FOREX-AZ'S STRATEGY TO BECOME A DRIVING FORCE FOR AZERBAIJAN'S FINANCIAL MARKET

 

Caspian Energy (CE): Mr. Guliyev, what is the activity area for FOREX-AZ? Could you share with us its history?

Elshan Guliyev, General Director of FOREX-AZ: Our company commenced its operation in 2000 and acquitted its legal status in 2002. Initially, the company was operating in web-dealing field, giving people an opportunity to work at financial marketplaces around the globe. We have extended our activities so much that now we work in all major financial markets of the world through US-based broker companies. These include New York, Chicago, Frankfurt, Tokyo and London Stock Exchanges. Each of these marketplaces is operated in its own time which could limit our geography. Fortunately, our geographic location enables us to work around the clock at American, European and Asian stock exchanges.

The name FOREX means ‘inter-bank currency exchange'. All banks of the world (nearly 300 large-size ones) as market-makers are linked to each other via telecommunication web-networks and in compliance with demand and supply they change the rates of basic global currencies. The market is running around the clock, it does not depend on certain work hours of stock exchanges worldwide, the sales are performed among banks located in various corners of the globe, and physically this market does not exist. FOREX market has the greatest trade turnover around the globe - its daily turnover amounts to nearly $3 trillion, which is greater than total amount of turnover at all exchanges in the world.

 

CE: How do traders make profit in this market?

Elshan Guliyev: We have the best training center in South Caucasus, which in comparison with other centers of the kind enables us to gain leadership across the region. We lead quite successful talks with our partners from Kazakhstan and Russia. The high level of the company's training base is as well conditioned by our training philosophy that was worked out 3 years ago. Throughout its operation the company has trained many traders that are now successfully working in financial markets of the world. The skills they gained can be applied at stocks, share, futures, equities and currency markets. One needs just a computer with internet-access to manage his account opened in brokerage firms. From the very beginning we have worked exclusively with American brokerage companies and this really makes sense.

Financial markets have proved themselves namely in US environment and our clients are satisfied with this approach as well. Furthermore, the US has special risks managing entities which act as overseeing committees and a large number of companies submit reports to the government.

 

CE: Who can become a participant in this market and how does this process work?

Elshan Guliyev: The market participants today are mostly natural persons. Whereas legal entities shall send someone to pursue training at our facilities to perform at good work in these markets. Last years we have observed the trend of increase of legal entities interest in the market, and I can say with confidence that banks will perform as driving force for our customers. We can already observe their increased interest in our market. The products we offer them include company assets management, as well as trade platform enabling them to participate in financial markets. We enable them downloading a required program from our web-page and install it for the subsequent opening virtual and real accounts.

The company's trainings help trainees learn the principles with the following practice. We are operating together with our students and show them how to make profit. Upon completion of our courses, traders can freely work in real markets and evaluate their strength. Then the account opening takes place, followed by closing contracts with brokerage companies.

 

CE: What is the primary advantage of this market? How much investment is required to enter this business?

Elshan Guliyev: The main advantage of currency market is that wherever you are sitting at your computer, home or in the office, you can track international currencies movement via Internet and sell or buy in real-time mode. With this purpose you should open a trade account in a brokerage company.

The minimum amount of deposit is $ 300and leverage of 1:100 provided by brokerage company enables you to manage the amount 100 times more than your deposit. So, with $1,000 on your account, you can purchase items for $100,000. In this case even 1 cent of change in price brings you $1,000 of profit. Initial expenses for joining this business are not too high today. One should pursue primary training, buy a PC and open a several hundred dollars deposit: it is not possible to create any real business for this money. If taking into account that you have already had a computer and you can win initial deposit at traders competition, your expenses are minimized.

All these and many other advantages are undisputable factors of work in Forex market.

 

CE: Does FOREX mean some risk?

Elshan Guliyev: Even in case you know nothing of this market the risk probability is 50/50. In all other businesses risks are much higher. The risk factor is also mitigated by the fact that Forex is a huge market eager to purchase items all the time, and the only variable factor is price. And one should know how to analyze the price change trend.

