Part 5 Fundamental Analysis – eXbino Market Review

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Part 5: Fundamental Analysis – eXbino Market Review

Most traders registered with an eXbino broker (review in polish language) receive emails with a daily market review. Those emails give you three tips on which assets to trade that day, in which direction is going to move the market and why.

The question is: Does it work? Why should broker give us good tips on trades?

Let’s see that in today’s article.

How does the fundamental analysis from eXbino look like?

Email subjected as eXbino – Daily market review is sent once a week. In that email, you can see 3 tips on movements of the market within one day. Below you can see the picture of that email. On the website of eXbino, you can look up similar tips for every business day.

The eXbino email I have received

In this email you have 3 tips on trades, which are recommended by eXbino. You can see there are three CALL trades. They are quite interesting, except the fact that they are contradicted. They predict price growth and price fall for USD at the same time. Let’s see it in detail.

eXbino analysis results

I got the email at 11:26 a.m. Let’s think that I already had the PC on, but I was not connected to the platform. So I could start trading at 12:00 a.m. The email does not mention any expire time, but I think that as long as we talk about daily analysis, we should use long term option with the longest expiry time that day. Each currency pair has its own expiry time, but usually, the last one is after 9 p.m.

We can assume that I started trading at 12:00 a.m. and the expiry time was at 21:00 p.m. (almost the end of the day).

What about the results?

Asset Prediction Result Graph
USD/JPY CALL OTM
AUD/USD CALL OTM
ZLATO CALL ITM

As you can see, the results of the trades are not wow. Just one trade was profitable. The overall profit was just 33% – really low. Anyway, they have much more tips on their website, so let’s see the results of all trades, not just those three mentioned in the email.

Asset Prediction Result
USD/JPY CALL OTM
AUD/USD CALL OTM
Gold CALL ITM
USD/CAD PUT ITM
HANG SENG CALL
TOPIX CALL
Oil CALL
Overall 50 %

Overall balance is 2 profits and 2 losses. Very interesting are those 3 assets, which do not have any results. You can’t trade them with an eXbino broker! So, why the tips?

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Continue reading, I may have an answer for you.

eXbino fundamental analysis rating

I guess nobody is going to be surprised when realizing the tips from your broker are useless. The Americans say “You always get what you pay for.”

We did not pay anything to an eXbino broker, so here is the result.

I am 99% sure that eXbino is receiving these tips from another agency. That agency is working with some predictions, but those predictions are useless when you can’t trade them with an eXbino broker. I consider that as a minus point for eXbino. If I wanted to trade some signals I would choose some reliable one, for example, The Real Signals. What do you think? Let me know in comments!

Author

More about the author Step

I’ve wanted to build a business of some kind and earn money since I was in middle school. I wasn’t very successful though until my senior year in highschool, when I finally started to think about doing online business. Nowadays I profitably trade binary options full-time and thus gladly share my experiences with you. More posts by this author

Fundamental Analysis

What Is Fundamental Analysis?

Fundamental analysis (FA) is a method of measuring a security’s intrinsic value by examining related economic and financial factors. Fundamental analysts study anything that can affect the security’s value, from macroeconomic factors such as the state of the economy and industry conditions to microeconomic factors like the effectiveness of the company’s management.

The end goal is to arrive at a number that an investor can compare with a security’s current price in order to see whether the security is undervalued or overvalued.

This method of stock analysis is considered to be in contrast to technical analysis, which forecasts the direction of prices through an analysis of historical market data such as price and volume.

Key Takeaways

  • Fundamental analysis is a method of determining a stock’s real or “fair market” value.
  • Fundamental analysts search for stocks that are currently trading at prices that are higher or lower than their real value.
  • If the fair market value is higher than the market price, the stock is deemed to be undervalued and a buy recommendation is given.
  • In contrast, technical analysts ignore the fundamentals in favor of studying the historical price trends of the stock.

Understanding Fundamental Vs. Technical Analysis

Understanding Fundamental Analysis

All stock analysis tries to determine whether a security is correctly valued within the broader market. Fundamental analysis is usually done from a macro to micro perspective in order to identify securities that are not correctly priced by the market.

Analysts typically study, in order, the overall state of the economy and then the strength of the specific industry before concentrating on individual company performance to arrive at a fair market value for the stock.

Fundamental analysis uses public data to evaluate the value of a stock or any other type of security. For example, an investor can perform fundamental analysis on a bond’s value by looking at economic factors such as interest rates and the overall state of the economy, then
studying information about the bond issuer, such as potential changes in its credit rating.

