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Foreign exchange market

Investor's Offer - Who Does the Final Word Rest With?


The forex market has long attracted many investors with a high return on investment in a relatively short period of time. However, only a few experienced financiers can work in the market demonstrating good results as one has to possess outstanding expertise in the area of technical and fundamental analysis, money management and have iron discipline. Even if the trader manages to enter positive territory, the profitability of his or her trading system may appear scanty compared to that of more experienced colleagues. In this event it may be more beneficial to invest in a professional who is prepared to increase the balance of your account for a percentage of profits.
 
The time comes when the investor delivers their investment portfolio for management to a professional manager (trader). This is where the name comes from - Asset Management (AM). It should be noted that the manager has no responsibility whatsoever for a possible drawdown or ruin of the account, and all risks are fully assumed by the investor. Platforms offering PAMM services and widely implemented by broking companies has become a new stage in the development of asset management.
 
A PAMM account is a more flexible, convenient and reliable type of asset management where the manager works with an aggregate capital of different investors through a single account. This technology optimizes processes of allocation of funds and limits non-trading risks for both parties.
 
An offer is an integral component of each PAMM platform. An offer is a public agreement between the trader and the investor that stipulates all aspects of cooperation. The offer also includes the term for investment, the percentage in which profits are distributed between the investor and the manager, penalties for early withdrawal of money and distribution of profits or possible losses among members of the PAMM account. The offer's terms and conditions are set by the manager, while the investor accepts them by getting linked to the PAMM account. It should be noted that only professional managers can assume responsibility, especially in significant volumes.
 
It's quite obvious that a demanding investor may carefully study the rating and fail to find managers whose conditions he or she is fully happy with. What should one do in this event?
 
A unique service comes handy - the investor's offer. It is the same public offer whose terms and conditions, however, are set by the owner of the investment portfolio rather than the manager. In turn, the manager may accept conditions of the investor's offer if he or she finds them acceptable, and the company that owns the PAMM platform provides the mechanism for meeting all terms and conditions.
 
Regardless of the trading PAMM platform, a standard offer of the investor should provide for the following main aspects:
 
• the trading period - the period of time during which the manager makes trades to generate profits and following which profits will be divided among members of the PAMM account.
• the volume of investment - the amount the investor plans to fund the PAMM account.
• a penalty for early withdrawal of funds from the account - the amount of the penalty for the investor's withdrawal of funds before expiry of the trading period.
• the fee - the amount of the manager's commission for work he or she has performed.
• the profit distribution principle - the percentage of how profits are distributed among PAMM members.
 
Each investor is very likely to want and add their own special conditions, and requirements tend to become tougher with larger invested volumes. This should be the ideal case: he who invests calls the tune.
 
Implementation of a service like the investor's offer surely has a positive influence on development of investments in that it helps the investor to more flexibly approach formation of their investment portfolio. Investors and managers on forums have had a difference of opinion on this matter, but most of them have definitely recognized this tool is necessary and practical.
 
The majority also believes that the service will be useful to both parties only in case of large investments. There's no point in creating an offer for small amounts. The manager sees no point in agreeing to it because he or she calls the tune and others invest in him or her anyway.
 
Investors who objected to the offer argue that they would have to entrust their money to a person they don't know because any manager, even outside the TOP rating, can agree to conditions of the investor's offer. This is why they prefer a careful old-fashioned selection of managers even if they had to give in on some points.
 
It should be noted that Forex Trend has become among the first brokers to offer this tool to its investors. It left all its competitors behind by developing the investor's offer bundled with PAMM 2.0, a risk management system. The PAMM technology helped managers and investors avoid non-trading risks, but the investor still bears the risk of account ruin exclusively. As many investors were unhappy about this situation, Forex Trend developed the PAMM 2.0 system. Now the manager has a level of liability stipulated in the offer, and his or her own capital (which should be in the account before trading starts) serves as a guarantee of return.
 
From the Editor's Office:
Forex Trend was founded in 2009. It is headquartered in Dnepropetrovsk, a major financial center of Ukraine.
 
Orders of Forex clients are directly forwarded by Skopalino trading limited to Integral, an international electronic system.
 
Skopalino trading limited and Forex Trend have entered into a cooperation agreement. It made it possible for clients to invest in stock markets.

