worldfinance.com

March-A

pril 2013

Published by World News MediaMarch-April 2013 | worldfinance.com

DAVID ORRELL DANI RODRICK HOWARD DAVIES SELWYN PARKER ALAN BERUBE JEFF RANDALL

UK £4.95CAN $14.75

FRANCE €6.50GERMANY €15.00BENELUX €10.95

SPAIN €7.00USA $7.99

The crisis the world forgot

Breaking the tax barrier

The battle for online trading

WORLD FINANCE

2012 may have been a landmark year for climate change, in the worst possible sense

Singing the Basel blues

The latest regulatory accord from Basel III has arrived, but it is a shadow of its former self

France’s proposed 75 percent tax hike for the wealthy has caused widespread controversy

BANKING BORDERSREAL ESTATE FORECASTPRODUCTIVITY PLATEAU

THE NEW CURRENCY WARS

A slow decline for innovation Economic growth may be stunted after centuries of technological advancement

Markos A Kashiouris, founder and CEO, explains how IronFX has traded its way to the top of the forex market

Rise of the euroscepticsGreat Britain’s relationship with the EU hits new levels of contention

The Argentinian spending crisisPresident Kirchner’s economic policy is under scrutiny as finances stutter

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MARKETS | FOREX AND BROKERAGE

complained of competitive devaluations caused by increased money printing in Europe and the US. The so-called ‘currency-war’, in which a number of countries, including Japan, have rushed to devalue their currencies by printing more money in order to remain competitive, is likely to have an effect in Latin American coun-tries favoured by investors, like Mexico, Chile and Peru.

Brazil fi rst coined the term ‘currency-war’ in 2010 when it began struggling to compete with devalued currencies. Felipe Larraín, Chile’s Finance Minister, has said the new waves of quantitative easing might lead to “new forms of

trade protectionism.” Agustín Carstens, head of Mexico’s Central Bank, has also expressed concern that “asset-price bubbles fed by credit booms have started to reappear.”

“We fi rmly criticise the monetary policies of developed economies that are generating ex-cessive international liquidity and overhauling currencies such as ours,” added Mauricio Cárde-

nas, Colombia’s Finance Minister. In 2010, Bra-zil turned to capital controls, but other South American countries have rejected this approach, turning instead to direct currency intervention such as paying down foreign debt. But there are questions over how effective these can be, and there is a chance that exchange rates will con-tinue to suffer. “We do not like capital controls,”

WESTERN EUROPEBest Advisory Broker Hartmann Capital

Best Discretionary Broker Deutsche Bank AG

Best Online Broker DIF Broker

Best Execution Broker Barclays Stockbrokers

Best Sustainable Stock Exchange Frankfurt Stock Exchange

Best Binary Options Trading Provider Optionow

Best Tangible Asset Broker IPINglobal

Best Commodities Broker Sucden Financial

Best CFD Trading Broker IG Index

Best High Frequency Trading Company List Group

Best Fixed Income Desks Smith & Williamson

Best Electric Bond Trading Marketplace icubic

Best Customer Service Provider Credit Suisse

Best Education Provider Knowledge To Action

EASTERN EUROPEBest Advisory Broker Nettrader

Best Discretionary Broker Erste Securities Polska S.A

Best Online Broker HotForex

Best Execution Broker RoboForex

Best Sustainable Stock Exchange Prague Stock Exchange

Best Trading Technology Company ProQuote

Best Tangible Asset Broker NTC International

Best Commodities Broker Dom Maklerski

Best High Frequency Trading Company AlgoSpan

Best Electronic Bond Trading Marketplace MTS Bondvision

Best Customer Service Provider Nettrader

Best New Broker BRE Forex

Best Education Provider XTB Online Trading

NORTH AMERICABest Advisory Broker Saratoga Capital

Best Discretionary Broker Goldman Sachs

Best Online Broker Charles Schwab

Best Execution Broker Newedge

Best Sustainable Stock Exchange Nasdaq

Best Trading Technology Company Actuate

Best Binary Options Trading Provider Banc De Binary

Best Tangible Asset Broker Belgrave Group

Best Commodities Broker GFI Group

Best CFD Trading Broker Interactive Brokers

Best High Frequency Trading Company Solarfl are

Best Electronic Bond Trading Marketplace Goldman Sachs

Best New Broker Virtual Brokers

LATIN AMERICABest Advisory Broker BES Securities

Best Discretionary Broker Vector Casa de Bolsa

Best Online Broker LiteForex

Best Execution Broker CI Casa de Bolsa

Best Sustainable Stock Exchange Bolsa de Santiago

Best Trading Technology Company Orc Software

Best Binary Options Trading Provider TraderXP

Best Tangible Asset Broker Green Land Securities

Best Commodities Broker Iberica

Best High Frequency Trading Company Link Investimentos

Best Electronic Bond Trading Marketplace Cetip

Best Customer Service Provider Vector Casa de Bolsa

Best New Broker GF Group

Best Education Provider Equipe Trader

EXCHANGES & BROKERS AWARDS 2013Brokerage houses are arming themselves for a surge in client interest, while investment multipliers are expected to go into overdrive over the next 12 months as governments aim to increase liquidity. However, with risk still at a premium, it’s important to know the brokerage market. Here, World Finance unveils its Exchanges & Brokers Awards 2013, informed by the World Finance readership and analysed by the magazine’s judging panel.