For stocks, fundamental analysis uses revenues, earnings, future growth, return on equity,
profit margins, and other data to determine a company’s underlying value and potential for future growth. All of this data is available in a company’s financial statements (more on that below).

Fundamental analysis is used most often for stocks, but it is useful for evaluating any security, from a bond to a derivative. If you consider the fundamentals, from the broader economy to the company details, you are doing fundamental analysis.

Investing and Fundamental Analysis

An analyst uses works to create a model for determining the estimated value of a company’s share price based on publicly available data. This value is only an estimate, the analyst’s educated opinion, of what the company’s share price should be worth compared to the currently trading market price. Some analysts may refer to their estimated price as the company’s intrinsic value.

If an analyst calculates that the stock’s value should be significantly higher than the stock’s current market price, they may publish a buy or overweight rating for the stock. This acts as a recommendation to investors who follow that analyst. If the analyst calculates a lower intrinsic value than the current market price, the stock is considered overvalued and a sell or underweight recommendation is issued.

Investors who follow these recommendations will expect that they can buy stocks with favorable recommendations because such stocks should have a higher probability of rising over time. Likewise stocks with unfavorable ratings are expected to have a higher probability of falling in price. Such stocks are candidates for being removed from existing portfolios or added as “short positions.

This method of stock analysis is considered to be the opposite of technical analysis, which forecasts the direction of prices through an analysis of historical market data such as price and volume.

Quantitative and Qualitative Fundamental Analysis

The problem with defining the word fundamentals is that it can cover anything related to the economic well-being of a company. They obviously include numbers like revenue and profit, but they can also include anything from a company’s market share to the quality of its management.

The various fundamental factors can be grouped into two categories: quantitative and qualitative. The financial meaning of these terms isn’t much different from their standard definitions. Here is how a dictionary defines the terms:

  • Quantitative – capable of being measured or expressed in numerical terms.
  • Qualitative – related to or based on the quality or character of something, often as opposed to its size or quantity.

In this context, quantitative fundamentals are hard numbers. They are the measurable characteristics of a business. That’s why the biggest source of quantitative data is financial statements. Revenue, profit, assets, and more can be measured with great precision.

The qualitative fundamentals are less tangible. They might include the quality of a company’s key executives, its brand-name recognition, patents, and proprietary technology.

Neither qualitative nor quantitative analysis is inherently better. Many analysts consider them together.

Qualitative Fundamentals to Consider

There are four key fundamentals that analysts always consider when regarding a company. All are qualitative rather than quantitative. They include:

  • The business model: What exactly does the company do? This isn’t as straightforward as it seems. If a company’s business model is based on selling fast-food chicken, is it making its money that way? Or is it just coasting on royalty and franchise fees?
  • Competitive advantage: A company’s long-term success is driven largely by its ability to maintain a competitive advantage—and keep it. Powerful competitive advantages, such as Coca Cola’s brand name and Microsoft’s domination of the personal computer operating system, create a moat around a business allowing it to keep competitors at bay and enjoy growth and profits. When a company can achieve a competitive advantage, its shareholders can be well rewarded for decades.
  • Management: Some believe that management is the most important criterion for investing in a company. It makes sense: Even the best business model is doomed if the leaders of the company fail to properly execute the plan. While it’s hard for retail investors to meet and truly evaluate managers, you can look at the corporate website and check the resumes of the top brass and the board members. How well did they perform in prior jobs? Have they been unloading a lot of their stock shares lately?
  • Corporate Governance: Corporate governance describes the policies in place within an organization denoting the relationships and responsibilities between management, directors and stakeholders. These policies are defined and determined in the company charter and its bylaws, along with corporate laws and regulations. You want to do business with a company that is run ethically, fairly, transparently, and efficiently. Particularly note whether management respects shareholder rights and shareholder interests. Make sure their communications to shareholders are transparent, clear and understandable. If you don’t get it, it’s probably because they don’t want you to.

It’s also important to consider a company’s industry: customer base, market share among firms, industry-wide growth, competition, regulation, and business cycles. Learning about how the industry works will give an investor a deeper understanding of a company’s financial health.

Quantitative Fundamentals to Consider

Financial statements are the medium by which a company discloses information concerning its financial performance. Followers of fundamental analysis use quantitative information gleaned from financial statements to make investment decisions. The three most important financial statements are income statements, balance sheets, and cash flow statements.

