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Forex Investment - Recession Proof Choices

Forex Investment - Alternative for Frustrated Investors

People are looking for a possibility to diversify investments, and Forex market is very interesting for place for investors from all over the world.

Of course, people who think that Forex is a magic place where they can make tons of money, should understand that nothing is that easy. Forex can be about huge profits, and it can be huge losses. And the professionalism of a person who is taking care of your Forex investment is about making sure to lose less and win more - so that the overall picture looks something like this…

Click the picture below to see the real time updated statement with trading results of our trader (trading results will open in new window).

(for more details about these trading results - click here, and if you want to sign up for this service with this trading performance - registration details are here)

So, what is helping professional Forex traders
To show this kind of trading performance?

The point is that Forex market has some serious advantages that can be wisely used by the professional Forex managed accounts services and their traders.

Let’s talk a little about these advantages.

The largest and most liquid market in the world.

Due to its size and diversity FOREX depends on political or economic circumstances of any particular country in a much less degree than other markets. The market on which the only asset is money has highest of all possible liquidities.

Foreign exchange trading volume is 50 times larger than the New York Stock Exchange. There are always buyers and sellers abound in currency market. Extremely high liquidity helps ensure price stability. We can always open or close any position at a fair market price any time we consider necessary.

Global nature of FOREX market allows traders to trade money 24 hours a day.

In a sense, foreign exchange market follows the sun around the globe. That gives FOREX money manager continuous market opportunities. There’s a chance of rapid price gapping against you, especially if there have been news while the markets are closed.

High leverage allows FOREX money managers to earn higher profits on lower initial investments.

Leverage is the ability for an investor to use various financial instruments (such as margin accounts) to increase the potential return on an investment. The maximum leverage for stocks is typically 2:1. FOREX trading allows you to use much larger ratios of leverage (up to 500:1 vs typical 2:1 for equities trading and 15:1 for futures trading) with your investments.

A freedom to trade in all market conditions: bear, bull or sideways.

We can short-sell a currency anytime we consider necessary. We don’t have to abide by uptick rule to wait for the price to go higher before we can sell, which results in a more efficient and instant order execution.

FOREX actually provides more freedom of action for speculative trading and gives much more flexibility. For instance, in case of CFDs we can hold short positions for only one month under the terms established by SEC. To hold the position beyond the month the fee will be incurred. Whereas for FOREX the short positions can be hold as long as margin requirements allow.

No third parties and middlemen – lower costs for investors.

Because foreign exchange is decentralized, there’s no third party between trader and the market-maker responsible for the pricing on a particular currency pair. FOREX money manager doesn’t have to pay additional hidden fees and commissions.

* Recommended readings *

Stop being lured into Forex-based HYIPs! Read this free Forex managed accounts anti scam guide.

If you decided to hire ForexMoneyManager.com team for managing your trading account - please make sure to read our management fees, incentives and registration details on this page.

Forex Managed Accounts - Anti Scam Guide

How NOT to Get Into Another Investment Scam
When Choosing a Forex Service?

We want to put it very clear - there are lots of scammers who build nets of lies and catch naive investors into their web of trickery.

Forex is a market with a huge interest for investors; no wonder that scammers are hunting for the big money here.

The problem is that many potential investors hear a lot about making money of Forex, but know nothing about the specifics of this market. Therefore these people can be easily lured into a scam designated as a Forex investment.

If you read this article to the end, we guarantee that most of the Forex scams will not be able to fool you. So, this is the short list of typical problems and how to avoid them.

Forex Investment Scam Trick #1 - Send Me the Money

Never send your money to the Forex trader or Forex trading company - your money can “evaporate”.

We are not talking about e-gold or another anonymous electronic systems where your money disappears and you get no way to track who stole it.

Even if they give you a bank account, today it is possible to open a fake bank account; so the chances of losing your money are very high.

Solution: Forex managed accounts service is a perfect option. You do not send money to traders. You open your trading account DIRECTLY with the reputable Forex broker. At least www.ForexMoneyManager.com works with a top reputable Forex brokerage company - MG Financial - company that has global recognition for YEARS on this market.

So, you open an account directly with this broker. You are the only person on the planet whom this broker allows to deposit or withdraw the money from this account. This is YOUR account.

Our traders are able to perform trading operations with the money under your limited power of attorney. They cannot withdraw this money and buy a yacht, or villa in Spain, or shares in Halliburton.

You are the only and absolute owner of the account that you open directly with a world famous Forex broker. You track absolutely everything.

No intermediaries (who can disappear) - no risk that someone will take your money.

