Become a Strategy Provider on Forex
Operating on the foreign exchange market long term is the dream of many beginning and experienced traders. When traders get through the rough patch of starting out in Forex, they get more knowledge, experience, and abilities to get closer to their goal.
Some traders like to keep their trading activity to themselves. That means that they make trades for themselves, manage their own investment capital and execute trades for their own needs.
But if you can come up with a long-term, stable strategy or even a portfolio of strategies, it opens up more possibilities on Forex than it would seem at first.
The appeal of providing strategies on forex
You have probably encountered various investment opportunities into mutual funds and as a beginning trader, you probably found it appealing. Once you become a successful trader, you might want to use your strategy to manage investors´ investment capital and participate in getting results.
The thought appeals to many traders around the world because if you manage to get good results long term, you keep getting management capital and your share of the results of your investor accounts keeps growing.
It is clear that hundreds or even thousands of investors can put together a much larger capital than a lone trader who trades for his own needs. Billions of USD invested in funds around the world are the reason the most famous and successful fund managers get large shares of the profit made.
The other side of the coin is the fact that managing capital requires various licenses and permits, which cost a lot for an individual trader.
A sophisticated solution for successful strategy providers on Forex completely changes that. The complex solution for strategy providers on Forex brings you the opportunity to copy the trades you execute to the subaccounts of your investors and participate in the results. In addition, it does all the administrative work for you so that you can focus on trading.
How does the Purple Trading solution for strategy providers work?
Purple Trading delivers maximum comfort for strategy providers. You can focus on trading your master account and we´ll take care of everything else.
For every professional strategy provider, it is very important to keep every process as simple, fast, and automated as possible.
Before you start providing you strategy, you´ll take care of the formalities – among else you will need to set the minimum deposit required from investors, your share of the profit (performance fee) or other fees that will be automatically subtracted from the investors´ accounts (e.g. management fee).
After finishing the strategy providing set-up process, you can get to trading as you normally would. You only execute trades on your own real trading account and your trades are then automatically copied into the associated investor subaccounts. An advantage of this technology is that you don´t have to work more as you get more investors and you can focus on your trading in order to reach the best results possible for you and your investors.
All that with administrative management and the fully regulated trading environment of Purple Trading.
The aspects of a strategy provider´s success
Despite the fact that the principle of providing your strategy might sound very straightforward, there are several key aspects that ensure success.
Most importantly, it is accepting new investors promptly, smooth automation of the process of copying your trades into the investor subaccounts, and last but not least, creating the best trading environment possible so that your strategy can get the best results.
And you can count on all of that with the strategy provider solution by Purple Trading.
The potential of providing strategies on Forex
What is, in theory, the potential if you start providing your strategy to other investors? Let´s demonstrate it with a simple hypothetical situation.
If you, as a private trader, trade with a capital of 25 000 USD and manage to increase your capital by 30% a year, you´ll have an annual profit 7 500 USD.
But if your strategy appeals to other people and you, as a strategy provider, copy your signals into 100 trading accounts with an average deposit of 5 000 USD per account, the total amount on the investors´ accounts is 500 000 USD. Let´s say that you manage to up your capital by 30% as well and that your share of the profit is 25%. That makes your annual profit 37,500 USD just from the profit share, and plus you still have the profit from your real account which the trades are copied from.
Naturally, the number of investors and the capital on the investors´ accounts are usually much higher for popular strategies.
Moreover, if your strategy is very successful, we´ll gladly introduce you to our IB and affiliate partners, where you can grow your network, followers and potential income.
You can find out more about the most complex solution on the market for strategy providers by Purple Trading on our website: https://www.purple-trading.com/cooperation/strategy-provider/
If you have questions, get in touch with us through email or phone. Our friendly team will gladly help you and provide additional information.
About the Author
Team Purple Trading
Purple Trading is a true and 100% fair ECN / STP forex broker providing direct access to the real market. High speed orders execution, no trade-offs, no limits for any type of trading, the most advanced trading technologies. Explore more about Purple Trading at www.purple-trading.com .
P.M. Purple Trading is a trade name owned and operated by L.F. Investment Limited., 11, Louki Akrita, CY-4044 Limassol, Cyprus, a licensed Cyprus Investment Firm regulated by the CySEC lic. no. 271/15.