Presentation example 1

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1 From 80's Cowboys to the High-Tech Present Day How FX Trading Has Evolved Date 2013 Presentation example 1 Gavin White Managing Director Head of Sales Invast Australia gavin_white@invast.com.au July General Advice and Risk Warning Please note that any advice given by Invast staff is deemed to be GENERAL advice, as the information or advice given does not take into account your particular objectives, financial situation or needs. Therefore at all times you should consider the appropriateness of the advice before you act further. CFDs and Forex are leveraged products, carrying a high level of risk and are not suitable for everyone. You can lose more than your initial deposit, so you should ensure CFD and Forex trading meets your investment objectives. We recommend you seek independent Second advice. Strategies Outline and charts Level used in this presentation are for example only. You are reminded that past performance is not indicative of future performance. Invast Financial Services is regulated by ASIC. It's important for you to read and consider the relevant Product Disclosure Statement and Financial Services Guide which contains details of our fees and charges before you decide whether or not to acquire any financial products. These documents are available at Invast Financial Services Pty Ltd ABN: Australian Financial Services Licence No Eighth Outline Level 2 1

2 FOREX IN THE BEGINNING... While the exchange of tokens of value has been going on since the dawn of time... the modern Foreign Exchange market evolved in the 1970's when countries began switching to floating exchange rates (from the Post-War era of fixed exchange rates). Eighth Outline Level s THE BEGINNING OF FOREX Once currencies began floating, governments, banks and companies (particularly importers and exporters) needed to be able to buy and sell 24 hours a day, so that they could hedge their exposure and also speculate. To ensure the market operated smoothly, banks were given licenses to quote Forex. Click So when to a edit government the outline or a company text format even another bank needed to buy or sell currencies, they would call a licensed Forex bank to do the trade. and that is when the real fun started! Eighth Outline Level 4 2

3 1980 s COWBOYS AND LOW TRANSPARENCY Because the Forex market was conducted over telephones it was very difficult to know exactly where the price of a currency was at any point. The result was a market that wasn t very transparent or efficient and there was a lot of manipulation, bluff, macho antics... and lots and lots of tricks. This coincided with the 1987 stockmarket crash and the subsequent rise of the Cowboy FX Trader culture. Young, predominantly male traders being paid too much, taking extraordinary risks with their employer s money and living rockstar lifestyles. It was probably a good thing that the Forex market was not open to private investors! Eighth Outline Level 5 EARLY 1990 s THE RISE OF TECHNOLOGY BUT STILL LOW TRANSPARENCY By the early 90 s, technology began having a bigger and bigger influence on the market. Reuters trading terminals - one of the first commercial uses of the internet - replaced telephones as a means for FX traders to communicate and request prices from each other. But still... only the two traders who dealt were aware of the details of each trade. Eighth Outline Level 6 3

4 Mid 90 s THE FOREX MARKET MATURES Eventually, in the mid 90 s came the introduction of electronic broking terminals where traders from different banks all over the world could place bids and offers in various currency pairs and everyone could see the prices and trades live. For the first time FX trading was transparent But it was still effectively closed to private investors and private traders....then came the personal internet boom... Eighth Outline Level 7 LATE 1990 s PRIVATE TRADERS ACCESS FOREX MARKETS TRANSPARENTLY With the boom in personal internet usage throughout the late 1990 s, online brokers emerged to connect private investors to the Forex market. Sophisticated trading platforms were developed - and high tech connectivity allowed brokers to combine prices from lots of different banks to give an aggregate price / 237 The very biggest brokers were able to attract the most banks and the end result was that these brokers had the best aggregate prices tight spreads and deeper liquidity meaning better execution for clients and less slippage. Suddenly private investors had instant access to institutional pricing. Forex Trading Platform EUR/USD / 229 Eighth Outline Level 8 4

5 2000s AND BEYOND HIGH TECH PLATFORMS AND AUTO-TRADING But live streaming access to great prices was not the only innovation. Online brokers and specialist software developers began building fantastic high-tech trading platforms with great features to help private traders analyse the markets, place orders and manage their trades. SELL Two of the most popular and most advanced trading platforms globally are MT4 and ctrader. (Invast offers both) They have many impressive features including the next evolution in Forex trading for private traders, Expert Advisors or Robots which trade automatically on behalf of private traders according to certain rules. The most recent evolution in Forex trading is Mirror Trading, private traders can choose to automatically follow other traders or strategies. Eighth Outline Level 9 From 70 s TO THE PRESENT DAY THE FOREX MARKET COMES OF AGE So from the dark days of the Cowboy FX Traders, to the current high-tech, transparent, highly-regulated market... Forex has come a long, long way... As the provider of some of the world s most advanced trading technology Second and Outline one of the Level largest auto-trading/ mirror-trading service, Invast Australia is here to usher you into the future. Please take the opportunity to speak to our staff, to explain how we can help you. Eighth Outline Level 10 5

6 INVAST THE FUTURE OF TRADING Eighth Outline Level