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How does Relative Strength Index work ?

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Relative Strength Index – RSI

What is Relative Strength Index ?

Short note on relative strength index: Relative strength index is technical indicator which compares current and historical gains and losses in order to define if the asset’s value is over priced or under priced. Formula for calculating RSI is:

RSI = 100 – 100/(1 + RS*)
RS = Average of x days’ up closes / Average of x days’ down closes
Relative strength index math:
relative strenght equation

Main role of this indicator is to remove noise in price movement representation. High relative strength index success rate we can see in application very often.
Example of GBPUSD chart – RSI indicator is red:
RSI indicator example

what does the relative strength index tell you ? Interval in which RSI ranges is from 0 to 100 and it shows if asset is overvalued or undervalued (relative strength index law). In fact, as the RSI closes to level 70, the asset can be considered overvalued and has a big chance to be overbought. On the other hand, when RSI reaches level 30 the asset is deemed to be oversold. The best way to use this index is as a additional information to other stock-picking tools because using only RSI trader can create false buy and sell signals which can mislead observer.

History of relative strength index

J. Welles Wilder rsi
The relative strength index was developed by J. Welles Wilder and published in a 1978 book, New Concepts in Technical Trading Systems, and in Commodities magazine (now Futures magazine) in the June 1978 issue.It has become one of the most popular oscillator indices.The RSI compares bullish and bearish price momentum plotted against the graph of an asset’s price. Wilder developed Average True Range, the Relative Strength Index (RSI), Average Directional Index, and the Parabolic SAR.

Relative strength index algorithm – How to calculate relative strength index in excel ?

I always get information from MetaTrader. So how to calculate relative strength index using excel manually ? The most simple method we can see in nice post Calculation of RSI using EXCEL.
Idea is to define close price in some time period and than start relative strength index calculation excel :

“Column E” has all closing prices.
“Column F” calculates change in price by subtracting current row from previous row.
If “Column F” value is greater than zero, value will be copied to Column G. If value is less than zero, value will be copied to “Column H”.
“Column I” calculates the average Gain over the specified period, example 14.
“Column J” calculates the average Losses over the specified period, example 14.
“Column K” calculates the value of Relative Strength (RS).
“Column L” calculates the value of Relative Strength Index(RSI).
Please visit website and download relative strength index in excel tool: Download relative strength index formula excel

You can see in this nice video relative strength index example calculation:

How we can trade using this RSI indicator – advantages of using relative strength index ?

How does relative strength index work ? We can use RSI to determine overbought and oversold moment in trading. Below 30 is oversold and above 70 is overbought.There are some rules for traders :
– Market can be oversold or overbought very long time. It is not smart to trade sell orders above 70 and buy orders below 30 without deep analysis.
– Do not buy in oversold market or sell in overbought market without some conformation in your direction (for example some big move, strong bullish or bearish candle etc.)
– The best strategy is – buy or sell after pullback and respect main trend. For example if trend is bullish on daily or H4 chart, price is above 50 RSI in strong bullish direction you can buy if price goes in oversold area on 5 minute or 30 minutes chart. See images below :
gbpusd overbought 30 minute chart
On daily chart we see bearish trend. Next 7 days price will fall 300 pips down :
GBPUSD daily profit

2) We can use RSI indicator to find divergence and predict change of the trend.On image below we can see relative strength index bullish divergence (relative strength index when to buy) :
relative strength index bullish divergence

On this image below we have relative strength index bearish divergence (relative strength index weakness) example:
relative strength index bearish divergence example

Using RSI trend lines we can avoid very often false breakout in trading or Market Has Hit an Extreme.How important are levels 30 and 70 (relative strength index bloomberg example), we can see in nice highest rsi table. In this article we can see opinion “Many technical traders view anything above 70 as a sign that the dollar is overbought and due for a correction.”

3) My favorite way to use RSI – draw trend lines on RSI chart and use for trading !
Traders can draw trend lines below and above RSI line. If price breaks trendline than trend will change. See example :
RSI trendlines
This example shows bullish trend on 30 min chart.I can make buy orders above trendline but if price breaks RSI trendline than trend is changed.Of course on 30 minute chart we can see 25% from ATR bearish trend in price breaks this line (around 20 pips).If price breaks daily trendline RSI that can give few hunderds pips profit.

Questions and answers from email messages:

1) How to find relative strength index indicator in Metatrader ?
RSI is major indicator. It is in indicator section in group oscillators.
how to find relative strength index

2. What is a good relative strength index number
Each number in RSI is “good”. It is just strength index. For example is price is above 70 or below 30 it can be excellent trend which can give more profit in future. Price around 50 can be in range market, but it can be strong trend decline or rise if we have strong divergence in that moment.

3. Should I set RSI settings on different way.Is it better rsi 8 or 14; rsi 7 vs rsi 14 ?
My advice is to use default settings. All major world traders use (mostly) the same settings so they will make decision based on default parameters.Summary, default settings is relative strength index best settings.

4. What are relative strength index disadvantages and what are advantages of using relative strength index ?
The biggest advantage is simplicity, easy reading as we see in chapter how relative strength index works. One of the biggest disadvantage is that rsi is very fast indicator and sometimes we need to wait for higher time frame price close conformation.

What is the difference between metatrader 4 and 5 – mt4 vs. mt5 ?

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Metatrader 4 vs Metatrader 5 – Which One Should You Use?

As it seems the traders are given a choice to make MetaTrader 4 vs. 5 while opening an account. Brokers can also make this decision. It’s up to the individual broker to make a decision for selection between MetaTrader 4 and 5 that must be accessible to traders or should support MetaQoutes terminal platform. Users are having usage experience of MetaTrader 5 (MT5) willing to make use of MetaTrader 4 (MT4). Most of the traders make use of most famous and older one platform known as Mt4, MetaQoutes has stopped introducing variations in their platforms, but has not made criticism or compel brokers to purchase a license for MetaTrader 5. Brokers who are keen of getting the issuance of MT4 License, MetaQOutes clogged the issuance of new MT4 License to those brokers on January 12, 2018, which means that these brokers have to make use of another platform or can accept MetaTrader 5. Decisions can become complex when there is an insufficient provision concerning the server capital for the existing Mt4 License Holders. Having this perspective, let’s make a detailed study of two types of terminal regarding their languages correspondingly.

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mt4 vs. mt5

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MetaTrader 4 vs. 5 deals with the substance of acquaintance, how much simple or easy to use and all MQL languages.
MetaTrader 4 vs 5 (MT$ vs MT5) Languages (MQL4 vs MQL5)
MetaTrader 4 was introduced globally in 2005 whereas MetaTrader 5 released in 2010. Language has similar syntax along with the prominent and major changes in keywords that distinguish both and make hard for an MQL4 file to function in MT5 smoothly and vice-versa of it as it implements the MQL5 and MT4.

