MYWEALTH INVESTMENTS: Summary of the Investment Club Meeting on 16 September 2021 – Part One

In case you were not one of the 141 registered attendees, or somehow missed it, we’ve provided you with a handy summary of this very informative session.

Our host and CEO, Annatjie van Rooyen, introduced attendees to our online trading partner, ThinkMarkets SA. The online trading functionality may be accessed through the MyWealth Investment website. These are the think points that came out of the session.

INTRODUCTION TO THINKMARKETS – RIDWAAN MOOLLA

ThinkMarkets was started just over 11 years ago by two brothers in the US, who saw an opportunity to grow and started their business in New Zealand. The objective is to provide value and service to customers through an online trading platform.

The business model is to open companies in different countries and, so far they have opened companies in the United Kingdom, the United States of America, Australia, Dubai, Japan and in South Africa. They not only present their services remotely but set up offices and employ local staff. In South Africa, they are employing 12 staff members who offer clients value and excellent service.

The Australian parent company is committed to its SA company. ThinkMarkets Australia is also nominated the official trader for Liverpool Football Club.

Investors in Nigeria are encouraged to trade through the Bermuda entity and investors in India, through Dubai.

ThinkMarkets is a Financial Services Provider and well regulated by the FSCA. They have at their core the objective of protecting client money and offering training to prospective investors with the aim of educating themselves.

ThinkMarkets uses the MetaTrader 4 and 5 systems. They have also developed their own in-house system, called ThinkTrader. ThinkTrader offers an award-winning app as well as a desktop and tablet version. Users can log in directly from the website and the system is completely supported.

The covid lockdown period has promoted online trading and presented an opportunity to grow the business.

The following are considered the main benefits of trading through ThinkMarkets:

Investors are offered an easy-to-use desktop version as well as an App.

Easy to open a client account: Since it is a 24/7 business, accounts are normally opened within 6 hours.

Demo accounts are offered for new users. If investors do not clearly understand the risks, a demo account helps to train users in complex transactions.

Investors can now invest in listed shares, owned by purchaser.

Investors can buy ETFs (Exchange Traded Funds) at a low cost equal to that of the JSE at 0.25%. (https://www.investopedia.com/terms/e/etf.asp)

No commission is charged on CFD trading. (https://www.thinkmarkets.com/za/lp/trusted-brand/?gclid=EAIaIQobChMI7ueRrreP8wIVgud3Ch1DqAWGEAAYASAAEgIkXvD_BwE&gclsrc=aw.ds). For those doubtful as to how the company makes its money, full disclosure is that money is made on the overnight funding rate. For CFD trading, money is lent to the investor at an agreed upon interest rate. Investors should therefore familiarise themselves with these rates and compare to that of other similar brokers.
Risk Warning: CFDs are complex instruments and leveraged products and can result in losses that exceed initial deposits.

Online trading is attractive to new investors since there is no minimum to the investment. Investors should consider their own minimum, based on the cost of the transaction. If an investor is trading with, for example, ZAR100, with a cost of R10, the trader must earn 10 %, so that the investment can grow. Investors should consider the cost effectiveness.

Investors need to educate themselves and are provided with:

Research on websites of MyWealth Investments, ThinkMarkets and even on Twitter.
Masterclass series on YouTube.
Education provided on the website, divided into investing and trading.
Most importantly, investors are educated in how to manage their risk.

Products offered by ThinkMarkets:

Trading in currency pairs, (exotics is GDP / US / JPY)
Indices (includes JSE Top 40, DAX)
Energy, metals
CFD on cryptos
CFD SA or Internationally
Shares
ETF

Investors are encouraged to go to MyWealth Investments’ website, do their research and watch the daily news. Users may access Online Trading through the MyWealth website.

The hardest part of online trading is to do the research and studying the technical analysis. These may be found under “Trading” / Learn to Trade / Indicators on the ThinkMarkets website. Investors need to understand all the different analyses.

The easiest part of trading is to place a trade.

Look out for the second installment of this Money Matters series next week.

Read also:

MYWEALTH INVESTMENTS: Summary of the Investment Club Meeting on 16 September 2021 – Part two