Britain’s recession-hit economy is in much need of a lift. Earlier this year, Britain sunk back into recession, its first double-dip downturn since the 1970s, piling pressure on the government to soften its austerity drive. While the Monetary Policy Committee is considering more cash stimulus to boost the economyitis clearly a tough market for British and indeed many European companies – particularly given the Eurozone crisis.
Market conditions appear infertile to corporate expansion or growth, however, the World Economic Forum (WEF) has identified a select few dynamic high-growth companies with the potential to be tomorrow’s industry leaders and to become a driving force of economic and social change. The WEF’s Global Growth Companies represent the most rapidly expanding international businesses.
Azibo Holdings, a British private investment company, is the latest company to be invited to join the Global Growth Companies (GGC).Azibo Holdings’ inclusion marks the successes of its subsidiary companies, Currencies Direct and TorFX – two of Europe’s leading foreign exchange specialists.
Azibo’s journey into the GGC began in 1996 in a small, cluttered office near London’s Paddington Station when a young entrepreneur named Mayank Patel started a new non-bank foreign exchange company in London called Currencies Direct.
Historically, the currency exchange and foreign payment industry had been dominated by large, entrenched financial institutions and banks, and individuals and corporations alike had little choice in the market. Currencies Direct was one of the first non-bank providers of foreign exchange payment services – which has become a thriving industry within its own right.
Non-bank providers of foreign exchange services differentiate themselves from other financial institutions by focusing solely on foreign exchange services and providing customers with commercial rates as opposed to retail rates – ultimately allowing them to save money on currency exchanges.
16 years later, Currencies Direct and TorFX – the chief companies owned by Azibo Holdings – are two of the standard-bearers in the currency exchange and international payment services industry, representing corporate and private clients across the globe. Since Azibo’s acquisition of TorFX last year, the company’s turnover has skyrocketed. With 250 highly-skilled employees spread across operations in UK, Spain, France, Portugal, India and South Africa, Currencies Direct and TorFX have combined annual turnover of £2.2 billion, processing over 300,000 payments in 45 different global currencies. Both have won numerous industry awards and been featured as ‘Sunday Times Fast Track 100 Companies’.
But perhaps more importantly for their inclusion in the GGC, the company has remained 100 per cent debt free, showed continued sustainable growth and boasts a level 1 credit rating on Dun & Bradstreet for Currencies Direct Limited.
Since 2009, Azibo’s turnover has increased by 23 per cent, with the company pulling in an estimated £1.8 billion this year.
“While the aim of the group is to continue its expansion plans organically and through acquisitions, the group is equally committed to expanding its services to provide dynamic and pioneering ‘business to business’ solutions to help companies, tier 2/3 banks and other non-bank financial institutions process their international payments around the world,” said Patel.
“This is an exciting opportunity for Azibo Holdings to be part of a prestigious community of the world’s fastest growing companies, playing a major role in the world economy. Azibo Holdings has grown at an incredible rate over the past five years, withstanding the effects of the global economic crisis with individual companies establishing themselves as the best in their class.”
Rodolfo Lara Torres, World Economic Forum’s head of membership for Europe and Latin America said:
“When choosing entrants to our Community of Global Growth Companies, we assess companies on their business model, annual revenues and growth rates, executive leadership and market position.
“Azibo Holdings is a dynamic financial group with clear potential to shape the future in their relevant business sectors and so is a perfect fit to our GGC community.”
Founded in 2007 to encourage high-growth companies to become forces for economic and social change, the World Economic Forum’sGlobal Growth Companies includes over 300 companies from over 60 countries worldwide. Participating companies must demonstrate growth potential, high turnover, global capacity, consistent yearly growth rates and stellar leadership. Most importantly, however– theymust be invited.
There is no question that the GGC members are companies on the rise.Dr IqbalSurvé, the executive chairman of African investment holding conglomerate Sekunjalo Group and a founding member of the GGC recently asserted that based on their current trajectories, many of the GGC companies will be some of the largest in the world within the next ten years.
Dr Survé also commented on the wider responsibility that GGC companies have to foster social development within their respective countries.
“I think it’s critical that we understand our role in society and that performance and link to societies is incredibly important. I really believe that the mission of the GGC must be to create a better society through business,”Survé said.