MQL4 and MQL5 have many similarities with the programming language, C++. MQL4 has maintained its position or popularity in the industry even after the release of MQL5, which has helped a lot in distinguishing the programming language.
However, this feature makes the MQL4 and MQL5 interesting one and offers a flat contest to everyone because the programming language is such as which requires updates to programming languages like Python or Ruby. Variation in MQL4 and MQL5 give a meaning of going beyond the side of marketing from the MetaQoutes platform which is the major source of the promotion set it and forget it kind of tactics to make a trade with “robots” (Expert Advisors) and custom indicators. This kind of elevation creates hurdles for newcomers who just found out that their MT4 version has been updated or would find that their MT5 version will be updated and they seem like a real victim of the never terminated Software Development Life Cycle.
There will be no updates in MQL4, but there shall be continuous variation in MQL5. It will reduce the hurdles for newcomers who want to enter in MetaTrader 4. It all deals with the game of Relaxed and Comparative Limitations in Competence vs. Stimulating and Vigorous Aptitude.

Pros and Cons of MetaTrader 4 vs. 5 (MQL4 vs. MQL5)

MetaTrader 4

Advantages
There will be no variation regarding updates due to which no need to change or alter the programs comprise of new versions.
Expert Consultants and Indicators are independent to choose a file from the .mq4 file, and the — ex4 file for implementation.
MQL4 is of much benefit as it has seen that many brokers make use of MT4.
It’s pretty easy to code. Expert Advisor can make it is short and make a structure with ease.
Disadvantage
Variation in currency competences.
No circumventing proficiencies.
Overall, it is limited to the skills and capabilities that a terminal maintains.

MetaTrader 5 (MQL5)

Advantages
Language proficiency is improved by bringing some variations.
A rapid change in language syntax with the advancement in terminal technologies is a plus.
Hedging abilities.
Currency variation skills.
More stipend for more complexity.
Disadvantage
In the case of transitioning from MQL4, this is considered as the most difficult and complex language.
Libraries are important.
One expert can handle many libraries and the files attached to it.
Not anything is independent.
Most of the individuals are familiar to MQL4 are now moving towards MQL5 because MQL5 has more features and capabilities that are required at this time concerning the language structure and efficient building structure of programs compel others to learn a complex one as compared to the simpler one that is of no worth.
MQL does not demand a new programmer in mind, but it is a basic object-oriented language.
Languages can vary a little bit in their structure and syntax, of course, it demands to learn things from the very beginning while moving from MQL4 to MQL5. It is an impossible task for those people who try to convert .mp4 file in MetaTrader 5. Conversion tools fail in case of binding the huge divide concerning the code structure between Meta Trader4 and MetaTrader5. This is the matter where the structure of different files .mqh and .mq5 have to be made or sometimes various mq5 files to carry out the same task, but the real code is more vigorous incompetence, more important in backtesting.

MetaQoutes software has given an overview of MetaTrader 5 for almost seven years ago, but some traders exist who prefer to work on MetaTrader 4. There is a contrasting criticism on MT5 by the market contributors who say that MetaTrader is comparable to MT5 in its all functionalities. Then what is the major difference between MT4 and MT5?

Expert Values

MetaTrader basically designed for “over the counter” Forex tools like CFD whole, on the other hand, MetaTrader 5 was made for the stock instrumentation including shares, geographies and some other offshoots.
MetaTrader 5 platform has been made for the index of RTS standard interchange

Standards of opening positions
MT4: hedging – a lot of the transactions can be made by the trader that comes under the umbrella of multidirectional for the same tool and at the same time with the addition of place, one-direction trades. Traders know well about this process because this method involves reducing risks.
MT5: netting – the trader can make a trade of instruments in a single direction while multidirectional positions are not permitted.
A trader is allowed to open an account in MT5 and trade instruments too; except stock unavailability at this account.

Market Depth
MetaTrader 5 delivers market depth with the exchange of instruments that are being traded while from the other perspective MT4 only give a chance or an opportunity to make deals with the resources in ECN system like OTC. Both give an opportunity to traders to make a clear analysis of orders that how much have to deliver and how much have to buy, measure capacities of the gadgets, and deals with two types of trading functions:
Sell/buy instruments with the exchange of money at the spot

Place trading orders – remaining or pending orders to sell/buy a substituting tool at the fixed price
Market depth in MetaTrader 5

Market depth in MetaTrader 5

Market trade seems best to scalpers, traders who desire to perform high but a full risk trading because of market depth boost up the presentation of many people. Experts often make use of some special kind of trading tools for carrying out the processes.
Tester of strategies
MT5 gains multi-tasking and significant tester, who can execute the function by testing a portfolio, which grabs the attention of traders dealing with the standard market equipment. Quotes history can be recovered or downloaded in the terminal.
Testing results appear as a chart
MetaTrader 5 tester is given in MQL Cloud Network with the limitless contribution to make a calculation using tens of thousands of consistent PCs. A trader can only get this function if she/he has installed a special kind of application strategy Tester.

MQL4 vs. MQL5
MQL4 and MQL5 distinguishable from each other on the level of programming language platform. MQL4 is a language (MetaQoutes Language 4) basically used for machines, writings, and pointers used in MetaTrader 4. This language has limited scope as compared to the other languages, as it can be seen that this language is used for basic level calculations or simple commands.
MetaTrader 5 has a major focus on MQL5 language that is brand new, more significant and much closer or similar to the object-oriented C++. The syntax makes programming language easy to operate for developers: a trader can write code or can make changes in it, pointers and vigorous interchange by using MQL5 language under the platform of MetaEditor, as the language gives the countless opportunities.

MetaEditor – multi-tasking editors are available for the development and adjustment of trading robots and pointers
Custom advisor and trading advisors should learn to track the activities of a computer mouse and keyboard pointer, in case interrelating with some peripheral devices a special thanks or homage to the program installed in MQL5 for the event processing. MQL5 official website contains every kind of library, templates and most popular functions that are used frequently.

Conclusion
A time tested platform that is simple to use as compare to others with extra functionalities, basically considered for the Forex equipment, CFDs and some other OTC byproducts.

What is Return on Investment?

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Understanding ROI

 

The financial world is riddled with jargon and a multiple of confusing words. Without the understanding of these, it may be difficult to survive in a world filled with bankers, investors and complexed corporate environments. So, without further delay, here is everything you need to know about Return on Investment (ROI).

Return on Investment is a measure of performance, as it is used to evaluate the efficiency of the investment of interest. It can also be used as a comparative tool, as it provides information about multiple investments in a manner that is easily understood and analyzed. This is achieved through the return on investment formula which gives a quantitative analysis of the amount of return of an investment in relation to its cost.

It provides an easily usable formula that has many practical uses. For example, one is able to compare the Return on Investment from a range of assets that are not generally compared. Therefore, one could compare performance on the stock market with that of a new niche start-up by simply plugging the correct financials into the Return on Investment equation.

