Trading can be challenging and if you do not have the
time to trade yourself a good option is to go for Forex
Managed Accounts where a reputable firm trade your money
on your behalf. It is usually a sound investment strategy
to diversify and allocate between 10 to 20% (depending
on your circumstances) of your available investment funds
in the relatively high risk, high gains Forex Market.
Introduction to the CBI Forex Managed Account
have heard about high gains that can be achieved on the Forex markets
and are interested in becoming involved in Forex Trading. You realise
that high gains go hand in hand with high risk and therefore you
want to "do the right thing" to tap into this lucrative
market and not to loose your money. You do not however have the
time to study the Forex markets, methods, software systems, technical
analysis and all the other information. You just want to build your
investment portfolio by putting 10 to 20% of your portfolio value
into the Forex markets.
following table and graph confirm the vast difference between ordinary
and Forex investments over time. With the ordinary investment with
5% pa growth, your investment of $103 will become $160 after 10
years. The Forex Managed Account with 30% pa growth (please see
disclaimer at the end of this document) will be $1060 after 10 years!
The following table and graph clearly indicate the vast difference
between the two "investments".
is however not a sound investment strategy to put all your money
in the high yield, high risk field of Forex Trading. By using a
combination of the two types of investment, you can limit your risk
and expect a higher yield in your total investment portfolio. A
good investment strategy is therefore where 80% of your total investment
amount is in a traditional investment at 5% growth per annum and
20% of your investment in CBI's Forex Managed Account at 30% expected
growth per annum.
following table and graph indicates the possible yields of a traditional
investment in comparison with a combination of ordinary investment
(80% of amount) and a Forex Managed Account (20% of amount). The
traditional investment of $103 will become $160 after 10 years while
the combination investment will grow to $241 in the same time which
gives a Return on Investment (ROI) of (241-103)/103*100 = 134%.
important is the fact that the vast improvement in your total investment
is based on a risk of only 20% of the funds invested in the Forex
Managed Account. This is 20% of 20% = 4% of your total investment
portfolio. Thus a ROI of (241-160)/160*100 = 51% more than only
an traditional investment is realised with a risk of only 4%.
following table can be used to do the calculations for your own
specific situation and risk profile. This spreadsheet can be downloaded
when you supply your information in the form at the bottom of this
the right Forex Trader
is also important to choose a competent Forex Trader with a solid
track record that will look after your investment.
the past few years, we at EagleTraders.com have investigated various
international Forex Trading companies and are confident that the
information we present here will be to your advantage.
want to introduce you to Capital-Builder Investments (CBI). We have
personally met with the management of CBI and after a number of
meetings we have decided to link up with them and to refer investors
interested in Forex Trading to them. I know their technical trading
advisor personally since the year 2002.
more about CBI:
Deo Volente Empowerment and Training CC, reg nr 2004/050938/23,
t/a Capital-Builder Investments (CBI), is registered as an authorized
category II financial services provider by the South African Financial
Services Board, license number 21606. CBI therefore comply with
the very strict requirements for Forex Services Providers in South
Securities Limited where the money will be traded, is authorized
and regulated by the Financial Services Authority (Registration
number 171487) of the United Kingdom and is a member of the London
Stock Exchange. ODL Securities Inc. is registered by the Commodity
and Futures Trading Commission (CFTC) and is a member of the National
Futures Association (NFA, ID: 0330396). ODL is also registered and
regulated in Japan, Australia en Monaco. ODL Securities is one of
the biggest independent brokers in the UK and currently have a book
in excess of $6 billion under fund management, of which CBI is one
of their fund managers.
the past 4 years CBI has achieved an average return of approximately
30% per annum on the Forex Managed Accounts. It will be difficult
to constantly beat this at other places!
(See risk disclosure at the bottom of the page)
CBI Forex Managed Account comprises of the following:
CBI offer investors the opportunity to participate in their
investment product and charge a performance fee of 20% on new profits
only. This means that if CBI does not make a profit on your Forex
Managed Account for a specific month, then no performance fee is
payable to them for that month. CBI needs to get your investment
up to the previous highest level before they can start charging
a performance fee again. It is therefore to CBI's advantage to be
intimately involved in your investment and not to blindly trade
amount : USD 10,000 or EUR 10,000 or GBP 5,000 or ZAR 50,000
Term : No minimum term (minimum of 12 months recommended)
: 60 days
Initial fee 3% of initial market value, thereafter none for the
duration of the investment. No withdrawal costs except for normal
bank charges and no other administration costs.
A transaction fee of $30 USD will be charged for every round turn
lot ($100 000) traded, regardless of account performance. CBI may
recover the trading fee at monthly intervals from the account.
The mandate, approved by the Financial Services Board in South Africa,
allows for a draw-down of 20% of capital and a maximum of 5% exposure
in the market of your Forex Managed Account. In practice the actual
maximum exposure to the market is less that 2%. More re-assuring
is the fact that the 20% capital draw-down is from the maximum amount
of your investment.
if you have "invested" $100 000 initially (over and above
the 3% initial fee) all trading will be stopped on your account
if the value falls to $80 000 (80% of starting value). If your account
is up to $120 000, then the 20% principle will apply on the $120
000 and trading will be suspended when the value reaches $96 000.
Therefore your risk level can only moves up to ensure that your
maximum exposure at any time is 20% of your current investment amount.
will be able to monitor your account:
you open a Forex Managed Account at CBI, you will receive a login
and password to be able to follow the trading activity on your account
in real time as CBI believes in total transparency to their account
holders. Although you are not actually allowed to trade, you will
have "inside" knowledge of what is happening to your money
in your Forex Managed Account.
Trading foreign exchange on margin carries a high level of risk,
and may not be suitable for all investors. Leverage can work against
you as well as for you. Before deciding to invest in foreign exchange
you should carefully consider your investment objectives, level
of experience, and risk appetite. The possibility exists that you
could sustain a loss of some of your initial investment and therefore
you should not invest money that you cannot afford to lose. You
should be aware of all the risks associated with foreign exchange
trading, and seek advice from an independent financial advisor if
you have any doubts. Past performance is not necessarily indicative
of future results.