Best Investment Option: 

Managed Currency Accounts

The best investment option I found, with ALL the features for which I searched -- including actual NET returns that can average from 4% to 15% per month or more, is a managed currency account. If you cannot wait and want to go to the webpage now where these are listed, click:

www.Managed-Currency-Accounts.com. 

But first I believe it will help to know why I decided that a managed currencies account offers such a good investment. For those unfamiliar with currencies, I start with a brief overview of that financial market, and why it makes sense to invest there. Believe me, wealthy people have known about this for a long time. I think it's time we all knew.

Overview of Currency Markets

Currencies trade on the foreign exchange market, known simply as "Forex". It is the largest financial market in the world, involving most major banks of the world, most of the world's governments, and many of the world's corporations and financial organizations. Compared to the US stock markets, it is 1000 times bigger. In Forex the basic trade is the buying of one currency and selling of another. For example, the French government might decide to buy 2 billion US dollars, paying for it with 2.4 billion euros (depending on the exchange rate at the time). Later, when the exchange rates have changed, they would plan to sell their 2 billion dollars for more euros than they originally paid. They might do this if they see an economic decline coming, to hedge their governmental assets.

There are several basic reasons why I found that Forex makes such a good investment.

Forex is safer than stocks. The Forex market is open and trading 24 hours a day, 5 1/2 days a week -- because it is always daytime on half the globe and banks, corporations, and countries are always active in the market at any time. This means that when holding a Forex position, with a protective loss-limit order in place or a trade manager is watching the market -- when or if the market begins to move against your position your protective order or the manager can work to get you out. This is unlike stocks, where you can go to sleep one night, to awaken the next morning to find your stock had gapped down and lost you a lot of money, giving you no chance to have saved it.

Order size is not a problem. Since the size of transactions is typically in the millions to billions of dollars, you do not have to worry about trading large accounts and pushing a thin market around with your trades. Because the liquidity is high, you are almost always able to get in, or get out of any position instantly.

Trading costs are minimal. The more costs you can remove from trading and investing, the higher your profit. Unlike stocks, bonds, mutual funds, commodities, and other investments, you tend to pay very little commission when trading in Forex. There is a very tiny difference in bid and ask rates when buying and selling, which is where Forex brokers make most of their income. Naturally this varies from broker to broker, and in some cases spreads can be widened considerably to represent sizable commissions -- so broker choice is an important decision in Forex. Some brokers will add a small commission cost to transactions to offset maintaining smaller spreads. But generally because the market is so large, the spread and/or commissions are in most cases an exceptionally small amount and impacts any individual trade in only a minuscule way. For example, at many prominent Forex brokerages, the difference between bid and ask for the dollar-euro exchange is most often 1/50 of a cent. When is the last time you saw a bid-ask spread like that for a stock? So for every dollar exchanged in Forex you would lose only 1/50 of a cent to the dealer on the spread. This means only a tiny amount of movement is needed in the market before a Forex position is in profit. And for favorable market moves, virtually all of that profit is realized by the trader/investor. Forex is thus a highly "efficient" trading market -- one of the significant reasons why wealthy individuals and institutions invest in it.

Leverage! One of the major reasons why profit potentials are higher in Forex is that most Forex brokers offer the highest possible leverage for your money of any investment type. This means that $10,000 in your account can be allowed to control as much as $1 million or more on the foreign exchange market. So you can pocket the profit made on exchanging $1 million while only having to have $10,000 in your account. Now, no one in their right mind uses all that leverage because the risk of loss is equal to the potential for gain. But they certainly do use SOME of that leverage, so that the net returns can be higher than for other markets. For example, if a Forex position makes a 1% profit, but you are leveraged at 5 to 1 (the maximum allowed is typically 100 to 1), then the net profit on your principal will be 5%. Most investments that have great returns involve leverage of some type -- such as in real estate, where you can buy a $500,000 house for only $25,000 down (your $25,000 being leveraged at 20 to 1 in this case). The maximum leverage allowed for stocks is only 2 to 1, and for mutual funds, no leverage is allowed! Thus for them to generate the same net returns on principal as Forex, the profitable moves have to be much larger, and are consequently rarer and harder to achieve. Many, many more opportunities exist for making 1 to 2% than to make 10-20%, and leveraging in Forex allows you to take advantage of these plentiful opportunities and still net significant returns on your principal with low risk -- IF you have a provider capable of reliably locating and capturing the 1-2% moves AND who has good risk management in their trading approach. Be aware that higher leverage also carries higher risk of loss, however – so a sound trading approach is crucial when taking advantage of higher leverage opportunities.