 

The Return on Investment Formula example

In order to calculate this, the amount earned is divided by the cost of the investment. The result is expressed as the Return on Investment ratio. Mathematically, the Return on Investment equation goes as follows:

ROI = (earnings from investment – cost of investment) / cost of investment

Sample return of investment: Next, one needs to consider how to practically calculate a Return on Investment. To this end, a return on investment example should suffice: John invested $1000 in Nice Shoe Inc in 2010. Today, he wishes to sell those shares and he sells them for a total of $1400. If he wanted to know his return on investment, John would first have to calculate his profits. This is done by subtracting costs of investments from the cost of investment: $1400 – $1000 = $400. Next, the profit must be divided in order to get the return on investment $400/$1000 = 40%. Therefore, John’s return on investment is 40%.
These equations may be made much simpler with the use of online return on investment calculators. This can make life simpler when comparing multiple investment opportunities at the same time, allowing for a simpler path to seeing the opportunity costs associated with a respective business path.

Return on Investment calculator:

How to calculate rate of return on investment in excel ?

We can calculate return on investment in excel sheet if we put equation as formula. You can download return on investment (roi) excel template.

 

Analysing the Results


Generally, any value that comes out of the Return on Investment equation as positive is considered a good return. An importance remains, nonetheless, on evaluating all options so that the investment chosen outweighs its associated opportunity cost. The opportunity cost is defined as the next best option that is forgone with the purchase of any good, service, or asset.
Consider this: John (from the example earlier) had the opportunity of purchasing shares in Nice Shirts Inc. For the same $1000 in investment, his Return on Investment would have equated 50% over the same time period. Therefore, John’s opportunity cost was greater than the profit he made buying shares in Nice Shoes Inc.
From this, one can see that opportunity cost plays an important role in decision-making. A comprehensive Return of Investment analysis may help dramatically in aid of this because, as stated in earlier, the equation provides a good basis for numerical comparison.

 

Return on Investment vs Return of Investment


 

Whilst doing these calculations, it is important to keep in mind that a return on investment does not necessarily mean a return of investment. Return on investment is speculative; Return of Investment is definite – cold, hard cash in your hands. The end goal of any investor must be to achieve Return of Investment

 

Limitations of the Return on Investment Analysis


 

Return on Investment is a profitability ratio. This means it is supposed to be an aid in the decision making of any investment opportunity. However, so that it can play a proper role in that situation, it is critical to establish that it does have limits. The equation does not take into account the time between the initial investment and the profit received. So, it may put investments that have different Rates of Return in the same category.
For example, the Return on Investment equation will say two 20% Returns on Investments are exactly the same. Even though the first investment may have achieved this in 6 months and the second in 2 years. Therefore, the Return on Investment analysis is not sufficient on its own and must be used alongside other crucial profitability measures. Such measures provide a better basis with which to make an investment decision. An example of such calculations would include the Net Present Value (NPV) and the Internal Rate of Return (IRR). These are not comprehensive and further research is suggested before making any critical decisions.
Furthermore, the Return of Investment analysis only provides historical data. This means that it cannot be a predictor of what an investment may do in the future. Although, certain implications may be drawn from this.

Criticisms of evaluating performance based on ROI include:
– Reject investment opportunities that are profitable for the company but have a negative impact on a manager’s ROI.
– Be put in charge of a business segment that includes committed costs over which a manager has no control.
– Take actions that increase ROI in the short-run at the expense of long-term performance.

Questions and answers:

 

Why is return on investment (roi) the most commonly used financial performance measure?

In every country, ROI is the most commonly used financial performance measure. Return on investment calculation allows managers of one organization to compare performance with that of other organizations.In order to increase return on investment (ROI), the company must increase sales, and/or decrease operating expenses or increase or increase unit sales.

What is good return on investment ?

What is considered a good return on investment is hard to tell. Each industry has its own average ROI. For example marketing and advertising for every $1 invested will bring you at least $2. On other side real estate and stocks can bring you cumulative high amount of profit but ROI is much smaller. See image below:
What is good return on investment

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Which investment offers the best combination of low risk and high return?


Investments like preferred stocks, utility stock, fixed annuities, brokered cds, offers the best combination of low risk and high return.
Stocks are typically high risk and high return, while bonds (especially government-secured bonds) are low risk and low return.

 

If the average return on investment is the same why buy mutual funds instead of stocks?

No. Stocks are typically high risk and high return and as an investment, bonds are less risky than stocks but generally have a lower rate of return. On the other side, one of the benefits of mutual funds is that their diversification reduces risk. Answer is : both can be risky, but average stocks investing is risky than average mutual fund investment. Most mutual funds are able to achieve a 5-7% ROI annually.

 

What is return on investment for stocks ?


As same as we calculate ROI for any other business, ROI = (gain from investment – cost of investment) / cost of investment.

 

How to Calculate an Annual Return With Stock Prices


 

Simple Return = (Current Price-Purchase Price) / Purchase Price
Annual Return = (Simple Return +1) ^ (1 / Years Held)-1

or if you have dividend:

Simple Dividend-Adjusted Return = (Current Stock Price-Dividend-Adjusted Stock Purchase Price) / Dividend-Adjusted Stock Purchase Price
Annual Dividend-Adjusted Return = (Simple Dividend-Adjusted Return +1) ^ (1 / Years Held)-1

 

Why is marketing return on investment so difficult to measure?


It can be quite difficult to measure marketing ROI, because marketing efforts usually result to intangible benefits for employees and customers.

 

What are the concepts of return on investment and risk ?


This question we have when we talk about investing and ROI. Risk increases if loss exceeds amount invested even if loss probability remains unchanged. SO higher risk corresponds to higher returns and lower risk corresponds to lower returns. Return on investment can not be only thing that we are looking for when we invest our money. Roi and risk we need to study together.

 

The Future for ROI


 

Recent times have seen the advent of the Social Return on Investments, a measurement system that takes into account the Triple Bottom Line: social environmental and economic factors. SROI helps the management of companies understand the scope of their decisions in a broader sense than just monetary policy.

Why Return on Investment Matters


Return on Investment calculations is important, as they show how your money is producing a profit. It does this in a manner that is able to show both the efficiency and the magnitude of the respective asset. Moreover, the Return on Investment analysis can act as an alarm bell, as negative products of the equation should see the immediate withdrawal of capital from the investment.
However, it must be remembered that ROI is easily manipulated and does not take into account certain crucial factors, time being an example. Despite this, it remains a critical weapon in the armory of the investor. A Return on Investment Analysis should form the foundation of any well-considered investment.

George Soros Biography

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Introduction – George Soros Bio
George Soros quotes:
My success in the financial markets has given me a greater degree of independence than most other people
george soros
George Soros was born in the year 1930, August 12 in Budapest, Hungary. Soros is an American-Hungarian author, political activist, philanthropist, business magnate and investor. He is among the most successful investors in the world. He had a network of $7.6 billion as of 2017 February after donating $17 billion to the Open Society Foundations, his philanthropic agency. George Soros Net worth was $25.2 billion as of Mar 22, 2017. In 2018., George Soros net worth is 8 billion USD.
George Soros became popular in the year 1992, during the time that he made $10 billion from one bet that was against the British pound. The speculation of the currency gave the investor profits that added up to $1 billion in the first day and more than $2 billion afterward. He even was given the “the man that broke the Back of England” nickname.