The Balance Sheet

The balance sheet represents a record of a company’s assets, liabilities and equity at a particular point in time. The balance sheet is named by the fact that a business’s financial structure balances in the following manner:

Assets = Liabilities + Shareholders\’ Equity

Assets represent the resources that the business owns or controls at a given point in time. This includes items such as cash, inventory, machinery and buildings. The other side of the equation represents the total value of the financing the company has used to acquire those assets. Financing comes as a result of liabilities or equity. Liabilities represent debt (which of course must be paid back), while equity represents the total value of money that the owners have contributed to the business – including retained earnings, which is the profit made in previous years.

The Income Statement

While the balance sheet takes a snapshot approach in examining a business, the income statement measures a company’s performance over a specific time frame. Technically, you could have a balance sheet for a month or even a day, but you’ll only see public companies report quarterly and annually.

The income statement presents information about revenues, expenses and profit that was generated as a result of the business’ operations for that period.

Statement of Cash Flows

The statement of cash flows represents a record of a business’ cash inflows and outflows over a period of time. Typically, a statement of cash flows focuses on the following cash-related activities:

  • Cash from investing (CFI): Cash used for investing in assets, as well as the proceeds from the sale of other businesses, equipment or long-term assets
  • Cash from financing (CFF): Cash paid or received from the issuing and borrowing of funds
  • Operating Cash Flow (OCF): Cash generated from day-to-day business operations

The cash flow statement is important because it’s very difficult for a business to manipulate its cash situation. There is plenty that aggressive accountants can do to manipulate earnings, but it’s tough to fake cash in the bank. For this reason, some investors use the cash flow statement as a more conservative measure of a company’s performance.

The Concept of Intrinsic Value

One of the primary assumptions of fundamental analysis is that the currently price from the stock market often does not fully reflect a value of the company supported by the publicly available data. A second assumption is that the value reflected from the company’s fundamental data is more likely to be closer to a true value of the stock.

Analysts often refer to this hypothetical true value as the intrinsic value. However, it should be noted that this usage of the phrase intrinsic value means something different in stock valuation than what it means in other contexts such as options trading. Option pricing uses a standard calculation for intrinsic value, however analysts use a various complex models to arrive at their intrinsic value for a stock. There is not a single, generally accepted formula for arriving at the intrinsic value of a stock.

For example, say that a company’s stock was trading at $20, and after extensive research on the company, an analyst determines that it ought to be worth $24. Another analyst does equal research but determines that it ought to be worth $26. Many investors will consider the average of such estimates and assume that intrinsic value of the stock may be near $25. Often investors consider these estimates highly relevant information because they want to buy stocks that are trading at prices significantly below these intrinsic values.

This leads to a third major assumption of fundamental analysis: In the long run, the stock market will reflect the fundamentals. The problem is, nobody knows how long “the long run” really is. It could be days or years.

This is what fundamental analysis is all about. By focusing on a particular business, an investor can estimate the intrinsic value of a firm and find opportunities to buy at a discount. The investment will pay off when the market catches up to the fundamentals.

One of the most famous and successful fundamental analysts is the so-called “Oracle of Omaha,” Warren Buffett, who champions the technique in picking stocks.

Criticisms of Fundamental Analysis

The biggest criticisms of fundamental analysis come primarily from two groups: proponents of technical analysis and believers of the efficient market hypothesis.

Technical Analysis

Technical analysis is the other primary form of security analysis. Put simply, technical analysts base their investments (or, more precisely, their trades) solely on the price and volume movements of stocks. Using charts and other tools, they trade on momentum and ignore the fundamentals.

One of the basic tenets of technical analysis is that the market discounts everything. All news about a company is already priced into the stock. Therefore, the stock’s price movements give more insight than the underlying fundamentals of the business itself.

The Efficient Market Hypothesis

Followers of the efficient market hypothesis, however, are usually in disagreement with both fundamental and technical analysts.

The efficient market hypothesis contends that it is essentially impossible to beat the market through either fundamental or technical analysis. Since the market efficiently prices all stocks on an ongoing basis, any opportunities for excess returns are almost immediately whittled away by the market’s many participants, making it impossible for anyone to meaningfully outperform the market over the long term.

