Financial markets. Types of financial business entrepreneurial activity in the financial market Financial settlements in business commercial banks

Hello! In this article we will talk about the financial market and its participants.

Today you will learn:

1. What is the financial market;
2. What is the structure of the financial market;
3. Who are the main market participants;
4. Famous brokers on the Russian market - who are they?

When it comes to the concept of a market on a national or international scale, most often it is the exchange of goods or raw materials for banknotes. That is, something tangible is given in exchange for liquid funds. It is difficult for an ordinary person to imagine that on both sides of such an exchange there could be money in one form or another, acting as a commodity. No matter how strange this role may seem at first glance, it is the cornerstone that underlies the financial market, both domestic and global.

What is a financial market

Financial market is an established system of trading money itself and its equivalent, through which there is a constant movement of monetary resources between investors, the state, enterprises and other participants.

Thanks to a whole range of diverse interests, the diverse types of relationships in the market can be identified and broken down into components.
One of the important characteristics of our century is the need for such a concept as timeliness. As you know, demand creates supply, and a flexible financial market supplies money on time to those who need it and are willing to pay more for money than they are worth, due to an urgent need for it or in the hope of a multiple increase in income in the future.

It is the degree of activity of monetary capital that characterizes the “health” of the state’s economy. An analogy can be drawn with blood circulation in the body. Just as in a healthy body, blood actively runs from one organ to another, saturating them with oxygen, so in a prosperous economy, liquid funds quickly move from one “owner” to another, responding to the needs and demands of market participants.

Thanks to the constant movement, redistribution and accumulation of capital, supply and demand for it tend to balance.

In the modern world, almost no country can exist in isolation from others. The concept of globalization is increasingly heard on screens. Now national finances do not revolve within one state, but have gone beyond its borders, which allows us to talk about the global financial market.

World financial market is an organized system of interaction between national and international financial markets, where the movement of capital is carried out between its subjects on a planetary scale.

Monetary resources are redistributed here on a competitive basis between states, their regions and industries.

Here are some examples of capital flows to illustrate how the financial market works.

Example 1. Let's assume that an entrepreneur has decided to expand the production of furniture, but right now he has no money to buy the necessary equipment. Then, if his business is in the form of , he can issue additional shares.

Investors, believing in the success of his company, buy shares in order to invest their money and with the desire to make money on an increase in the stock price. Equipment is purchased, trade increases, as do profits, shares rise in price, investors sell them for more than they bought, securing a profit.

Example 2. To do this, a person goes to a bank and takes out a loan. The bank, being a commercial enterprise, provides loans at interest. He himself borrows this money from the Central Bank, also at an interest rate, but lower than what he himself gave to the borrower. Accordingly, a commercial bank will ultimately earn on the difference in interest.

Financial instruments are inextricably linked with the concept of the financial market.

Financial instruments – this is the so-called “quasi-money”, that is, “not really money”. This includes securities, monetary obligations, currencies, futures and options.

Types of financial markets

We have already determined that the object of purchase and sale in the financial market is money itself.

But money is a diverse concept. Money can be in gold, in securities, in currency, and in the form of any obligations. This determines the fundamental difference in the transactions themselves.

Therefore, the financial market does not act as a monolith, but has a structure that is fragmented both by types of transactions and by the “interests” of participants.

Let's consider this structure in the form of a table.

Market type	The essence	Example
Credit market	This is the name of the economic space where available funds are transferred to those who urgently need them, from those who are ready to provide them on favorable terms. The main purpose of transactions in this segment is to benefit from interest rates. The operation is very common among both companies and ordinary citizens.	For example, when a citizen takes out a mortgage through a bank. The bank pays the applicant the entire amount for the purchase at once, which obliges the buyer to return it plus interest under the lending program
Foreign exchange market (Forex market)	Ensures international payment turnover. Connects global market participants. The commodity here is the currency itself, that is, the monetary units of different countries. The exchange rate is determined by the relationship between supply and demand for a particular currency	Purchase or sale of foreign currency by a bank client at the rate stated by the bank. The legislation of the Russian Federation prohibits carrying out such operations without going through banks.
Stock market	It is a separate economic and legal structure where securities are issued, circulated and sold (hence the other name - the securities market). These include bills, checks, bonds, futures, options, shares and others. Operating principle – transfer of cash into securities	Purchasing Gazprom shares in order to wait for them to rise in price and sell them again for a profit
Investment market	Most often this refers to long-term projects and capital investments. In addition to cash, they can also acquire movable property, the right to use land, and objects of copyright.	The company issues shares in order to attract finance for the development of a new line of production for which it does not have enough cash. Another company or individuals buy them. This is how capital is redistributed
Insurance market	A form of managing monetary relations, the center of which is insurance protection. Life itself, ability to work, health, business risks may be insured.	An enterprise can insure itself against production downtime through an insurance company. For example, due to a fire or natural disaster
Gold market	Retail and wholesale transactions with gold bars	Gold can also be used for international payments

Financial market participants - who are they?