Main facts:
Father:Tivadar Schwartz
Mother: Erzebet Szucz
Brother: Paul
Ex-spouse: Annaliese Witschak and Susan Weber
George Soros children are: Alexander, Andrea, Gregory, Jonathan, Robert
George Soros is married to Tamiko Bolton, who’s 42 years younger than him from 2018.
Where is George Soros ? – He lives in New York, Katonah, USA

Education and Career
How did George Soros make his money?

He attended the School of Economics in London where he earned a bachelor of science in philosophy and Master of Science in philosophy in the years 1951 and 1954 respectively (“George Soros,” 2018). Soros could not find any jobs after he graduated and therefore he decided to settle for employment as a traveling salesman for wholesaler f of fancy gods that sold to retailers in the resort’s seaside. The individual described this moment as one of the lowest in his life. He wrote interview letters too many banks that ignored him and also humiliated him in the process of the interview (Soros, 2010). He worked as a clear at Singer and Friedlander, a bank in London. He also employed as an arbitrage trader in the years 1956 to 1969 at F.M Mayer. Here he was specializing in European stocks that were popular with the United States investors because of the formation of steel community that later transformed to the common market. Thereafter, he worked in an investment bank in the place. He later left for the US in the year 1956 where he was employed as an investment manager and an analyst for various firms.


Soros’s Philosophy of Investment
George Soros had an ability to synchronize world economic trend with leveraged and highly detailed strategy in currencies and bonds. He operated as a speculator shortly and was able to make bets on the trends of financial markets. He had a belief that the financial markets tended to depend on the amateur and professional traders and the people that purchase or sell assets on the market. Soros aimed at capitalizing on the emotional or human capacity of the influencers of the market to transform the investment decisions and opinions of others . The man was always looking for a way to stand out or be unique from the crowd as much as followed investment trends. This was one of the greatest paydays. He trusted his reaction regarding busing and selling and this made his strategy hard to emulate.

How did George Soros make his money ?
He left work in 1073 to look for his personal hedge fund, the Soros Management Fund. The fund turned to the Quantum Fund and eventually Soros was able to develop the company to a highly successful and aggressive hedge fund which made annual returns of 30% annually. There are two occasions when the fund posted profits that exceeded 100%. In the early 1990s, Soros was declared among the richest individuals on earth.

Market and Major Trades
Soros was contacted by Georges Pebereau a financier in France in the year 1988 that wanted him to take part in an effort of assembling a team of investors to buy a big number of shares in a French bank which was part of a program of privatization. Soros, however, decided not to participate in the effort and opted to move forward personally with the strategy of putting shares in four companies in France which included Paribas, Suez, and Societe Generale. In the year 1989, a French regulatory authority of stock exchange performed an investigation to know if the transaction of Soros in Societe Generale was inside trading. Soros got no information from the company and had no information of the business insider but he knew that there was a group of investors which was planning a takeover . The first investigation proved that Soros was innocent and there were no charges against him. The case was later reopened after a few years and he was convicted in the year 2006 by the French Supreme court. Soros, however, declined the charges and said that the takeover news was public knowledge and the document said that the intent of the individual to have the company shares showed that he was aware of the takeover.
George Soros Versus the British Pound – How Did George Soros Get Rich in one day ?
How did George Soros break the Bank of England?
Soros is remembered by the “the man that broke the Back of England” nickname. He is also a known speculator of currency and does not limit his efforts to a specific area geographically but considers the whole world when looking for opportunities. The man borrowed billions of dollars in the year 192 which were worth British pound then changed them to German Marks. When the pound crashed, George Soros had to repay his lenders on the basis of the lower new pound value. He pocketed an excess of around $1 billion that is the difference between the pound value and the mark value in a one-day trading
George Soros made the same move with the Asian currency during the Asian Financial Crisis of the year 1997. He took part in a frenzy which led to the collapse of the Thailand currency. The trades became so effective since those national currencies that speculators bet against mostly got pegged to other currencies. This means that there were agreements to prop up those currencies to ensure that they were able to trade in a particular ratio against that currency which they got pegged.
As the speculators placed bets, the issuers of currency got forced to try and maintain the ratio by purchasing their currency on the open market. The government later ran out of money and was pushed to abandon the effort and this made the value of the currency to plummet. The governments feared that George Soros would start having an interest in their currency. When he did, the other speculators could ion in the fray, this was described as a group of wolves on a group of elk (“George Soros,” 2018). The big amounts of money that those speculators borrowed and leveraged made it hard for the governments to handle the assault or withstand it.
Despite the success of George Soros, it is not every Bet that he placed worked in his favor. For instance, in the year 1988, he made a prediction that the markets of the United States would rise continuously. His fund, as a result, lost $300 million in the crash process even though there were lower double digits delivered returns that year. In 1999, Soros also took a hit of $2 billion in the Russian debt crisis and lost $750 million during a technology bubble where he placed a decline bet (“Investopedia, n.d.”). He was stung by this loss and as a result, bought anticipation big in of a rise and lost about $2.9 million when the market crashed finally.
Soros’s family office has trimmed the stake in the Broadband Corp. during the first quarter, the management fund holdings of Broadband Corp reduced by seventy-four thousand shares to around 8000 million. The filing also shows the disclosed Soros’s stake of around 22 million in Vice Properties Inc. which the second biggest holding of the firm. George Soros also increased the stake by 330, 00 in Aetna and made the holdings of Baxter International by around 340,000 shares.
According to the recent news, the billionaire is weighing moves into cryptocurrencies. A member of the of office family got an internal permission to trade on cryptocurrencies which is an asset that several money managers avoid because of the track record of the sector which is limited and lack of volatility and regulation. The Soros Management Fund head of macro investing, Adam Fisher got the approval but has not made any bets yet on cryptocurrencies. The green light of the fund for cryptocurrencies came after the Bitcoin price that has served as a signal to several other cryptocurrencies. Recently, regulators have begun paying special attention to cryptocurrencies and this has scared investors off (“George Soros,” 2018). The interest in bitcoin is beginning to wan with the amounts of searches falling slowly since the start of this year.
If you interested what stocks does george soros own you can see his portfolio in details.
Where does George Soros live now

George Soros is Founder/Co-Founder of Quantum Fund . He lives in large estate, located in the Bedford Hills suburb of New York, Katonah, USA.

Interesting facts:

One of the famous youtube videos is George Soros 60 minutes interview.
George Soros interview :

Conclusion
Trading like Soros is not for those with a light wallet or the faint-hearted. The drawbacks of the winning big and betting big is that betting big means losing big. If one cannot afford the loss, then definitely they can’t afford to resemble George Soros. While the macro hedge traders are the quite types and avoid spotlight as they earn a fortune, George Soros is taking and has been taking public stances on several political and economic issues. His success as a speculator and public stance has put Soros in a unique personal class. During a period of more than four decades, he made the correct moves almost every time and generated a large number of fans among investors and traders and detractors among the ones on the other end of losing for his speculative activities.

