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Invest in the Forex Market |
FXCM Managed Accounts |
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At FXCM, it is our belief that over the past ten years, the increase in the number of investment vehicles has allowed investing in the forex market to become much easier for traders and investors alike. Since 1999, traders who wanted to take advantage of the liquidity and leverage that is offered in the forex market have had the chance to trade their own funds with FXCM through the FX Trading Station.* It was, however, not until 2006 (when managed funds became available at FXCM) that individuals with longer-term goals could invest in the forex market without forex-trading knowledge. Especially for traders who do not have the time to learn how to trade but would like to benefit from the ability to diversify their portfolios in currencies, this presents a opportunity. For example, the startling devaluation of the U.S. dollar in the second part of 2007 left many investors, specifically those with international interests, with an increasing amount of risk. Any gains they had made by way of the strength of the U.S. stock market could be lost due to the weakness in the U.S. dollar. However, with an investment in a forex-based managed fund, an investor would diversify, consequently offsetting some of the risk associated with the weakness in the USD.
In 2007, FXCM launched two new funds: the Sentiment Program and the Sentiment Aggressive Program. The Sentiment Program uses proprietary market-positioning data and seeks to exploit overbought and oversold market conditions. It is based on a non-discretionary trading model and typically trades 13 unique currency pairs. The risk factor for this fund is considered to be around the medium range. The Sentiment Aggressive Program applies the same trading model as the Sentiment Program but uses higher leverage. The performance of this fund should move in tandem with the Sentiment Program, but with more aggressive gains and losses due to higher leverage. The Sentiment Aggressive Program is considered riskier than the Sentiment Program because of the Sentiment Aggressive Program's higher degree of leverage.
Invest in an FXCM Program
Because the FXCM Sentiment and Sentiment Aggressive Programs are leveraged differently, they offer investors with different risk tolerances the opportunity to invest in the forex market. The most up-to-date information on performance, including Year-to-Date, 6-month, 3-Month performance, and the maximum equity drawdown, can be found at the following FXCM link: /managed-accounts/managed-accounts-terms.jsp. For investors looking to open a live account, it is as simple as filling out an application, sending it along with the necessary documents, and then funding the account. For existing FXCM clients, the process is even simpler because a request to open a live account can be submitted either by completing and submitting a form or through www.myfxcm.com. The minimum deposit for both funds is currently $5,000 and can be withdrawn at any time; however, FXCM recommends that clients view this as a longer-term investment (at least one year).
*Without proper risk management, a high degree of leverage can lead to large losses as well as gains.
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