Forex managed accounts
offered by regulated portfolio management firms are going head-to-head in
direct competition with the unregulated social trading networks, with the
outcome likely to have a major impact on how the rapidly growing forex industry
shapes in the years to come.
Social trading network
is the process when an investor connects his account to the trading signals
generated by either a trader or a computer application also known as Expert
Advisors (EA), whereby when the signal provider issues a buy/sell signal, the trading
account of the investor mirrors or replicates the trade.
The most popular
social trading network providers are Zulutrade, Tradeo, Ayondo and Currensee to
name a few, with more such networks springing up at a record pace, lured by the
spread markup that the social trading network negotiates with the forex
brokerage where the trading is made.
Regulated
vs. Unregulated
One of the key differences is that the portfolio
management firm is ......
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shavasb@eurivex.com (Shavasb Bohdjalian is a certified Investment
Advisor and CEO of Eurivex Ltd., a Cyprus Investment Firm, authorized and regulated
by CySEC, license #114/10 with expertise in managed
forex accounts. The views expressed above are personal
and do not bind the company and are subject to change without notice. The
comments mentioned above are not to be considered as an offer to subscribe,
invest or benefit from an investment scheme, nor are to be considered as advice
for trading in markets. The comments are for information purposes only and are
general in nature. The examples will vary and depend on individual circumstances.
Trading on margin and leverage is risky and may result in losses. Past
performance is no guarantee for future performance.)