QUESTIONS AND ANSWERS from comments:

  1. How old is George Soros ?

He was born 1930. George Soros is 88 years old.

2. Who is George Soros spouse ?

Tamiko Bolton is George Soros’ third wife.

3. What is official George Soros twitter account ?
George Soros Twitter account is : https://twitter.com/georgesoros

3. What religion is George Soros ?
As we can see in interview, George Soros is atheists he doesn’t believe In God.

4. Did George Soros Say His Life’s Mission Is to Destroy the United States?
No. George Soros didn’t say this. Claim (fake George Soros newsweek 1979) “I’ve made my life’s mission to destroy the United States. I hate this country and I hate all of the people in it.” is false news. David Emery, is excellent San Francisco-based writer and he wrote several articles about fake news related to Soros.

5. Is George Soros ‘Grooming’ a Pro-Muslim Brotherhood Gubernatorial Candidate in Michigan?
Another fake news about Abdul el-Sayed George Soros relationship.

6. Is Chelsea Clinton Married to George Soros’ Nephew Marc Mezvinsky?
Another fake news. Based on Snopes.com , Baio didn’t provide any evidence that Marc Mezvinsky, Chelsea Clinton’s husband, was related in any way to George Soros.

7. Are 16 States Using Voting Machines from a ‘Soros-Controlled Company’?
George Soros voting machines were another fake news in media last several years. George Soros has no hand in the management or ownership of Smartmatic.

Google Will Ban Online Ads of Cryptocurrencies in June 2018

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Google Crypto Ban
Google Will Ban Online Ads of Cryptocurrencies
Recently, claims have emerged that the advertisement of cryptocurrency ventures is becoming difficult on Google. This follows a move by Facebook to ban all the cryptocurrency ads. People are wondering if Google wants to follow a similar route. There are sources saying Google has not announced any official changes concerning its policies for ICOs and cryptocurrencies. The worried voices that are coming from the marketing industry of cryptocurrencies, however, paint a different picture . Google is the chief of internet and looks like it wants to go after the fast-growing and prominent cryptocurrency industry.
Advertisers are already reporting challenges and difficulties in advertising products that are blockchain and cryptocurrency-oriented.In April 2018., Google bans all cryptocurrency mining extensions from Chrome Store. The channels which showcase content that is crypto-related are reporting that they have been banned from the platform of YouTube. The changes of policy by Google have not yet become official but many firms and PR agencies have reported a drop in the performance of customers who provide cryptocurrency services. There are even cases where the advertisers get their ads rejected and even suspension of their accounts. Some companies have also reported that they have witnessed a drop in AdWords performance by thousands in a day. The drop in the numbers coincided with the adverts that crypto-currency related being regarded as limited during submission.
The recent approach to cryptocurrency is not however limited to the realm of advertisement only. Some bloggers of cryptocurrency and shows have also reported that they have found out that their channels have been restricted or even suspended. Some of the restriction includes cancellation of the feature of Live Video and demonetizing. People are still trying to understand why it is all happening when Google has not made any official announcement of a change of its policies. People have come up with several theories whereby some are contradictory and overlapping at the same time.
One such theory is that this is an overreach by the policy of Google against malicious ads, crypto scams, and fake news. The other common interpretation is that Google is being meticulous in regard to advertisements that are coming from the cryptocurrency advertisers. There are claims that the policy of advertising is very clear by Google but when it comes to cryptocurrency firms, the approach gets a bit stricter and unforgiving as compared to the other industries.
The Prospects of a Ban
Brokers will be allowed to advertise forex and CFDsonly after receiving certification from Google
The other explanation being given by reliable sources and other forums of professionals is that it is an the intention and effort of Google to restrict advertisements related to cryptocurrency and even go to an extent of blocking them. According to a reliable source, the move of banning the cryptocurrency ads was raised by a Jason Roy, a Canadian regulator four months ago. The senior investigator said they were pleased by the move by Facebook to ban the ads and he hoped that Google enacted the same policy. The move was rejected at first by Google claiming that it did not want to prevent the whole industry from advertising as much as it was already dealing with fraudulent and misleading ads. However, it looks like it eventually changed its mind.
Sources have confirmed that Google is really intending to ban the ads which are related to cryptocurrency. Google is banning any advertising related to cryptocurrency. The update is said to go into effect starting June 2018 . The company is updating the ad policies that are related to finance to ban advertisements regarding content related to cryptocurrency including trading advice, wallets and the initial coin offerings. This means that even those firms with legit offerings of cryptocurrency will not be able to advertise through Google advertisements products. The company claims that they can’t know the future of cryptocurrencies but they have already seen potential harm and hurt to consumers that the business is causing and they want the matter to be approached with caution. As much as the boom of cryptocurrency has offered big wealth and excitement, it is a space that is still unregulated and this has given out numerous scams of high profile.
This comes after social media platforms like Facebook banned advertisements which are related to cryptocurrency so as to protect its viewers from Ponzi schemes, fraudulent sale of tokens and ICO scams. The move came with the report of “bad ads”, a review of the controversial, deceptive, malicious advertisements that Google scrubbed from its massive video, display and search network. However, this is contradictory to what the leaders of such platforms like Facebook think. The people who are responsible for creating platforms of social media like Facebook have praised cryptocurrency and the technology of blockchain underlying it. It somehow creates juxtaposition since the companies which they are responsible for have enacted policies which stifle the development and adoption of blockchain.
A representative of Facebook has said that the policy is broad intentionally as they work to detect the misleading and deceptive advertisements better. It is likely possible an advertisement from a cryptocurrency related company or business might not be allowed on Facebook even when it is not related to any aspect of cryptocurrency. Facebook is however committed to refining and revisiting the ban policy as the signals are enhanced to allow for the advertisement of services and products that are not related to cryptocurrency even from the crypto related companies. The innovative startups might have to go elsewhere if the financial watchdogs in the United States and other parts of the world do not develop clear rules for the market of cryptocurrency.
Also, there is an irony to the move of Google. As much as the adverts regarding cryptocurrency will end, Google might be stiffing the development of companies that it has actually invested in which use cryptocurrencies directly. There are companies such as Storj, blockchain-based cloud storage and the platform of payment Veem that Google has financially backed which will be unable to make advertisements on the search engine as soon as the ban is brought into effect. The move of banning cryptocurrency advertisements comes less than a year later after Alphabet; the parent company of Google put investments in Blockchain.info online wallet which is based in London. It also remains a mystery how services like this will be in a position to advertise after the ban is brought into effect.

