Forex is a commonly used abbreviation for “foreign exchange,” and it is typically used to describe trading in the foreign exchange market by investors, speculators, and professional money manager traders.

For example, imagine a situation where the U.S. dollar is expected to weaken in value relative to the euro. A forex trader in this situation will sell dollars and buy euros. If the euro strengthens, the purchasing power to buy dollars has now increased. The trader can now buy back more dollars than they had to begin with, making a profit.

A Forex trader will buy a currency pair if they expect its exchange rate will rise in the future and sell a currency pair if they expect its exchange rate will fall in the future.

Forex in the world’s largest and most liquid market, with Forex Markets open 24 hours a day, five days a week.

There are several reasons why 30% is a very good and fair Performance Fee. The most important reason is because investor clients earn the other 70% of the gains. Here are additional reasons:

• The nature of Forex trading is very intense. The typical trading volume and frequency that takes place in a given day or week is substantial.
• Forex trading goes on 24 hours a day, 5 days a week, from Sunday night until Friday night. Often this requires middle of the night activity for the Forex Trader to be awake and managing trades.
• Many other Forex Managed Account money managers charge 35% – 50%, therefore, 30% is a very good rate, and at the low end of the industry norm.
• Performance Fees are only taken on the gains of a given month. Forex Traders only earn the Performance Fee if clients have gains.
• All considered, a 30% Performance Fee is a good value proposition. The commitment the Forex Trader and their family must have is substantial in order to make ongoing trading successful. The nature of Forex trading requires full family support, or it wouldn’t work. Examples include: The need to have spousal support for middle of the night alerts ringing to wake up for trading opportunities, computer glowing in the bedroom while sleeping, Sunday night to Friday night support while the Trader is active with a Trading Position possibly limiting normal life activities, etc.
• More advanced computer, internet, mobility, and power systems are required to enable an ongoing successful trading model. It requires things such as computer systems designed to operate 24×7, proper back-up power for power outages, multiple and reliable internet connectivity, effective mobile monitoring and trading systems support, etc.
• The overall depth of experience, knowledge, and ongoing monitoring of the various global market aspects and events that can affect the movement of currency is extensive.

For the Forex Managed Accounts managed by Xenia traders, there are two Fees charged by the Forex Trader Money Manager, a Management Fee (2%) and a Performance Fee (30%).

The “Management Fee” is an annual assets under management fee of 2%, prorated and charged monthly.

The “Performance Fee” of 30% is taken monthly on the gains.

A “High Water Mark” model is in place.  If losses occur in a given month, causing the account balance to drop below the previous “High Water Mark”, then no additional Performance Fees would be taken until gains are made and the balance goes above the previously set “High Water Mark.”

Advantages of Forex Managed Accounts:

– Professional Traders with years of experience and track record working for you
– Professional Traders have the systems and support necessary to trade more effectively than the average person would

– Typically providing high net returns with conservative trading and ongoing trade management
– Access and control over your funds.
– Low initial investment with immediate liquidity
– Account “Balance Lose Limit” control

A Forex Managed Account provides a service through which a professional trader or a group of professional traders with years of experiences and track record of results personally handle the management and trading of Forex with client funds in exchange for a percentage of the profits called a Performance Fee.  Typically, there is also a annualized account Management Fee.  Both the Performance Fee and the Management Fee are usually taken on a monthly basis. Performance Fees are only paid on the gains made in a given month.  If there is a loss, Performance Fees are not paid until after the account balance has risen above the “High Water Mark” of any previously set level.

PAMM refers to Percentage Allocation Management Module, which is a relatively recent technical solution that allows the professional traders to manage and trade unlimited investorís accounts and enables a more advanced Forex Managed Account model. It is PAMM that makes it possible for the funds of several investors to be joined in one PAMM fund which the professional (money manager) trader has access.

For example if 10 clients with $ 10,000 each join the PAMM system, then we have a fund of $ 100,000 from ten investors equally, if for example the manager trader opens a position of 1 lot, each fund account will receive 0.1 (1 lot / 10 accounts) that obeys its percentage share within that fund. All this to gain efficiency and effectiveness at the management, as it was not for this solution, the trader would have to open each position in each account manually and the results would be different in each account.