Examples of Fundamental Analysis

Take the Coca-Cola Company, for example. When examining its stock, an analyst must look at the stock’s annual dividend payout, earnings per share, P/E ratio, and many other quantitative factors. However, no analysis of Coca-Cola is complete without taking into account its brand recognition. Anybody can start a company that sells sugar and water, but few companies are known to billions of people. It’s tough to put a finger on exactly what the Coke brand is worth, but you can be sure that it’s an essential ingredient contributing to the company’s ongoing success.

Even the market as a whole can be evaluated using fundamental analysis. For example, analysts looked at fundamental indicators of the S&P 500 from July 4 to July 8, 2020. During this time, the S&P rose to 2129.90 after the release of a positive jobs’ report in the United States. In fact, the market just missed a new record high, coming in just under the May 2020 high of 2132.80. The economic surprise of an additional 287,000 jobs for the month of June specifically increased the value of the stock market on July 8, 2020.

However, there are differing views on the market’s true value. Some analysts believe the economy is heading for a bear market, while other analysts believe it will continue as a bull market.

Exbino Review

eXbino.com Review

eXbino is a well-known established broker in the European and North American market. It is owned by Exclusive LTD brand and has IBC no.109205 regulation. Being a regulated company, this provider has a license from CySEC no.216/13. Its platform is provided in English, Russian, Czech, Arabic and German. It also offers full assistance in Polish, which is very extraordinary in case of binary brokers. All the clients investments are protected by laws of the banks, where they are held: Poland, Montenegro and Switzerland. We should note in this eXbino review that there are more than 60 available for trading assets and four options types.

eXbino.com Review – Binary Broker

In order to keep the leading position, each company has to meet the growing needs and wishes of traders, which won’t be satisfied with the standard 2 button Above / Below, and only ten assets. That is why eXbino is constantly evolving, expanding its list of assets and extra features on the platform.

If we talk about the variety of trading tools, eXbino binary options can please their customers with standard High / Low, Short Term, Boundary and One Touch options. For those who are just beginning to discover the digital options as a form of investment, the company gives a detailed description of each tool, with examples, that even the most distant from the financial world people can understand what is happening and begin to increase their wealth at a rate of up to 85% per transaction.

eXbino.com Review – Deposit and Withdrawal

If you do decide to start trading, you will need to deposit your account. eXbino minimum deposit is € 200, but for a more comfortable and less risky trading, the broker recommends to start with a higher amount. Funding the account can be any way you want from the list that offers this broker. This includes Visa, MasterCard, Neteller, Skrill (Moneybookers), Moneta Ru, BTC, Sofort, CashBill, and, of course, bank transfer.

Before you make a withdrawal, you have to go through the procedure of verification of your identity. More detailed instructions for this process you can find at broker’s website, in the “Trade” => “Deposit and Withdrawal.” After finishing all the formalities, funds withdrawal will be available immediately. Please note that depending on the type of account, you are able to withdraw money without any fees a number of times in a month.

Regulation
Minimum Deposit $200
Maximum Deposit Unlimited
Bonus Loyal Points
Minimum Trade Size $25
Trading Platform TechFinancials
Account Types Standard, Trader, VIP + Forex, VIP Account, VIP Plus
Demo Account
Islamic Account
Account Currencies EUR, GBP, PLN, RUB, USD
Payment Methods
Withdrawal Fees No fees
Traders From USA
Options Trading
Option Types Boundary, Call/Put, One Touch, Short term
Return Rates 85%
Safety Net Up to 15% refund
Touch Options (Max Rates) 0%
Educational tools eBook Beginner Video Tutorials Beginner eBook Intermediate Video Tutorials Intermediate eBook Advanced Video Tutorials Advanced Live Feed Extras Economic Calendar Extras Glossary Extras
Assets Commodities, Forex Pairs, Indices, Stocks,
Forex Pairs EUR/USD, USD/JPY, GBP/USD, EUR/JPY, GBP/JPY, EUR/GBP, AUD/USD, USD/CAD, EUR/CAD, NZD/USD, EUR/AUD, GBP/AUD, NZD/CHF, AUD/NZD, EUR/TRY, USD/CHF, CAD/JPY, EUR/NOK, EUR/ZAR, AUD/JPY, GBP/CAD, AUD/CHF, CHF/JPY, GBP/CHF, CAD/CHF, USD/MXN, AUD/CAD, USD/ZAR, USD/TRY, USD/NOK
Stocks BARCLAYS, SOCIETE GENERAL, ORANGE FRANCE, FIAT, GAZPROM, BBVA, TELEFONICA, RENAULT, SBERBANK, TESCO, BP, VODAFONE, AXA GROUP, BNP PARIBAS, ROYAL DUTCH
Commodities Gold, Oil, Copper, Platinum, Silver, Gold/EUR, Gold/Silver, Gold/JPY
Indices SMI 20 FUTURE, IBEX 35 FUTURE, DAX 30, CAC 40, FTSE 100, SOUTH AFRICA 40 FUTURE, MICEX, RTSI, BUX
Crypto
Customer Support
Phone
Email [email protected]
Contact form
Live Chat
Call Back
Newsletter
Support Hours en
Supported Languages