Why a "Managed" Forex Account?

How good an investor are you? If you are like me, when you look at the choices you will find they are overwhelming. If you begin to do some research, you soon find that it is very time-consuming. If you try to make your own trades, with any kind of frequency, I am sure you will have discovered how emotionally draining that can be, and how frustrating the results. Face it, if investing were easy everyone would be rich. There are only a small percentage of traders who are successful. Many of the best ones do it professionally, where they make a handsome living, which they deserve.

So after a number of years (nearly a decade) of trying my hand at all sorts of investing, in various kinds of markets (stocks, options, funds, futures, and Forex), I discovered the following. The professionals are better than I am. And, I do not really like doing it. It does not give me peace of mind. My talents and fulfillments lie in other areas of life. So the optimal solution for me is finding a good professional source to manage my account for me. All I want to do is check it every so often, as I would with any other long-term investment, and make occasional deposits and withdrawals as desired.

Toward the latter stages of my investment search all my attention was upon the various managed account providers there are. From banks to large investment firms, to smaller companies and even automated systems, I looked and looked. It is a can of worms and takes a lot of digging. There are hidden fees galore, and ways that true performance is doctored to appear better than it really is.

Basically I found that if the provider is big -- the investment managing firm that is – they are going to be way too expensive in terms of costs they pass on to me. Your net returns will be low. And I also discovered that the best account managers are snapped up by wealthy private individuals and private hedge funds. The question eventually boiled down to: how could I get in with some of these private account managers, given that I only had a small amount of money? You see, they usually manage accounts starting at $100,000 or $1 million ... and what I wanted to do was open a small account (several thousand dollars) to see how it did, THEN perhaps follow it up with a little more significant money.

What kind of return? And of course the bottom line was what kinds of returns were out there? You can actually make between 4% and 15% or more, per month!

And the Best I Found Were ...

The specific account providers that had the combination of things for which I was searching are now listed on the website that I have devoted to that purpose -- please click on this link to go to that website.

www.Managed-Currency-Accounts.com

There you will find extensive information about each account, as well as links for opening an account for yourself, should you wish. These accounts all use registered, regulated brokers, and have low minimums as well as excellent trade histories. These accounts are generally unadvertised to the public, but thanks to the diligence of myself and a partner in Europe, not only have we been able to discover them, but we have succeeded in lobbying them for better terms and lower minimums (without sacrificing profit potentials, of course).

Comments

I am happy to share this information with you. Enough people were asking me so that this was the most efficient way to answer. I know it's a bit long, but I wanted to address those who might have varying degrees of financial familiarity. And I am aware that it comes across with some optimism -- please excuse what some might feel is an too positive an attitude. But the fact is I am very positive about this. I am not wealthy, I am moving into later life, and I have been concerned about the prospects of my financial situation. I have a master's degree from the Sloan School of Management at M.I.T. as well as many years of investing and trading experience, and so do have some skill at assessing financial matters. I feel it is important that we share with one another the fruits of our talents and labors. And, I believe in greater equalization of wealth.

I think in the future we will see more professional traders who have been working for private clients and hedge funds start to open their doors to the smaller investor public. People are beginning to see the huge fees associated with big investment houses, mutual funds and financial firms, and want to take matters into their own hands to get around those fees and have more profitable alternatives. But for now, this emergence is confounded with lots and lots of newbie providers who aim to cash in on this trend, and who do not offer anything but lousy or losing alternatives. Buyer beware! However, if you work very hard and perform your own due diligence, I think you stand a chance of uncovering something that might rival the opportunities I have discovered, now or within the next 5 years.

Or, if you have wealthy friends with inside connections to a hedge fund, certain commodities, real estate, or venture-capital business opportunities, you might be able to piggyback onto their larger accounts, and discover a return that rivals or even exceeds what we have been speaking of here!

So there are other alternatives that you might eventually discover that are on a par with those I have discovered. I believe the generally acknowledged approach to take would be to diversify your holdings, spreading them between the various alternatives. Would I put all my money in managed currency accounts? No, of course not, I still hold mutual funds, bond funds, and some ordinary money market cash. I would never put all my money in any one place, or all at just one level of risk. But I definitely am inclined to put more of it where I see the most promising combination of safety and return.

As or if I uncover any new managed Forex alternatives that pass all my criteria, they will be listed on http://Managed-Currency-Accounts.com !

Thank you for visiting this page. Feel free to point other people to it. Also please recognize that I am not giving investment advice, and that you are responsible for making your own investment decisions and their consequences. Past returns are no guarantee of future performance. All investments involve risk.