FAQ

How high are the risks in FOREX trading?
The risks can be high but also controllable. Forex traders around the world are competing against other Forex traders, banks, and institutional traders who are seeking the same potential rewards from their own trading activities. Money management, discipline, talent, and a lack of emotion are traits you will want to develop in FOREX trading. But remember, FOREX Trading is speculative and any capital used should be risk capital. In fact, we recommend that you trade on a demo account until you have shown profit for at least three consecutive months before trading real money.

Is Forex trading expensive?
No. Most online Forex brokers allow customers to execute margin trades at up to 100:1 leverage. This means that investors can execute trades of $100,000 with an initial margin requirement of $1000. However, it is important to remember that while this type of leverage allows investors to maximize their profit potential, the potential for loss is equally great. A more pragmatic margin trade for someone new to the FX markets would be 20:1 but ultimately depends on the investor's appetite for risk.

What are "long" or "short" positions?
A long position is one in which you buy a currency at one price, with the expectation of selling it later on at a higher price. Obviously, you anticipate that the market will rise. A short position is one in which you sell a currency with the expectation of buying it back at a lower price. Here, you expect the market to fall. Every FX position you take automatically entails going long in one currency, and short the other. If you buy one, by default you are shorting the other.

What do the terms "bid/ask" and "spread" mean?
Bid is the highest price that the seller is offering for a particular currency at the moment; ask is the lowest price acceptable to the buyer. Together, the two prices constitute a quotation; the difference between the two is called the spread.

What is a Limit order?
A limit order is an order with restrictions on the maximum price to be paid or the minimum price to be received.

What is a lot?
A standard lot is a buy or sell size. If you buy 1 lot of EUR/USD, trading at 100:1 leverage then you buy 100,000 EUR/USD. But since you’re trading with 100:1, the leveraged value is 1,000 EUR/USD or 1 standard lot. If you trade a mini lot, then you buy 10,000 EUR/USD and the leveraged value is 10,000 EUR/USD or 1 mini lot. Without proper risk management, this high degree of leverage can lead to large losses as well as gains.

What is a Pip?
The smallest movement in a currency. Often referred to as "ticks" in the futures markets. For example, in EUR/USD, a move from 1.2980 to 1.2981 is one pip. In USD/JPY, a move from 118.71 to 118.72 is one pip. Trading full contracts (100k of currency) the EUR/USD and GBP/USD are worth approx. $10, for the other pairs approx. $8. If you trade mini contracts divide by ten, instead of $10 every pip worth $1.

What is a Stop Loss order?
A stop loss order is an order type whereby an open position is automatically liquidated at a specific price. Often used to minimize exposure to losses if the market moves against an investor's position.

What is Forex?
Forex is an acronym for Foreign Exchange and is the worldwide currency interbank or inter dealer market that uses a floating exchange rate system. Most people have little knowledge of Forex. Yet, it is the world's largest financial market with an estimated daily average of more than $2 TRILLION.

What is Margin?
Margin is essentially collateral for a position. It allows traders to take on leveraged positions with a fraction of the equity necessary to fund the trade. In the equity markets, the usual margin allowed is 50% which means an investor has double the buying power. In the Forex market leverage ranges from 1% to 2%, giving investors the high leverage needed to trade actively.

What is the minimum start up trading capital?
Forex dealers can set their own minimum account sizes, so you will have to ask the dealer how much money you must put up to begin trading. Most dealers will also require you to have a certain amount of money in your account for each transaction. This security deposit, sometimes called margin, is a percentage of the transaction value and may be different for different currencies. For taking every trade our system announces you should consider that we may have one open position for each pair at the same time.

What is ‘spread’ and why do all my trades start off with negative pips?
The spread in the FX currency trading market, refers to the difference between the ‘bid’ price for the currency and the ‘ask’ price. Each traded currency pair opens with the spread. So if the spread is 5, then your trade will open at –5pips.

When does Forex trading occur?
The first session, which is the Tokyo Session, begins each week on Monday morning in the Asia-Pacific region which is Sunday evening in the Americas. Trading continues non-stop moving into the London Session and on to the New York Session until all markets close on Friday afternoon. The Forex market trades 24 hours around the globe, there are no open and close like the stock market.

Why FOREX Trading?
Forex trading is attractive because it offers unparalleled freedoms. A Forex trader can live almost anywhere as long as he/she is within reach of the internet. A Forex trader can work from home or office, and in some cases, even trade while traveling! A Forex trader can usually choose his/her own hours to work since the global foreign exchange market is open 24 hours a day. A Forex trader avoids many common headaches associated with running a business because there is NO inventory, NO shipping, NO billing, NO collections, NO employees, NO commuting and NO dress code. And finally, since Forex traders can potentially earn a very high income, they enjoy the possibility of never, ever working for someone else again!

Are my funds secured?

We have made every effort to choose a financially secure broker, but clients should consider their own due diligence to satisfy themselves on this point.

Can I open account in other currency rather than USD?

Yes, account can be open in EUR also.

Can I trade manually? Or will it conflict with your service?

According to the rules of managed account service, it is not allowed for clients to trade on account that is under management. However, if you want to trade on your behalf, you can always open additional trading account.

Can You Tell Me What You Think About My Trade?

No, we cannot give personalized trading advice and never do so.

Do I need to wake up or stay awake during night hours for placing orders/manage trades?

No, definitely not. No need to wake up during night hours. We are managing all the trades for you. 

