Frequently Asked Questions
WHAT IS FOREX?
FOREX vs. FUTURES
WHY IS FOREX ATTRACTIVE
WHY A FOREX MANAGED ACCOUNT?
AM I ABLE TO ACCESS MY ACCOUNT?
CAN I CHOOSE MY OWN BROKER?
DO I HAVE TO DO ANYTHING AFTER I HAVE OPENED MY ACCOUNT AND FUNDED MY ACCOUNT AND FOREXATOM HAS BEGUN TO TRADE?
IS THE FOREX MARKET RISKY?
WHAT IS THE MINIMUM I CAN INVEST?
WHAT IS THE MAXIMUM I CAN INVEST?
IF I DO NOT WITHDRAW, DOES MY ACCOUNT COMPOUND?
CAN I WITHDRAW MONEY AT ANY TIME?
IS THIS A PROVEN WAY OF MAKING MONEY?
IS THERE A LIMIT ON MY WITHDRAWALS?
CAN I USE THIS FOREIGN EXCHANGE MONEY TO PAY FOR MY PRODUCT FROM MY SUPPLIERS OVERSEAS?
CAN I WITHDRAWAL MY MONEY AND CLOSE MY ACCOUNT ANY TIME I WANT?
WHAT IS THE LPOA (LIMITED POWER OF AUTHORITY)?
CAN YOU GUARANTEE RESULTS?
WHAT TYPE OF RESULT SHOULD I EXPECT?
WILL I BE ABLE TO ACCESS MY ACCOUNT ON THE INTERNET?
What is Forex?
The Forex market is a non-stop cash market where currencies of nations are traded, typically via Banks/Institutions. Foreign currencies
are constantly and simultaneously bought and sold across local and global markets and traders' investments increase or decrease in
value based upon currency movements. Foreign exchange market conditions can change at any time in response to real-time events.
The huge demand for foreign exchange is the reason why the Forex market is the largest and most liquid financial market in the world.
From 1997 to the end of 2000, daily trading volume from Forex trading has surged from 5 billion to 1.5trillion dollars. Despite
this unbelievable growth, the foreign exchange market continues to grow at a phenomenal rate. No other financial market has
demonstrated this stellar growth in volume. Currently there is approximately 4.12 trillion dollars exchange daily in Forex.
If you compare that to the $25 billion a day volume that the New York Stock Exchange trades, you can easily see how enormous
the Foreign Exchange market really is. It actually equates to more than three times the total amount of the stocks and futures
markets combined!
Unlike the stock market, traders can gain profits whether buying or selling in a currency pair. The main currencies involved are
US dollar, Japanese Yen, Euro, British Pound and Swiss Franc. Activity within the market is created by central banks, commercial bank,
financial institutes, corporate customers, brokers, independent currency traders. There is no central market place for currency exchange.
Trading is conducted electronically via computer networks at thousands of established locations and banks around the world.
The Forex market is a continuous, 24/5 ½ day market place.
Top
FOREX vs. FUTURES
The main reasons Forex is better than trading currency futures:
Liquidity - Forex market trades almost 4 trillion dollars a day making it the largest and most liquid market in the World.
This market can absorb trading volumes and transaction sizes that dwarf the capacity of any other market. The futures market
trades $30 billion per day therefore can't compete with its limited liquidity.
24 hour market - 5 and half days a week- This allows the trader to get in or out of a trade at any time. Overnight markets
in futures currency contracts exist, but they are thinly traded, not very liquid and are difficult for the average investor to access.
Leverage on your account - Trading Forex gives greater leverage than futures, up to 400:1. Futures are usually a leverage of around 2%,
so you can do twice as much with your money trading Forex (this is where money management is so important-at Forexatom we only risk
up to 1% of your account per trade.
Price certainty - Futures and equities markets do not offer price certainty or instant trade execution.
Top
WHY IS FOREX ATTRACTIVE
Forex is the largest most liquid market in the world and can absorb trading volumes that diminish the capacity of any other market.
Liquidity is a powerful attraction to any investor.
It is a growing industry which creates profits whether the market goes up or down.
Many investors have a time horizon in mind which makes the Forex market a perfect option
Top
WHY A FOREX MANAGED ACCOUNT?
A Forex Managed Account offers investors an opportunity to participate in the largest financial market. The Forex market trades 3.2 trillion
dollars a day. Managed Account services are best suited for investors who prefer to have their capital managed by experienced fund
managers in the forex market.A Forex Managed account provides equal trading facilities in rising and falling markets, asset diversification
from foreign exchange trading,real time account management and reporting, and a high liquidity of assts, meaning money can be
withdrawn at any time. Forex Managed Account services allow you to have a diversified exposure to forex by letting experienced fund
managed trade in the foreign exchange market for you.Managed Forex accounts offer clients the advantage of portfolio diversification
and enhance portfolio performance under market conditions.