At that time, the partner of Alphabet Hulme Tom said that the company’s investment raised almost 72 million and the overall funding was necessary since the innovation pace in the space of digital currency is unmatched. Yet the wallet providers of cryptocurrency will not have access to the biggest internet search engine in the world in less than one month – New restricted financial products policy (June 2018).
Google said last year it took down over 3.4 billion advertisements which violated its standards and regulations and this was almost double the 1.8 billion ads that were taken down the year 2016. Alphabet, the parent company of Google makes almost 80 % of its revenue from ads and there it is important to convince advertisers the company’s ecosystem is effective and safe.
The Impact of the Ban
There are a few individuals who might mourn the advertisements barrage for the shady initial coin offerings which promise a return of 10 times and more. However, the space of cryptocurrency is a new economy that is booming and such a general ban may end up hurting other cryptocurrency businesses that are legitimate. Blockchain looks like the next financial big thing and Airbnb and Uber that are blockchain-based are being envisioned already. Actually, it is hard to get an industry that the startups related to blockchain are not threatening to disrupt. In the real sense, not all the crypto businesses are scams. So is the move to ban advertising from all these businesses on the major internet platforms good?
A Cryptocurrency Company’s CEO, Trevor Gerszt said he is not afraid of the move but he does not welcome it. It is a frustration for a legitimate business like Coin IRA which has done everything to comply with policies and offer legit investment products to be punished together with the scum ICO schemes (“Exclusive: Is Google Quietly Purging Cryptocurrency Ads and Content? | Finance Magnates,” 2018). However, the ban on ads may not affect the more reputable and established businesses of cryptocurrency as more as they are bound to impact the small businesses that want to use advertisements to gain brand recognition. For the startups, this means the ban will make it harder to get funds through an ICO. For the cryptocurrency related businesses like wallets and crypto exchanges, the move to ban such ads is definitely bad news. The startups which are blockchain based will be allowed to post their ads on Google as long as they do not include the aspects of crypto in them like wallets, tokens, ICOs, and others. The policy does not apply to technologies related to blockchain which do not have a relation with ICOs and cryptocurrency but the advertisements have to adhere to the company’s other policies.
The famous biggest digital currency in the world, Bitcoin has dropped to month low after this incident. The company slumped to its lowest level in a period of less than a month after the claims banning online advertisements that promote initial coin offerings and cryptocurrency. The industrial officials have said that these regulators are required to give greater clarity of the regulations. Bitcoin dropped by 9 % to $8367 which is the lowest it has reached since January when the company announced that the restriction will start working in June (“Google bans cryptocurrency advertising,”2018).
Some of the CEOs of crypto-related business have said that they do welcome the ban and the people that might be disappointed by the move are the con artists and the scammers. The large amounts of money which are earned in ICOs are based on relationships and most issuers who are legitimate have a good connection with blockchain and crypto funds. Some CEOs argue that the ban will bring a positive transformation to the industry and will assist in cleaning garbage (“Exclusive: Is Google Quietly Purging Cryptocurrency Ads and Content? | Finance Magnates,” 2018). The CEOs of Delta and CrowdfundX are not worried either. They say Google wants a better experience of advertisements for the viewers and the cryptocurrency community as a financial market also wants legitimacy. The restrictions are definitely part of the steps to filter the illicit businesses and activities from those which are genuine and have innovative products.
The market will become stable eventually and the activities which mislead will be removed. The companies that are going through ICOS should concentrate on showing their value through evidence and creating innovative and great products. In a way, it is not strange that the legit startups which are blockchain-based are not worried about the ban. Several startups have to fend off investors like Gems and Theta that have canceled ICOs recently because they raise too much revenue in the private pre-sales . As much as some startups that are unlucky though will be hurt by being unable to advertise their sales of tokens, it looks like the blockchain space has become so hot that even the general ban will not kill or even hinder it. It may just make it slow for some time.Some experts see The Cryptocurrency Industry Might Actually Benefit From an Ad Ban
Where To ?
This is a question that cannot be answered for some time. The entire world is waiting for regulatory rules and guidelines that are clear on ICOs and cryptocurrency. As much as the likes of SEC are pioneers in this space, we might experience constant apathy towards promoting cryptocurrencies and ICOs on several online platforms for a period of time. Unless there are guidelines and firm rules that will protect may viewers and users from misleading opportunities of investments and ICO scams, the extreme sanctions will still remain. Otherwise, the efforts to ban these advertisements will go to waste if the guidelines are not very clear and strict.

What is Blockchain technology ?

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Blockchain definition
Blockchain technology explained simply: “A blockchain is a digitized, decentralized, public ledger of all cryptocurrency transactions.” It consists of blocks – bitcoin blockchain blocks. Blocks are the most recent transactions and they are recorded and added to it in chronological order.Blocks keep track of digital currency transactions without central record keeping.
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Blockchain explained
IBM made excellent free ebook “Blockchain for dummies” and important informations you can see in this video:

Blockchain is a new type of internet which allows information to be distributed without being copied. With the continuous evolution of the world through globalization, technology has also not been left behind. It is bringing along ways that are fast enough for people to comprehend systems behind their easier and quicker way of transacting, especially online. Blockchain technology, however, is not a new phenomenon. Surprisingly, its existence dates back to the year 1991. Stuart Haber and his colleague Scott Stornetta explained in theory at first, of how they were to develop a system, whereby the documents would get time-stamped to avoid backdating and tampering. The following year, they were joined by another colleague, which saw them improve on their earlier designs and concepts to enable several documents to be collected and eventually stored in one block. Blocks are typically storage centres of data or information. Various blocks are joined together to create a Blockchain. For the blocks to be tamper proof, each one is secured using the cryptography system. These imply that every block contains a cryptographic hash, which is a unique identifier such as a fingerprint or a specific code. For security and prevention of a possible hacking, no cryptographic hash of any block is similar to the other.
The first of the Blockchain technology prominent use was witnessed in 2008 when its usage by Satoshi Nakamoto in cryptocurrency revolutionized his company- Bitcoin. Dealing with digital currency, Bitcoin needed a foul proof public ledger that recorded transactions between parties in a permanently efficient and verifiable way. This revolutionary- Blockchain technology- is open and managed on a peer to peer network for verifiability through internode communication and block validation. Due to its permanence and ability to record events, as well as its impenetrably nature, the technology is viable for use in other areas such as health record management, voting, processing transactions, managing identities and storage of classified documents. This is because once an event is recorded, the ability to delete or alter is barely impossible without interfering with other blocks in the chain attached. Even then, the time required to do so is too much that the system will have detected the breach.

Essential Characteristics of the Blockchain Technology
Anonymity is where a person’s identity does not get revealed at any given time. This feature is critical since people require privacy, especially in transactions. As for Blockchain technology, every user is allowed an opportunity to interact via a generated address. This is where their real identity is not unmasked, and this reveals one of the Blockchains unique features that has made it popular and enabling its extensive use. On the other hand, lack of a centralized protocol is also another essential component of this technology. When data is in a central location, for example the central or federal reserves, every transaction performed needs authentication and validation by a statutory body such as the central bank. This background check leads to increase in operating costs and subjects the user to many hurdles before approval of payments. This process is tedious, frustrating and takes time to process sometimes extending to days. However, a decentralized system does not require oversight from a third party. Therefore, it is not a requirement for one to report or even inform the authorities when transactions occur. This makes the Blockchain technology fast and reliable in cases where instant or quick exchanges are needed.
What’s more, Auditability and persistence are among other reasons why the Blockchain technology is well embraced in cryptocurrency transactions. Due to the multiple nodes verifying information, it is critical to note that data gets verified instantly and reliably in the shortest time possible. This ensures that invalid transactions are immediately discovered and therefore, do not get admitted. Their strict protocol provides that deletion of operations, as well as roll backing them, is impossible, ensuring everything is above board.

