So, what is the best way to invest £50,000 pounds?
The answer to that question will be different for everybody as everyone has different priorities and goals. There is an endless array of choices and you will have to decide the best way to invest 50,000 pounds based on your own personal circumstances. Most of the options that you have at your disposal will generate returns of between 1% to 9%, give or take. The returns will fluctuate due to market forces and the strength of the economy, for example.
Some investors may want a guaranteed return that is very safe and secure. Other speculators may have a higher risk tolerance and go for high return investments. Others may go for the middle ground – medium risks and medium returns.
The purpose of acorn2oak-fx.com is to look into opportunities in the foreign currency market, or forex. This market is implausibly vast in terms of money that is traded, about 5 trillion dollars – $5,000,000,000,000 changes hands daily. That’s over 100 times the amount that is traded on the New York Stock Exchange.
There is almost unlimited money creating potential to be achieved.
Two ways that you could invest $50,000 dollars is firstly, with a foreign currency exchange account managed by professionals, and secondly, by trading the market for yourself.
A managed forex account is the easiest way because you don’t have to do anything once the account is set up. A professional trader does all of the trading on your behalf and takes a percentage of the profits by way of a performance fee.
The second way of gaining from the forex market is by learning to trade for yourself. This way is a lot more work but so much money can be made that it’s a no brainer really. The most indispensable thing you need though is a quality forex trading course to learn from. No Exceptions. Without one you will fail. However, if you get the right education, you will be a winner. I have acquired a course that is a proven system. I have written a review about it which you can read here – CCT Review
I Promise You
Forex trading goals? or for curiosity and educational value alone, I urge you to sign up below and watch the forex training videos.
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I undertake thorough due diligence before investing in anything and a fund run by professionals is no different. I have a list of criteria that I use before I invest in one. You can read more about how I conduct my due diligence here www.acorn2oak-fx.com/managedforexaccounts/duediligence.html.
What attracted me to invest in a managed account anyhow?
1. High Returns With Low To Medium Risk
The chief motivation that people invest their hard earned money, clearly, is to make more money. It’s no good however if you want to invest your 50,000 pounds into something, only to lose it. A good quality foreign currency fund will employ professional traders whose main priority is to protect the capital of investors. The top traders have a winning ratio of anything from 65% to 85% or so, however drawdowns are inevitable. It’s how these drawdowns are managed that is the key. This is done by keeping drawdown limits to a set amount, for example, if the drawdown limit is set at 15%, if the account drops by 15%, the traders will engage their drawdown/exit strategy. They may hedge their position or perhaps stop the trade. Some managed accounts will have a drawdown limit on individual trades.
2. Low Commitment, Hands Free Investment
The foreign currency exchange marketplace interests many investors because there is so much money involved in it. More than 5 trillion dollars gets traded every trading day meaning that it can’t be manipulated like the stock market can be. The thing that puts investors off trading the fx market is that it takes a long time to get to grips with it. There is so much to learn and remember and once it is understood, more time has to be spent studying charts and waiting for the right time to invest. Therefore, managed fx funds are ideally suited for investors that have no time or desire to become traders themselves. It is a hands free investment that many individuals, and companies, find very attractive.
3. Low Account Opening Deposit
If you think that what you should do with £50000 is to put it an an administered fund, you will have no trouble opening up an account because investors only need to have a minimum of $10,000 dollars or 5,000 pounds to open one. Not too long ago, only investors that had a million dollars could open an account. Even today, there are funds that require millions of dollars to open, and these funds are usually only accessed by invitation only. They can however produce stunning returns.
Check out my reviews and performance on the accounts that I am investing in – www.acorn2oak-fx.com/managedforexaccounts/reviews.html
Other Important Information
To enable the trader to trade on your behalf, you would have to provide them with a limited power of attorney, an LPOA. Because the POA is limited, it enables the brokerage company to allow traders solely to make trades for the investor and deduct the performance fee from the account. (The LPOA can be withdrawn by the client whenever they wish to cease trading). Traders will not be permitted to withdraw funds from investors’ accounts or to amend any account details or close the account. Because the account is in the investor’s name, they have complete control of it and can close it whenever they want to, as long as all trades are closed.
When the account is set up, the investor can download the trading platform onto their computer. After the account is funded, trades can be seen live, in read only mode. All history can be seen and downloaded as reports.
Traders that manage the accounts make their money by charging a performance fee and sometimes management fees. The performance fee varies from 25% up to 50% and some are variable according to the amount of money that is invested, the more that is invested, the less the fees. Some companies charge management fees, they can be monthly or annual and are typically in the region of 2%.
Depending on the investor’s profile, this could be the best way to invest 50,000 pounds. It is a relatively low start up investment at $10,000. A well-run fund can produce great returns at a relatively low risk, as long as proper due diligence is undertaken. Investors have complete control over their accounts. Leaving returns to compound can produce soaring profits but they are excellent to be used as a part of the monthly cash flow. Being a hands free investment, investors don’t have to spend valuable time learning the ropes and looking at the computer all day.