VIX fell again on Friday as calm continued to return to major U.S. markets.

Stocks continue to shrug off the recent swoon but still remain vastly overvalued compared to most historical measures.

Some analysts say that this is the third most overvalued market in history, just behind 1929 and 2000, while others say that some measures put it at the most overvalued of all time.

Markets typically recede from such lofty levels, sometimes dramatically and so long term returns could be substantially lower than investors have grown used to since the advent of free money and zero interest rates since the 2008 crisis.

The recent action in VIX ETNs has been impressive, to say the least, with XIV, the wildly popular inverse VIX ETF imploding after hours and losing more than 90% of its value in one day.

The decline was so outrageous that the Securities and Exchange Commission and Commodity Futures Trading Commission are reviewing the situation.

February 5th was D-Day for volatility based products when the Dow had its biggest single point drop in history and VIX skyrocketed. XIV was worth almost $2 billion before the crash and the after-hours decline made it impossible for investors to get out. SVXY, the ProShares inverse VIX product also took nearly a 90% dive but managed to stay open for business.

The last word: VIX continues to drop as volatility exits and calm returns to U.S. markets. For the time being, VIX Trader remains positioned in VXX credit spreads and will continue to trade VXX options and VIX ETNs as opportunities develop.

FCA Urges Investors Be Vigilant to fraudsters Soliciting Online Investments

The Financial Conduct Authority (“FCA”), the UK’s financial regulatory body, published a warning about risks of online investment fraud.

The FCA suggested investors be vigilant to scammers soliciting investments in binary options, contracts for difference (CFDs) and cryptocurrencies such as bitcoin.

The FCA warned that retails investors are targeted by fraudsters via social media venues such as Facebook, Instagram, WhatsApp, and Twitter, rather than by telephone, and are being lured to invest by promising high revenues and associating the opportunities to luxury items such as luxury cars and watches. Once someone invested, the prices distorted on their website, people are tied in with extreme pay-back requirements and sometimes customer accounts are closed arbitrarily as the fraudsters steal the funds.

The rise in these scams has affected the profile of the likely victims, too. Historically, the sector of people above 55s has been most at risk to investment fraud. Nevertheless, the FCA’s latest research has found that those aged under 25 were 13% more likely to trust an investment proposal they received via social media compared with 2% for the over 55s. Overall, around 20% of the respondents to the FCA’s research stated that online customer reviews and testimonies increased their trust in a company or opportunity.

The FCA has started a ScamSmart campaign that encourages individuals to check its dedicated website to estimate whether a company is authorized or to gather advice about whether an opportunity is likely to be fraudulent.

Binary options investments became a regulated investment on 3 January 2018, and the FCA has already published a list of 94 firms it believes are offering binary options trading to UK consumers without authorization.

The FCA’s main advice to consumers is:
Decline unsolicited investment offers whether made online, on social media or over the phone;
Check the FCA register before investing
check the FCA warning list of firms to avoid;
Obtain unbiased advice before investing.

Best Online Trading Platforms for CFD Trading

Live4trading offers advice to help traders understand their options and make the best possible decisions. The guidance we offer and info live4trading provides is intensely researched, objective and independent.

We spent over hours reviewing and test the top trading platforms before selecting the best for UK traders. In order to assist you to choose the one that’s best for you, we’ve detailed their pros, cons and current offers.

If you’re an active trader looking to try your skills at the live financial markets, you probably have a good idea of what you look for in a broker: low costs, premium research, innovative strategy tools and a comprehensive trading platform. Below, we’ve picked and ranked the best online brokers in a variety of categories so you can select one based on your personal preferences.

Tips For Choosing A CFD Broker

How to Choose the Best CFD Brokers
When choosing for the best CFD trading broker out there, It advised to take into account the following factors:

The Trading Platform

The software offered by the broker is a crucial aspect. A straightforward, intuitive yet professional CFD trading platform will make your trading experience smoother and will increase the opportunities of generating a profit.

Customer Service

Financial markets are highly unexpected when you come to a conclusion you want to work fast upon it. The availability of professional customer service in real time is essential when choosing a CFD provider. We test the variety and of quality communication channels that are offered (Email, Phone, Skype or others). Service is a significant factor you should look at when choosing the best broker offering CFD trading.

Assets

Once you decide on a broker, it’s time to review the tradeable assets they offer. From commodities to CFD’s and Forex. You should choose the CFD online brokers that offer to trade with the assets of your preference.

Regulation

Regulators act in many ways to assure the stability of the CFD brokers, the fairness of their product and other aspects of their business. Regarding user experience, regulation asks brokers to validate the sources of the funds of users; this might slow down your way to trade. Furthermore, we recommend always reviewing the different regulations and going for the more regulated CFD brokers like the ones we specify in our rankings.

All trading involves risk. Only risk capital you’re prepared to lose. Past performance does not guarantee future results. *
*This post is for educational purposes and should not be considered as investment advice