Financial market participants – these are banks, international monetary and financial organizations, brokerage firms, insurance and investment companies and funds, currency and stock exchanges, foreign trade and manufacturing companies.

Whatever role a participant plays in the financial market, his main goal is to benefit himself. Apart from some convinced investor who invests in the domestic space program solely for the sake of pride in the achievements of his country, this benefit is of a material nature. Let's look at who these people are and how they make money from capital movements.

There are two broad categories in the financial market:

• Sellers and buyers (combined, since one person can alternately be both);
• Intermediaries.

The first category acts in its own interests and using its capital. The concept of trader and trading is closely related to it. Given the complexity of the financial market, it needs some layer in the form of intermediaries, whose task is to be a link between the seller and the buyer. He can simply give advice to the buyer or take on the tasks of buying and selling, being his official representative.

This list can be modified depending on the type of market. For example, in the insurance industry there are policyholders and insurers, in the credit industry - lenders and borrowers, in the stock industry - issuers (those who issue securities) and investors.

Who are traders

When you hear the word trader, you imagine a person sitting in front of several monitors and carefully monitoring changes in charts and diagrams. This is true, because the modern “trader” no longer sits in a hole on the stock exchange; thanks to Internet platforms, all the necessary information for concluding transactions appears before his eyes.

The trader carefully monitors changes in exchange rates for currencies, stocks or other securities, and reads the news. He must be very disciplined to have the patience to wait for a favorable quote. Thus, his work consists of two parts: he carefully analyzes and then makes a trade.

Traders can be professional or amateur. Professionals distinguished by specialized education and permanent employment in brokerage firms, banks or think tanks. They are required to have a license for the relevant activities, which is currently issued by the Central Bank of Russia.

This is a very responsible job, because an intentional or accidental failure of a trader can threaten the company with colossal losses. History knows several such cases. For example, in 2011, the Swiss bank UBS lost more than two billion dollars due to the unauthorized actions of its trader Kweku Adoboli.

There are several types of traders: arbitrageurs, investors, speculators, hedgers. The specifics of their activities are determined by the goals that they set for themselves when carrying out transactions. In the future, we will devote a separate article to traders.

Amateur traders They already make up a whole army of people who want to get rich by trading financial instruments. To do this, you do not need to have any education; a few thousand rubles and a desire to master a new field of activity are enough to get started. Typically, novice traders seek advice from professional colleagues or use the services of intermediary brokers.

What do brokers do?

Brokers – legal entities that represent the interests of their clients for a commission – that is, they are financial intermediaries.

Brokers also need a license from the Central Bank of the Russian Federation to purchase and sell securities.

Currently, the Internet is replete with offers from brokerage companies addressed to ordinary Internet users who want to increase their funds. Usually on their portal you have the opportunity to create your personal account, open your account, watch video lessons on trading rules, and even undergo practical training in a demo version of the platform with training accounts.

A newly minted trader, by analogy with the tariffs of mobile operators, chooses the most suitable trading tariff for himself and can install directly on his computer a browser-based version of the trading platform offered by the broker. For example, the MetaTrader 4 or 5 platform. You can also download a special version of the platform to your mobile device.

A good broker will always be interested in his client's success in trading, since the user's income determines the amount of commissions.

And success largely depends on the trader’s literacy, which is why brokers often offer clients free training.

Unlike brokers, dealers are more independent intermediaries between the seller and the buyer. If a broker is a slave who does not become the owner of assets, cannot help but bring them to the stock exchange and trades only at the expense of the client, then dealers can put assets on their balance sheet, holding them for themselves, and conduct the entire business only at their own expense. According to Russian laws, only . Most often, this role is played by banks, funds, and insurance organizations.

Main brokers in the market

Let's look at several well-known brokers on the Russian market in the table.