Top
AM I ABLE TO ACCESS MY ACCOUNT?
Yes, you can log into your account at any time, just like any other online trading platform. (It is YOUR account)
Top
CAN I CHOOSE MY OWN BROKER?
No, we only work with Interactive Brokers.
Top
DO I HAVE TO DO ANYTHING AFTER I HAVE OPENED MY ACCOUNT AND FUNDED MY ACCOUNT AND FOREXATOM HAS BEGUN TO TRADE?
Yes, you will need to make a payment every month to us for our Performance Fee. We invoice separately with our New Zealand Land Bank account details.
Top
IS THE FOREX MARKET RISKY?
Trading the Forex market can be a risky investment. We limit the amount of money that is at risk on any given trade by using what
we call a stop loss. We have control as to how much we want to risk in the event the market goes against us.
Top
WHAT IS THE MINIMUM I CAN INVEST?
The minimum investment size is $20,000 NZD or any major currency equivalent. Remember we do not have the funds, you deal directly
with IB. A lot of customer start with $20,000 - $50,000 and double their position once they see positive results.
Top
WHAT IS THE MAXIMUM I CAN INVEST?
There is no specific maximum investment amount as the Forex market and Interactive Brokers can support an investment of any size.
As of May 31st, 2010 IB had $982 million net capital invested.
Top
IF I DO NOT WITHDRAW, DOES MY ACCOUNT COMPOUND?
Yes, this is what most investors do; they let the funds build up making money on the compounding effect
Top
CAN I WITHDRAW MONEY AT ANY TIME?
You can take your funds at any time you wish with out penaltey or break fees.
Top
IS THIS A PROVEN WAY OF MAKING MONEY?
Many people have made a lot of money from Foreign Exchange trading, however, there are risks. We minimize them by risking no more
than 1% per trade.
Top
IS THERE A LIMIT ON MY WITHDRAWALS?
No, you can take much or as little as you want. If you want to close your account, you can do so with IB at any time. Our clients
enjoy what we deliver, and in fact, the majority of our clients continue adding to their account.
Top
CAN I USE THIS FOREIGN EXCHANGE MONEY TO PAY FOR MY PRODUCT FROM MY SUPPLIERS OVERSEAS?
No, this is for trading the FOREX market only; however you could take the money out of the IB account and buy the goods just like you do
now.
Top
CAN I WITHDRAWAL MY MONEY AND CLOSE MY ACCOUNT ANY TIME I WANT?
There is no time commitment on your part; however we do recommend that the funds be placed in our investment program for at least
three to six months. You may withdraw or add funds to your account at any time. All fund transfers, deposits, or withdrawals
are handled by IB directly, not through ForexAtom.
Top
WHAT IS THE LPOA (LIMITED POWER OF AUTHORITY)?
The LPOA is an agreement between you (Client) and ForexAtom, your trading agent. This agreement will state that you have authorized
the agent to execute trades on the Forex market on your behalf.
Top
WHAT TYPE OF RESULT SHOULD I EXPECT?
In terms of results, our strategy wins and loses, but over time the account grows. Although we cannot use past performances
to predict future results, we are confident that our unique trading strategies will continue to produce similar results or even better.
We track each and every trade, and we are constantly using strict money management.
Top
CAN YOU GUARANTEE RESULTS?
NO! Guaranteeing results is illegal, unless you are a bank or other institutions licensed to do so; however our customers enjoy the
results we achieve for them. There will be days where there will be loses but, with our professional traders following specific and
proven trading methods and strict money management, it is our commitment to minimize risk and maximize gains for greater rewards.
Past success is not guarantee of future profits.</1i>
Top
WILL I BE ABLE TO ACCESS MY ACCOUNT ON THE INTERNET?
Yes, you will be provided with online access to monitor your account by Interactive Brokers; however that access will be "read only"
meaning that you can view the account, including balances, activity and open positions, whenever you wish, 24 hours a day.</1i>
If your question has not appeared on this page, please do not hesitate to contact us and will be happy to answer any inquires you may have.
Disclaimer: FX trading involves the risk of loss of your funds as well as gains. Do not trade or provide for trading money clients will
which you cannot afford to lose. Past performance is not an indication of future results. Performance of individual vary between accounts.