Forex enables one currency to be traded for another 24 hours a day. Traders make money by speculating on the movements in exchange rates and the Currensee network provides a way that they connect, set strategies and collaborate on real-time trades.
The trade leaders service works by allowing investors to follow and automatically make the same investments as the 12 best-performing traders on Curensee’s network of over 7,000 traders.
The best 12 traders are referred to as trade leaders and are screened and ranked based on their historical performance, risk management and returns against the S&P 500.
To access the service, investors open an account with online trading broker, AvaFX, for which there is no fee. Investors then select which of the trade leaders to invest with using the tools provided online by Currensee. Currensee then automatically replicates the trades of those Trade Leaders in the investor’s account. However, trades will not be executed if Currensee cannot get the same price as a trade leader so that completing the trade would put investors in a losing position.
Currensee says its service widens the investor base for Forex, which has historically been the preserve of institutional investors, professional traders and day traders. It says the market is growing rapidly, and can provide diversification in investors’ portfolios because it is non-correlated to equity market. It says the service enables retail investors to participate in currency markets without having to be an expert.
Forex may have niche appeal among the IFA market even if investors are following experienced currency traders. Currency traders can manage risk by selling out of losing positions at a certain price, known as a stop loss, but the potential risks may still be high because currencies can be unpredictable and volatile.