Brokerage company and year of its foundation	Focus of activity	Advantages
Broker opening, 1995	Foreign exchange + stock market	1st place in terms of volume of transactions on the stock market in 2015. Maximum level of reliability
Alpari, 1998	Basically - an intermediary in the foreign exchange market. In general – has a number of other financial instruments	High popularity. Organization of training webinars. Developed account system. Three global licenses
	Stock Exchange	Available minimum deposit. Tight spreads. Loyalty program for VIP clients
Finam, 2000	Foreign exchange market + securities market	Best broker in Russia 2016 according to Financial One magazine. Reliability – regulated by the Central Bank of Russia. Trader support system. Trading mode with an advisor
Zerich, 1993	Foreign exchange + stock market	Low starting commission. Investment projects. Developed training system

The situation with the reliability and popularity of the broker may change. Traders are advised to monitor current broker ratings, which are compiled mostly through voting by traders themselves.

Global financial markets giants

Despite the inevitable processes of globalization, several major exchanges stand out among national financial markets. Thanks to well-established connections with other international structures, vast experience and wise management, these exchanges are known far beyond the borders of their homeland. They are followed by traders from all over the world.

1. NYSE Euronext – New York Stock Exchange, which merged with the European Stock Exchange in 2007. Along with them, the over-the-counter NASDAQ stock market is mentioned, where securities of companies engaged in the development of high technologies are traded. US stock exchanges are rightfully considered the personification of power and success; they are second to none in terms of market capitalization.
2. Tokyo Stock Exchange – Tokyo Stock Exchange. Loses only to New York. It is considered one of the oldest exchanges - it was founded at the end of the nineteenth century. It accounts for more than 80% of Japan's total exchange turnover.
3. LondonStock Exchange – London Stock Exchange. It is characterized by high internationality - more than 50% of all transactions occur in international stock trading. The exchange is also the oldest - its history began in the mid-sixteenth century.
4. Moscow Exchange. Perhaps it is too early to include it in the top of the very best, although statistics from January 2017 showed excellent dynamics of both overall trading (an increase of 4% compared to 2016) and the growth of individual markets.

The Moscow Exchange dates back to 1992 and was conceived as a platform for currency auctions. In 2011, it merged with RTS and received its modern name. The former name - the Moscow Interbank Currency Exchange - is reminiscent of the MICEX indices broadcast daily in the news, reflecting market behavior through the average value of changes in stock prices.

No one can dispute the fact that the new fashionable activity in the financial markets attracts crowds of people who want to master the profession of a trader and a number of others. But, as in any business, here a novice financier must study selflessly and boldly move forward. This is what we wish for our dear readers!

The entire set of relations that take place during the exchange of various kinds of material and intangible goods through the mediation of money (as a universal means of payment) is usually called the financial market in economic theory.

Financial markets can be called the driving force and basis of the mechanism of the modern economy. The more coordinated and efficient they work, the faster the economy develops.

Introduction

Exchange of some economic goods for others, exchange of the currencies of some countries for the currencies of others, trading in securities, lending, etc. – all these are types of transactions performed on the modern financial market. And in the case when we are talking about such operations carried out on the scale of entire states among themselves, then we are already talking about the global financial market.

Thus, according to the scale of operations, the financial market can be divided into two main categories:

1. National financial market;
2. International financial market.

In the national market, transactions are carried out on the territory of a single state. Accordingly, it is fully subject to national legislation. And the international market is nothing more than the totality of all individual national financial markets and therefore cannot be subject to the laws of any individual state (it has international norms, rules and standards specially created for these purposes).

In the modern economy, there are two main models of financial markets that have developed in the countries of continental Europe and America:

1. The continental model, based on bank financing, is also called the continental model or bank based financial system.
2. Anglo-American model based on the securities market and institutional investors (market based financial system).

The continental model is distinguished by a less developed secondary market and non-public placement of securities (a relatively small number of shareholders and, accordingly, a high degree of concentration of share capital). In the Anglo-American model, on the contrary, the secondary market is much more developed and there is a pronounced tendency towards public offering of securities.

However, over time, these two models increasingly converge with each other and the boundaries between them are gradually erased.

Forms of existence of financial markets:

1. In the form of an organized structure (for example, an exchange, where all trading operations are carried out according to strictly defined rules);
2. In the form of direct agreements (for example, the interbank market);
3. In retail form (for example, the market for banking services for individuals).

Finally, all financial markets can be classified by industry:

1. Derivatives market;

Money market

Economic relationships for the purpose of receiving or providing funds for short periods (up to one year) are called the money market.

The money market has three main components:

1. Short-term securities;
2. Interbank loans;
3. Eurocurrencies.

All money market participants can be divided into three categories:

1. Lenders or those who provide money for temporary use. This category includes banks, non-bank credit institutions, and other financial organizations;
2. Borrowers or those who borrow money. This category includes individuals, state and municipal structures, various types of enterprises and organizations, etc.;
3. Financial intermediaries provide a link between the two aforementioned categories of money market participants, although, in principle, their participation is not always necessary. These include banks, professional participants in the securities market (brokers, etc.), etc.