AND, any professional Forex brokerage company is checking the identity of its traders. Better than any FBI and CIA. That is why you can be sure that these traders are real people who do not have any chance to run away and disappear.

Forex Investment Scam Trick #2 - We Guarantee Profits

No one is allowed to guarantee profits on the Forex market - this is against the law.

The reasons are obvious, because Forex is a risky market. Even if someone has been making profits from Forex trading 60 months in a row - there is no guarantee this trader will make profits the next month.

That is why when you see any HYIP or other investment programs which say ‘we guarantee X% monthly or Y% daily’ - congratulations, you have found a scam. It is prohibited by law to promise any guaranteed profits from Forex trading.

Forex Investment Scam Trick #3 - Great Reviews

“I invested the money, because the program had great reviews” - a typical phrase of a ripped off investor.

Forex scammers are smart and have enough money to hire dozens of people who sit on Forex forums and brainwash naive people. They write fancy articles, they submit nicely-looking videos to YouTube - they know their job and their job is to make you believe. They are even running communities that are supposed to be unbiased, but in reality make people believe into fake programs.

Even if your best friend is recommending a HYIP - this friend can be fooled by the forums, reviews, articles, press releases and videos.

Forex Investment Scam Trick #4 - They Paid at the Beginning

Most of the scammers pay at the beginning, because they have to feed the market and spread the good buzz. Before they start any scam, they have at least 6 months’ reserve for payouts - but they will rip off people for a much bigger money.

For them this “payment at the beginning” is like an investment, a necessity. For naive investors this is a bait. You would be surprised how many people got caught onto that bait. Maybe even you were one of the victims. If so - sorry, but you should have read this post earlier.

Forex Investment Scam Trick #5 - They Had Nice Income %

Come on!

Anyone can take Photoshop and draw everything. Pay $50 to a good web designer and you can “boast” with screenshots of billions USD on your account.

How are YOU Going to Prove
That ForexMoneyManager.com
Is NOT a Scam?

Even such a great post should not make you trust us. If you trust us just for reading these tips, then you have missed the idea of this post - take the veil away from your eyes.

There is just one thing you can trust in this world: a global reputation of worldwide famous brand proven by years.

With Forex managed account service from www.ForexMoneyManager.com you:

• - open account directly with top reputable Forex broker (their reputation is much better than the reputation of most of the world governments and political leaders)
• - this Forex broker checked our traders’ identity better than any FBI or CIA  (and you can be sure that traders are real people who cannot disappear)

This does not guarantee you any profits, but as we said, to guarantee any profits on this market is against the law. But this guarantees that you will never say “My money are gone, I do not know where” - you have real people doing the job for you.

For More Details About Registration Procedure
Please Visit this Page

Major Players on FOREX Market

Commercial Banks

These institutions support the major flow of exchange transactions. All other market makers have their accounts opened at the banks: in other words, all exchanging, depositing and crediting transactions made by market makers go through bank wire. Banks accumulate (through client operations) the total market demand for currency exchange and all monetary replacements, creating a kind of “offer” to other banks. Usually the banks do not limit their activity to execution of client orders only: quite often they make independent transactions, using their personal funds for these purposes. So, objectively the currency market is represented by a market of agreements between many banks. Further mentioning of directions for currency and other rates should be related to foreign exchange market.

Companies Performing Foreign Transactions

Companies, which take part in international trading, create stable demand for foreign currency (importers) and stable proposition of foreign currency (exporters). Moreover, they contribute to converting free foreign assets into short-term deposits. Most of these companies do not have direct access to currency market, as they make exchanging and depositing operations via commercial banks.

There are many companies that make depositing of foreign assets: investment funds, money market funds, international corporations. These companies are engaged into customized managing of various assets’ portfolios by purchasing securities of different governments and corporations. Dealing slang calls these companies simply “funds”. The most famous funds are “Quantum” Fund (George Soros) and “Dean Witter” Fund.

Great international corporations which make foreign production investments (creation of branches, joint companies, representative structures, etc.) belong to this group of market makers as well. The list of these corporations goes on with Xerox, Nestle, General Motors, British Petroleum and others.

Central Banks

Central banks are involved into currency regulation on the foreign market: protecting national currencies from swift “jumps”, supporting export/import balance, etc. Central banks may influence exchange market either directly (through currency intervention) or indirectly (by regulating monetary volumes and rates).

Currency Brokerage Companies

These companies specialize in matching buyers and sellers of foreign currency and in executing necessary exchanging/depositing operations for these clients. Brokerage companies take certain percentage from general volume of transactions as fee for providing their services.

