Guest Contributor on Money Questions and Answers Blog

ECN Brokers: Who, What and Why?

World economy The world of forex is dominated by jargon. With everything from currencies to broker formats having their own acronym, trying to navigate the forex world can be a bit of a minefield. Here, however, we’ve broken down one of the key acronyms: ECN.

There’s always a huge debate about who’s the best broker to use and why some types of broker are better than others. Many people swear by using ECN brokers, but why? Here, we try to find out:

What is an ECN?

Foreign exchange brokers come in a variety of shapes, sizes and forms. Due to the fact that the foreign exchange market is unregulated, there’s no set format for brokers, and many deviate from the norm.

ECN brokers are a great example of this. Instead of being a standard broker, they are an automated system that buys and sells orders, connecting major brokerages and individuals who can trade without the need for a middleman.

How do ECNs Work?

Instead of earning money from the spread, ECN brokers will make money by charging a small fee for every transaction they broker. In taking out the middleman, ECNs make it possible for investors from all over the world, in a variety of locations, to trade with relative ease and speed. To monitor the market, each ECN broker must register as a broker-dealer with the Securities and Exchange Commission.

What’s Good About ECNs?

An ECN will show you the very best bid and ask quotes available, scouring the market and multiple participants automatically and instantly matching and executing orders on your behalf. As well as being used at major exchanges during market hours, they are also widely used out of hours on the forex market by those with an online trading account.

Ten Top Insurance Payouts In Recent Years

by Guest Contributor

Top Insurance Payouts Whether claims are due to natural disasters or man-made ones, the insurance industry has had several huge payouts to make over recent years. This list sums looks back at some of the biggest insurance payouts.

The financial collapse – Billions

There has not been a figure set in stone as to the amount lost in the 2008 banking collapse, but billions of pounds is a conservative estimate. While the exact figure may still be unknown, what is known is the knock-on effect of bailouts and unemployment has caused the insurance industry to lose out in a big way.

Hurricane Katrina – £78 billion

A natural disaster of catastrophic proportions, when Hurricane Katrina ripped through the American south in 2005 – in particular New Orleans – it was a game-changer for insurance companies. In total, they had to pay out an estimated £78 billion.

9/11 – £25 billion

The September 11 terrorist attack which occurred in 2001, in New York, and destroyed the World Trade Centre’s twin towers is a tragedy that will hopefully never be repeated. Claims for the likes of business interruption claims, property damage and life insurance amounted to £25 billion in total – making it as expensive as it was catastrophic.

Swine flu pandemic – £1.24 billion

Originating in Mexico in 2009, fears of swine flu swept the globe as the year went on. In the UK, the threat was taken seriously and millions of doses of anti-virals were produced for the epidemic. In the end, 457 people in the country died with a total cost of £1.24 billion recorded.

Affordable Home Insurance Checklist – Are You Paying too Much?

by Guest Contributor

Home Insurance Checklist Periodic review of our personal finances extends to many areas. Portfolio rebalancing helps your investments match changing time horizons and risk tolerances. As our families grow or coverage options change, we must review our health insurance for the best choices.

Home insurance is an essential cost that may not receive the same attention. Houses are not as dynamic in comparison to investments or healthcare. Unless moving, many homeowners rarely check their home policies.

However, checking your home insurance coverage for overlaps or excess coverage can yield instant savings. The process is also simple and time efficient with a potentially big ROI.

First time buyers and existing homeowners alike can benefit from a few practical steps.

Here is a home insurance checklist to get started:

Choose a Sensible Deductible

A sensible deductible results in month over month savings that is leverage for:

Investing
College Savings
Debt Reduction
Meeting Monthly Expenses

You can speak with an agent to discuss the impact of raising deductibles on premiums. A practical deductible protects homes yet leverages savings to improve personal finances. Even in the instance of a small claim, the time value of money may pay for itself.

The time value of money as leverage: A dollar is more valuable today than at some date in the future, which is seen in inflation or other economic concepts. The monthly savings from a higher deductible are leverage to increase investment contributions or chip away at principal on debt.

Investment Manager Elliott Broidy is among the money managers known to consider money’s time value when making portfolio decisions. The same approach has everyday value to consumers, as well.

Savings on interest expense from credit cards or compounding investment returns can exceed out of pocket costs on home insurance claims.

Each situation is unique, but you may consider working with an agent to discuss the value of each insurance rider beyond catastrophes.

How to Get Rewards When Spending with Your Business Credit Card

by Guest Contributor

Credit card companies often use rewards and bonuses to attract private clients, but even business products are now starting to come with the same additional benefits. While individuals rack up points and cashback one pound at a time, business credit cards have developed a whole line of innovative programs, offering multiple ways to earn valuable rewards. How To Earn Rewards With a Business Credit Card Points Points-based rewards systems provide attractive flexibility, giving business customers access to a bonus system focused on things they actually need. Points can be earned on most important company expenses, including everything from car rentals to office supplies and insurance to repairs. Once accumulated, these points can then be used against future purchases, helping to bring … Read more

How To Launch An Online Business On A Budget

by Guest Contributor

The following guest post by Kimberly Palmer is based on her new book, “The Economy of You: Discover Your Inner Entrepreneur and Recession-Proof Your Life.”

When you’re launching a new online business, it’s tempting to spend a lot of money getting it going. You might want to pay for a professionally-built website, the perfect logo, public relations services and maybe a lawyer’s time to help you get your paperwork in place.

Here’s my advice: Don’t do any of that. At least, not until you launch your shop and have a steady stream of revenue coming in.

There are some exceptions, of course. Certain types of businesses require some hefty start-up costs. A custom cake baker needs an oven and a fridge (and the required licenses); anyone selling products that could potentially lead to injuries needs to make sure they are protected legally.

But for most of us launching online businesses, we can do it on the cheap. Here are five tips to help you keep your own costs down as you build and launch your online business on a budget:

1. Use existing e-commerce sites.

E-commerce websites like Etsy, Fiverr, Elance and Freelancer make it easy and virtually free to create a profile, describe what you have to offer, and start looking for customers. It took me about two weeks to officially open my shop after I first got the idea.

That’s because the infrastructure already exists, you just have to tap into it. There’s no need to start from scratch and create your own e-commerce platform, or even your own website.

Sure, you might want to consider hosting your own site once you get bigger, but to start out, you can simply piggyback on the ones that already exist. An added bonus is that it gives you a built-in customer base of people already browsing those sites.

2. Stick with digital products.

I made the mistake of launching my planner shop with the idea that people wanted to buy bound, printed copies of my planners. I was wrong. The printed planners that I paid hundreds of dollars to create are still sitting in my closet, unsold.

What did sell was the digital version of my planners. Not only does that option save me money in printing costs, but it also saves me time and postage on shipping. Digital products can download automatically, too, which means you’re not keeping your customers waiting.

Exploring The Resources Necessary To Manage Your Company’s Finances

by Guest Contributor

Managing your company’s finances should always be a top priority that is handled efficiently throughout the year. This is one of the most important things that you can do in order to keep your company afloat, especially since the cornerstone and foundation of your business is your cash flow. The mismanagement and mishandling of your revenue and expenses can quickly spell disaster for your company, which is why it is imperative that you take full advantage of several key resources that are available to you. Invest in Quality Accounting Software There are quite a few software choices that are available within an expanding catalog of options that are used by business in different industries today. Finding the perfect one to … Read more