Trading is complex, and can take many years to become proficient. Our clients however, are given a gateway to the dynamic World of FX, without having to walk alone. Our managers make the trading decisions and do all the heavy lift for you.
When it comes to stocks, bonds, other traditional investments, and even cryptocurrencies, the basic point is to buy at a lower price, and then sell at a higher. The difference is the profit.
In case of alternative investments, there are two important key differences:
Ability to trade in the other direction of the market. It means you can actually make profit on a depreciating (bearish) market, but also take a loss if your position was wrong on an appreciating (bullish) market.
Option to use leverage. It is like getting credit, as it allows you to place a bigger (leveraged) trading position.
Here’s how it’s done; Take an example on a Forex pair EUR/USD. There are two positions you can take, buy and sell. When you “buy”, you buy EUR while selling USD, and when you “sell”, you sell EUR to buy USD. In either case, you are buying one currency while selling the other. The difference is either profit or a loss.
Then you can add leverage into the equation. It means that the broker allows you to buy more of one currency, while selling more of the other. As you have funds on your brokerage account, those funds are used as “collateral” or Margin, making sure you have an ability to cover any potential losses. If the markets go in your favor, leveraged position helped you make a bigger profit, while of course it also goes the other way around.
Instruments called Contract For Difference (or in short CFD) offer similar features as Forex pairs. As they are all leveraged products, this means a smaller investment is needed for a similar result. With the addition of ability to profit from either market direction, this makes alternative investments almost completely uncorrelated from any other markets, which makes such investments a very good addition to your diversified portfolio. Of course, it needs to be added that any type of investments carries a certain degree of risk, and alternative investments are no exception. The best things for an investor to do is to:
– Get educated about each investment made
– Get diversified among multiple types of investments
– Only invest the amount that you can afford to lose
– When investing with us – use the protection tools available on the Hybrid PAMM
As experienced traders trade their own accounts, there is an option for other clients to simply attach the accounts, and receive the same trades. The software that allows trade copying at proper ratios is called Percentage Allocation Management Module or in short, the PAMM. The software that takes this to another level by adding some important and simple protection tools is called the Hybrid PAMM , and all our managed accounts are using that software.
Every client has an account with the reputable licensed brokerage that we work with. Clients are the only ones with the right to access the accounts, to send funds, and withdraw them. Managed Forex Hub has a list of traders clients can choose from, and they will manage the accounts. If a client is not happy with the trading, the manager can be instantly removed from the account, and trades get closed. We made an easy to understand manual helping clients with their account setup HERE.
Traders, managing your account, are rewarded for their successful trading by charging a fee on their performance. This is called the Performance Fee, and it is charged once per month only on new profits. The term in this industry is profits based on High Water Mark. Each trader will usually have different commission and fee structure, and they are all outlined for each strategy. All those fees are also split with Managed Forex Hub, and affiliates. We are constantly looking for new talented traders, as that helps us maintain a high quality and versatile offer, so that our clients get the very best. You can read more about becoming one of our featured traders HERE.
Affiliates or in other words Introducing Brokers, have played a very important role from our very beginning. They are considered very important partners, as many business connections, successful traders, and also clients, have come from them. They help our business grow, stay competitive, and bring better options, which is why affiliates deserve their share. You can read more about the affiliates HERE.
When it comes to enriching your portfolio with alternative investments, we at Managed Forex Hub have always tried to bring complete solutions to all our partners, from clients of any investment size, to traders and affiliates. Investing is far from seeking for short term profits. It’s also adding capital/investment protection, education, professional support and the list goes on. Our clients, our partners, will find all that and more when working with us. Feel free to contact us at anytime and for anything.