had previously invested the borrowed money in their business development and exports will get to looking for another bank. No doubt, the Western financial institutions are succeeded the most in that. But in this situation the Russian companies might turn to the Japanese, Chinese, and other banks,” Arnaud Leclerk, Limited Partner at Lombard Odier, said in the interview to news channel Russia-24. The banker stressed that might heighten the diversification of the Russian economy in a sense that the country will be able to turn away from the Western influence and strengthen cooperation with the East.

7911World economy in 2014

There is a growing concern about People’s Republic of China’s economic condition. Nevertheless, the GDP is expected to post 7.5% in 2014, while the inflation is projected to be 3.5%.  That was announced by China’s Prime Minister Li Keqiang at the annual National People’s Congress in March. The pace of the U.S. and EU markets’ recovery will show whether the Chinese economy will be able to post stronger growth. On the other hand, sharp economic growth might pose risk of financial bubbles and economic efficiency slump. Besides, that might lead to the environmental crisis. The threat to the environment is the major reason why the Chinese authorities speak out for the moderate economic growth.

The Liqomonics, the newly coined economic framework proposed by the premier, is aimed to provide the “moderate” GDP growth so that to save the Chinese economy from overheating.

According to the experts’ estimates, on the whole, the world economy is set to develop steadily. The updated report of the International Monetary Fund reads that the global economy growth is expected to come in at 3.9%. The IMF upgraded its forecast for the first time in two years. However, Russian economic outlook was cut to 2%, while it was 3% in October. Russia’s GDP is projected to inch up 2.5%, RIA Novosti says.

The IMF’s economic forecast for the U.S. GDP was raised to 2.8%. Meanwhile, the outlooks for Indian and Brazilian economies were 7.5% and 2.3% respectively.

The euro zone is expected to boost by only 1%. The bloc has passed the turning point on the way to recovery from recession, the IMF said.

George Soros, the billionaire investor, gave rather disappointing outlook for the economy of the European Union. In his opinion, the EU will face the Japanese-style tough stagnation. And, the Old World may not go through it. “Now we see that the European economy is getting some oxygen. And I hope financial markets are breathing a sigh of relief. But what is facing Europe, unless there is more adequate change, is long period of stagnation. Nations can survive that way. Japan is trying to break out 24 years of stagnation, which Europe is just entering. The European Union is not a nation; it is incomplete association of nations. And, it may not survive 26 years of stagnation,” he stated.2000524226

So, the estimates at 2.4% for Great Britain look much more promising, especially against the background of the European prospects. The British financiers believe it is the new proof that government policy is effective.

As for the problems the developed countries might face, the deflation risk is the number one enemy, the IMF writes. Such powers like the U.S., Europe and Japan will do their best to avoid the low inflation level. That, together with high unemployment, will force the regulators to introduce rather strict stimulus. Moreover, experts warn that the lower inflation might cause the debt burden increase and interest rates hikes. Such a state of affairs is likely to hamper the economic growth.

2014 is successful for the global economy in general. Nevertheless, we should do not rule out the fluctuating raw materials cost and general political instability in the world, which can change the current situation drastically.