All of the above categories of money market participants have one common goal - everyone intends to benefit. Lenders make a profit due to the interest rate at which they issue loans. Borrowers intend to make a profit from the use of borrowed funds. And the benefit of intermediaries lies in the commission that they charge from lenders and borrowers for bringing them together and often acting as a guarantor of the transaction concluded between them.

Below is a picture illustrating the main money market instruments:

Capital market

This branch of financial markets includes long-term financial transactions (loans, investments, etc.). In essence, this is the same money market described above, but only with financial maturities exceeding one year.

So-called long-term money circulates here; capital is invested in various kinds of long-term financial instruments (stocks, long-term bonds, etc.).

The capital market has the following structure:

Everything related to the issue of securities and their further circulation (purchase, sale, resale) directly relates to the next branch of financial markets - the stock market.

It includes not only organized trading platforms - exchanges, but also the so-called over-the-counter component. Securities of the largest and most reliable issuers are quoted on the exchange market (including securities related to blue chips), and the over-the-counter market serves as a haven for securities classified as risky (for example, shares of the second and third tier that are not included in the exchange floors).

The securities market can be classified according to the following main criteria:

1. By level of placement of negotiable financial instruments:

• Primary. Here, as the name suggests, an initial placement of securities occurs (this can be either a public (IPO) or a private placement);
• Secondary. This is the market most known to a wide range of people, where, in fact, the bulk of securities trading operations take place. It includes all stock exchange platforms;
• Third. This is an over-the-counter market and those securities are traded on it that, for certain reasons, could not be listed on official exchange platforms;
• Fourth. Large institutional investors trade here. Trading takes place electronically, in large blocks of shares (or other securities).

1. By type of financial instruments traded:

• Stock market;
• Bond market;
• Derivatives market, etc.

1. By degree of organization:

• Exchange;
• OTC;

1. By level of globalization:

• Regional;
• National;
• International.

1. By issuer of traded securities:

• Enterprise securities market;
• Government securities market.

1. By longevity of traded financial instruments:

• Short-term securities market;
• Medium-term securities market;
• Long-term securities market;
• Perpetual securities market.

1. By industries to which issuers of tradable securities belong.

Derivatives market

This is a market for derivatives (derivative financial instruments) with a specific expiration date (hence the name). The following financial instruments are traded here:

• Forward contracts;
• Futures;
• Options.

Based on the degree of organization, the derivatives market is also divided into:

• Exchange;
• OTC.

Trading in the derivatives market is characterized by a higher degree of risk compared, for example, with the stock or bond market. This is explained by the fact that in this case leverage is used (the so-called). In addition, another difference here is the possibility of opening short positions (the possibility of shorting a particular financial instrument acting as an underlying asset).

Transactions on the derivatives market are concluded for the purpose of hedging positions open on the underlying asset, in arbitrage strategies or (in the foreign exchange market).

Foreign exchange market (FOREX)

The international currency market Forex (Foreign exchange market) is a system of financial relations, the purpose of which is the purchase or sale of some foreign currencies for others. In terms of the volume of transactions performed, the FOREX market significantly exceeds all other financial markets.

The FOREX market does not have any specific trading platform (such as an exchange), it is rather the entire set of communications connecting its largest players (banks, transnational corporations, brokerage firms, etc.).

The main participants in the foreign exchange market are:

1. Central banks of countries. Their main activity here comes down to managing national foreign exchange reserves in order to regulate the exchange rate of their currency. For this purpose, they can carry out so-called;
2. Banks (mostly international). This is one of the types of institutional investors in the Forex market. It is through them that the bulk of all financial flows pass here;
3. Companies engaged in import-export operations, for example, for the purpose of purchasing raw materials and selling finished products;
4. Various types of funds (investment, pension, hedge) and insurance companies. They conduct operations here in order to diversify their portfolios as much as possible by purchasing various types of securities outside their country;
5. National currency exchanges. These operate in a number of countries and their main purpose is to quote their national currency against a foreign one, as well as currency exchange for legal entities;
6. Brokerage firms and dealing centers acting as intermediaries for carrying out trading and exchange operations on FOREX;
7. Finally, private individuals. The contribution of each of them individually may be completely insignificant, but in total, the financial flow from international tourism, simple exchange transactions and speculative currency transactions of individual citizens can reach very impressive volumes.

