Forex Managed Accounts

The cornerstone of the financial services industry has always been diversification which has traditionally been linked to stocks, bonds, and mutual funds. Many of these investments though seperate asset classes are more often than not linked to one another."

Due to this link between securities-related Investments, many investors are discovering that a professionally managed Forex account can offer further diversification to their portfolio.

Depending on a managed program's trading strategy and leverage use, professionally managed forex investments can obtain similar returns to other security related investments. Partial allocation to a managed currency portfolio can therefore increase a portfolio's total diversification.

Any form of trading carries a substantial risk. Foreign Exchange is one of the riskiest types of investments, involving a high degree of leverage which can work for or against you. Only genuine "risk" capital should be used for a "Forex" managed investment. You should carefully consider whether a Forex managed account suits your financial circumstances. No consideration to invest should be made without carefully studying the applicable risk disclosure document and seeking professional financial advice.

Account Manager

PracticalFX's focus is solely on trading the major currencies in the spot forex market. Only the  most liquid currencies are traded by us - including the US Dollar, Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar and Australian Dollar. PracticalFX specializes in providing a professional discretionary approach to managed accounts using technical analysis in order to enter and exit all our trades.

Security of Investors funds

All funds deposited are traded as individual accounts, not pooled with other investors funds. Each investor has their own unique login and password for access to their investment via the internet 24 hours a day 5.5days a week. Only the investor can withdraw or deposit funds to and from his account.

The invested funds are not held by PracticalFX but rather by an established reputable trading company. (Trading Platform)

Security of Funds Disclosure

The transactions you are entering into with your Broker are not traded on an exchange. Therefore, under the U.S. Bankruptcy Code, your funds may not receive the same protections as funds used to margin or
guarantee exchange-traded futures and options contracts, which receive a priority in bankruptcy.

Since that same priority has not been given to funds used for off-exchange forex trading, if your Broker becomes insolvent and you have a claim for amounts deposited or profits earned on transactions with your Broker, your claim may not receive a priority.

Without a priority, you are a general creditor and your claim will be paid, along with the claims of other general creditors, from any monies still available after priority claims are paid. Even customer funds that your Broker keeps separate from its own operating funds may not be safe from the claims of other general and priority creditors.


In short at no stage does PracticalFX receive or handle clients Deposits. We acts solely as the trader and intermediary between the client and the Trading Platform.

Availability of Funds

Except for the first month, there is no lock in period or penalties for early withdrawals on investments.  Monthly withdrawals should be lodged 7 working days prior to the withdrawal date. Funds can only be deposited into a bank account in the individual’s personal name. No third party deposits or withdrawals are permitted.

Fees

Performance fees will be charged as a percent of “net new profits” each month above a high-profit-watermark.  A high-profit-watermark is essentially the largest cumulative amount of positive performance experienced in a client’s account at the end of a given month throughout its life. High-profit-watermarks can be calculated as follows:

High-profit-watermarks for clients will be calculated by tracking the amount of cumulative profit that has been earned in a client’s account over the course of the account’s lifetime.   Profits earned in a client’s account that will be eligible for a performance fee will be the profit each month (net of all fees) in excess of all previous recouped losses.

Alternatively a per lot fee (normally 1$ US per round turn trade debited to the account when entering the market is combined with a performance fee. All fees are paid to PracticalFX by the trading company as agreed to with the investor in advance. (See Risk Disclosure)

Our preferred MT4 Forex Broker is Forex.com U.K. “Forex.com acts as the clearing agent and counter party to customers margined forex transactions introduced by “PracticalFX”. FOREX.com is a trading name of GAIN Capital - FOREX.com UK Limited and is authorised and regulated by the Financial Services Authority. FSA No. 190864.” PracticalFX receives a rebate of 1 pips per round turn trade from forex.com that has no effect on the normal bid/ask spread offered to its clients.

Minimum Investment

A Minimum Investment of $3000 is required to participate in the PracticalFX managed account. This is not the minimum amount required by your Broker to open a Forex trading account.

Risk Disclosure

Trading in the off exchange retail foreign currency market is one of the riskiest forms of investment available in the financial markets and suitable for sophisticated individuals and institutions.  The possibility exists that you could sustain a substantial loss of funds and therefore you should not invest money that you cannot afford to lose.  Nothing in this presentation is a recommendation to buy or sell currencies and Practical FX is not liable for any loss or damage, including without limitation, any loss of profit which may arise directly or indirectly from the use of Forex Hometrader tools or reliance on such information.

PracticalFX does not accept investor's funds directly under any circumstances. We are neither a bank or a currency clearing house

We act strictly in the capacity of an Introducing Advisor and Forex account Manager. This website is strictly for information purposes and is not a solicitation to invest or a recommendation or suggestion to take any course of action regarding your investments.

There is considerable exposure to risk in any foreign exchange transaction, including, but not limited to, the potential for changing political and/or economic conditions that may substantially affect the price or liquidity of a currency.

Past performance is not necessarily indicative of future results and individual returns may vary amongst Investors. Investment returns and principal values will fluctuate according to exchange rates investor's capital, when redeemed, may be worth more or less than their original cost. All performance figures assume the reinvestment of realized gains and capital gains. Please consult your financial advisor before committing any funds to the PracticalFX managed account.