 

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FxPro on MetaTrader 5 Benefits

Not so long ago, FxPro, one of the most prominent representatives of the contemporary Forex brokerage industry, launched  its own version of the new trading platform called MetaTrader 5.
What is the difference between it and the older versions? How comfortable is the transition to it? Let’s find this out…

Publication date: 26 April 02:53 PM

Masterforex-V Expo’s Secondary League of Forex Brokers. April 2015

 

All Forex traders have to face the challenge of choosing a reliable broker sooner or later. They need the Forex company that will let them to succeed in Forex trading over the long term. The thing is that it is always easy to deposit funds with any Forex broker, whether it is a fake or a reputable company. At the same time, when it comes to withdrawing funds, it is reputable client-oriented brokers only that can actually withdraw your profits without any delays, questions or lame excuses, which is certainly not the case with fake brokers.

Publication date: 26 April 12:28 PM

Spring Exhibition MOSCOW FOREX EXPO: Pleasant Surprises Await for Forex Traders

Today Forex market is one of most attractive ways of profitable investment. Traders, investing money in their trade, often get rather considerable profit. Investors, prefering to entrust management of capital, get passive income from work of their managers. And partners of broker companies, attracting clients, make money without trade or investment.

Publication date: 25 April 01:22 AM

Best Forex Traders Manage over Accounts of Pro-rebate.com and Arsenal-FX

How to Make Big and Stable Money in Modern Conditions?For many citizens of Russia and CIS, this, unfortunately, is impossible. The main reason of this is not inflation or devaluation, not miserable salary, and not even prices, which sprout like mushrooms after the summer rains.
The main reason of impossibility to earn as much as we want lies in ourselves. Anxiety, greed, fear, lack of self-confidence, doubt, life by a Murphy’s Law that “every decision leads to new problems” hide real opportunities of financial independence.
Publication date: 22 April 10:07 AM

Masterforex-V Expo Names TOP 17 Forex Brokers in April 2015

 

Thanks to Masterforex-V Expo’s rating of Forex brokers , any trader can personally decide on which Forex broker to go with in order to trade currencies on a regular basis. The biggest benefit of this rating is that it is based on independent quantitative criteria and therefore is unbiased.

 


We should keep in mind that choosing a reputable Forex broker is the prerogative of all Forex brokers, both rookies, intermediate traders and true experts with many years of expertise. There is nothing to be ashamed in switching from one broker to another even if you are an advanced trader since the contemporary Forex industry is pretty dynamic, with dozens of brokers competing for the top places in the rating and improving their products and services while coming up with innovative solutions.

Publication date: 22 April 08:37 AM

HP DreamColor Z32x – 4К-Monitor for Business Sector

Hewlett-Packard company has informed about renewal of the line of monitors DreamColor, oriented on professionals in the sphere of graphic design. As already informed by the “Market Leader”, models DreamColor Z32x, Z27n, Z25n, Z24n Z24nq, and Z24nf will add to the assortment of American manufacturer; they differ from previous variants by a thin display framing, higher resolving power, and better color rendering.
 
Publication date: 16 April 02:04 PM

Optimize Trade at Forex with YA-HI.com: Combination of Indicators

It is believed that indicator appeared at the same time as the mere notion of technical analysis of quotation charts. Over time their number was rising. And nowadays even in basic versions of trading terminals of forex-brokers we usually get a choice of tens of various indicators. However, any of them just indicates the likelihood of a certain course of events in future, but does not guarantee that the curve of the chart will move exactly to the side, pointed at by the indicator. It’s a different matter if we look at two or three indicators at the same time. Then chances of making a correct prediction get much higher. How to use several indicators at the same time has been explained by the broker company YA-HI.com.
 
Publication date: 16 April 10:02 AM

Masterforex-V Expo Names Most Popular Binary Brokers in March 2015

 

Binary options are pretty specific type of assets to trade or invest in. With binary options, you can make decent but fixed-income profits since binary options are all-or-nothing investments.

Publication date: 14 April 12:00 PM

Masterforex-V Expo Names Best Forex Bonus Offers in April 2015

 

More Forex companies keep joining the international Forex market, which makes the inner competition tougher. This means that all Forex brokers (both young ones and heavyweights) now have to compete for the existing and new clients.

Publication date: 14 April 03:32 AM

40 Traders of Masterforex-V Earn Over 43 Ths. Points of Profit for March

Another bypast month proves the consistency of a conclusion about success of the system of autocopying accounts of Forex traders, which nowadays can give a worthy support to a family budget.
 
A web site for investors pro-rebate.com has told the "Market Leader" another statistics of earnings made by 40 successful Forex traders, whose deals can be copied free-of-charge via pro-rebate.com system.
Publication date: 10 April 01:10 PM