The precious metals market can be identified as another component of the global financial market. It carries out transactions both directly with precious metals and with securities tied to them (futures, bonds, options quoted in gold, as well as gold certificates).

Based on the type of precious metal traded, this market can be divided into the following main components:

1. Gold market;
2. Silver market;
3. Platinum Market;
4. Palladium market.

Based on the type and volume of transactions carried out, the precious metals market can be classified as follows:

1. International precious metals market;
2. Domestic precious metals market;
3. Black (underground) market for precious metals.

The international market has the maximum trading turnover; large investors, international funds, as well as central banks trade on it. The largest international trade centers are located in cities such as London, Zurich, New York, Hong Kong, Chicago, and Dubai.

Domestic markets for precious metals involve trading operations within the country. They are characterized by certain government regulation, expressed in the setting of taxes, quotas, trade rules, etc.

A black or underground market for precious metals occurs when the government places severe restrictions on such transactions. When, for example, the trade in gold is prohibited, it begins to be sold illegally (by smuggling into the country).

In addition, this market can be classified according to the purpose of the purchased precious metals:

1. For investment purposes;
2. For industrial use (for example, in electronics).

This is the youngest financial market represented here. The history of its existence began with the emergence of the world’s first cryptocurrency in 2008 and goes back only about one decade. Its structure is currently not yet fully formed (partly due to the fact that in many countries there is no legislative framework regulating operations carried out with cryptocurrencies), but in general it can be represented as the entire set of existing cryptocurrencies and the infrastructure that provides their existence. This infrastructure includes both computing power, thanks to which new cryptocurrencies are generated and stored, as well as the entire set of organizations involved in their sale, purchase and exchange (cryptocurrency exchanges and various kinds of exchangers).

Cryptocurrency is an asset that is entirely dependent on computing power. The technology of its creation (popularly called mining) is based on blockchain computer technology. Purely theoretically, anyone with a computer connected to the Internet can mine some cryptocurrency. However, in fact, in order to earn an amount equivalent to at least a couple of American dollars in this way, it will take quite a lot of time. The fact is that the very nature of cryptocurrency is designed in such a way that the more it is mined, the more complex this process becomes, and the extraction of new coins (coins) requires more and more computing resources.

Currently, specialized mining farms consisting of many powerful video cards are used to mine cryptocurrencies. You can generate cryptocurrency either using a processor or through calculations on a video card. It so happens that the video card has the architecture most suitable for those calculations through which new coins are created.

Cryptocurrency mining farms can consist of several video cards, or thousands or even tens of thousands. Most of these large farms are located in the Asia-Pacific region, in particular in China (as of the end of 2017, about 30% of the entire global cryptocurrency market was concentrated there).

The most popular cryptocurrencies at the moment are (arranged in descending order of value):

1. Bitcoin;
2. Bitcoin Cash;
3. Dash;
4. Ethereum.

In addition, there are still a huge number of different types of cryptocurrencies in the world, many of which do not represent and, most likely, will never represent any value.

There are infrastructure organizations providing:

• Organization of the trading process (exchanges and over-the-counter trading platforms);
• Mutual settlements and settlements for all transactions (clearing houses);
• Accounting for the transfer of rights to securities in the process of transactions with them (depositories);

In addition, organizations of this type include all those that provide protection against counterparty credit risk, as well as accounting for over-the-counter contracts with financial instruments, derivatives and contracts on commodity markets.

In our country, financial market infrastructure organizations include:

1. Exchange;
2. Central Depository;
3. Clearing House;
4. Central counterparty;
5. Settlement depository;
6. Repository.

There is also such a thing as systemically important infrastructure organizations. Classification as such is based on compliance with at least one of the following criteria:

1. Uniqueness criterion;
2. Criterion of significance for a unified state monetary policy;
3. Criterion of significance in the financial market.

The assessment of organizations' compliance with these criteria is carried out by the Central Bank of the Russian Federation. Currently, in our country there are the following infrastructure organizations of this type:

Brokerage activities are widespread in Europe and America. Russians have a low level of financial literacy and rarely use the services of brokerage companies. However, analysts predict an increase in interest in financial markets, so the business idea of ​​opening a brokerage company is promising. A prerequisite for implementation is the availability of the necessary knowledge or the ability to attract high-quality brokers who will do all the work. It will also require a significant initial investment.

The essence of brokerage activity

A broker is a financial specialist who makes transactions on the stock market with clients' money in order to make a profit. The basis for disposing of funds is trust management. The broker uses all possible financial instruments and invests in securities. The broker's income is specified as a percentage of the total profit or is determined by a fixed amount.