Current GGC members represent a wide swath of the globe, with industries ranging from finance to telecommunications to automotive companies. GGC members represent countries on every inhabited continent on the planet, with many representing emerging economies and several representing new, disruptive technologies. Every year, members convene for the Annual Meeting of the New Champions for a collaborative forum where they engage in networking, peer-to-peer collaboration and industry-specific and cross-industry knowledge sharing sessions.
The organisation acts as a bridge, not only between different companies and industries, but it links countries together, allowing for global business leaders to form mutually beneficial partnerships and networks with other likeminded and similar-trajectory companies. In this globalised economy, the ability to forge these connections is vital for any company looking to become an industry leader.
“Global Growth Companies play an extremely critical role,” said Jeremy Jurgens, Senior Director of the GGC. “These companies provide the best example of creating new jobs, new technologies and new business models. They represent the best of practise in the economy now.”
The successes with Azibo Holdings representthe latest in a long list of triumphs forMayank Patel OBE. In 2002, the Zambian-born entrepreneurwas named the BT Entrepreneur of the Year, and in 2004, he was named the London Business Awards Entrepreneur of the Year. In 2011, Patel was appointed an Officer of the Order of the British Empire (OBE) for services to Financial Services and Entrepreneurship.Mayank Patel OBE currently lives in London with his wife and two children.
Azibo Holdings, Currencies Direct and TorFX are all headquartered in the City of London.
Factors That Affect the Direction of the Stock Market
A stock price represents the value of a particular stock of a particular entity, asset or another financial instrument. It is calculated by calculating the price per share of the stock at a particular price and period in time.
There are various factors that affect the direction of the stock market. These factors include interest rates and inflation rates as well as the state of the economy. If one of these factors is not in the favor of the stock market, then it could bring about a downfall of its value.
The stock prices are also affected by various stock indexes, which provide information on a particular company or industry. It helps to analyze the trends of the stock market and makes better decisions when buying and selling.
However, there are some major factors that can influence the performance of the stock market. One such factor is the state of the economy. The state of the economy refers to how well the economy is doing economically. If there is an economic decline in a particular country, then the state of the economy would be affected and the stock market would also take a hit.
Economic conditions can also affect the performance of the stock markets. For example, if the state of the economy is poor and the population is experiencing unemployment, then the economy will suffer and the stock prices will definitely take a hit.
Political turmoil can also bring about a negative effect on the stock markets because it affects the economic conditions and the way people relate to the government. When there is a lack of confidence in the state of the economy and people tend to sell off their stock at cheaper prices, the stocks of the company would suffer.
Another important factor that influences the direction of the stock market is the change in the global economy. It has been proven that the changes in the global economy are very large and it can affect the direction of the stock market in a major way. For example, during the global recession in 2020, the stock prices of many companies suffered a great deal and so did the profits of the company.
The most important thing that determines the direction of the stock market is the state of the economy and the state of the country in which the stock market is based. It is therefore, very important to invest in the stock market as a company that is in good condition. This is because it will help in ensuring the stability in the economy.
The price of the stock market is also affected by the political stability of the country in which the stock market is based. If there is a rise in the political instability, then the price of the stocks would surely go up. However, when the political stability improves, the prices of the stocks will definitely fall.
The factors that affect the direction of the stock market include the conditions in which the economy is doing. It is therefore, very important to have a good understanding of how the economic conditions in a certain country are progressing. This will help in making better investments.
There are certain countries that are very stable and these countries have a very high demand for the stocks of other countries. This means that people from those countries will invest in stocks of countries that are in good condition, and these investments will yield profits for them.
There are also certain countries that have very bad economic conditions and these countries have a very low demand for the stocks of other countries. These countries are also in need of investments and these investments will yield huge losses for them. Therefore, investing in these countries is not advised because these stocks will yield zero returns.
The stock markets are not stable unless there are good economic conditions prevailing in a country. This means that one has to know the economic condition of the country in order to make investments. Investing in the stock market is the best way to do this because investing will always yield returns, as long as the country in which one is investing is stable.
How has the online trading landscape changed in 2020?
By Dáire Ferguson, CEO, AvaTrade
This year has been all about change following the outbreak of coronavirus and the subsequent global economic downturn which has impacted nearly every aspect of personal and business life. The online trading world has been no exception to this change as volatility in the financial markets has soared.
Although the global markets have been on a rollercoaster for some time with various geopolitical tensions, the market swings that we have witnessed since March have undoubtedly been unlike anything seen before. While these are indeed challenging times, for the online trading community, the increased volatility has proven tempting for those looking to profit handsomely.