Do you have managed account with stocks?

Not at the momment. However, we will soon introduce couple of more new interesting services.

How many pairs do you follow?

Depending of the market conditions, we trade up to eight (8) major currency pairs, the EUR/USD, GBP/USD, USD/CHF, USD/JPY, EUR/JPY, AUD/USD, EUR/GBP and USD/CAD.

How Many Trades Do You Make Per Week?

Generally up to 200 trades per week. We trade 5 currency pairs in both direction.

I already have an account with one of the dealing brokers you support. What is the next step?

Although you already have an account with one of our designated forex brokers, you will have to open new account. It will not take more than 5 minutes. Click here to proceed.

I already have an account with one of the dealing brokers you support. Why are you telling me that I cannot use this account? Signing the RB form doesn't work. Do I need to open a new account? What’s wrong?

This is because when you opened this account, there was a party that acted as a Referring Broker (RB). Your dealing broker cannot remove that Referring Broker from your account and replace it with Forex Fund Manager as the new one (legal issues). You need to open a new account and set Forex Fund Manager as your Referring Broker. 

I do not want to open a new account, and I don’t want to sign any forms, even though there is not any cost involved with it. I prefer to use my existing account with the broker I’m trading with, without any changes. Is this possible?

No. By signing the RB form, you enable Forex Fund Manager to receive rebates from the broker or dealer you have an account with, and most importantly for the Forex Fund Manager to pay the services of support team that takes care of your account. So if you do not wish to sign the RB form with the existing account, the alternative is to open a new account with your broker by signing the same RB form for that new account.

 I don’t have a trading account with the brokers you support. Is that a problem?

No. You can open a new account already set up with Forex Fund Manager now by clicking here.

I have opened a new account with a broker. How do I know everything is ok?

Please send us your account number in order for us to verify it. Then, you can fund your account.

I signed up a few days ago but I haven't heard anything back from Forex Fund Manager. What happened?

If you did not receive our welcome email containing trading information within 24 hours, there has been a communication error.  The most common reason a Client does not receive his/her confirming email is due to their SPAM (junk mail) settings.  Please adjust these settings so that we can communicate with you.

I tried to open an account, but I’m confused. Should I open a standard account, or a mini one?

If you plan to invest more than $10,000 USD, we recommend to open a classic account, otherwise a cent account.

Risk Capital Only!

No matter how good a service looks, how good it performs or how much money it makes. Only "Risk Capital" or "Risk Funds" should be used in trading. A person who does not have "Risk Capital" or "Risk Funds" (funds they can afford to lose) should not trade in the market!

What about stop loss points?

There are those who hate stop loss orders, do not use them and recommend no one else use them. On the other hand there are those who swear by them and would not think of trading without them. We take the view that it's up to the individual trader to decide for themselves where stop loss orders fit into their trading strategies. We don't actually use any kind of special algorithm to compute a stop loss point. However, we define all entry and exit points by the value of the trendline. If the price were to drop below S/L point it would automatically trigger a clearing of the position.

What is Forex Fund Manager Goal?

Forex Fund Manager goal is to achieve clients expectations accordingly to risk settings chosen by each client. Because different people will take on different levels of risk and leverage we do not aim for a percentage gain per month. Of course not every month is profitable, that is why we suggest you sample the service for at least 3 months in order to see if it is suitable for you.

What is Managed Account Service?

There was a time when trading was a headache. Not anymore! You don't have to study or monitor the market to make a good pick, because our experts are doing it for you. All you have to do is subscribe to our service.

What is the maximum I could invest?

There is no specific maximum investment amount as the Forex market and the Forex Fund Manager can support an investment of almost any size. Trading system that we use is designed to manage extremely large amounts of capital.

What is the minimum amount one can invest using the Forex Fund Manager service?

Minimum investment for the Forex Fund Manager is $2.000,00 USD at the moment, but will go to at least 5-10K USD in the near future.

What is the minimum deposit to open a new account?

It depends on the type of service you choose, but we recommend that the amount for a clasicc account is $10,000 USD and for a cent account is $2.000 USD

What Is Your Trading Philosophy?

We trade upon price action with strict money and risk management rules that are agreed with each client separately.

What type of account should I choose?

It is up to every client to choose type of service according to his risk appetite.

What Type of Account Should I Trade? With What Leverage?

Every investor's risk tolerance and personal finances are different. That is why we never provide a "one-size-fits-all" answer to that question. Generally, smaller account holders should use mini lots while larger accounts should trade regular lots. Every trader is different and all leverage decisions are a matter or personal preference and responsibility.

When Did You Start This Service?

We launched Forex Fund Manager web site in January 2010. However, we've been successfuly using this service for the last couple of years.

When will your service begin?

You can begin to use our services immediately after we verify your trading account and you fund it. 

Where will my managed account be set up to trade?

Your account will be set up at Forex4you, leading Online Forex Broker. 

Why do I need to send you my account number for the broker platform I’m trading with? Is there any danger for anybody to steal it?

No, there is no danger. It is not possible for anyone (including Forex Fund Manager) to withdraw funds from your account. This is because your broker, who always wires funds to the beneficiary of the account ONLY, is the one who had opened the account.

 

Will I be able to access my account?

Yes, you will be provided with online access to monitor your account, however that access will be "read only" meaning that you can view the account, including balances and activity, whenever you wish, 24 hours a day, but you will not be able to place any trades since your account is traded under LPOA agreement.