FAQs

Frequently Asked Questions
We believe that the best investor is an informed one. So below is a large compiled list of questions submitted to us. Please take the time to read through this, as we are sure many of your queries may be addressed here.

If you still have a question that you can’t find being answered below, please do not hesitate to contact us at any time

ABOUT FOREX TRADING:

Q. What is Foreign Exchange?
A. The Foreign Exchange market, also referred to as the "Forex" or "FX" market, is the largest financial market in the world, with a daily average turnover of approximately US$1.5 trillion. Foreign Exchange is the simultaneous buying of one currency and selling of another. The world's currencies are on a floating exchange rate and are always traded in pairs, for example Euro/Dollar or Dollar/Yen.

Q. Where is the central location of the Forex Market?
A. Forex Trading is not centralized on an exchange, as with the stock and futures markets. The Forex market is considered an Over the Counter (OTC) or 'Interbank' market, due to the fact that transactions are conducted between two counterparts over the telephone or via an electronic network.

Q. Who are the participants in the Forex Market?
A. The Forex market is called an 'Interbank' market due to the fact that historically it has been dominated by banks, including central banks, commercial banks, and investment banks. However, the percentage of other market participants is rapidly growing, and now includes large multinational corporations, global money managers, registered dealers, international money brokers, futures and options traders, and private speculators

Q. When is the Forex market open for trading?
A. A true 24-hour market, Forex trading begins each day in Sydney, and moves around the globe as the business day begins in each financial center, first to Tokyo, then London, and New York. Unlike any other financial market, investors can respond to currency fluctuations caused by economic, social and political events at the time they occur - day or night.

Q. What are the most commonly traded currencies in the Forex markets?
A. The most often traded or 'liquid' currencies are those of countries with stable governments, respected central banks, and low inflation. Today, over 85% of all daily transactions involve trading of the major currencies, which include the US Dollar, Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar and the Australian Dollar

Q. What is "Forex" and why is this an ideal asset class for diversification?
A. Our belief with the Forex market is that money is never really made nor lost, but only changes wallets. Diversifying heavily into one major asset class such as Forex, is in our view, one of the few markets that will work with this type of diversification strategy. Strategy diversification is important from one trader to another to take advantage of this concept. However, currency markets are unique in that they are the only asset class that has never experienced an across-the-board bear market, or even a boom or bust like real-estate markets. In our collective opinion, it is as close to “crash-proof” investing as one can come. This makes currencies an excellent asset class for a diversification. When one trader is down, another is up. Experienced traders can always find a profitable trend to ride somewhere in the foreign exchange markets, as long as they completely understand the key factors that move world currencies.

“Foreign exchange (FOREX) is the arena where a nation's currency is exchanged for that of another. The global foreign exchange market is the largest financial market in the world in terms of daily volume, 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, and about 6-8 times higher than the volume in the stock exchange worldwide.

The commodities traded on Forex are national currencies. 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. In essence, it is a truly global market, which operates around-the-clock and around-the-globe. The global nature of the Forex market, utilizing modern information technologies and financial services, enables private investors to participate in the market from their homes or offices now via telephone or computer with an internet connection.

Traditionally, retail investors' only means of gaining access to the foreign exchange market was through banks that transacted large amounts of currencies for commercial and investment purposes. Trading volume has increased rapidly over time, especially after exchange rates were allowed to float freely in 1971. Today, importers and exporters, international portfolio managers, multinational corporations, speculators, day traders, long-term holders and hedge funds all use the FOREX market to pay for goods and services, transact in financial assets or to reduce the risk of currency movements by hedging their exposure in other markets.

The Forex market is quite different than a market such as the stock market. As a result of its global dimension, the Forex market is open 24 hours a day, which enables investors to correct their positions at any point in time. Given the large number of players, the Forex market has narrow spreads and virtually no price gaps. The lack of price gaps typically enables investors to count on non-slippage order execution. However, in a very volatile market the possibility for slippage exists.

The large volume of participants also reduces opportunity for insider information. To put it simply, there has never been a case of complete non-recoverable currency collapse in a developed country. The volatility of leading currencies rarely exceeds 1% per day, in contrast to the volatility of stocks, which may fluctuate by up to 10% over one trading session. The Forex market generally provides more opportunities for leveraged trading (although it should be noted that a higher leverage size is associated with higher risks).

According to New York time, trading begins at 2.15pm on Sunday in Sydney and Singapore and progresses through to Tokyo at 7pm, London at 2am and reaches New York at 8am. This leaves investors free to respond to global political, economic and social events when they take place, day or night.” – RB Capital Management.

ABOUT MANAGED ACCOUNT:

Q. What is the minimum investment
A. The minimum investment is $15,000.00 USD for the Premium managed account. (Special Promo for Premium FX, as normally it is $25,000)

Q. Does anyone else have access to my funds?
A. No, the funds in your forex trading managed account are in your name at the broker. You are the proprietor of this account and the only one who can make deposits to or withdrawals from this account. The only power you grant to the trade manager for the managed program is the authority to trade your account

Q. Once my new account is funded, how long before it will start being traded?
A. This varies but usually it will only take days before you see the first trades being placed. As soon as your account is funded, the trade manager sees that it is ready for inclusion in the next new cycle of trades - you don't need to do anything.

Q. Can I open or close trades in the account that is being managed for me?
A. No - It can only be traded by the trade manager. You can revoke the Authority at any time.

Q. How do you make money?
A. We make our money from the performance fee, as it is often called.

Q. What is a managed forex account, what are the benefits they provide, and how is a typical managed account traded?
A. Self-trading currencies are at best a very difficult proposition. Many forex investors do not have the time, experience or desire to trade in the forex market themselves. Being able to follow the market movement 24 hours a day is a very essential part of the trading. Managed Accounts are created for investors with risk capital who do not necessarily want to trade on their own.

