Foreign Exchange (FOREX) is the arena where a nation's currency is exchanged for that of another. The foreign exchange market is the largest financial market in the world, with the equivalent of over $1.9 trillion changing hands daily; more than three times the aggregate amount of the US Equity and Treasury markets combined. Unlike other financial markets, the Forex market has no physical location and no central exchange. It operates through a global network of banks, corporations and individuals trading one currency for another. The lack of a physical exchange enables the Forex market to operate on a 24-hour basis, spanning from one zone to another in all the major financial centers.
Managed accounts are individual investment accounts that are managed by independent money managers using an asset-based fee structure. I assist you with opening a brokerage account with a designated Forex Broker. Your individual account is private. No one has access to your funds but you and it can be monitored 24/7 through Forex50.com. You grant me a Power of Attorney to trade in your account only.
Most financial professionals will tell you asset allocation is the only thing to consider on your investment or retirement account. The problem with that is most investments like bonds, stocks, and mutual funds are highly correlated. They tend to move all in the same direction. If you recall what happened back in 2000, everyone lost money in equity related accounts. Forex market is uncorrelated to your other investments, it has true asset diversification. Forex market also have good liquidity. A stop loss order will get you out in no time. Stock, on the other hand, might get you filled at a bad price if market moves suddenly.
Unlike other Forex traders, I only trade once or twice a week. I set up my postions early in the week. It occurs usually Sunday night or Monday mornings. This is very safe and rather unique because my orders are in usually before major news release. Major news release tend to happen later in the week. Sometimes market can move a lot during a major news release and give people bad fills or no fills at all. I on the other hand will not run into such problems because my orders are in early in the week, not during major news release times. Each time I trade, I only use 2% to 4% of total account value. If I feel comfortable with the trade, I use 4%, if not, then 2%. My stop loss is max 100 pips from my entry, sometimes 50 pips. I am a longer term trader, so my stop loss tends to be a little wider. So for a normal week, if I used 4% to trade and it happens to be a loser, I am usually done trading for the week and the loss is no more than 4% of the total account value. At the time I enter my trade, I always put a stop loss order in as well just to protect my position. Forex market can make some crazy moves at times, I do not like the idea of not using a stop loss order. I use it 100% of the times. Further more, if I get into a losing streak, I will not add to my positions, which is using more money than 4% to trade to catch up. I actually do the exact opposite of cutting down on money used to trade. On money management, I am usually on a 4,4,2,2 system. It means if I lose 1st and 2nd trade in a row down 8%, I force myself to use 2% for future trades to recoup my losses.
- Only trade once or twice a week, no excessive and confusing trades in your account
- Small draw downs
- Tight and strict stop loss for each trade
- 100% transparency
- 100% accessibility to our support team
- 24/7 web access to your account
- Fund, cancel, or withdraw money out of your account without restrictions
- We do not touch your money, it is held with fully regulated U.S. currency brokers. You grant Forex50.com LPOA ( Limited Power of Attorney) to only make trades in the account on your behalf.
Forex50’s incentive fee is 30% of net monthly gains. It is based on high water mark. There is also a rebate on spread. It is a fixed spread. The rebate is $5.00 per 100K traded or $10.00 per round turn. Buy 100k, sell 100k equals 1 round turn.
PFGBEST.COM is our broker. They are currently ranked among the top U.S. non clearing FCM firms as measured by customer-segregated funds. PFG was ranked by the Futures Industry Association as the 37th largest FCM in 2006, with approximately $203 million in customer equity, up from $125 million in 2005, and a greater than 10-fold increase from $18 million in 1998.
It depends on your risk tolerance and your financial situation. Minimum to start off with our currency broker is $10,000.
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