Company Information: This website (www.vestofx.com) is operated by FAIRMONT FINANCIAL SERVICES (PTY) LTD, a South African investment firm, authorized and regulated by the Financial Sector Conduct Authority of South Africa with Financial Service Provider (FSP) license number 51766. FAIRMONT FINANCIAL SERVICES (PTY) LTD is located at registered address Block 1 Constantia view office esta, hogback ave, Randburg, Gauteng, 1709 South Africa. FAIRMONT FINANCIAL SERVICES (PTY) LTD owns and operates the “VestoFX” brand. FAIRMONT FINANCIAL SERVICES (PTY) LTD and EVBX LTD belong to the same Group of Companies. EVBX LTD (ex Vstar & Soho Markets Limited) is regulated by the Cyprus Securities and Exchange Commission with CIF license number 409/22.

Risk warning: Contracts for difference (“CFDs”), are financial instruments which carry a high risk of losing all invested capital due to the fact that they are complex financial products. Trading in CFDs, includes trading with leverage and can lead to the loss of all balance held within your trading account fast. Please keep in mind that leverage in such financial instruments may be advantageous or detrimental. Also, it is crucial to know that a contract for difference gives no right of ownership to the underlying assets. Past performance is not a reliable source for future results and forecasts do not constitute a reliable indicator of future performance. It is essential to know that trading in CFDs is not appropriate for all investors and prior deciding to trade, you should thoroughly consider whether your level of experience, investment objectives and risk tolerance is able to endure the high risk of trading. In no event you should deposit more funds than you are prepared to lose. You should ensure that you understand all risks associated with trading in CFDs and seek independent advice, if necessary. Please read our Risk Disclosure document.

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Regional Restrictions:  FAIRMONT FINANCIAL SERVICES (PTY) LTD does not offer services within the European Economic Area as well as in certain other jurisdictions such as the South Africa, USA, British Columbia, Canada and some other regions.

FAIRMONT FINANCIAL SERVICES (PTY) LTD is NOT a financial adviser and does not issue advice, recommendations or opinions in relation to acquiring, holding or disposing of any financial product.

Analysis in CFD Trading

In the world of trading, there are primarily two types of analysis that traders rely on: fundamental analysis and technical analysis.

Fundamental Analysis:

This method involves looking at a company’s actual financial health to decide if its stock is priced correctly. Traders using this method examine things like the company’s earnings, expenses, assets, and debts, as well as the overall economy and industry trends. The aim is to figure out if the stock’s current price is too high or too low compared to how well the company is really doing and what its future might look like.

Technical Analysis:

This is a method where traders look at past market data, mainly the price and volume of a stock, to predict what it might do in the future. Traders use charts and other tools to spot patterns and trends using this type of analysis. The main idea is that what happened in the market before can give clues about what will happen next.

 

While both methods are distinct, many traders use a combination of both to make informed decisions. Fundamental analysis offers a broader view of an asset’s value over the long term, whereas technical analysis helps in identifying short-term trading opportunities.

Let’s make a comparison between fundamental and technical analysis:

Fundamental Analysis focuses on determining the intrinsic value of a financial asset or company using tools like financial statements, economic indicators, and industry trends. It considers both qualitative and quantitative factors to assess long-term growth potential. The goal is to identify undervalued or overvalued stocks, making it ideal for long-term investors. While it provides a deep understanding of a company’s value, it requires extensive research and may not reflect current market sentiment.

Technical Analysis analyzes past market data, mainly price and volume trends, using tools such as price charts and technical indicators like moving averages. It’s typically used for short-term trading to predict future price movements based on historical patterns. This method allows for quick market analysis and can be automated, but it relies heavily on historical data, which may not always predict future trends. It’s popular among day traders and swing traders.

Risk Warning

Trading in CFDs carry a high level of risk to your capital due to the volatility of the underlying market. These products may not be suitable for all investors. Therefore, you should ensure that you understand the risks and seek advice from an independent and suitably licensed financial advisor.

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