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 lifting for you.
HOW PROFIT IS MADE?
BUY AT A LOWER PRICE, SELL AT A HIGHER
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 price. The difference is the profit.
In the case of alternative investments, there are two important key differences:
Ability to trade in the other direction of the market: This means you can actually make a 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’s like getting credit—it allows you to place a bigger (leveraged) trading position.
Here’s how it works: Take the example of 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, ensuring you have the ability to cover any potential losses. If the markets go in your favor, the leveraged position helps you make a bigger profit. However, if the market moves against you, the opposite happens.
Instruments called Contract For Difference (or CFDs) offer similar features to Forex pairs. As they are all leveraged products, a smaller investment is needed for a similar result. With the added ability to profit from either market direction, this makes alternative investments almost completely uncorrelated with any other markets, making them a great addition to your diversified portfolio. Of course, it’s important to note that all investments carry a degree of risk, and alternative investments are no exception. Here are the best practices for any investor:
• Get educated about each investment made.
• Diversify your investments across multiple asset types.
• Only invest what you can afford to lose.
• When investing with us, use the protection tools available on the Hybrid PAMM.
WHAT ARE PAMM MANAGED ACCOUNTS OFFERED BY MANAGED FOREX HUB?
As experienced traders trade their own accounts, clients have the option to simply attach their accounts and receive the same trades. The software that allows trade copying at the proper ratios is called the Percentage Allocation Management Module or PAMM. The software that takes this to another level by adding important and simple protection tools is the Hybrid PAMM, and all our managed accounts use this software.
SIMPLE SETUP
Every client has an account with the reputable licensed brokerage we work with. Clients are the only ones with the right to access their accounts, deposit funds, and withdraw. Managed Forex Hub provides a list of traders clients can choose from, and they will manage the accounts. If a client is not satisfied with the trading, the manager can be instantly removed from the account, and trades can be closed. We also provide an easy-to-understand manual to help clients with their account setup.
TRADER’S INCENTIVE
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 used in the industry is ‘profits based on High Water Mark.’ Each trader usually has a different commission and fee structure, and all of these are outlined for each strategy. These fees are also split with Managed Forex Hub and affiliates. We are constantly looking for new talented traders, as it helps us maintain a high-quality and versatile offer to our clients. You can read more about becoming one of our featured traders.
IMPORTANCE OF AFFILIATES
Affiliates, or Introducing Brokers, have played a crucial role from the very beginning. They are considered very important partners, as many business connections, successful traders, and 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 our affiliates.
COMPLETING THE CIRCLE
When it comes to enriching your portfolio with alternative investments, Managed Forex Hub has always strived to bring complete solutions to all our partners—from clients of any investment size to traders and affiliates. Investing is not just about seeking short-term profits. It’s also about adding capital protection, education, professional support, and much more. Our clients and partners will find all that and more when working with us. Feel free to contact us anytime for anything.