Forex Basics

Official Description: Founded in 1999, Forex Capital Management (FXCM) is one of the largest and most financially strong forex brokers. FXCM offers trading and support services. FXCM introduces to clients managed forex accounts - The Sentiment Fund and The Sentiment Agressive Fund.

1. The Sentiment Fund is a technically-based, medium to long-term portfolio that employs two balanced components running simultaneously. These two components are designed to take advantage of different market conditions, thus complementing each other with the goal of reducing the overall volatility of strategy as a whole.
2. The Sentiment Agressive Fund. This fund applies the same trade model as the Sentiment Fund with a higher leverage. Performance should move in tandem with the Sentiment Fund, but with more aggressive gains and losses due to this higher leverage.

Returns (net of management and performance fees):
The Sentiment Fund Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
2007 0.16% 1.24% 4.31% 0.17% -1.57% -1.12% 6.66% 4.64% 3.18% 4.55% 4.14% -0.87% 25.49%
The Sentiment Agressive Fund. Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
2007 - - - - - - 12.29% 7.82% 6.55% 8.74% 7.78% -1.82% 41.36%

Live results above are net of management fees, and gross of performance fees. The 20% performance fees are taken on a high-watermark basis. A high watermark is the previous high in the fund-participant's account (adjusted for deposit, withdrawals, and fees). It ensures that the fees are only deducted based on new performance, rather than just recovery from poor performance. In other words, if an account loses money over a period, the account must first recoup previous losses and then any profit above the high watermark is subject to a 20% performance fee.

Monitor: FXCM is a world-known forex broker and has nothing to do with typical HYIP. In spite of this, investments in their managed funds can be called high yeild. Some statistics:

* Over 90,000 live accounts trade through FXCM's trading platforms.
* The FXCM Group has over $120,000,000 US in firm capital.
* Regulated in the United States, Canada, the United Kingdom, and Hong Kong.