Connect with us

Trade

As Brexit negotiations ensue, how will ongoing uncertainty affect the financial markets?

Published

on

READ LATER - DOWNLOAD THIS POST AS PDF

The continued disruption could hold significant value to those willing to take advantage of this uncertain period.

Almost half of food manufacturers have said access to new UK markets will form a significant part of their growth strategies, with a further 46% citing export markets.

Technology will also continue to play an ever-increasing role in our daily lives, regardless of a good, bad or no deal Brexit. For investors, a focus on tech could naturally lead to firms like Apple, Facebook or IBM.

Last year, the London Stock Exchange (LSE) said more than two-thirds of the revenues earned by companies listed on its FTSE 100 came from overseas. BHP, for example, is a mining company that earns 100% of its income from international markets. It produces coal, copper, iron ore and petroleum – even if the UK does stop needing quite so much of them, there are plenty of other places that do. Similarly, banking giant HSBC has a branch on most high streets and employs tens of thousands of people in the UK. But despite its huge footprint here, it earns 75% of its revenues from international markets.

BRUSH UP ON BREXIT

It might be surprising but tobacco companies are classed as Brexitproof as are some booze brands – people rarely give up smoking and drinking in a time of crisis. British American and Imperial Tobacco brands, which make Rothmans and Rizla respectively, and Diageo, the home of Johnny Walker and Baileys, are in this category, too.

Many companies listed on the London Stock Exchange (LSE) make their money in currencies other than the pound. Commodity producers – such as Glencore, Rio Tinto, and BP – sell their wares in dollars, which means money coming in translates favourably into sterling, pushing up profits and, in turn, share prices.

Since the EU referendum, sterling has slumped against the euro and other major world currencies and although it has climbed back considerably, is not where it once was. A company that produces goods in the UK that are sold around the world in sterling will suffer if the currency falls in value. Conversely, a company that is based in the UK, but produces goods and sells them outside the country will bring its revenues back home in a currency that is stronger than its own so can (technically) mark up a gain.

Why not take advantage of Brexit with eToro’s easy to use, social platform. What’s more, eToro’s CopyTrader allows newcomers to learn from more established market movers, who can then access a raft of other benefits. Copy top traders and see what others are doing in real-time.

DIVERSIFY YOUR CRYPTO PORTFOLIO

Cryptoassets are highly volatile unregulated investment product. No EU investor protection. Your capital is at risk.

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFD assets.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% 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.

Trade

Stellar now available on eToroX exchange

Published

on

By

READ LATER - DOWNLOAD THIS POST AS PDF

eToroX announces new cryptoasset and multiple fiat pairs

7 August 2019: eToroX, the blockchain subsidiary of global investment platform eToro, today announces that Stellar (XLM) is now available on the eToroX exchange.

As of today, eToroX is making Stellar a base currency for trading pairs on eToroX. It will be tradeable against other cryptoassets and stablecoins. The pairs include USD (XLM-USDEX) GBP (XLM-GBPX), Japanese Yen (XLM-JPYX), Euro (XLM-EURX), and with Bitcoin (BTC-XLM), and Ethereum (ETH-XLM).

“We want to open up the tokenized world for everyone,” said Doron Rosenblum, Managing Director of eToroX. “eToroX is bringing crypto and tokenized assets to a wider audience and enabling them to trade with confidence on a secure and regulated platform.”

“We believe that blockchain technology has the means to include more people in a new financial world, who might have been previously excluded from it. Stellar shares this ethos, which is why we are excited to be adding it to our exchange and on-chain wallet for people to buy, sell and hold, 24/7.”

Stellar is an open source and decentralized payment network protocol with its own currency (XLM), which connects banks, payment systems and people, aiming to provide global access to low-cost financial services for all.

“It’s exciting that eToro has added Stellar Lumens as a base currency on the eToroX exchange,” said Jed McCaleb, CTO of the Stellar Development Foundation. “We believe…

Continue Reading

Trade

Are you an accidental bitcoin tax avoider?

Published

on

By

READ LATER - DOWNLOAD THIS POST AS PDF

Are you one of the many millions of people who saw the price of bitcoin start rocketing in 2017? Are you one of the hundreds of thousands who bought in? Are you one of the thousands of buyers who is resident, for tax purposes, in the UK?

If your answer is yes to the last question, you need to take a deep breath and read on.

Cryptocurrency is still in its infancy as far as regulators are concerned, with few rules around what you can do with bitcoin and its peers and what can be done to you with it.

While it’s not the Wild West, you’re advised to use registered and regulated platforms, such as eToro, to trade and invest to ensure the best protection from scams.

But if those who make the legal application around burgeoning financial trends are a bit behind the curve, those seeking to tax it are not.

You might not be aware, but if the size of your pot of bitcoin – or other crypto – has risen considerably since you bought it, you need to be thinking about your potential liabilities to HMRC.

In December, HMRC published a list of ways your bitcoin can make you liable for a range of taxes. The main one for those who bought the rising bitcoin…

Continue Reading

Trade

Making the most of your bitcoin (by maxing your tax)

Published

on

By

READ LATER - DOWNLOAD THIS POST AS PDF

Crypto enthusiasts will know that just because you didn’t know about the tax liable on cryptocurrency gains doesn’t mean you don’t have to pay it. Ignorance is no defence against the taxman.

But there are ways of reducing the tax you have to pay, and they are all entirely legal.

The main tax a holder of bitcoin is most likely to pay is on any gains made when selling the asset. This is called Capital Gains Tax (CGT). Like any investment, if you don’t do anything to make the value increase, it’s seen as something of a windfall – and the government wants a share of the action.

You are liable for tax on the gains you make selling cryptoassets for cold hard cash, exchanging cryptoassets for a different type (i.e. bitcoin for ripple), using cryptoassets to pay for goods or services or giving them away to someone else.

Importantly, you can give the cryptos to a spouse or civil partner and not be liable for gains… but you are just handing over the liability to them to sort out.

Also, don’t think you can just offload them onto a charity, as HMRC can take a view that you are doing it just to get out of paying what you owe.

However, CGT only kicks in after you’ve made…

Continue Reading

Elite