In a managed account you own the currencies that make up your portfolio. Unlike mutual funds or hedge funds, which commingle your funds with other investors, a managed account is in your name and all or part of your funds can be redeemed within one day.

How it works, is the investor opens up an account at a reputable brokerage firm, the investor then funds his account. No one can touch the money in this account but the investor. The trader cannot even deposit or withdraw funds from the investor's account without the proper authorization to do so, and the investor retains full access and control over the account at all times. A managed account allows an investor to have their funds traded professionally by an experienced trader or automated system via a limited Authority agreement.

A managed forex account enables the trader to trade an investor's account on their behalf without having to transfer the funds into his account. It is the ideal way to have your money traded for maximum safety and control. You can check the balance of your account at anytime, see the daily trade activity, or withdraw or deposit funds when you please. You can also revoke your Authority agreement at anytime if you are not happy with how the trader is managing your funds.

Q: How many trades are there on average per month?
A.Around 200-600 approx trades per month or more.

Q: How do I stop my account from being traded?
A. Simply call or email us to revoke your Authority agreement . You of course can withdraw your funds at any time from your account in part or in full, as you have total control over this.

Q: The compounded results (cmp) seem too good to be true?
A. The account balance is compounding daily. This means that every trade that wins the following trade is placed with an increased equity balance and thus the compounding effect creates a very rapid growth.

Q: How safe is the broker?
A. We only use brokerages that are non-dealing desk ECN brokerages with tight inter-bank floating spreads. All funds are segregated and held at Tier 1 banks such as Barclays Bank . We will direct you to the most appropriate brokerage upon application.

Q: What kind of money management is in place?
A. The managed accounts have extremely strict risk parameters in place as they only ever risk a very small percentage of your account balance per trade. Normally it’s in the region of 1-2% in most cases. The managed accounts are monitored continuously to make sure they are not going outside of these pre-set strategic risk protection parameters. The draw down is cut down to a minimum, however you must understand that these trading programs are geared for a high return each month, and to target 10-15% per month does involve risk.
If you cannot accept this or don’t understand it then you should not be investing in this kind of alternative investment.

Q: What currency is the account traded in?
A. All the managed accounts are traded in USD. You can either instruct your bank to do the exchange from your own country’s currency into USD or leave it to the broker to do when they receive your funds at their end.

Q: Can you Guarantee Result?
A. NO! Guaranteeing results is illegal, unless you are a bank or other institutions licensed to do so; however our customers enjoy the results we achieve for them. Our professional traders following specific and proven trading methods and strict money management, it is our commitment to minimize risk and maximize gains for greater rewards. Past success is not guarantee of future profits

GENERAL QUESTIONS:

Q. What is available to satisfy my due diligence before I invest in your Managed Forex Account service?
A. Due diligence is a critical factor in your decision making process and this is why there is a totally transparent business model of which the major points to remember are as follows:

  • We do not hold any funds, as you hold them in your personal brokerage account.
  • If we go bust then this has no affect on your funds.
  • If you don’t like what you see then you can withdraw your money at any time without penalty. You have total control over this.
  • The brokerages used hold all client funds at reputable well-known tier such as Barclay Bank.
  • You can view your account live at any time with the software that the brokerage will supply to you upon opening an account.
  • There are no management fees. Our fees are based on performance, so we only do well if you do well.

You will quickly be able to see for yourself the performance of the managed account within a few months of joining and therefore make a decision on whether you want to continue, add more funds or withdraw your funds altogether. But you have the control over this.

In most other business models, you would not have this kind of flexibility and you would have to hand over your money to the fund manager and you would not have access to your money for at least a year and in some cases 5 years. You would have no control over your funds in this example.

You would have no way of knowing what the real results are except for a statement that you receive at the end of the quarter or at end of year. You simply have to take their word for it and hope for the best that the money manager does not run away with your money as he holds your funds!

As you can see in this business model it eradicates these major due diligence issues and it creates a totally transparent and fair model.

Q. Surely to generate above average returns, there is risk involved. Is this correct?
A. Yes there is risk involved! Because the featured investments are alternative investments focused in the Foreign Exchange market. We believe the key to a successful investment is exposure to enough risk to generate a decent return, but not so much as to give rise to sleepless nights.

A disciplined approach restricts the risk and reduces the exposure to volatility in the marketplace. The risk has been reduced as much as possible, while still targeting consistent and above average returns. But rest assured - the risk is still present! So do not use money that your family needs, or money that is needed to pay the rent. Not only is this simply ethically wrong, it’s illegal. You need to find your ideal "risk vs. reward ratio" before investing with any type of investment vehicle.

Q. I don't know much about trading or alternative investments, can I still benefit from the investments?
A. Yes! There is no need to be a professional trader to successfully and safely invest in a managed account. This alone is one of the biggest advantages to a managed account. It allows the modern investor the ability to have their account traded by a professional (who trades for a living).

Q. What is the tax situation?
A. Ultimately, you are responsible for your own tax. We do not get involved, but as a general rule whatever you bring back into your country of origin is of course taxable. If your trading account is set-up through an IBC then the tax will depend on the country your IBC is set up in.

Q. Can the min investment be spread across 2-3 different managed account services?
A. No.

Q: How the monthly profit are managed by?
A. By you, as you are the trading account holder. We will be sharing a maximum of 50% of the profit generated from your account every month and is for you to pay our service at the closing date of the month confirmed by the Invest Trust Money Manager..

.

Contact Us

Investment Revenue

Click here


FAQs

FAQs

FAQs