When you have free cash you want to save and increase it. If you keep money at home it will not increase. Here is the difference between savings and investments.
It’s absolutely clear that you need some part of money for everyday expenses, but don’t forget about inflation that decreases gradually purchasing capacity of money. Bank deposit is a traditional way to make money work for you. However, lately yields of deposits are below inflation. Thus, purchasing capacity of your money still decreases, though slower.
Choice of this or that financial instrument always depends on two factors: yield and risk.
In spite of the fact that banks offer minimal risks, they don’t even defray expenses. Thus, banks refer to the sphere of savings rather than investments. Mutual funds bear losses now. Moreover mutual funds work with portfolio investments, so they may gain only when stocks rise.
Today there are other variants of cash saving and increasing. Among them:
- Real estate investment;
- Investment on stock and foreign exchange markets;
- Mutual funds investment;
- Trust asset management.
This section is intended to help you avoid the most common mistakes and answer frequently asked questions about Trust Management on FOREX.
You are supposed to have some experience of working on Forex and estimate the main opportunities and risks of it.
Alpari doesn’t represent any party of Trust Management and just provides a wide range of services for Managing traders and Investors. The aim of Alpari specialists within the frame of the service development is to create software environment for convenience of cooperation between Managing trader and Investor, preclusion of swindle, monitoring of Traders etc.
There are two ways of assets transferring to Trust Management:
- — Assets transferring to Trader’s account;
- — Transferring of the personal account to Trust Management (transferring of login and password of the personal account).
In the first case there are risks connected with the fact that Trader may manage Investor’s funds to the full extent, including funds withdrawal. This variant is usually used in cases when Managing Trader is well-known to Investor and has already approved himself. Alpari doesn’t recommend this variant of assets transferring.
In the second case funds depositing and withdrawal are the owner’s prerogative only and can be done via Investor’s Personal Area.
All questions concerning assets transferring to Trust Management should be solved between Investor and Managing Trader individually by making an Agreement.
