Forex (Foreign Exchange) is the name given to the "direct access" trading of foreign currencies. With an average daily volume of over $3 trillion, Forex far exceeds the $30 billion daily turnover on the New York Stock Exchange and is 46 times larger than all of the futures markets combined. For these reasons, Forex is the world’s largest and most liquid market. The main benefit of this alternative investment class is the ability to profit from rising and falling markets and the ability to diversify from traditional investments like equities, real estate or fixed income, which tend to be cyclical in nature.
It is often the case that a well managed Forex account will far exceed the quarterly returns gained from other asset classes. However, trading the Forex market is not an easy proposition. Many Forex investors do not have the time, experience or discipline to trade the Forex market themselves and most of those that try end up losing their initial investment. Understanding the complexities of why different currency pairs move, being able to follow market movement 24 hours a day, and having the self-discipline to stick to a trading strategy is essential to successful trading. The Echo FX Managed Forex Account Program has been created for investors with risk capital who do not necessarily have the know-how or time to trade the Forex market on their own but want the opportunity to participate in the Forex market.
1) The client opens a Forex account at an Echo FX approved, fully regulated and reputable Forex brokerage firm. This Forex brokerage account is owned and controlled 100% by the client. All client funds deposited into that account are held by the Forex brokerage where the account was established. Again, Echo FX has absolutely no access to withdraw from or deposit funds to the account.
2) The client authorizes Echo FX via a Limited Power of Attorney to execute trades on behalf of the client using the brokerage firms trading platform. The Forex broker approves the Limited Power of Attorney .This Limited Power of Attorney can be revoked at anytime and trading stopped immediately.
3) The client authorizes the Forex brokerage firm to pay a percentage (performance fee of 40%) of new profits on client's account to Echo FX at the end of each month. New profits are profits made above the previous high watermark of the account. Echo FX does not charge any other fee to the client other than the performance fee.
4) Client is given complete access to view and monitor trade activity on his/her account. This includes seeing every trade the system takes and viewing the account's current balance and equity.
5) It is the clients responsibilty to determine his/her own risk appetite and what he/she considers "max drawdown". If at anytime, drawdown on the account has exceeded the clients max threshold it is the clients right to cancel all trading on the account.
6) Client may withdraw profits at anytime. Echo FX does however recommend that the client give notice before withdrawing an amount in excess of 25% of the balance of the account to avoid the potential for there being insufficient margin available to the account.
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