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Fxtm Invest: 2 Reasons Why it is A Good Way to Invest Your Money

Fxtm Invest: 2 Reasons Why it is A Good Way to Invest Your Money 1

FXTM Invest is an innovative solution by FXTM whereby investors can connect with Strategy Managers and follow their strategies. It is a stage of mutual growth and opportunity and offers numerous benefits for both the Strategy Manager and Investor.

It is an innovative copy-trading program developed by FXTM’s Research & Development Department. FXTM Invest offers the opportunity:

  • For Investors to follow suitable strategies and receive a portion of the profits.
  • For Strategy Managers to earn extra by generating profits for their Investors and receiving a profit share (%).

Who is an Investor


Any client who invests funds with a Strategy Manager with the goal of diversifying his portfolio, spreading risk exposure and ultimately advancing his financial opportunities is an investor.

Investors can follow suitable traders’ strategies and profit from the Strategy Manager’s overall growth. You can become an investor even if you have limited knowledge and experience in forex, or limited time but would still like to trade the financial markets.


The Strategy Manager


The owner of a Strategy Manager’s Account is a skillful trader willing to share his/her strategy with other Investors for a percentage Profit Share of the profits.

Strategy Managers share their trades and can earn up to a 50% profit share when they generate profits for their Investors.

Fxtm_Invest


The minimum deposit requirements for FXTM Invest?


  • Strategy Manager on ECN Zero: 200 USD/EUR/GBP
  • Strategy Manager on ECN MT4: 500 USD/EUR/GBP
  • Investor: 100 USD/EUR/GBP

Gains of investors/strategy managers


There are no limits to the potential gains you can receive with FXTM Invest. However, there is always an element of risk in trading and profit is not guaranteed


Profit Share


The strategy Profit Share represents a percentage of the profits that will be rewarded to the Strategy Manager for his/her positive performance. This is paid 30 days from the day of initial deposit and in case of withdrawal or closure of the Strategy Manager’s Account, the higher water mark rule applies.

Example: If the Investor deposits an amount of $10,000 and after 30 days the Strategy Manager has returned a 50% profit, the investor’s new equity will be $14,000 assuming the Strategy Manager’s Profit Share is equal to 20% of the profits. The Strategy Manager will receive $1,000 in his wallet (20% of $5,000).

In case the Strategy Manager’s account incurs losses in the first month, and the Investor’s equity reaches $9,000 then the Strategy Manager will receive no compensation.

If the second month proves more favourable for the Strategy Manager and the account shows profit and the Investor’s equity grows to $11000, the Investor will be required to pay 20% of $1000 ($200) to the Strategy Manager, since $1000 is the real profit for the Investor according to his initial deposit ($10000).


Ranking


The Ranking of a Strategy Manager is calculated based on his or her overall returns minus the Strategy Manager’s Profit Share, while taking into consideration the following:

The Risk Level. In case two Strategy Managers have the same return, the Strategy Manager who has lower risk will have a higher ranking.

Drawdown percentage. The lower the Drawdown, the higher the ranking.

Days Open. The more Days Traded, the higher the ranking.

Monthly Return. The last 30 days of activity have less influence on the ranking than previous days/months.


Popularity


Popularity of a Strategy Manager is determined by the number of investors and the amount of funds currently invested in his/her account.


Aggression


Indicates the level of risk associated with each Strategy Manager’s Account, with the lowest being “conservative” and the highest “aggressive”.


How FXTM Invest works


When an Investor follows a Strategy Manager, any trade opened by that Strategy Manager is automatically copied by the Investor at the same time and price. The size of the Investor’s position is based on the following ratio:

Equity of Investor / Equity of Manager

For example, if an Investor deposits $1,000 in his Investment Account and the Strategy Manager’s equity is $1,000, then the ratio is calculated as follows:

Equity of Investor / Equity of Manager

1000 / 1000 = 1

This means that when the Strategy Manager opens a position of 1 lot, the Investor’s position is opened at 1 lot at the same time. After some time, if the Investor withdraws $300 while the Strategy Manager’s equity grows to $1,500, the Investment Account’s Equity will be $1,200. The new ratio is calculated as follows:

Equity of Investor / Equity of Manager

1200 / 1500 = 0.8

If the Strategy Manager decides to open a position of 2 lots, for example, then the Investor’s position is opened at 1.6 lots (0.8 X 2).

In case an Investor activates their account while the Strategy Manager is already in a position then the Investor will have a position opened at the current Market Price.

And that’s how FXTM Invest works in a nutshell!


How to Join FXTM Invest


Fxtm invest

So, you’re ready to join FXTM Invest but don’t know how? Simply follow the steps below and you’ll be investing in no time:

  1. You’ll need a verified account with FXTM to get started. This included uploading documents (Proof of Identity and Proof of Address) and getting them approved. Proof of Address can be any utility bill less than 6 months old (i.e. water, gas, electric, internet or telephone bill), or a recent Residency certificate. This helps us keep your information and payments secure.
  2. Then you can choose a suitable Strategy Manager from the Ranking Page.
  3. Once you’ve chosen the Strategy Manager, you can invest in him or her. You can either select them from the Ranking Page by clicking Invest. Or, you can create an Investment Account in MyFXTM. You will need a minimum deposit of 100 Euros, US dollars or British pounds to activate your account.
  4. Once you are ready to deposit or withdraw, there are two ways you can do that. Either through external transfers, like Bank Transfers, Credit Cards or E-wallets. Alternatively, you can do an internal transfer from existing trading accounts or wallets.

Remember, Investors can deposit or withdraw their funds at any time!

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