Physical Bodies

Physical bodies may perform a wide range of non-trading operations in sphere of tourism, sending salaries, pensions, buying and selling the currencies they own, etc. Today, using the benefits of leverage trading physical bodies can even invest small capitals into Forex for getting income from quotes fluctuations on this market.

Margin Trading On FOREX Market

To encourage investors who have less than 1 million dollars to trade on Forex the mechanism of margin trading is used. This mechanism was introduced to world currency trading in 1986. Margin trading lies in buying/selling currencies, using leverage and deposit insurance, which allows traders to make trading contracts on huge sums without providing the real money for it. BUT every trader should remember that increasing leverage increases risk.

Investors with small and moderate deposit sums run Forex trading through the dealing companies. Usually the minimum one should have to start trading on currency market equals to 2,000 US dollars. Dealing company offers its clients a credit line (or “dealing leverage”) which profoundly exceeds the deposited sum. For example, a credit leverage of 1:100 allows to use the initial deposit of 10,000 dollars for trading 1,000,000 dollars. So, private capitals of investors make up only 1-3 % of the sums traded by them on the market. Even small profits on Forex turn into great revenues when compared to what is deposited by investors to get these profits. BUT once again, please remember that increasing leverage increases risk.

Let’s have a look at this example to clarify all details. You have 2,000 US dollars on your account. With the credit leverage of 100:1 you can open trading position of 200,000 dollars. At 11:00 A.M. US dollar rate to Swiss franc reached 1.4045 - 1.4050. You think that dollar has to grow, and give trading order to buy 100,000 dollars at this price. At 3:00 P.M. dollar rate becomes 1.4250 - 1.4255. You decide to close the position and sell your 100,000 dollars at a new price. After calculating pure income you find out that it is 2,000 Swiss francs (or about 1,400 US dollars).

This goes as 140% revenue from the deposited amount. When closing the position, this money goes to your trading account automatically. BUT we want to notify you one more time that increasing leverage increases risk - in this case you can get 100% drawdown - the lost of all trading capital.

Forex Advantages Compared To Other Markets

Forex has one crucial benefit over the equity market: Forex has no restrictions on short selling. Traders may go long or short, facing the market fluctuations, but the potential of getting income remains very high. This two-fold nature makes Forex attractive to most of the traders. Either the market is rising, or falling - smart and professional traders can be trading on it.

Commission

Another Forex benefit over the equity market is that on Forex, the FCM and RB are compensated for their services through the spread between the bid/ask prices.

Easy And Quick Diversification Out Of US Dollars.

The trade balance shows the net difference over a period of time between a nation’s exports and imports. When a country imports more than it exports, the trade balance will show a deficit, which is generally considered unfavorable to that nation’s currency. Many investors know that they should diversify some of their assets into foreign currencies, but to do so is difficult. Most U.S. banks, for example, do not offer foreign currency accounts. But by trading Forex, you instantly control hundreds of thousands of dollars worth of foreign currencies. For every $1,000 margin deposit, you can control up to $100,000 worth of Euros… or British Pounds… or whatever currency you believe will rise in the future.

What is FOREX

Today the currency exchange market (Forex) leaves all other world markets far behind in terms of trading volumes. For example, the daily turnover for securities is estimated at 300 billion US dollars, while Forex operates with turnovers of several trillions US dollars every day. But huge turnovers are not the only thing that makes Forex a very attractive market for investors. There are many other benefits:

• it is a global market;

• it has a very high liquidity: currencies are bought and sold within few seconds;

• currencies change all the time, giving a real possibility to close a proper trading deal;

• you can make trading contracts 24 hours a day;

• all transactions are done very quickly;

• no commissions are taken when you make a contract (there are no exchange fees on Forex, because brokerage companies get revenue from spread on buy and sell rates);

Forex market was created in 1971-1976 as an interbank “tool” used for operating huge monetary assets between the countries. At that time the rate of one currency to another was defined by mutually agreed exchange rate.

Many years have passed and today Forex turned into one of the major income sources for the banks. Such renowned banking institutions as Citibank, Chase Manhattan Bank, Barclays Bank, Sosiete Generale Bank & Trust, ABN-AMRO Bank report to get their biggest revenue from currency operations.

Modern technologies made Forex accessible to all investors. Acceleration in transfer of monetary assets and supersonic informational exchange combined with latest technological inventions made it possible to trade on Forex even with small capitals (starting from $100). That is why Forex attracted a new wave of small investors and this surely increased the liquidity of this market.