It is real to make money on Forex and it is even possible not to take part in trading yourself. Trust management was invented for this purpose. The option is suitable for everyone, regardless of experience and capital. What is special about the method, you will learn in this article, written with the support of experts from the Imperial Wealth International broker.
What is it?
Asset Management (AM) is a service provided by qualified professionals. They manage investors’ money in order to multiply it and make a profit. They manage the capital based on a specific strategy. All nuances are coordinated with the client and an agreement is signed.
Asset management is not free. The amount of remuneration depends on the agreement between the parties. It can be a specific amount or a percentage of income. The trustee retains ownership of the investment products, and the intermediary simply closes deals. He does not have unlimited powers, plus there is regulation at the legislative level.
Broker Imperial Wealth International talks about ROV strategies
Trust management does not limit the use of the strategy, but there is a classification:
- standard;
- individual.
The former are part of a collective ROV. There is a typical set of financial instruments, different levels of risk and entry threshold. They can be model and standard.
Individuals are not constrained by the structure of investment products, so they are considered more flexible.
Forex Imperial Wealth International will tell you about the asset management agreement
Before handing over the money to the DUA, you need to sign a contract. You should study it carefully beforehand. When assets are transferred, you need to be sure that the manager will act reasonably, taking into account the interests of the client.
Therefore, you need to make sure that all the nuances, conditions, responsibilities were specified in the contract.
If the trust management of funds will be carried out through investments in ETFs, PAMM accounts or copy trading, then security must be guaranteed by the broker. He also defines the investor’s options, designates his limitations and ensures transparency.
Broker Imperial Wealth International on types of ROVs
There is the following trust management in Forex:
- direct. The investor transfers all funds to the account of an intermediary (a trader in the financial market or an investment fund), who will manage the entrusted amount. Strategies are applied at his discretion;
- partial (based on consulting). The investor builds the portfolio himself, but takes into account the recommendations of a professional.
The first scheme is used most often. Trust management can be safely entrusted to the broker Imperial Wealth International. The company is licensed, there is control by the regulators. A number of positive reviews indicate that this is not another fraud, and the financial statements confirm the regularity of payments.
Brokers for ROVs may have these options:
- work with qualified traders;
- Capital is disposed of by outside speculators (RAMM, LAMM or PAMM are used for this purpose).
Imperial Wealth International has clear terms, fair payouts, and several million open accounts.
If we classify by instrument, ROVs are of the following types:
- Mutual Funds (Mutual Investment Funds). Suitable for beginners, because it is the most accessible. Characterized by a low entry threshold, low commissions. In this system, funds of a certain number of investors are pooled for simultaneous investment in a number of profitable assets. Each fund has its own investment declaration, in which the share in the instrument is prescribed;
- ETFs (Exchange Traded Funds). To buy securities you need to open an account with an intermediary. This could be a broker Imperial Wealth International. A company with a good reputation, legal documents, understandable conditions, and adequate commissions. Exchange-traded funds are usually index funds. With their help, you can invest money in the available list of investment products, respecting certain proportions;
- PAMM accounts. A way of investing, in which investors earn without independent trading. Not a bad option for beginners who do not have the necessary experience and knowledge. It is possible to open such an account at the broker Imperial Wealth International. Offers good conditions, small commissions, several rates to choose from. Controls compliance with the rules, makes sure that the withdrawal is requested only by the investor.
- copy trading. This is one of the options of passive trading. You can not trade by carefully studying the market, but simply copy the transaction of an experienced player.
Imperial Wealth International is not a fraud. A reliable broker who complies with the law and pays taxes. No debts to clients. The reputation is good, all is well with the licenses.
Advantages and disadvantages of asset management? Forex experts from Imperial Wealth International explain
ROV is a fairly popular tool. It allows you to invest without skills, knowledge, personal strategy. That’s what else it’s good for:
- the level of profitability is higher than that of bank deposits;
- an investor can invest in stocks;
- the threshold for entry is small;
- all actions are performed by the manager, which saves time and nerves;
- you can do portfolio diversification.
All deposits are controlled by the investor, and the intermediary cannot withdraw money from the account.
There are also disadvantages:
- no one gives guarantees of profit;
- there is no protection from the state deposit system;
- a significant number of risks;
- the level of profitability is determined by the manager’s decisions;
- The intermediary may turn out to be a crook or an inexperienced trader who does not know which strategies to apply and where to invest;
- large commissions for services;
- It is compulsory to pay income tax on profits.
Some companies don’t have withdrawals on short notice and so in some cases you have to wait several weeks for the money to arrive in your account. Broker Imperial Wealth International does not work like that. All requests are processed quickly, no one creates obstacles, cooperates with verified payment systems.