Fundamental analysis on economic situation in various countries could tell us, for example, how euro exchange rate will be changing next week. Furthermore, there are some core principles in the world and it is quite enough to look through the historical data on currency rate and make its economic substantiation.

Moreover, customer is issued the right of marginal trade, i.e. a $1,000 account entitles him to close a $100,000 contract. Thus, a man who is an expert in his field ad knows how to forecast market trends risks nothing. One should be a professional, which means having proper training. I always tell traders: "Study hard at least two years and you will get able to assess risks".

 

CE: Is it not easier to invest in realty?

Elshan Guliyev: First, you are speaking about large investors. The work of a man engaged in one of most concealed professions, an investor, is constantly trying to gain as much profit as possible. And the best investment is investment in oneself, in education, that is what we are offering. Only afterwards one may go looking for other areas of investment.

 

CE: What is the growth of interest for this market in Azerbaijan?

Elshan Guliyev: More and more people are getting interested in this market, but serious attitude is developed slowly. The reason for this, unfortunately, is a low level of economic education. On the other hand, a circle of people considering this business their profession has already formed and we always help and develop good systems for them.

 

CE: Who is a client of Forex-az: a smart one aiming at making profit or a rich person thinking where to spend his capital?

Elshan Guliyev: Yes, there are people among out company's customers that gained big money by chance and now have no idea how to increase it. This group is very difficult for us. One should know what he wants. We are happy with people who have specific goals and objectives, and they are the majority.

 

CE: What do you think about the future of this market? What is the role of your company in it?

Elshan Guliyev: The primary goal of the company is to secure a decent place for this field of economy in Azerbaijan's market. We perform work enough to accomplish this mission. Each year we take part in all branch-wise exhibitions and perform active work there. The interest in our activities is evidenced by usual crowding near our stands. The company's success is also proved by recognition of our web-page as the best web-page of 2006 in Azerbaijan.

The economic growth observed in the country makes me confident that in the nearest future Baku will become Caucasus's financial center, and in the shortest outlook financial center of the world, and FOREX-AZ would like to secure its decent place here. All preconditions are already there. We are working to turn Baku into such a center. All our work is positioned at the highest level. What we consider inappropriate for ourselves, we cannot offer to our clients. This is a stimulus for the development of our company. The range of services we offer will be broadening alongside the development of economy of the country. There is a high potential in Azerbaijan and we are already working on new projects. From psychological and theoretical view our projects are complete, and we should just introduce them as soon as conditions allow.

We are No. 1 in this market by right. We are building our work and strategy so that customers considering some collaboration with us would realize from the very beginning - we are the most advanced in our sphere.

 

CE: What are the company's plans for the short-range outlook? Are you planning to access foreign markets with your products?

Elshan Guliyev: Over quite a long time we have been worked on attracting customers at the global level. We already have a tradition to train students from abroad, and we give master-classes in Russia. Due to lack of time we even have to refuse to many people from abroad. This proves the company's potential once again.

We maintain a close cooperation with Kazakhstan and Turkey tracking all changes in financial markets of these countries. We have selected partners and now we are working on integration with these markets.

Furthermore, our company is thinking of involving foreign specialists to the company to increase skills of local experts.

 

CE: What are the actions your company performs to increase the skills of its own specialists?

Elshan Guliyev: The best method of our employees skills raising is practice, trainings, education, probation periods and exchange of experience with leading European and American institutions. Not a bit less significance we attach to education and raising skills of our clients-traders. The example of this is the "Philosophy of Successful Exchange Trade" master-class workshop we are planning to arrange on the eve of Novruz Bayram in Baku.

Forex-az is a constant participant of all branch exhibitions taking place outside Azerbaijan. The company is always open for innovations exhibited at these shows. Our company's strategy is to become a driving force of financial market in Azerbaijan, which will be a great honor for us.