Wednesday, December 31, 2008

Advantages of Forex Institutional Traders

Just in case you don't know what institutional traders are,

they are traders that tend to manage big funds for financial institutions (private or otherwise) and organizations. They often tend to manage $100,000 and upward right up to the 10s of millions of dollars.
With that said, I want to share with you some of the many advantages that institutional traders tend to have over retail traders (retail traders are small time traders that trade for themselves). I can safely share this as I've been an institutional trader before.

If you're still with me ... read on

Ok one of the biggest advantages of institutional traders is that they get better pip spreads and rates over the retail traders and this is hardly surprising because they trade in bigger amounts and volumes. How does 1 pip spread on GBPUSD sound to you?
Do not underestimate this whole pip spread thing for a second. 1 less pip for the broker is actually 1 more pip for you.
Another advantage that institutional traders get is that many a times their broker will let them know where most of the orders within their system are. This gives a great edge because it shows where the big money is leaning on.
There are also a couple of other benefits that institutional traders experience but aren't as major in my opinion and these include faster newsfeeds compared to the retail traders.
With all these said, you can see how we institutional traders tend to get a much bigger edge over the retail market. Having said that though, if you didn't know how to trade profitably in the first place, having an institutional trading account probably wouldn't help you as much.

[ForexGen Money Manager]

An individual who is responsible for the entire financial portfolio of another individual or another entity. A money manager receives payment in exchange for choosing and monitoring appropriate investments for the client.

Benefits of being a Money Manager with [ForexGen]:

* Providing three different commission sources.
* Weekly commission plan.
* Easy & fast commission withdrawals.
* Fixed percentage of the profits.
* P = k * D “P=Profit, k=Variable Parameter, D=Deposits”

The money manager gets a fixed percentage of the profit previously agreed upon with the client for managing the client funds as a bonus feature.

The most competitive trading conditions:

* 2 pips spread on six currency pairs.
* Providing online trading services without maintenance margin, margin call and no automatic closing of positions below the initial margin on weekdays for accounts with initial equity of up to $1 million US. The margin level have to be recognized Fridays at 23:00 CET and before public holidays.
* Leverages up to 1:200 for accounts up to $1 million US.
* Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.

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