Planning To Run an FX Fund: Here Are Its Advantages & Disadvantages

If you are a forex broker, then you would have been caught in answering the queries of the customers, looking for more innovative ways of marketing, negotiating with your LPs and partners etc. You must be working hard to stand out in the crowd each day.

But these days, many forex brokers are planning to go to a new avenue- Investment Management.

 

This new business of Investment management has some advantages:

 

  • It will act as an opportunity to build a new and extra source of income.
  • The professional network will get widened.
  • The trading volumes on daily and monthly basis will increase.

But as it’s known, with every good opportunity comes an obstacle. An FX fund calls for managing big financial investments, which sometimes might get stressful. Along with this, applying right trading strategies will only reap profits; any wrong strategy come with a risk of losing money (your as well as your clients funds)

If you are interested in the investment business, you must look into the following:

  • As an FX fund, the investors deposit money with you and you trade in their accounts under the MAM account using your own platform.
  • You are associated with a broker as a trader. Then you can trade upon the funds of many clients by using the PAMM account.
  • The next thing that you can do is invest the money of various investors and trade on your personal account applying your own trading strategies.

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