FINANCE E X C H A N G E S

& B R O K E R S A W A R D S

2 0 1 3

WORLD

Brokerage fi rms will have to continue to be creative and malleable in order to remain competitive and

recover their pre-crisis profi t margins

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84world finance | mar–apr 2013

We believe DIF Broker has come a long way in a short time because it has a clear direction of where it wants to go; that is, to be a global online investing network, providing personal solutions for the global investor. In Iberia, we have emerged as one of the top brands of choice in online fi nancial services.

Finding the right brandExpanding our vision globally is a challenge be-cause we need to build the right kind of identity – the right brand – everywhere we go and we need to commit everybody to accomplish the goal of realising our vision. DIF Broker is today much more than simply a place to execute brokerage transactions.

It is the place for clients to build portfolios globally using technical models from Dorsey Wright. We are building an identity that empow-ers the individual to have anytime-anywhere in-vestment management provided automatically. This is a crucial distinction for DIF Broker.

The simple fact is that any client with us can

have a portfolio on any market, and run on auto-matic pilot with our partners DWA models. If a UK client wants a portfolio on the German mar-ket, there is a German model; if a French inves-tor wants a portfolio on the Hong Kong market, there is a Hong Kong model.

That is why we lead the way, through innova-tion and by delivering excellent personalised cus-tomer service. For us, the client is a key member of our global online investing network, because they are critical to our vision of DIF Broker’s electronic investing future. Every client plays a critical role in the ongoing evolution of our global investing network.

Trade the worldDIF broker recognises that customer growth is the strongest corporate asset an online brokerage organisation can have. For DIF Broker, there is a customer on the other side of every action we take. Our customer focus encourages us to exceed the expectations of our clients, because we do what we say we will, and everyone is responsible.

DIF Broker and our partner DWA have de-veloped a unique product and service offering to ‘trade the world’ with technical models, which facilitates and enhances the investor’s ability to get appropriate and coherent portfolio manage-ment decisions that empower the investor in an entirely new way.

Many brokers and other fi nancial companies are attempting to grab market share in the per-sonal fi nance and investing sector through the use of software. Brokers at DIF are educators, which is what defi nes us.

Our people – in order to succeed in customer service – need to have a genuine desire to assist the client in providing a simplifi ed online experi-ence, so clients can place money into ‘trade the world’ technical models. They provide the tools that help the client.

A model for learningUnlike some, at DIF Broker there is no automatic software to provide asset allocation strategies based on modern portfolio theory. We believe the asset allocation strategy is the root of the problem. Educators at DIF Broker discuss with clients the strategy in three simple steps:● Both parties decide which particular market

to invest in; for example, Germany; ● The client decides on the amount that is going

to be allocated to Germany; and ● The client does not need to do anything else

as computer models handle things thereafter.

If a stock needs to be sold and another one bought, the computer model automatically makes the transaction, and the client is notifi ed whenever a change takes place. Ultimately, the

Creating a new global banking model

As online competition accelerates, competitive strategies are going through rapid transformations. As it reshapes international fi nance markets, the

internet has brought the global economy closer to home

MARKETS | FOREX AND BROKERAGE

Paulo PintoCEO, DIF BROKER

Words by

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85world finance | mar–apr 2013

client may replace Germany, but maybe not for years. The broker at DIF will contact the client when the model is out of favour by DWA rules.

The client becomes the architect of the port-folio with the help of the educator. With models, the portfolio can be constructed aggressively or passively. There is a learning curve to appreciat-ing how the models are managed, what the rules are in the models, how one stock comes out and how one goes in.

As Tom Dorsey, President of DWA, says: “people do not want the quarter-inch drill; they want the quarter-inch hole.” Finance is a tough space, the barriers to entry are high and it takes a great deal of domain knowledge to succeed. We undertake all our initiatives with the conviction

that building a trusted brand is critical to our success. To us, being recognised is more than just a question of advertising; it encompasses the whole customer interaction and requires multi-ple capabilities from regulatory compliance to customer service, to the product on offer.

Regulatory frameworkThe security industry is subject to extensive regulation covering all aspects of the fi nancial business, including safekeeping of customers’ funds and securities, capital structure, record keeping, the conduct of directors, offi cers and employees, and of course sales methods. Regu-lation also covers trade practices, but as a broker, we just provide third-party electronic trading.

DIF Broker is required to comply with many complex laws and regulations, including rules relating to communication with the public. As a pan-European broker, we must comply with the regulatory controls of each specifi c coun-try we work in. In such a tough global market, where there is little forgiveness for even minor transgressions, there is tremendous risk and enormous opportunity.

Our goal is not to be the biggest, because that really does not mean anything, apart from being identifi ed as ‘too big to fail’. Our goal is to con-tinue to be the best. We have now established a branded value position in the marketplace, rec-ognised by the experts.

We expect that by focusing on our niche, as well as expanding our concept, we will continue to be successful in maintaining our leadership position. Industry awards are meaningless to those who have not won any, but for us they are the recognition of our work.

For more information:www.difbroker.com

If a UK client wants a portfolio on the German market, there is a German model; if a French investor wants a portfolio on the Hong Kong market, there is a Hong Kong model

The German Stock Exchange, Frankfurt. Based in Europe and operating online, DIF Broker is able to bring global markets, including Germany’s, direct to the client ready for investment

MARKETS | FOREX AND BROKERAGE

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