NOW IS THE BEST TIME TO INVEST IN FOREX FUNDS

FOREX FUNDS ACCOUNT TRACK RECORD

FOREX FUNDS TRACK RECORD

Now is the best time to invest in Forex Funds. The importance of having assets diversified into a Managed Forex Account has to do with balancing a potentially adverse move in financial markets with the opportunity to capture return from resulting currency market fluctuations, in addition to possibly realizing performance when markets are less active yet shift gradually over a more extended period.

While such volatility -whether daily or yearly – can bring risk, it can also bring reward if done with the right timing, and methodology to be successful over a more extended period or more significant number of trades.

WHY FOREX FUNDS? I ALREADY KNOW HOW TO TRADE MYSELF

Just as a well-diversified portfolio consists of different holdings, strategies, asset classes and various types of investments and instruments, so should a Foreign Exchange portfolio.

Traders with significant Forex funds portfolios may have numerous accounts, with a diversified structure as noted above, in addition to trading for themselves, and running automated trading robots or signals on their own.

The term Managed Forex Accounts generally means that an investor is allowing a money manager to manage the investors Forex account, which is held in the name of the investors and preferably at a regulator brokerage, and trading authorization is given on a limited power of attorney (POA), which only allows trading (not withdrawals or deposits) by the fund manager, until such authorization is revoked or the investor withdraws funds.

Generally, investors look for consistency in performance, along with flexibility in what is described (versus what is achieved), as well as the reputation and background of the fund manager described. Again, even a consistent track-record is no assurance of future results, reviewing historical performance should be part of every investor overall investigative due diligence.

MAKING HARD DECISIONS EASIER

There are many other differentiating factors both quantitative and qualitative, that will be materially relevant for an investor who may be considering depositing to establish a managed Forex account under an offered program.

Once proper due diligence and disclosures have been considered, and a decision made to invest, the money spent in Forex funds  should only represent a portion of the investors holdings, as a means to diversify either a more substantial Forex portfolio, or a multi-asset portfolio where the Forex fund will serve the first component or dimension of Foreign Exchange exposure, and not a medium for an investors entire cash holdings.

This should be true, regardless of dollar amounts, or how much a fund has in Assets Under Management (AUM), and should instead represent a percentage of holdings that an investor is allocating to diversify while considering the profit/risk potential weighed against the subjective odds.

ACCOUNT OPENING AND FUNDING A FOREX FUNDS ACCOUNT.  WHAT’S NEXT?  WHAT SHOULD I EXPECT FROM INVESTING?

Most technology-driven online brokerages operating in regulated jurisdictions, involved in Forex, provide rates and help facilitate execution of trades, by Forex fund managers. However, not all funds are available at all brokerages; therefore, consideration must be made, as to which fund AND which broker is involved, hence the due diligence is also required to be done on the brokerage.

Once the brokerage is chosen, following an account opening process, and limited power of attorney (LPOA), the investor should have access to real-time or end-of-day reports, to access a statement of holdings within the account, including unrealized profits and losses, at any given time.

The investment horizon for the fund, may include a daily, weekly, monthly or even yearly target, and accordingly should be reviewed periodically to ensure to what degree the performance is aligned with these expectations, and a critical feedback mechanism for investors to tell how things are doing with their investment.