YOU HAVE QUESTIONS, WE HAVE ANSWERS
What do I need to start using Freevestor's services?
Clients will need a brokerage account and access to a trading platform (MetaTrader 4, MetaTrader 5, cTrader), which is offered for free. The brokerage facilitates and enables access to each of these platforms and Freevestor guides clients to the Copy Trading Signals and Managed Forex options available.
Clients will also have to not be from a barred country and have a minimum total investment of $5,000 USD if they are not from a European nation. Clients from European nations must have a minimum total investment of $10,000 USD.
To be able to receive Freevestor's Forex Advisory Services, Freevestor must be the client's Introducing Broker. This means prospective clients who wish to be clients should not open an account until after receiving a prospectus specifying the recommended trading strategies (Managed Forex options) and the optimal broker for each of the strategies.
What makes Freevestor's services different?
Freevestor is an Independent Managed Forex Advisor. Freevestor does not directly or indirectly manage any Managed Forex Accounts (including Copy Trading Signals and Mirror Trading). Freevestor maintains independence for the purposes of looking out for the best interests of clientele.
Freevestor determines the strategies chosen (the Managed Forex Accounts), allocations for each strategy, and the optimal broker for each strategy to ensure client success. Freevestor provides customized instructions and guidance for each client and never handles client funds.
What do other investment services providers do?
Copy Trading Signals: These allow traders to copy the trades of other traders. These Signals are typically all-encompassing strategies that remain constant over time when executed by traders using an algorithm. There are traders that place manual trades and allow traders to copy their trades. These Signal Providers typically charge anywhere from $20 to $300 per month for access to their Signal through MetaTrader 4, MetaTrader 5 or cTrader. (Freevestor includes these in client portfolios.)
PAMM (Percentage Allocation Management Module) Accounts: These are pooled money accounts where investors allocate funds of a desired proportion to be managed by fund managers/traders/investment firms of their choosing. This pool of money includes the capital contributions of the fund managers and other investors. Fund managers are compensated with a percentage of the weekly/monthly/quarterly profits earned. Investors may withdraw profits or principal at the rollover period. (Freevestor includes these in client portfolios.)
MAM (Multi Account Manager) Accounts: Fund managers have multiple sub-accounts for the purposes of assigning a different level of leverage, which makes it suitable for investors with a higher risk tolerance and appetite. Fund managers are compensated with a percentage of the weekly/monthly/quarterly profits earned. Investors may withdraw profits or principal at the rollover period. (Freevestor includes these in client portfolios.)
ETFs (Exchange Traded Funds): Marketable securities that track indices, commodities, currencies, stocks, baskets of stocks, baskets of assets, bonds and derivatives. They are traded like common stocks on a stock exchange and thus have fluctuating values. These funds have expense ratios of 1% or lower unlike mutual funds that can charge double to quadruple the highest ETF rate.
Hedge Funds: The objective of hedge funds is to seek 'alpha', which is an abnormal rate of return based on the Capital Asset Pricing Model (CAPM). These funds pool together investments from investors with the expectation of large returns for investors. Hedge Funds typically charge a 2 & 20 fee structure, which means that the fund managers receive a flat 2% on the assets invested and 20% of profits earned. This fee structure is changing as there is greater competition and disruption in the marketplace, there are more hedge funds charging a 1.4% & 17% fee structure. Hedge Funds are not for everyone, they are investment vehicles for the wealthy as they typically require a minimum investment of $500,000.
Can an investor trade with multiple Copy Trading Signals at once?
Of course, that is exactly what Freevestor encourages clients to do! In the portfolio, are multiple Copy Trading Signals and they each are to be thought of like a hedge fund. There's a signal provider (fund manager) and the participants reap the benefits, but the fee structure is different.
Freevestor will assist clients with the creation of sub-accounts to enable the use of multiple Copy Trading Signals with a single broker, find the proper signals that meet Freevestor's strict standards, provide guidance on the proper allocation, and continue communication in the cases of a need for modification.
How would an investor get a Monthly Distribution?
Monthly distributions are only issued if investors sign up for a brokerage account through Freevestor with Freevestor serving as the Introducing Broker. There is no other way for Freevestor to insert monthly distribution funds into investors' accounts. Distributions are generated based on investor trading volume and trading account type.
Does Freevestor place the trades and create sub-account allocations for clients?
No, this is completely up to the particular client to do. Freevestor clients are free to not take any or all of Freevestor's advisement. Freevestor creates the portfolio plan and even shows clients how to do put it into place step-by-step, but it is up to the client to execute it.
Clients can choose to have Freevestor have Investor view access, which enables a read-only view into their trading platform accounts so that trades are audited in case of issues with the trading signals or any other issues take place when it comes to trade execution. It also helps to have this access for the purposes of being able to confirm that distributions have reached client accounts and to make any modifications to the portfolio plan.
Freevestor's Forex Portfolio Advisory Services are intended to minimize account blow-ups, manage risk and create long-term client-advisor relationships. Ultimately, Freevestor consults clients. The execution and decision-making are still in the hands of the clients.
What is Free of Charge and what is not?
All of the services provided by Freevestor are FREE. However, there are things that are not free of charge.
What is FREE:
- Consultations with Freevestor
- Portfolio Management and Creation
- Client Support
What is NOT FREE:
- Copy Trading Signal Subscriptions (there are FREE options, but the Copy Trading Signals are mostly of the paid variety)
- Fees associated with PAMMs and MAMs
- Virtual Private Server (VPS) to put all of the platforms so that trades are processed on a 24/5 basis
What you RECEIVE:
- Monthly cash distributions inserted into your trading accounts. These are highly variable based on trading volume and the type of account opened.