Blockchain Technology Usage- applied blockchain
Various sectors continue embracing the technology due to the various inventions it possesses. For instance, Blockchain technology is developing into a game changer in enhancing healthcare systems. For every healthcare provider, quality service delivery is top of their agenda. Through this technology, it is evident their chances of success are more likely to occur. It is clear that patient care management is directly in line with the achievement of quality care. Various institutions have set up rules and regulations in ensuring that this area is not subject to neglect by health care providers. In this case, Blockchain plays a significant role here in that; it allows alteration of data to get done by community users and various professionals. It is mainly through authentication of the persons. Through the private key cryptography, a digital identity gets created, and the changes added to reflect on the system within seconds. In the medical field, this is crucial as any combined data helps in decision making.

Bitcoin infographic

by bpalacio@mac.com.

From Visually.

The distribution of ledgers is also a revolutionary technique in this industry. The open system guarantees access to experts while serving as a storage facility for data. Additionally, this data is verified, signed digitally and authenticated in real time. The safety of the information is an added assurance that since all members keep a copy of the data, no single user can alter the data. These systems are not entirely new, hence it is easy to transfer and pick up during an introduction. It is also worth noting that the healthcare industry too is a business like any other. Hence, when Blockchain technology enhances transactions in firms, several are healthcare related.

Hdac blockchain technology is an IoT contract platform based on blockchain, that not only exchanges but also restricts the usage of connected devices.An IoT contract is a machine-to-machine (M2M) service that controls all the devices in the blockchain network. It is able to do this by embedding a smart contract to the IoT device and sharing the address of the device in the network.

Titanium Blockchain is a Blockchain global innovation ecosystem where 80+ developers, architects, Blockchain product managers, business development and investment professionals, made a pioneering Blockchain R&D and consulting company.

In the business industry, specifically the financial service providers, insurance companies, asset managers and banks, they are all set to benefit more from Blockchain technology. Access to a whole range of well-interconnected databases and cryptography has continually allowed such institution to gain unlimited access to tamper-proof digital ledgers simultaneously. Earlier the institutions mentioned above ignored this idea, assuming its failure. However, the Blockchain usefulness in the industry led to the consistent growth of these industries venture capital. Areas such as clearing and settlement of trades and loans in financial institutions are set to gain much. Saving of wastages accruing to $10 billion has been projected across the industry on an annual basis when Blockchain is integrated into the system. This proves that the technology is not only efficient, but provides an opportunity for businesses to control leakages that sometimes run them dry financially.

The Australian securities exchange, for instance, seeks to migrate all its post-trading operations and settlements on to a Blockchain system. Payments too, especially by central banks in various regions are set to move, and this is due to the realization of the advantages technology brings especially when it comes to fraud prevention and data security. The reluctance by the Switzerland Central Bank to embrace the technology after several calls from local financial players has led to some commercial banks within Switzerland to go it alone to a point where they are raising their own digital currency. Additionally, many central banks across the globe intend to raise digital currencies to curb the growing challenges that Bitcoin possesses on their monetary policies.
Moreover, the Blockchain technology can also get used in identifying clients and immigrants, especially in cross-border trades and entries. As it continues to enhance trade, various sectors too are mainly benefiting who include the agriculture industry, music industry and smart appliances, where in particular, users continue enjoying more control over their devices.

We can a lot of articles and case studies related to blockchain. For example this technology could help reduce the big internet companies’ influence and return the web to his original vision.
Blockchain technology could solve the internet privacy problem, Social Media’s Biggest Problems or Revolutionize the Healthcare Sector, solve whiskey counterfeiting; Ssolve the Water Management Crisis etc.

The Demerits of Blockchain Technology
Although Blockchain has been termed a revolutionary in the business and tech world, there are several challenges affecting the effectiveness of this technology. With the growing movement to cryptocurrencies and the continuous growth of Digital Coins, transactions are increasingly becoming bulky. It is, in turn, hindering effective service delivery due to the restrictions on the optimum time to generate a new block. With the speeds of processing transactions set at seven transactions per second per block, it is increasingly becoming a challenge to transact effectively, especially those with low transaction fees. This is because data miners prefer sales generating higher prices as opposed to those with lower fees.
Another major demerit is privacy. Blockchain can only preserve a small amount of private information on both the public key and the private key. Recent studies show that since transaction amounts and balances are publicly visible, it is not possible to guarantee ultimate privacy to a user. For instance, in Bitcoin trading and mining, transactions can get linked to reveal user details. This is through classification of buying behaviour and narrowing it down to given specific information such as the user’s age, gender, and area of residence. Therefore, in some cases, the user complete anonymity cannot be guaranteed.

Conclusion
Technological advances continue to improve the world in various ways of life. It is important to embrace these technologies as agents of change and simplified ways of doing things. Blockchain technology as witnessed is a promising product, especially in improving businesses and promises to offer a lot in other crucial sectors such as immigration and health care system, especially with medical health management. Central banks in New York, China, and Sweden among others, continue to evaluate the usefulness of this technology in their business models and how they affect their monetary policies. With the enhanced security protocols, its wide range use and reliability will attract many businesses into its adoption. The Blockchain technology is the modern world tech revolution and change to its adoption specifically in the financial sector seems inevitable.

Google Bans Ads for CFDs and Forex affiliates – New Restricted Financial Products Policy in June 2018

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Overview – Google crypto ban
Google is the worlds leading search Engine Company and the second largest public traded entity globally. With the rising call for more accountability of institutions that deal with the general public in ensuring fair, ethical and open dealings, Google is not left behind in complying with these elements. In the recent past, there has been an uproar on the rising deceptive adverts running online, with a clear aim of confusing unsuspecting potential investors, and when they fall into the trap, they are ripped off their hard earned money. Google, being a world leader in the advertising sector through its AdWord platform has seen it necessary to exercise accountability through enabling only the certified financial advertisers on its platform. In its announcement, Google has cited ban in its platforms the advertisement relating to the initial coin offering (ICO), cryptocurrency wallets, exchanges, as well as trading advice. The ban also extends on other financial products such as binary options and spread betting. Forex advertising network will change after new Google restriction to forex trading ads.
Google Bans Cryptocurrency Ads
In the past google banned search terms for lot of products. All these have to do with investor protection initiatives due to the rising fraudulent cases involving unauthorized brokers taking advantage of the high wave for quick cash in these unregulated financial products. With concerns mostly emanating from the US exchange commission concerning the ban on ICO advertisements, Google’s move is seen as a precaution to avoid a future clash with the authorities on its role in consumer data and protection. On the same note, other major players in the advertisement world such as Twitter, Facebook, Yandex have taken measures to control the same types of adverts on their sites, either by pre-approval or by total ban, due to concerns they have raised over legitimacy and also because of maintaining the overall image of these sites.
What Does Google Ban Entail – Google Bans Forex Ads ?
Google’s annual earnings in financial adverts of cryptocurrency and related products have been estimated to be over $25 million. Nevertheless, Google has mounted to the pressure of axing most of these adverts due to the security of its clients, consumer protection obligation, as well as the future accountability and company image. This is largely due to fraudulent cases associated with the unregulated cryptocurrency sector and the looming security and exchange commission rules on protection of cryptocurrency investors. Canada and the U.S. have been in the forefront leading the war on ban for adverts on ICO and calling for the establishment of regulations in the online financial sector, especially cryptocurrency which in the recent past has hit the world by storm. Many investors have lost billions of dollars, mostly emanating from deceiving adverts which unsuspecting traders fall into the prey. With. This has come to the attention of the Google as a main player in the advert world.
google bans forex affiliates
Financial Services: New restricted financial products policy (June 2018)

