The number of accounts of personal financiers on the MICEX exceeded 12 million. Russian business is also starting to invest in the securities market. Let's talk about the benefits of a brokerage account, which organizations may need.
Businessmen are often unaware, that they can open a brokerage account for a legal entity and make transactions. Why is it necessary??
If you are a business owner, then, Most likely, you want to insure yourself against risks and become more competitive. If you are a general manager or money manager, then it is essential for you to do the assigned tasks, attract additional sources of income and reduce costs. Various tools can be used on the way to your goals., also exchange.
How you can apply a brokerage account for your own business?
1. You can exchange currency at the exchange rate: rubles, Dollars, euros, Yuan, Swiss francs and more.
2. Take stock: Russian, American, European, Chinese and others.
3. Receive interest using SWAP agreements - when free funds are in the account.
4. Insure (Hedge) monetary hazards - in case, if the currency will skyrocket.
Currency exchange at the exchange rate and purchase of shares
Banking fees for conversion are not for everyone. Looking for more profitable options, almost all companies come to the money section of the Moscow Exchange.
Pros of currency exchange on the exchange
• Reducing the cost of currency exchange.
• Wide selection of currency pairs, from dollar to tenge.
• Successful trading period since 07:00 to 23:50 Moscow time.
• Opportunity to improve the cost of purchase or sale, by submitting an application at your rate. The deal will go through, when the quoted rate coincides with the exchange rate
Example. Do you want to buy dollars: enter the program for the phone and see: current course 73,52 RUB/USD. Do you think, that the dollar in the short term may slightly decrease in price - up to 73,40 rub. Then place an order with this price and wait for its execution (automatic purchase) or a notification of reaching a price (then you will make a purchase without the help of others).
In a similar way, you can take stocks.
Additional income through SWAP agreements
Funds, which are in free circulation (current account balances, income from securities, retained earnings, etc.) can generate income, and for this purpose it is not necessary to part with them forever, as it happens when opening a bank deposit.
You will be able to sign the agreement with the broker and place free rubles on the brokerage account at the market rate.
When placing rubles on the Money Section, swap deals are concluded.
How it works?
To conclude swap deals, you must have on your brokerage account from 10 mln rub. First, you transfer rubles and receive currency at a fixed rate (this is the 1st part of the deal). On the next trading day in 10:00 currency is debited from the account, but rubles are returned with interest for the location (this is the 2nd part of the deal).
Transactions are made automatically, every trading day in 14:30. If you plan to opt out of agreements, then you need to inform the broker about it, or withdraw rubles from the brokerage account, or buy currency on them.
Advantages of swap agreements:
• The current rate for swap transactions is about six percent per annum *.
• No exchange rate risk. The cost of buying / selling currency and securities is fixed at the conclusion of the transaction.
• SWAP rates follow the Central Bank rate.
• The State Clearing Center acts as the guarantor for the swap transaction (NKC), which is included in the group "MICEX".
Insurance (hedging) monetary risks
Money risk insurance is especially vital for companies, Working?? in the field of foreign economic activity. If you pay with partners in foreign currency, you can insure yourself against a sharp rise in the rate, fixing the cost at a convenient level. Detail, about that, how this happens is in the hedging article.
If you want to master exchange instruments, but don't know where to start, then leave a request and get a free consultation.
