Arif Alexander Ahmad explains what sets Scandinavian Capital Markets apart within the industry.
Scandinavian Capital Markets may be a Forex firm based in Stockholm, Sweden. They differentiate themselves by emphasizing the Swedish heritage in business practices and oversight, also as a robust commitment to personalized service during a world of dispassionate brokerages.
Its leadership has years of experience and a vision of personalization that’s “all about the trader.”
Today we sit down with Arif Alexander Ahmad, Partner and Co-Founder of Scandinavian Capital Markets, to seek out out more about what sets them apart within the industry and the way to find success during this pandemic.
Arif, thanks for taking the time! i do know you’re staying busy.
Happy to! We’re working to stay the pace during this ever-changing market thanks to covid-19 . That’s certainly kept us running around.
There’s such a lot happening within the world at the instant . It’s hard for people to ascertain the sunshine at the top of the tunnel. What could the longer term hold as far as a recession and does one think this may fundamentally change trading going forward?
We can’t really tell what correct economic terms to use until the info gets settled out, which could take weeks or months if there are significant revisions.
Honestly, what we call it isn’t as important as what it means for all folks .
None folks have experienced anything on the brink of this in our lifetimes. As a worldwide society, we’re trying to balance dragging down our economies with saving lives.
It’s an argument that, until now, only existed in philosophy textbooks. And yet, government leaders round the world do exactly that. They’re continually balancing privacy against community safety.
However, if you check out the longer history of the planet , I’m talking thousands of years, we always build back starting with an equivalent fundamental pillars.
One of those has always been global commerce which inevitably results in exchange .
So why is Forex so “essential” to the economy at large? Will this continue?
Well, for any a part of the worldwide economy to work , currency exchange must happen. It’s the lubricant that creates international commerce possible. Otherwise, we’re back to the age of bartering.
As long as there has been international trade between nations, there’s been a requirement for currency exchanges.
Despite the rising popularity of digital options, our global economy relies almost exclusively on the exchange system.
When you believe the country you reside in, consider the products you discover around you. what proportion of the components or materials come from local sources vs abroad?
Some geographies hold exclusive rights to a specific commodity. for instance , lithium-ion batteries are getting an enormous product in our lives.
Yet, lithium mines aren’t found everywhere. Without exchange , how would France or the uk acquire these products.
Simply put, there’ll always be a base need for international commerce which inevitably drives exchange .
But is there a downside even in Forex? There are disruptions.
Indeed there has been major volatility as lately . But there’s still a two-sided trade instead of the one-sided nature of equities at this point .
Stocks go up or down in normal circumstances, but they’re all heading lower during this market. it’s difficult for investors to be profitable when stock markets are taking place .
In exchange , currency pairs fluctuate and bounce around but traders still have some semblance of give and take. Increased volatility has been the most important change to exchange .
Traders also find ways to adapt under these conditions. a number of the simplest ones we work with aren’t so narrow in their focus they can’t see what’s happening .
They assess the context and alter their risk and other parameters to optimally handle this environment.
Both investors and brokers enjoy volatility, but is there such a thing as too much? Is Scandinavian Capital Markets prepared for such high volatility?
Volatility may be a natural component of the market that expands and contracts regularly. Successful traders and investors inherently understand this.
They don’t plan for it a day necessarily. However, they accept and steel oneself against it as a part of their overall strategy.
We are seeing bigger price swings now, which means more potential profits on a day to day , but also more risk if you’re not careful.
We’re during a great position with what we do at Scandinavian Capital Markets due to the platforms, liquidity, and other resources, and particularly the one-on-one attention we provide to our clients.
This should be an exciting time for our clients, and that’s what we attempt to get across to them.
I’m especially pleased with the way we operate as an STP broker. along side my partner Michael Buchbinder’s expertise in trading technology, we often reassess our and our clients’ exposure.
These times are unprecedented, but they’re faraway from unmanageable.
So it seems like now could be an excellent time to start?
There’s tons of great outcomes even now, and more people are jumping in. for instance , there has been a specific uptick in c-level clients stepping into exchange , which is terrific.
Even if they’ll be stepping into it out of dire necessity, they know they will participate either to deliver basic income or put themselves during a better position going forward.
In fact, there’s a good amount of spread bettors that are transitioning into the Forex trading world. With many people stuck reception , many of those individuals are finding the spread world unreliable at the best .
As stock markets get decimated globally, they’re trying to find ways to still remain active yet find more consistent opportunities.
I think we’ll see performing from home as a part of the new normal, and what we neutralize particular certainly works thereupon mindset.
As people look to subsidize their wages, they’re going to got to add additional ways to earn money. More and more, they’re increasingly coming to FX as how to try to to that.
In what ways will 2020 change the financial services industry forever?
We’re witnessing events that haven’t existed in over a century. Equity markets are roiled by uncertainty. Excess liquidity driven by central banks has exacerbated some unwinding of positions.