Along with the maximum possible profitability, the brokerage business has high risks:

• The predictability of the securities market is relative; fluctuations depend on events in the world. Some incidents can cause a collapse, an unprecedented increase in exchange rates and stock prices.
• A successful brokerage business is possible with constant monitoring of analytics, news, and statistics. An important event that goes unnoticed can cause losses.
• The brokerage business is complex and responsible. To carry out transactions on the market, recommendations from specialized agencies that monitor financial markets are required. The broker constantly conducts independent analysis of markets, exchange rates, dynamics of micro and macroeconomic factors.

Possible forms of starting a business

In order to organize a brokerage business with direct access to the stock market, significant investments will be required - at least 10 million rubles, an additional advertising budget will be provided. Companies with direct access to the market are formed on the basis of large credit and financial institutions. A novice broker can make money by finding clients for large brokerage companies. The commission for each new client is $100-150.

The most popular form of brokerage business is subbrokerage - work under the leadership of a large foreign brokerage company. It comes in 2 types:

The new company is registered as a regional representative office of a foreign partner within its region. The company's competence includes drafting contracts, working with clients, opening accounts, and transferring client funds to the accounts of the parent company. The representative office receives profit from all transactions of its clients, which significantly exceeds the agency fee.

An agreement is concluded with the parent company on subbrokerage, which allows you to carry out independent activities in the stock market, train traders, and create your own brand under the auspices of a foreign brokerage company. The business owner uses a ready-made business model, a well-promoted brand, and pays commissions to the parent company.

It is possible to get the maximum profit by opening a business under a subbrokerage agreement, but the initial investment will be required as much as possible.

Business registration, licensing

Registering your own company is more difficult than working as an agent; the process is regulated by order of the Federal Service. Before opening a brokerage company, you must register as an individual entrepreneur, LLC, or JSC.

It is recommended to open a legal entity, LLC, JSC, which will allow, in the event of bankruptcy, to be liable for the company’s debts within the limits of the capital contributed by the founders. An individual entrepreneur must be responsible for all property owned.

The brokerage business is licensed by the Federal Service for Financial Markets on the basis of Federal Law No. 39-FZ dated April 22, 1996. A license is issued once, subject to the availability of own funds of at least 10 million rubles, certified employees, technical support, and business accounting. The cost of state fees for obtaining a license is 1.3 thousand rubles, the issuance period is 30 days. The most frequently issued licenses are for dealer activities and securities management activities.

Selection of office, technical equipment

The success of a business depends on the trust of clients, so it is important to choose a spacious, bright room with an area of ​​more than 50 m2 with a reception area and an office. The decoration is kept in strict colors, expensive furniture and accessories are used, and a climate control system is installed.

In addition to standard communications, a telephone connection and uninterrupted high-speed Internet are required. The cost of renting the premises is from 30 thousand rubles.

You will need modern, reliable computer equipment; you will need a wide-format monitor. The success of transactions depends on the speed of the computer and the Internet. The cost of a computer for one workplace is from 70 thousand rubles. Additionally, you will need a printer, fax, scanner, copier, which will require 150-200 thousand rubles.

Brokerage Business Software

Business in the stock market is carried out on information and trading platforms. The most popular among brokerage companies is MetaTrader4. The advantages are:

• Custom indicators, advisors, scripts.
• Orders are executed in the shortest possible time.
• Non-distribution of information about transactions.
• Notification about system and trading events.
• Support for market notifications (alerts).

The cost of the licensed version is approximately $15 thousand. MetaTrader4 does not require any additional software to operate.

Search for clients

The brokerage business is aimed at wealthy individuals with an income of more than $1 thousand monthly, and legal entities who want to make money on temporarily free funds. There are two options for cooperation:

• Clients themselves are participants in the stock market; the brokerage company carries out transactions for a fee.
• Clients with the right of fiduciary management provide the brokerage company with the opportunity to conduct transactions on the stock market on their behalf for a fee.

Starting a brokerage business, they plan to cooperate with 20 clients. To expand the company and attract new customers, an advertising campaign focused on target groups is required. It is mandatory to create your own website that describes the advantages of a brokerage company, promising options for cooperation, and all available services. It is possible to have several reputable clients, receive a large income with a minimum number of transactions, or serve many clients, with the cost of each transaction not exceeding the average.

Business payback

A brokerage business requires significant investments, at least 10 million rubles upon opening, constant investments in an advertising campaign, and office maintenance. It is difficult to assess the profitability of brokerage transactions; different operations bring in a percentage of the cost of transactions. Even if the result is unprofitable, the broker receives his reward, so the availability of completed transactions is important.

