Starting a Forex fund can provide you with a way to come up with the money necessary to make large profits in the foreign exchange market. This market has a vast amount of potential and by raising a large amount of money, you can amplify your profits. The process of starting a Forex fund will require you to know how to trade successfully and how to manage money. Knowing the right people can help the process as well.
Hire a lawyer to set up the business entities required for this type of project. Typically, when you set up a Forex fund, you need two separate businesses. You need to set up a limited partnership or an LLC for the fund itself and a separate LLC for the management of the fund. This will help you with the liability aspect of setting up this type of fund and make it legal.
Create a compelling business plan that you can show to your prospective clients. The business plan should have plenty of visual representations such as charts and graphs as these tend to connect with people more than other displays. Come up with some projections of what investors could expect based on your trading record and how much capital you plan to raise. Create some brochures or other documents that you can pass out to your prospects.
Meet with your personal contacts to inform them of the Forex fund that you are starting. If you know people that would potentially be willing to invest in this type of fund, contact them as soon as you can. You never know who would like to get involved in the Forex market but is not quite comfortable enough to go it alone. Show them your business presentation and give them any brochures or documents that you have created.
Advertise your Forex fund to increase the number of potential investors that you can bring in. You could advertise online on Forex websites and through pay-per-click marketing. The Forex market is not as widely-known as the stock market or other financial markets, which means you have to advertising specific places for best results.
Take the money that you raise from investors and deposit it into your account. Once you have enough money raised, you can begin trading the market as you promised your new clients. Stick to your trading plan and then distribute the profits to your investors accordingly.
Luke Arthur has been writing professionally since 2004 on a number of different subjects. In addition to writing informative articles, he published a book, "Modern Day Parables," in 2008. Arthur holds a Bachelor of Science in business from Missouri State University.