They’ve stepped back in to make sure the steadiness of the financial markets. Yet, without a transparent end in view for the pandemic, nobody can say where this ends and what it’s like,
One place that’s been particularly challenged is that the CFD market. almost like equities, they’ve experienced unprecedented volatility.
This doesn’t even mention oil, which is another massive cause for concern, or the meteoric rise in gold prices.
Because of the range of returns and uncertainty, people are trying to find other asset classes to trade now quite ever. i think this trend will continue beyond the present environment.
People are going to be more conscious of the volatility within the market and trade accordingly. Nothing may be a “sure thing”, but Forex will still be there, people will still be trading currency.
What about physical assets like Gold? Is it still more of a “sure thing” as circumstances still degrade?
These are definitely the conditions where gold should be acting as a hedge against stocks. However, what I’m seeing is that there’s a problem with the physical availability which is massively affecting the margins.
The problem isn’t the demand for the physical metal, but the forced paper liquidation of gold thanks to the pandemic. We’re seeing mature contracts cashing in, which must be tangibly backed.
But with the availability chain disrupted and refineries closing their doors, there’s not enough there.
Costs have gone from essentially nothing to shut to a $7 premium to trade. We see traders holding the transactions have stalled.
Will a Forex trader be during a better position when the dust settles?
A lot of that is still to be seen. There’s certainly more stability within the exchange markets at the instant . However, the longer uncertainty reigns, the greater the chances for disruption.
We’ll certainly see pressure on brokers that can’t continue with their clients or fail to hedge appropriately. That’s the character of the business that weeds out many, and why we’re confident in our continued success.
I think one thing to recollect is that Forex traders tend to seem at things more broadly than equity traders.
They don’t just look call at fear at subsequent 30 days. Instead, most of them check out these markets together of the various building blocks in their wealth generation.
When you really get into Forex trading, it isn’t something you sit down and do for 2 months and make a lifetime’s fortune. It takes practice and patience over the course of years.
What makes Scandinavian Capital Markets better suited to affect growing challenges and client needs during this new normal relative to competitors within the industry?
I really believe it’s about transparency and fairness, especially now. In light of the crisis, we’re seeing sorts of regulation being imposed on currency trading.
Scandinavian Capital Markets has already been authorized and registered with the Swedish Financial Supervisory Authority (FSA), which oversees one among the foremost reputable and stable financial trading markets within the world.
We’ve laid the groundwork ethically as we provide resources, competitive results, and a robust network of support to our traders.
As I noted before, when the dust settles, i feel you’ll have tons of brokerages that not exist thanks to the way they manage risk.
It’s a continuing theme that repeats itself over and over, and an outsized a part of why we chose the STP structure.
The Scandinavian region is sort of a singular locale relative to other more traditional jurisdictions. How does this region compare to others?
There is a Swedish concept called Lagom which has got to do moderately for the aim of focusing your endeavors thoughtfully and productively.
While financial institutions should prioritize profits, which are essential to a successful business, the Swedish mindset prioritizes service and thoughtfulness above greed and excess.
We certainly take this idea to heart, and it’s within the DNA of the broader Scandinavian market. Sweden’s banking institutions are well-capitalized, and therefore the trust in them compared to other jurisdictions is noteworthy.
As traders begin to ascertain these practices lived call at how we serve them, they become more confident.
What’s different about how Scandinavian Capital Markets serves and builds confidence for clients?
There’s already risk related to trading by its nature, and that we want to eliminate the encompassing confusion and shady perception generally attributed to brokerages.
The only thanks to do this is thru real and sustained relationships. We made a conscious decision once we started that we might differentiate ourselves as a straight-through-processor.
Of course, we believe our model and products make us competitive, that oversight and our general business practices prioritize people while also producing results.
What is it like working together with your clients and a few of the simplest traders within the world?
It’s truly been an honor and a pleasure. we attempt to create a network of high caliber partners, and I’m convinced that the success we’ve had in earning their loyalty is thanks to our specialise in relationships first.
But we still need to walk the walk, we’re here to assist and support our clients, which goes beyond the trade.
Think about this. With B-Book brokers, the overwhelming majority of their clients lose money. Yet, we flip that entirely on its head. Roughly 80% of our traders make money.
We made this possible by that specialize in the professional and institutional clients instead of retail. It’s not almost the transactional fees.
Rather, we cultivate real relationships where all parties convert the long-haul.
Thanks such a lot for some time , I’d sort of a few final thoughts from you but I did want to ask what would you tell a trader who is afraid and unsure during this crisis?
Even in these circumstances: the reward potential is large . i feel the most important challenge with everything else happening is keeping A level head.
Think about what’s essentia, and be confident within the incontrovertible fact that there’ll always be a chance in currency trading. Our clients and traders know that we’re there to support them, and that’s made all the difference.