Who is a forex investor?
A forex investor is a person or cooperation that looks for skilled forex traders and funds them. In return, the forex traders trade on their behalf on an agreed fee and the profits returns to the investor.
Many skilled traders look for opportunities like this, but they don’t know how to start and where to look for investors. Getting forex investors can be a difficult task and may take longer. If you use the right strategy, traders can get many investors knocking at their doors.
What do forex investors look for in forex traders?
Reliability/ experience
Forex investors look for traders who can be relied on with their funds. They need a person who can give results consistently. It means that they look at the previous performance of a trader and the profile.
They also look at the history of trading and the success rates. Some investors look for a trading record of more than 6 months. Here is where traders have to ensure they sell themselves well by having a consistent record.
To convince investors requires a good trading reputation in the market. You also need a good record to show our potential investors.
Consistent returns
As much as a previous record is pleasing, you have to prove that you can maintain your trading record as it is. Investors will trust a person who can prove that their funds are safe with them. You don’t have to show unrealistic wins.
You simply show that you win more than you lose because you can’t make only profits in forex. If you trust your skills or strategy, then it is easy to project confidence to your investors using a few tools.
There are some countries like the US where you need to get licensed to trade for other investors. If your country has strict laws and requires a license, you may need a trading license. Furthermore, a trading license increases your credibility in the market.
Types of forex investors
There are various types of forex investors in forex.
A regular forex investor
This is a regular day to day person who is seeking to make profits from forex investments. They often do not know forex. They require patience, and sometimes traders see them as demanding.
Forex trading requires enough capital to trade professionally. These investors may not have enough funds to sustain a forex trader. However, some regular investors can offer a good trading relationship. It just depends on how you agree.
Regular investors could be family or friends who need you to manage their savings. Others are found through advertising your services.
A professional/experienced forex investor
These are forex investors who have a trading background. They have started as forex traders and then crossed over to become investors. These types of investors know about trading, and some forex traders say they are the best clients.
It is a great opportunity to trade for these investors since they understand the market. It might take the pressure of making consistent profits off your back. They also follow up closely with the activities on the account you are managing for them.
Another perk is that if they have the time, and are very experienced in trading, they can help where you have an issue. That way you can learn and make an income while at it.
Companies and corporates
These are the type of investors that many traders are looking for. It could be a company looking at diversifying its portfolio through forex investments. In addition, they offer good capital for trading.
The drawback with these investors is that you have to cope with many rules that they have. They also demand that the drawdown is minimal or you risk losing their partnership.
How do you get forex investors as a forex trader?
To get forex investments, you need to have a strategy on how you will get the attention of these forex investors. There are several procedures that you can use.
Perfect your forex trading skills
Expertise in forex trading is the most crucial part of the whole process. Traders manage investors accounts and end up disappointing investors and mismanaging funds. If you need to get an honest and lasting career trading in forex, you need to know what you are doing.
Investors have probably met many forex traders claiming to make good profits only to steal funds. They are more sceptical when choosing forex traders to manage their accounts.
Forex investors look for traders who aren’t gambling with their money. Making consistent profits means that you have to figure out a strategy that works well. If you have one that offers some consistency, and getting investors will be much easier.
Open a live trading account
The recommendable account allows you to manage other investors accounts. This type of accounts is like the percentage allocation management module PAMM. There is also the Multi Account Manager MAM account. The PAMM is made up of three parties; the forex investors, the forex traders and the forex broker.
The investor and the traders sign a legal contract which gives the trader the ability to trade the funds. These legal contracts allow the traders to trade forex for investors. Where the investor agrees that there is risk in forex trading. They could lose their funds.
When you open this account, you will have to give out documents that verify you are a qualified trader. They also need a record of your performance while trading. How much you have made previously managing accounts.
All this information is for the investors who are looking for traders. It helps them decide if you are the best candidate to entrust their money. After this, you begin trading, and all your statistics are recorded on it. It can take a few months if you are talented to get investors.
You might want to grow your account slowly when trading. Show gradual growth and not make a lot of money and chase investors. Make an achievable profit of 7-10% while risking 2% of your funds.
There are few brokers where you can open PAMM accounts. One of them is through the MetaTrader 4 trading platform.
Create a forex trading portfolio
As a trader, you need something to act as evidence of how much your strategy is working. Besides the PAMM account, you can create a portfolio to describe your trading like a CV. This portfolio should highlight your skills and attach a copy of the trading statistics.
Another way of creating your trading profile is by opening a myfxbook.com account. Link your live trading account and start trading and growing your account slowly. Myfxbook.com records all your data including, how much you make.