In June 2018, Google will update the Financial services policy to restrict the advertisement of Contracts for Difference, rolling spot forex, and financial spread betting. In addition, ads for the following will no longer be allowed to serve:

Binary options and synonymous products
Cryptocurrencies and related content (including but not limited to initial coin offerings, cryptocurrency exchanges, cryptocurrency wallets, and cryptocurrency trading advice)

Ads for aggregators and affiliates for the following will no longer be allowed to serve:

Contracts for Difference
Rolling spot forex
Financial spread betting
Binary options and synonymous products
Cryptocurrencies and related content.

Advertisers offering Contracts for Difference, rolling spot forex, and financial spread betting will be required to be certified by Google before they can advertise through AdWords. Certification is only available in certain countries.

To be certified by Google, advertisers will need to:

Be licensed by the relevant financial services authority in the country or countries they are targeting
Ensure their ads and landing pages comply with all AdWords policies
Comply with relevant legal requirements, including those related to complex speculative financial products

Advertisers can request certification with Google starting April 2018 when the application form is published.

This policy will apply globally to all accounts that advertise these financial products. For more details, see About restricted financial products certification.

(Posted March 2018)

Brokers will be allowed to advertise forex and CFDsonly after receiving certification from Google
The force on the ban will come to effect on this June 2018. Brokers in the mentioned financial areas will be undergoing a thorough scrutiny before they get approval for placing the adverts. This will eliminate unscrupulous brokers who sell unregistered securities or who pose as genuine brokers only to run away with investors’ money. After scrutiny of the broker information, Google will either reject or approve the specific broker. When approved, the broker will be issued with special certification to allow them to advertise for their product in their requested target region. Nevertheless, for one to qualify for certification by Google, the firms they represent must have acquired the necessary licensing to operate in the regions they intend their adverts to target. On the other hand, they must have conformed with various laws and regulations regarding their business in order to meet the AdWord requirements for the specific geographical area.
All these processes are aimed at bringing in some sanity in the cryptocurrency sector by offering protection to the investors, especially from deceiving adverts being run by fraudulent brokers posing as legit traders. The cryptocurrency craze, especially the one witnessed by Etherium and Bitcoin has seen hundreds of other digital coins emerge, with fraudulent traders taking this advantage and floating offers in terms of advertisement for unregistered securities, which has seen either a total market collapse of the specific securities, or marginal shift in value for a short period. In this process, billions of dollars have been lost and hence the call for regularization, especially in the adverts concerning this sector as it acts as the backbone of the whole process.
A good example of a fraudulent case concerns a California based tech company Tezos, which conducted an ICO in July 2017 and got a staggering $232 million, which later would emerge that it was a fraudulent deal based on a lawsuit filed at a superior court in San Francisco, alleging violation of U.S securities law. In such a case, Google and other social media players who are more involved in advertisement of such nature have seen the need of regulating the advert content. This is amid a growing concern of the investor protection following a huge amount of losses due to reluctance in streamlining the advertising sector, as well as that of the digital currencies.
The Effects of the Ban on Google, Brokers and the Investors
Google through its platform Adwords lakes in billions of dollars in terms of advertisement revenues. In the recent past, one of its most lucrative sectors for the advertisement has been cryptocurrency related adverts. It is estimated that from this sector alone, Google earned an estimated $25 million annually in terms of advertisement revenues. Nonetheless, Google is concerned more by reputation, consumer protection and future accountability, more than revenues for now. In 2017, in a move to safeguard investors and consumers in its platforms, Google pulled down an estimated 3.2 billion ads that violated their terms of use. Through its annual report, Google indicated that it was more concerned about the user experience rather than the advertisements. Therefore, in the long run, the gain will be higher than the estimated loss in revenue for now, as more consumers gain confidence when dealing with the platform and increase their spending and advertisement due to the legitimacy of the site. This news was one of the biggest news on Bloomberg such as Bloomberg video about Google financial restriction and Bloomberg news about bitcoin drop and CNBC news about google bans cryptocurrency
For the brokers, the best time to make a difference is now. All is not lost. In fact, this is the time for those who offer genuine adverts to take the advantage and get certification as the unscrupulous brokers get scared. For the genuine brokers, this is the time for the right push for their products. As the Google positions itself as an open and genuine platform, the brokers have the opportunity to associate with these attributes now and in the future to gain investor confidence. On the other hand, as the market penetration will now become difficult, brokers can explore other options such as optimization of the Google search ranking, operating genuine websites and performing offline marketing. On the same note, trading companies can increase their social media presence, as well as increase traditional advertising such as below the line marketing and Radio or TV advertisements. This will ensure that even when they face the ban effects over the Google AdWords, their presence is still felt on the other platforms, and they are able to maintain their clientele informed.
On the investor side, the Google ban means more than ‘just a ban’. This will increase client confidence and user experience which is good for the company also. The users will feel safe and valued and therefore, giving them the confidence to transact over the platform. The ban is also a sort of assurance that the adverts which appear on the AdWords are genuine and have been verified by Google, creating a responsible environment where users can feel secure with whoever they will be dealing with. Investors are always concerned about how secure their payment will be and therefore, having a notion that the existing brokers are certified and the adverts thus are genuine, this in turn provides confidence in the choice of investment. The move will also ensure that fraudulent cases are reduced and in cases where they appear, Google is aware of how to hold accountable as it will have already verified the user and known them more.
Without consumers, organizations can barely survive and thus the need to be more vigilant in protecting them whenever possible. The move by Google can be termed as a broad move for the interest of its users and to avert future troubles of being held accountable for the damages or losses which may emanate from a non-regulated advert sector. This move has also seen other big players extend the same measures, and sooner or later, it’s the hope of many investors that they will operate in a world where deceiving adverts will be a thing of the past and where brokers will be responsible. This reality is not way too far considering the measures being taken presently to attain a free fair and genuine advertisement world.