Introduction

Managed Forex Investment is an investment class that is typically only available to high net worth individuals as they are deemed by regulatory authorities to be too risky for the average investor to invest in. Welcome to the world of managed currencies.

With the financial markets in crisis and people looking for ways to increase their income and returns on their capital, you may have noticed the increase in the number of advertisements promoting becoming a private Forex trader. The ad usually says something like this Earn 100k from home working a few hours a day and become financially free.

Well, it’s certainly true that with trading you can escape the rat race and become independent, but what the fine print doesn’t mention is that less than 10% become successful traders. These courses are trying to sell the spikes for the next gold rush.

If like me, the thought of spending hours hunched over a computer fills you with dread, or that you don’t have time because you have a full-time job and can’t give up the next 12 months to see if you can succeed. , this option would not be for you.

However, there is another way! Private Member Managed Forex Funds, where your capital is invested in a fund and professional forex traders trade the account on your behalf.

These funds come in two different forms, regulated and unregulated. The main reason I think a fund is unregulated is that it is managed from an offshore location and the funds are commingled, in the sense that the funds of individual investors are not separate from the funds of all other investors.

However, regulated funds are only available to high net worth individuals who are introduced through financial advisers who only act for high net worth individuals, typically those with an income of over 100k or a net worth of at minus a million.

After doing some research on managed Forex funds, I found a couple of funds that advertise themselves as regulated with the appropriate financial authority.

Regulated Funds background 1: This fund requires a minimum investment of 25,000 and is only available to high net worth individuals or certified sophisticated investors. To add to that, there is an 8% introductory fee to the financial advisor and they also receive 50% of the return once you have reached 12% in the year. Does it seem expensive to you? Well, at first glance, yes, but if I told you the target return was 5% per month, then it doesn’t look too bad.

However, the problem with the fund was that the performance history of this fund showed a significant number of losses and only in the last 3 months was the risk management resolved to minimize the potential losses of the investor’s capital.

To me, this fund was costly fee-wise, leaving the investor to bear all the risk while the advisors earned a large commission on their funds. Sounds like the banking and hedge fund industry to me. I would not invest

background 2: This is another fund that requires a minimum investment of 25,000 to participate. There is also an introductory fee that is paid to the financial adviser who recommends this fund. Again, this is a regulated fund with the appropriate financial authority. The target return for this fund is again 5%, which is achieved using contracts for difference or CFDs for short.

When I asked the financial advisor about this fund, he was unable to provide me with a trading history, so I decided this fund was not for me.

What I have noticed at this point is that these regulated funds seem to want to keep the average guy on the street out of them and they also seem to provide very good returns to financial advisers who recommend them, leaving all the risk to investors.

Unregulated Funds Unregulated funds mean that they are not registered with a Financial Authority and normally operate from an offshore location. I also believe that they are unregulated as all investor funds are commingled in one trading account. This is normally frowned upon by financial authorities.

background 3: This was an invitation-only private investment fund, which was only available by invitation from existing members. It was unregulated and required you to pay an entry fee of 10.

Once you have paid your membership fee, you can choose the amount you want to invest. The amount he earned on his funds was between 6% and 10% per month depending on his investment level.

I must say that I was very skeptical about this fund and decided to see a couple of friends invest in it. After about 6 months and earning their 10% monthly, I thought it was time to try it for myself. I invested some money and earned 10% per month for the 4 months I was involved. Why only 4 months when you were getting such good performance? I hear you ask. Well, the company applied for FSA clearance, and the FSA told the fund to shut down.

My friends were in the fund for about 12 months and they easily doubled their money and got paid in full.

My opinion is that I am still not sure if it was a legitimate investment or a Ponzi scheme. My two close friends and I got back all the funds they invested, but it took a bit of time in the cases of my two friends. I am aware that some people who invested are still waiting for their funds to be returned. For me, the jury is still out on this one, even though I made 40% in 4 months.

background 4: This is another private investment fund that is by invitation only. This fund proposes a payment of 6% per month and the term of the contract is 3 months, which can be renewed at the end of the period. I am currently watching this fund because I have close friends who are invested in this fund.

background 5: This is another Private Investment Fund that is by invitation only. This is another unregulated fund and requires an introduction from an existing member.

The difference between this fund and fund 3 is that it is much more transparent and has three different trading strategies with monthly performance figures to back it up.

Trading Strategy 1 was launched in January 2005 and has achieved an average monthly return of 3.58%. Put another way, it has achieved a 1515% compound return since then. The minimum investment is only 2,000 euros, which makes it much more accessible for the average citizen.

Trading Strategy 2 was launched in January 2007 and has achieved an average monthly return of 4.57%. Since January 2007 it has achieved a compound return of 1003%. The minimum investment in this fund is also 2,000 euros.

Trading Strategy 3 is a much higher risk strategy that has suffered more volatility in terms of monthly returns than the other two, and I do not invest in it.

To be a member of this investment club for private members, a payment of 249 euros is required and the club takes 2% of the initial amount invested and 3% of the amount withdrawn. Compared to previous regulated options, I think it’s a fair deal.

I have invested in this fund for approximately 18 months and have achieved a return of around 40% over that period.

Summary Many savvy investors are placing their investment funds in managed Forex mutual funds for returns that are significantly higher than those obtained through traditional sources. Most Financial Authorities prevent average investors from investing in these funds by setting high entry investment amounts of 25,000 or prevent financial advisers from telling you about them if you are not a High Net Worth Person.

To access these high-yield funds, the average investor must go to the unregulated market. In the unregulated market, the minimum investment amounts are much lower, but there is also a potential risk of loss if you do not invest with a company that has high integrity and many satisfied investors. Although they are not regulated, there is plenty of social evidence that some investors are getting incredible returns on their funds if you know where to look.

I hope this has opened your eyes to the secret world of Forex managed investing and how you too can gain access to returns that are 10 to 20 times what you can get at the bank. They are higher risk, but the returns are higher. At the end of the day, you decide what level of risk you feel comfortable taking.