VIPTRADE Gains License from the National Bank of Georgia

9 mins read

The FINANCIAL — As a result of the global trading market emerging as a dominant part of the business world, Georgia’s VIPTRADE has decided to have a say on behalf of their country.

Established two years ago, the company quickly emerged as one of the leading trading organisations on the Georgian market.

Being an impressively hard feat to achieve, VIPTRADE managed to get a license from the National Bank. This achievement has deepened trust in the trading company.

The FINANCIAL recorded an interview with the Director of VIPTRADE, Chachi Daseni, where in a barrage of questions we covered many areas involving both the company and trading market in general.

The global trading market is estimated to be holding accumulated transactions solely on currency change worth more than USD 8 trillion.

Q. What is the global trading market, and who is a trader?

A. The global trading market, also known as the stock market, is the largest existing trading market in the world. Created in the 16th century, the market united a vast amount of people, whose vision was basically shaped into two different concepts. One part of the people believed that they wanted to buy offerings for later manufacturing, while the others wanted to purchase offerings, solely to sell them later for a higher price.

The problem the market faced was that both those who wanted to purchase offerings for manufacturing, and those who wanted to acquire just to sell them, were trading on the same field.

This meant that purchased assets of both these people had to be backed up by real existing materials. As expected, the overwhelming accumulated demand lead the market to a shortage of products.

This led to the creation of the CFD (Contract For Differences) market, where the initial price of the product is purchased, rather than the asset itself. This enables traders to purchase market offerings just for the sake of selling them. Today 90% of market demand is for the CFD market, rather than assets.

Us traders are some sort of financial intermediaries who either connect buyers to sellers, or purchase the offering ourselves.

Q. Who are VIPTRADE, what activities do you run?

A. We are a Georgian-based company who aims to strengthen the Georgian trading market and contribute to establishing the profession of trader as an ordinary job. Our country has only recently taken steps towards the creation of a strong trading sector, and the potential that our experience has shown us is huge.

See also  Armenia Reports Third Fatality In Border Clashes With Azerbaijan

In just a short period of two years, we managed to open four subsidiaries, three in Tbilisi – on Melikishvili Avenue, Pekini Street, and Leonidze Street; with the fourth one located in Kutaisi.

Awareness is increasing with time, and the market needs a platform and learning materials translated into the Georgian language.

Q. Which training programmes does VIPTRADE have?

A. We have created free training programmes solely for the purpose of increasing awareness of the online trading market and trader as a profession.

The schedules of the courses are individual as well as flexible, thereby we enable applicants to attend at a time which suits them.

The training languages, which vary between Georgian, English, Russian and even French, enable us to deliver knowledge efficiently to our trainees. The group of trainers consists of local traders as well as foreign qualified staff from Russia and France.

Our training courses mostly put emphasis on technical skills such as platform usage, trend analysis, the basics of buying and selling, history and so on.

The massive experience that these people have accumulated enabled us to have written our own coursebooks.

Q. What makes a good trader?

A. The most crucial traits, in my experience, are the following: being fast at learning skills; having the discipline to abide by the basic teachings; and perhaps most crucially – psychological endurance.

These are the characteristics that are harnessed with experience.

Time has shown us that degrees in finance or economy are not the most decisive factor in order to become a decent trader.

Q. What are the requirements needed to join the VIPTRADE team?

A. Aggregate demand on becoming a trader is increasing, perhaps it is because of the financial freedom that comes with the job that it is becoming more and more popular. Also, the ability to trade and make money regardless of the political, economic and other macro-environmental factors.

As soon as an applicant completes the training course provided by VIPTRADE, they are able to start working on the market, however, discipline and the other traits which we mentioned are crucial to one’s success.

There is no rental involved; no equipment costs. The only expenditures are the very insignificant percentage on commissions that VIPTRADE requires.

Q. What is the minimum money required for trading?

A. It wholly depends on the chosen market, for the foreign exchange market, the minimal contribution stands at USD 3 000, for the stock market it stands at USD 10 000 and as for index exchange markets – USD 30 000. Time has shown us that these are the minimal contributions that provide traders with the necessary results.

See also  NATO Rejects Russian Security Demands, But Says It's Open To More Diplomacy

Q. VIPTRADE has gained a license from the National Bank, which is a very impressive feat, can you educate us on that?

A. The role of the National Bank is to ensure the safety of the trading process, the given license means that VIPTRADE has taken all the steps necessary to ensure that contributed money is safe.

The era where brokers were associated with financial scammers has ended. The fact that the National Bank regulates our activity is a prime indicator of that.

As an example, when a client contributes money to VIPTRADE, we are obliged to already have 25% of the total amount of contributed money, as well as making sure that the money does not exceed 5% of our financial assets.

The client’s money is also kept separate from the company’s money, and with our daily reports we ensure we keep clients up to date about the state of their financial assets.

Our clients have full knowledge of what kind of asset they have bought and how their money is being circulated, such kind of information is no longer kept confidential from VIPTRADE clients.

On top of that, every independent contract is supervised by the National Bank, and any change within, can happen with their permission only.

Q. How does your analysis work and what is the expected return on investments from your experience?

A. Well, stock market analysis is a very interesting topic if only for the fact that the whole concept is so under-appreciated. The undervaluation comes from people with no financial background of course.

When a good broker makes decent money, it is contributed to luck, whereas it was actually thousands of calculations that lead the broker to success.

The real time information that Bloomberg and Reuters provide, enables us to do some pretty in-depth analysis.

The client is expected to have monthly return of 7-10%. The big misconception is to be expecting to become rich overnight. It takes discipline and dedication, you must be patient because the stock market will always be there no matter what. Small incremental earnings are the ones that make people rich.

By Gela Megeneishvili

Leave a Reply