Additional income can be obtained from teaching clients the basics of brokerage. Many companies earn more than 50% from seminars and trainings. With active activity in the stock market, it is possible to recoup a business in 3-4 months; annual income can be from 2 million rubles.

The brokerage business is highly profitable with a high level of risk. To open a business, it is necessary to have specialized knowledge and experience of successful work in the stock market. The profitability and payback of an investment are directly dependent on the number of brokerage transactions conducted.

In relation to the financial market, society is divided into two main categories. One knows nothing about it, which often gives rise to fear and prejudice towards the system. The other successfully takes advantage of the opportunities this mechanism provides. Perhaps your neighbor Petr Ivanovich, who recently bought a brand new Volvo XC 60, is in this second category. Therefore, we expand our understanding and carefully study what the financial market is and how to earn on it, at least an average salary and, at a maximum... However, The maximum is different for everyone and depends only on you.

A financial market is a regulated mechanism, a system (a virtual platform, if you like) on which currencies, shares, gold, raw materials and other financial instruments are sold and bought. And it doesn’t matter where on the planet the sellers and buyers are, and how many thousands of kilometers separate them from each other. Regulation of the financial market is the sphere of activity of central banks and international bodies that issue licenses for the activities of market participants. Therefore, the financial market is an absolutely controlled system.

Depending on what resources are bought/sold on the market, the sites are classified. The main financial markets are the stock market (shares are traded), foreign exchange or forex (a huge platform for buying/selling monetary units of different countries), precious metals, raw materials, contracts and others. More about types of financial market read the article “ " The structure of the financial market is described in a generalized and easy-to-understand manner in the diagram.

Participants in the financial market are direct sellers and buyers (and the seller can become a buyer, and vice versa), that is, central and commercial banks, enterprises, insurance companies and all kinds of funds, as well as intermediaries - brokers and dealers. To learn more about financial market participants, look at the article “” . And most importantly, today everyone can become a participant in this reasonable, profitable mechanism.

Why do we need a financial market?

The international and Russian financial markets pursue the same goals, but at different levels. These are the main functions of markets.

• Ensure the purchase and sale of currency, shares, gold, raw materials within the state and between countries.
• Redistribute capital between market participants. For example, a dairy factory decided to produce yoghurts. But he doesn’t have the money now to buy the necessary equipment. The plant issues additional shares and places them on the global financial market or regional (in Russia, for example), and specifically on the stock exchange. At this time, investors (people or other enterprises) who believe that the plant will increase profits by selling yoghurts, which means its value will increase significantly, buy new shares of the plant. Conventionally, 1 dollar per share. The plant receives money, installs equipment, and successfully sells yoghurts. Thus, the value of his assets increases, which means that the stock also becomes more expensive. If an investor urgently needs money, he sells shares of the dairy plant to other market participants, but at $1.50 a share. Thus earning 50 cents per share. Out of the blue, by double-clicking the mouse (conditionally, of course). Everyone is happy - the plant with new equipment, the investor - with a profit. Working with the financial market is more profitable than working with a bank for both the plant and the investor - a bank loan will have to be repaid, and with interest, and a deposit does not provide the same profit as shares.
• Manage financial risks or insure companies doing business abroad against currency fluctuations (called hedging). This is futures and options trading. See more details in .
• Manage investments. By monitoring the state of the market, you can profitably sell and buy shares, currencies, gold, raw materials, and so on, and earn even 30% per year of the investment amount. This is what non-state pension funds, insurance and other financial companies do. Only there a trader with at least five years of experience does this, and there is a whole department that makes decisions on this or that operation.
• Earn speculative income. And this is where the financial market becomes interesting to the average person. Look further.

How can an ordinary person make money in the financial market?

A person cannot directly enter the market and buy/sell currency, shares, or gold there. To do this, he needs an intermediary - a broker or dealer. With an intermediary, you can become a trader (that is, a buyer and seller) and make money on the successful purchase and profitable sale of financial assets. All you need for this:

• choose a reliable broker; what else, besides reviews, should be taken into account when choosing a broker, see the article “ ”;
• complete free distance learning;
• practice trading on a trial account (this is called a demo account);
• open a real deposit with a broker and get an experienced financial analyst for the company;
• make transactions by listening to the consultant;
• earn.

It is very important to listen to the opinion of the company analyst. He has been working at the stock exchange for a long time and knows it better. Besides, the broker makes money if you make money, so there is no conflict of interest. Over time, you will become a professional trader and will be able to make decisions on your own. In principle, you can do this at any time, but we recommend that you listen to the opinion of a personal consultant in the first stages of work.

