Alternative Investment: Managed Forex Accounts

An alternative investment is an investment product other than traditional investments such as stocks, bonds or cash. Most alternative investment assets are held by institutional investors or accredited, high-net-worth individuals because of their complex nature, limited regulations and relative lack of liquidity. Some of the more common alternative investments strategies include real estate investment trusts, hedge funds, managed futures, private equity, venture capital, limited partnerships and Managed Forex Accounts.

While the small investor may typically be shut out of some alternative investment opportunities, owning a managed forex account offers the opportunity for smaller investors to participate in the great potential of the foreign exchange market.

With the problems that the stock markets around the world are having, a lot of investors are wary of putting their investment money at risk. More and more people are turning to the foreign exchange market, which, although considered a high-risk investment, has been much more stable over the last couple of years than the stock market.

The FOREX market is the largest financial market in the world. Each day over $4 Trillion is traded, mainly electronically, via over the counter contracts.

The sheer size of the forex market makes it extremely liquid, volatile and it offers low transaction costs. The potential returns on offer make it an attractive alternative to traditional Equity, Bond and Mutual Fund investments. However, wherever the potential exists for high returns the risk increases.

FOREX is considered a risky investment, and only risk capital should ever be used to speculate in the FX market. But why should you have one of these forex managed accounts? Why can’t you just casually trade on your own, like a money-making hobby on the side? Because trading in the forex market is hard work, and not just anybody can do it. It is a well known fact that 90-95% of Forex traders do not make money, so having a professional who does make money trade your account is an absolute must. Although Forex seems exciting to newcomers, it is an extremely volatile and highly leveraged market, and strict emotional control is required to be consistently successful in the Forex.

With the problems that the stock markets around the world are having, a lot of investors are wary of putting their investment money at risk. More and more people are turning to the foreign exchange market, which, although considered a high-risk investment, has been much more stable over the last couple of years than the stock market.

A managed Forex account is ideal for an investor who wants the high-profit potential of the foreign exchange market with the peace of mind that comes from having your capital managed by professionals. Managed Forex accounts are a good way for companies or individuals looking to diversify into Forex, but don’t have the time or experience for hands-on involvement.

According to the Barclay Hedge Alternative Investment Database, the top 10 managed forex accounts returned in the past 12 months. These private investment firms had to in order for their fund to be eligible in the BarclayHedge Monthly Rankings, it must have at least 13 months of actual performance and manage at least 10 Million US$.

1. 189%
2. 105%
3. 78%
4. 72%
5. 67%
6. 47%
7. 43%
8. 37%
9. 32%
10. 28%

What are the steps to open a managed forex account?

1) Investor opens a Forex account at a Forex broker. This Forex account is fully owned and controlled by the investor. The fund are transferred to this personal Forex account of the investor, which provides 100% security, meaning nobody else except the investor himself has access to the fund or authority to withdraw it.

2) Investor then authorizes a Forex account manager via a Limited Power of Attorney to execute trades on behalf of the investor using the broker’s trading platform. This Limited Power of Attorney can be revoked anytime and the trading will be stopped immediately.

3) Investor authorizes the Forex broker to pay a performance fee calculated according to the rate of the profit sharing to the Forex account manager at the end of each month or at the end of each year.

4) Investor is granted with the complete access to view and monitor the trading activity on his/her account via view only password. It includes observing every trade taken on his/her account and viewing the account’s current balance and equity.

Venator Group can best be described as a private investment club which offers education, tools and opportunities to those seeking to achieve real financial independence within five to ten years. The education is aimed at those who want to take control of their own investments and investment strategies, and provides solid information and training in both fundamental and technical trading – with an emphasis on the international forex market through managed forex accounts programs.

Charles St-Louis
Venator Group Corporation
www.venator-group.com
group.venator@gmail.com