However, with the opportunity to make greater profits also comes the possibility to make a loss, so how has 2020 changed the online trading landscape and how can retail investors stay safe?
Interest rates offered by banks and other traditional forms of consumer investments have been uninspiring for some time, but with the current economic frailty, the Bank of England cut interest rates to an all-time low. This has left many people in search of more exciting and rewarding ways to grow their savings which is indeed something online trading can provide.
When the pandemic hit earlier this year, it was widely reported that user numbers for online trading rocketed due to disappointing savings rates but also because the enforced lockdown gave more people the time to learn a new skill and educate themselves on online trading.
A volatile market certainly offers great scope for profit and new sources of revenue for those that are savvy enough to put their convictions to the test. However, where people stand the chance to profit greatly from market volatility, there is also the possibility to make a loss, particularly for those that are new to online trading or who are still developing their understanding of the market.
The sharp rise in online trading over lockdown paired with this year’s unpredictable global economy has led to some financial losses, but with a number of risk management tools now available this does not necessarily have to be the case.
Protect your assets
Although not yet widely available across the retail market, risk management tools are slowly becoming more prevalent and being offered by online traders as an extra layer of security for those seeking to trade in riskier climates.
There are a range of options available for traders, but amongst the common tools are “take profit” orders in conjunction with “stop loss” orders. A take profit order is a type of limit order that specifies the exact price for traders to close out an open position for a profit, and if the price of the security does not reach the limit price, the take profit order will not be fulfilled. A stop loss order can limit the trader’s loss on a security position by buying or selling a stock when it reaches a certain price.
Take profit and stop loss orders are good for mitigating risk, but for those that are new to the game or who would prefer extra support, there are even some risk management tools, such as AvaProtect, that provide total protection against loss for a defined period. This means that if the market moves in the wrong direction than originally anticipated, traders can recoup their losses, minus the cost of taking out the protection.
Not a day has gone by this year without the news prompting a change in the financial markets. Until a cure for the coronavirus is discovered, we are unlikely to return to ‘normal’ and the global markets will continue to remain highly volatile. In addition, later this year we will witness one of the most critical US presidential elections in history and the UK’s transition period for Brexit will come to an end. The outcome of these events may well trigger further volatility.
Of course, this may also encourage more people to dip their toes into online trading for a chance to profit. As more people take an interest and sign up to online trading platforms, providers will certainly look to increase or improve the risk management tools on offer to try and keep new users on board, and this could spell a new era for the online trading world.
By Paddy Osborn, Academic Dean, London Academy of Trading
Whether you’re negotiating a business deal, playing a sport or trading financial markets, it’s vital that you have a plan. Top golfers will have a strategy to get around the course in the fewest number of shots possible, and without this plan, their score will undoubtedly be worse. It’s the same with trading. You can’t just open a trading account and trade off hunches and hopes. You need to create a structured and robust plan of attack. This will not only improve your profitability, but will also significantly reduce your stress levels during the decision-making process.
In my opinion, there are four stages to any trading strategy.
S – Set-up
T – Trigger
E – Execution
M – Management
Good trading performance STEMs from a structured trading process, so you should have one or more specific rules for each stage of this process.
Before executing any trades, you need to decide on your criteria for making your trading decisions. Should you base your trades off fundamental analysis, or maybe political news or macroeconomic data? If so, then you need to understand these subjects and how markets react to specific news events.
Alternatively, of course, there’s technical analysis, whereby you base your decisions off charts and previous price action, but again, you need a set of specific rules to enable you to trade with a consistent strategy. Many traders combine both fundamental and technical analysis to initiate their positions, which, I believe, has merit.
What needs to happen for you to say “Ah, this looks interesting! Here’s a potential trade.”? It may be a news event, a major macro data announcement (such as interest rates, employment data or inflation), or a chart level breakout. The key ingredient throughout is to fix specific and measurable rules (not rough guidelines that can be over-ridden on a whim with an emotional decision). For me, I may take a view on the potential direction of an asset (i.e. whether to be long or short) through fundamental analysis, but the actual execution of the trade is always technical, based off a very specific set of rules.