Advantages of investing in the financial market

And finally, why the financial market is a reliable and one of the most profitable investments.

Where do you usually keep your spare cash? In Russia, people trust their home safe and banks most of all. Endowment insurance and all kinds of funds have not yet become widespread in the CIS. Neither the first nor the second method guarantees your safety, much less an increase in your finances. But money should work, even when you are just sleeping. Hence the advantages of working in the stock, foreign exchange, commodity and other markets in comparison with banks.

• Profitability in the financial market is much higher than if you put money in the bank. Especially if we consider the long term. On average, the bank rate varies from 8.5 to 9.5% per annum! On the stock exchange, with the right approach, you can earn from 30% per year! In addition, you do not need to wait until the deposit period expires if you urgently need money. And remember the regular moratoriums on withdrawals of deposits in banks, when you simply cannot withdraw your rubles or dollars at the right time. Brokers do not have this, and if necessary, you can withdraw your deposit at any time.
• Profit depends only on you. Free training and interaction with a broker consultant will allow you to become the master of your life. You decide for yourself when and what currency or raw materials to buy. A great opportunity to finally take responsibility for your life and start living with dignity.

If you are ready to take the first step towards success, then register now and your first million will become closer.

Financial business is one of the most profitable and at the same time most expensive areas of entrepreneurship. It consists of transactions for the purchase and sale of financial assets on financial markets both within the state and at the international level. Credit and financial institutions are used to carry out these operations. These include:

• states,
• central banks,
• investment banks,
• commercial banks,
• stock Exchange,
• currency exchange,
• electronic network markets,
• credit unions,
• specialized financial companies,
• investment and hedge funds,
• pension funds,
• insurance organizations,
• commercial and trading companies,
• population and private investors.

Although at the same time there are only two components of the financial business:

1. Issue of banknotes and securities.
2. Financial services.

Features of modern financial business

Recently, there has been a deep integration of international financial markets and currency centers, thanks to the development of computer technology and the Internet. The development of new banking systems and financial techniques has led to a real revolution in this area. The timing of transfers, execution of transactions and other banking operations have become almost instantaneous. New conditions for the operation and structure of financial markets are being formed.

Although today the gold reserve of the Central Bank remains the state's insurance fund and a store of value for individuals, convertible currency and SDR - special means of borrowing - are beginning to play a major role. Gold has served as world money for quite a long time, but now its demand has sharply decreased.

On the other hand, such drastic changes that have occurred in the financial business sector, in addition to positive trends, have a number of disadvantages. These include the progressive problem of international debt and the increasing frequency of financial crises on a national and international scale. At the same time, the attractiveness of financial business continues to grow. According to experts, approximately 45% of Americans own securities and are active on the stock exchange. There are more than 1,000 banks and 2,000 securities market participants in Russia.

Organization and activities of a commercial bank

One of the most common financial institutions is a commercial bank. To open it, capital of at least 180 million rubles will be required, with a confirmed source of receipt. You will also need to go through a complex approval process to obtain a banking license. To do this, you need to provide a package of documents detailing all the participants involved, from interested companies and directors to shareholders of enterprises.

A commercial bank can carry out the following activities:

• support of trade transactions with foreign currency,
• investment intermediation,
• making payments in cashless form,
• credit transactions,
• expert activity,
• leasing and factoring,
• deposit storage.

This activity can be carried out through commission (settlement transactions), passive (raising funds) and active (placement of funds) banking operations. All types of banking operations are regulated by the federal law “On Banks and Banking Activities”, the Tax Code of the Russian Federation and other legislative acts. The supervisory authority is the Bank of Russia. Financial business is always clearly regulated and accountable.

Stock Exchange

A security is a document of a special form that certifies the relationship of a loan or property right between the owner of this security and the issuer. Where the issuer is an individual or legal entity that issued a security. To open a stock exchange, as for a commercial bank, you will need a license, approval and a host of other conditions met. The stock exchange is an intermediary between sellers and buyers of securities.

The financial business here is to ensure the legal circulation of securities. At the same time, the securities themselves undergo strict selection through the listing system. To do this, all information about the securities offered and about the issuer is entered into the exchange list. Once listed on the stock exchange list, securities are called stock values.

For the successful functioning of the stock exchange, a clear system of supply and demand is necessary. The administration of the exchange strictly controls trading, as well as the activities of intermediary firms on the exchange. Regular quotations of securities, carried out by exchange specialists by comparing the rates of sellers and the rates of buyers, help organize purchase and sale transactions.

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