After 7 or 10 months, you can download your performance in form of a PDF and use it to get investors. You can attach this on your website or on your social media pages where your potential investor might be.
Create a website to sell your skills
A website helps you to sell because a client can get to know more about you and the skills and experience you have trading forex. A website sells your profile and creates some form of credibility.
It gives you a platform to highlight your strengths to investors. Luckily creating a website is not difficult. There are tools to help people design their websites. There is an option of hiring freelancers to design a professional trader’s account.
A website gives you more chances of getting investors when compared to other traders. Investors visit your website and reach out for trading partnerships.
Market yourself
Marketing by going on platforms where forex investors are looking for dependable traders. Use social media platforms to reach out to investors. There are many groups created on social media for forex traders.
Reach out through Facebook, Linked In, Twitter, Instagram, telegram and TikTok to forex investors. Many people are on these platforms and are looking for forex traders.
Although these groups got corrupted by scammers, you can still get legitimate investors. Some traders have found investors through email marketing too. Another tip is using traders platforms created for sharing data and information on trading.
They are like myfxbook or fxstat where traders share strategies and trading tips. Link a live trading account so that investors can access your trading portfolio. These platforms offer traders a chance to connect with other traders and share ideas. Forex traders can connect and exchange contacts and links of forex investors.
Start giving signals to traders and build a forex trading reputation. There are websites like tradency.com, zulutrade.com and rentasignal.com that you can use to give signals. It is a great way to get investors to notice you. Especially if you provide reliable signals which forex traders use. It is easy to request trading deals, they will agree to have you trade for them.
Other ways to market yourself include using affiliate programs. These affiliate marketers direct traffic towards you which is a way of securing some good investors. You can make tutorials and post them online to showcase your trading skills.
Join copy trading platforms as an expert trader
If you make good profits, you can link your account with new traders and trade on their behalf. It is known as copy trading. Many people don’t know how to use the tools for trading, and others don’t have the time to learn how to trade.
Nowadays, forex brokers have copy trading accounts. They need expert traders and trade live so that copy traders can learn from them. It means you have to create an expert account that can trade for your copy traders.
Create an account as a pro trader and place your portfolio for copy traders to use. Publish your account and allow other traders to benefit from your trading. Some forex brokers give an option of attaching a forex portfolio, it is a chance to attract investors.
Many forex broker firms allow traders to open traders account. Once you have made some profits as a trading expert, clients can approach you. That way you can manage their accounts and some invest in your strategy.
Open a social trading forex account
Social trading account is almost similar to a copy trading account. Social trading is where beginner traders can follow your account for instructions. They get information and use the strategies you are using to trade. You don’t have much control over the trading accounts of those who choose to use your trading signals.
Social trading gives you a platform to showcase your skills. It exposes you to a market full of investors. Traders who don’t have experience trading but are capable of forex trading can try this method.
There are several platforms where you can start social trading like Darwinex. This platform allows forex and security traders to manage accounts for investors. It is one way of getting investors to fund you.
The deals get settled on the platforms, and forex investors provide the funds you can manage with a commission of 20%. You also make money trading in your account while managing other accounts.
Submit CVs to companies that have proprietary trading firms
If you have done the above steps of creating PAMM accounts and have a trading CV, you can offer services to companies. There are companies and financial institutions that have proprietary firms.
They consist of banks, broking firms and other companies that want to benefit directly from forex trading. They need traders who can help them trade using their funds. Traders that trade cryptocurrency or forex and generate revenue but not through commissions.
If you are confident with your skills and can manage huge funds, you can submit a resume. Then you can get an interview and start working. Many companies give you a trading contract. There is an agreement on how much commission you can make for them.
These are some ways you can get forex investors to trust you and eventually invest in you. One last method that many investors use is through networking with people. Forex traders have found investors through family and friends.
A family member or a friend could know someone looking for forex traders. That is why you should put out the word that you are looking for forex investors. Networking with people and not only online but by going out and meeting people.
Tips on what you should know before getting a forex investor
Always trade for your investor ten times better than you trade for yourself. Creating a good reputation begins by making sure you generate profits for your investor. It will help you in the long run because they could refer you to other investors.
If you get a forex investor, start trading gradually. It applies to new forex traders or first time trading for investors. By having gradual growth in forex you make room for improvement.
Be transparent with your forex investor. At times because of the nature of the forex market, you might not always make a profit. That is why you should state from the beginning that there is a risk in trading forex.
It will clear up some difficulty when trading. Regardless of the type of investor you have, you must make your contract clear.
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