The growing competition in the dealing services market and struggle for the client generates a host of various events and offers. Some DCs offer different bonuses, others lower their spreads... The list of tempting offers is almost endless.
TeleTRADE, a leader of broking services in the forex market, developed a unique project that has no counterparts and allows to effectively manage your assets - Master Invest which includes two interrelated products, Invest Account and Master Account. We are going to find out what they are all about.
The idea is, in general, rather simple, but very interesting: the trader who registers their account as a Master Account continues trading their strategy as if nothing had changed with their own yield levels, risk management etc. Unlike before, some of their performance data become available to the wide public and, primarily, investors.
What do these data include? Overall return, the number of active trading days, the Master Trader's fee, maximum profit/drawdown. All these data are used as a basis for calculation of the trader rating which is updated every week and allows monitoring the dynamics of a certain Master Trader. Here, the number of days for which the rating is calculated, is set by the trader him or herself.
The investor registered in the Invest Account subproject has an opportunity to select the Master Trader and connect their account to him or her. This results in an investor-trader link. 'So, is there anything new?' the reader might ask. This is where the most interesting thing starts, the project's main feature. When opening a trade in his or her own account, the trader automatically opens it in the investor's account, too. This is kind of remote access. However, the investor keeps position management levers by still being able, for their own reasons, to close positions without waiting for the trader to do this.
The trader's expertise and experience are paid for by the investor. The fee may be from 1 to 49% and is fixed by the trader himself. This gives the trader an additional income without incurring any additional financial and time costs. The investor, on the other hand, profits from the trader's performance, retaining full control over their account.
What does it all look like in figures? Let's look at the example.
A trade of 1 lot was kept for 2 days and closed with a net profit of $1200. Swaps for 2 days were -$5. The partner owner of the Invest Account closed the trade a day earlier, with a net profit of $800 and a swap of -$2.5. The resulting profit on their trade was $797.5. The fee was fixed at 20% according to partnership conditions. This means $159.5 will be debited from the Invest Account after the trade and credited to the trader's Master Account.
Of course, there are a number of conditions and limitations in this project, like in any other. But they are not of the kind that buries the very idea of the project. On the contrary, these conditions and limitations are intended to safeguard and make the idea as viable as possible.
So, what does one need all this for? The subject of trader-investor relations is becoming very relevant with the development of forex trading in the post-soviet space. The internet is rife with stories of unreasonable actions and even blatant fraud. Dealing centers attempt to increase transparency and safety of these relations for both parties, for example, by organizing PAMM accounts. The Master Invest project from TeleTRADE is to become another step on the path to making forex trading more 'civilized'.
The believes this project is rather interesting and merits very close examination. Its results will be covered on pages of Market Leader.
