Finding Forex Brokers for Large Accounts is a both a challenge and a major opportunity.
Forex Brokers for Large Accounts are certainly out there, but given the situation of the Account holder, there are a lot of opportunities to be found. There’s no such thing as being overcapitalized, but there is such a thing as being undiversified. Unfortunately, many publications and affiliates will lazily just explain a broker’s basic offering with a link and lots of mentions of the word ‘regulated’. There’s a dearth of information to serve a larger account, but thankfully this guide to Forex Brokers for Large Accounts will address the needs that go unaddressed elsewhere.
What’s a Large Account in the FX Market anyhow?
Any account with less than $5,000 USD should never have been considered as the investor is undercapitalized. There are other markets to serve these individuals. Those with under $1,000 USD in their accounts are gambling, but want to impress other people with their gambling activities in conversation. While an account of $4,000 USD may seem like a fortune, it is not. However, it should not dissuade you from investing in general. Consider investing in Dividend Reinvestment Plans (DRIPs) and build your wealth over time with blue chip dividend-paying stocks. Alternative Investments are for those looking to diversify their holdings and have more to invest in general, this is a different class of investor.
Those with $5,000 to $10,000 USD to trade are smaller accounts that can be effectively used to generate quarterly profits that are significant and substantial enough to make a difference in the individual trader’s life. In this investment range, a trader with a non-European broker can use 4 strategies at once. It would even be beneficial to have a few brokerage accounts to spread out the investment, this trader would have a retail FX account and may open up sub-accounts accordingly. A trader with a European Forex Broker would be able to use 3 strategies at once, especially once ESMA’s restrictions take effect.
Between $10,000 USD and $50,000 USD is a good place to be when it comes to trading Forex. This is not classified as a large amount, but it is a medium sized amount and it can be more easily diversified across strategies and brokers than a smaller amount as any transaction fees (withdrawals or exchanges) are less significant. The profits on a monthly basis can make a difference in the investor’s life. A 3% return in a month on a $25,000 USD investment is not a poor outcome. It’s $750 USD, it can be used as discretionary income and it is good way for those with medium-sized investments to have their money work for them.
Between $50,000 USD and $250,000 USD are medium-to-large investments in the Forex Market. This may not seem like much compared to the institutional traders, but for an investor/trader in the Forex Market it is a substantial sum that can be spread across brokers and strategies. It provides plenty of breathing room as far as diversification, reduction of risk and return on investment. Investors and traders with this investment amount to trade would likely find it beneficial to trade under an offshore corporation for taxation and legal protection purposes. However, this type of trader would not necessarily be looking for a so-called Forex Broker for Large Accounts. That’s not the search made for this amount.
No, the large account holders have professional FX accounts, which would exempt them from regulations that pertain to retail FX traders. These traders would often attract the prime brokerages and prime of prime brokerages, these could be considered the Forex Brokers for Large Accounts. They would be able to do as they please. The professional nature may speak to their handling of others’ money, which means that they have corporate accounts. Once again, the benefits of going offshore are evident. How much of an investment for this sort of treatment? $250,000 USD is the bare minimum. To get professional Forex Trader status by a broker, a $100,000 USD deposit is the minimum. The qualifying account minimum for professional status is at its highest at around $1,000,000 USD for some brokers.
What does this mean for you if you have a large amount to trade?
Forex Brokers for Large Accounts often give traders a lot of leeway in terms of leverage, razor-thin spreads, and lots of attention from client services. These traders get raw ECN accounts, which means that their trades go into the liquidity pool with institutions to match with a counterparty. Large account holders can scalp, arbitrage, carry trade and do whatever they want to do with their trades. Their objective is to profit for themselves and the investors who entrust them with their money (in these cases).
Often enough, large traders will opt to have more than one broker. It’s all about taking advantage of circumstances. The trader may want to invest in a particular Copy Trading Signal or PAMM and a particular broker provides such an opportunity.
These sorts of investors/traders (speculators) are not seeking out deposit bonuses, trading contests, gimmicks or are attracted to football teams with sponsorships. The idea of trading 888:1 leverage is considered gauche to this crowd.
Who would also be a large trader?
Investment firms and captive insurance portfolio managers. Alternative investments make up 5% of the holdings typically for these companies, which means that they attract plenty of investment capital to put into the FX Market if they choose to do so. With real estate valuations globally being overpriced with the exception of South America and Southeast Asia, these investors may look to FX, Futures and CFDs.
The objective is to not find one broker. The objective is to find Forex Brokers for Large Accounts that fit the particular needs of a strategy employed. Diversifying FX Strategy holdings like Mutual Funds and Stocks results far more positively than being undiversified, which is typically a one-way trip to losing money.
Which Forex Broker for Large Accounts Should I Pick?
If you are asking yourself this question, then you need to take a step back and hopefully not read the spam articles that are too often present all over the internet. The answer is not one broker that is “regulated”, but rather this is a bare minimum requirement and it needs to take into account the strategies you wish to employ. If you do not have any strategies or wish to diversify your strategies, do not sign up with a broker yet.
Freevestor is here to help you find the strategies that make sense for your situation and set you up with:
- The Right Strategies
- The Right Allocations
- The Right Brokers
- The Right Risk Level
Everything must be aligned to ensure that you meet your goals. Everyone has a different objective and telling a trader blindly what to do is disingenuous and harmful. The objective is for you to be profitable, not just pick a broker. You can click a link to a broker and be impulsive based on what you read from some low-quality website or you can actually take a step toward investing in the Forex Market like an adult.
The only way to know what strategies work to meet your needs is to get into contact with us. Set up a Free Consultation, let’s chat and a few days afterward you’ll get a prospectus detailing your Managed Forex Portfolio. The preparation, consultation, updates to your portfolio, and client advocacy are all FREE services.
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