Managed Foreign Currency Trading Accounts:
What is FOREX?
The currency exchange (Foreign Exchange, FOREX, or FX) market is a cash inter-bank or inter-dealer market established in 1971 when floating exchange rates began to materialize. Currency trading represents more than three trillion dollars per day traded around the world. That is more trading volume than half a years trading activity of both the NYSE and NASDAQ combined!
Liquidity & Accessibility
Foreign exchange, by its very nature, is liquid. The product is cash and accounts can be settled every day. Orders are executed and confirmed by Internet connection and currency trading investors are able to access their account balances and trading activity reports via the Internet at any time.
FOREX Trading Defined
The simplest definition of foreign exchange currency trading is the practice of exchanging one country's currency for another country's currency. Currency trading involves four main variables: currencies, exchange rate, time, and interest rate. The interplay of these variables creates opportunities for small investors to obtain investment returns that are generally unheard of in the traditional investment world.
The FOREX market is concentrated in four major currencies: Deutschemarks (28%), Japanese Yen (23%), British Pound (13%), and the Swiss Franc (9%), all of which are quoted against the U.S. Dollar. For example, using U.S. Dollars (USD) in exchange for German Deutschemarks (DEM): USD is exchanged for an equal value of DEM.
Example of a FOREX Trade
Here's how currency trading works: A currency trader, at noon, may exchange one USD for 1.63 DEM. By 2:00 p.m., the value of that DEM increased in value (became stronger in relation to the USD) to 1.62; the DEM became one U.S. Penny stronger against the dollar. Now the trader exchanges the DEM he holds back to USD, creating a profit of $.01 (one penny).
If, instead of $1 USD, our trader had used US$10M, this exchange would have realized a profit of $100,000.00 -- not a poor return for two hours work! And, yes, this is a realistic description of what happens during currency trading. This process, repeated several times during twenty-four hours, has the potential to increase even small amounts rapidly.
No Bear Markets
A general fear among most investors in the traditional investment world is the "bear market". However, bear markets do not exist in the foreign exchange market. Whether the USD reaches record highs or record lows, the market is active and liquid, and can be traded in either direction.
Using the latest internet communications technology and the most advanced analytical tools, the patient and disciplined Investment Manager can limit downside risk and provide above average returns on a consistent basis. However, the ability to produce above average annual returns does carry a certain level of risk. The ability of the Investment Manager to properly use margin and follow a disciplined trading strategy can produce above average returns on a consistent basis.
Please note that foreign currency trading has certain risks that cannot be completely eliminated. Without this level of risk, the ability for substantial capital growth would not exist. Volatility is the key for profit potential in all markets. Successful Investment Managers use this market volatility as a tool. Furthermore, each investor must acknowledge the inherent risk associated with speculative trading and evaluate the specific percentage of capital which should be allocated for this type of investment.
A successful trading strategy is accomplished by:
1. Comprehending and applying the fundamental economic indicators that affect interest rates and currencies.
2. Applying a proven technical analysis strategy to guide entry and exit points.
3. Creating and sticking to realistic investment goals and objectives.
FOREX Trading is Available to Everyone
Trading opportunities in the FOREX market are now available to individuals through technology interfaces such as those used by major currency trading brokerage firms. If you decide to hire a Money Manager who takes advantage of this technology, you will be able to view your accounts' closed trades 24 hours per day through a secured, online access portal.
Managed Accounts with High Yield Returns
Our managed, foreign currency trading accounts are averaging monthly returns of 10%. Our investment management company trades through a major international, NASD registered, licensed, and insured brokerage firm. The investment management company's traders manage our clients´ funds through a trading authorization whereby they access each sub-account through a "master account". Each trade that is placed in the master account is simultaneously executed in each managed sub-account.
The advantage is that each investor has full signatory control over his/her funds in the brokerage account. The investment management company only has the authority to trade the clients account (through his master account). However, the investment management company cannot withdraw any funds from the client´s account.
The investment management company charges strictly on a "performance based" fee structure, whereby the management company takes a commission of 30% of the monthly investment returns (gains only).
Investment diversification is key in realizing positive long term investment performance. Hiring an Investment Manager is no different than hiring a family physician. Understanding the Investment Manager's investment philosophy and style of trading is important. Over time, by investing in this type of investment, the small investor can achieve the financial independence most only dream of.
If you are seeking a low risk, high yield investment account through a real, licensed, insured, registered brokerage firm, with a reputable investment management company, then a Managed Foreign Currency Trading account is for you.
To set up an account, you need:
An offshore corporation or foundation.
Note: If calling to Panama from the US or Canada, you must dial "011" prior to the country code (507).