To take a simple example, let’s assume an asset has been trending higher, but has stopped at a certain price, let’s say 150. The chart is telling us that, although buyers are in long-term control, sellers are dominant at 150, willing to sell each time the price touches this level. However, the uptrend may still be in place, since each time the price pulls back from the 150 level, the selling is weaker and the price makes a higher short-term low. This clearly suggests that upward pressure remains, and there’s potential to profit from the uptrend if the price breaks higher.
Once you’ve found a potential new trade set-up, the next step is to decide when to pull the trigger on the trade. However, there are two steps to this process… finger on trigger, then pull the trigger to execute.
Continuing the example above, the trigger would be to buy if the price breaks above the resistance level at 150. This would indicate that the sellers at 150 have been exhausted, and the buyers have re-established control of the uptrend. Also, it is often the case that after pause in a trend such as this, the pent-up buying returns and the price surges higher. So the trigger for this trade is a breakout above 150.
We have a finger on the trigger, but now we need to decide when to squeeze it. What if the price touches 150.10 for 10 seconds only? Has our resistance level broken sufficiently to execute the trade? I’d say not, so you need to set rules to define exactly how far the price needs to break above 150 – or for how long it needs to stay above 150 – for you to execute the trade. You’re basically looking for sufficient evidence that the uptrend is continuing. Of course, the higher the price goes (or the longer it stays above 150), the more confident you can be that the breakout is valid, but the higher price you will need to pay. There’s no perfect solution to this decision, and it depends on many things, such as the amount of other supporting evidence that you have, your levels of aggression, and so on. The critical point here is to fix a set of specific rules and stick to those rules every time.
Good trade management can save a bad trade, while poor trade management can turn an excellent trade entry into a loser. I could talk for days about in-trade management, since there are many different methods you can use, but the essential ingredient for every trade is a stop loss. This is an order to exit your position for a loss if the market doesn’t perform as expected. By setting a stop loss, you can fix your maximum risk on a trade, which is essential to preserving your capital and managing your overall risk limits. Some traders set their stop loss and target levels and let the trade run to its conclusion, while others manage their trades more actively, trailing stop losses, taking interim profits, or even adding to winning positions. No matter how you decide to manage each trade, it must be the same every time, following a structured and robust process.
The final step in the process is to review every trade to see if you can learn anything, particularly from your losing trades. Are you sticking to your trading rules? Could you have done better? Should you have done the trade in the first place? Only by doing these reviews will you discover any patterns of errors in your trading, and hence be able to put them right. In this way, it’s possible to monitor the success of your strategy. If your trades are random and emotional, with lots of manual intervention, then there’s no fixed process for you to review. You also need to be honest with yourself, and face up to your bad decisions in order to learn from them.
In this way, using a structured and robust trading strategy, you’ll be able to develop your trading skills – and your profits – without the stress of a more random approach.
Research exposes the £68.8 billion opportunity for UK retailers
Modelling shows increasing the proportion of online sales by 5 percentage points would have significantly boosted retailers’ revenues during the...
Want to serve your customers better? An effective online strategy is what financial institutions need
By Anna Willems, Marketing Director, Mention A strong online presence matters. Having a strong online presence, that involves social media...
The rise of AI in compliance management
By Martin Ellingham, director, product management compliance at Aptean, looks at the increasing role of AI in compliance management and just...
Simplifying the Sector: How low code can aid digital transformation in financial services
By Nick Ford Chief Technology Evangelist, Mendix From online banking to contactless payments and Apple Pay, it has been well...
Why the Boom is Long Overdue (and Here to Stay)
By Roger James Hamilton, CEO, Genius Group Virtually every aspect of our lives has been taken over by tech, so...
5 Sustainability Lessons That Are Crucial For Business Success
By Michael Stausholm, founder of Sprout World (sproutworld.com) Sprout World is the eco-company behind the world’s only plantable pencil, with...
Why financial brands need to understand consumer vitality
By Carolyn Corda, CMO at data consortium ADARA Our day to day lives have been turned upside down. Office workers have...
Why and how a modern marketing strategy should put customer experience first
By Jim Preston, VP EMEA, Showpad In 2004, the Leading Edge Forum coined the term ‘consumerisation of IT’, defining a...
Leading from the front – why decision makers must embrace automation
By Jeppe Rindom, Co-founder & CEO, Pleo Ask any decision maker at a business about admin and you’re likely to...
Business first, not compliance only is the future for accountants
By Peter Bracey, MD at Bracey’s Accountants. The past few months have underlined the need for better business insight to reduce...