EUR, GBP, PLN, RUB, USD

Up to 15% refund

Touch Options Payout (Max)

eXbino Bonus

eXbino has different offers and benefits for its clients. The standard one is a deposit eXbino bonus which ranges from 50 to 2500 EUR depending on your investment amount. You can get such bonus only when you contact account manager because it isn’t put automatically on your account. But we note in our eXbino review, that to make a withdrawal you need to redeem any eXbino bonus in 30 times trading volume.

There are also presents for VIP users such as iPad Air, 6 iPhone and MacBook Air. You can get them in case you invest from 2 500EUR to 10k EUR accordingly and also if you agree to accept 2 500EUR bonus.

eXbino Demo

eXbino demo account trading is fully free and helps to adopt to broker’s platform. This is a very useful service for beginners or those who want to try out new strategies without risking losing money. But even those who are not the first year working in this area are not ashamed to use it to hone their skills. Each user can get an access to eXbino demo account by opening a real account and contacting to the account manager or support team.

Types of accounts

In total, the company provides a choice of 5 types of accounts, each of which will please you with their unique advantages.

You can open Standard account making a minimum investment of € 200. Since this account type is designed for beginners, it includes free training materials and general training in the use of the platform. In addition, you will be able to make one free withdrawal per month and will have the ability to get a € 50 bonus.

eXbino minimum deposit for Traders account is € 1 000. The owner of this account will receive free training strategies, + 2% profitability to each transaction request, 2 free withdrawals per month and the opportunity to get a € 500 bonus gift.

For those who want even greater privilege, VIP account would be a good choice, which will give you access to unlimited consultations with company’s experts, additional training materials, 3 free withdrawal of funds per month, 3% revenue for your transactions, as well as the choice of iPad Air or iPhone 5S, if you agree to get € 2 500 bonus into your account. An incredibly good offer, isn’t it? All it will cost you eXbino minimum investment of € 2,5k.

VIP Plus offers the same conditions as the previous type, with the only difference that you will have no restrictions on the free withdrawal, profitability increase of transactions amount to 4%, and if you are willing to accept a bonus of € 2,500, you will get a choice between the iPad Air and iPhone 6. The cost of such an attractive offer is minimum investment of € 5000.

Finally, VIP + Forex account adds 5% to your income from each transaction and Forex tools, which will greatly expand your investment opportunities. As an exclusive gift eXbino offers MacBook Air, if you will make a deposit of at least € 10,000 and agree to get a bonus of € 2,5k.

eXbino.com review – Customer Support

Contact customer support team can be eXbino via email, phone and online chat. Broker allows receiving highly qualified advice in English, German, Russian, Chinese, Czech and Polish. Most experts say the company will answer any of your questions during all trading hours. Additionally, you can get help with the analysis of the market and the advice from the advanced analytics market Forex. Alternatively, you can visit the section FaQ, read educational materials online broker and read eXbino forum discussions.

eXbino Forum

Summing up our eXbino review we touch a very important question for any trader, which is raised on eXbino forum – the reliability of the broker. If we talk about the licenses, we can just say that this provider has them. In Montenegro, where the center is based executive broker, eXbino received a license from the E-Gambling Montenegro do Company TechFinancials, which owns the brand eXbino as a whole, and also CySEC license No 216/13. On eXbino forum, many can alert those fabulous bonuses offered by the broker. And then hard not to admit that it looks very suspicious to receive an offer of € 2 500 and the iPhone 5 as a gift for the whole € 2,5k deposit. But then you need to make an amendment to the condition of bonuses. If you get eXbino bonus of € 2 500, you will need to make a transaction valued at € 75 000 (30 times more than the bonus) before you can withdraw your money. Such conditions are ideal for those who are already professional traders, but for beginners, probably will be hard to work out this bonus.

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