Fxtm Investment Strategies: How Does It Work?

FXTM, a global forex and CFD broker, offers a copy trading programme that allows investors to automatically copy the trades of a chosen strategy manager. This strategy manager is typically a more experienced trader who shares their strategies with other investors for a percentage profit share of profits. Investors can monitor their investment accounts in real-time from their MYFXTM dashboard. Before investing, it is important to note that forex/CFDs are complex instruments that come with a high risk of losing money rapidly due to leverage.

Copy trading strategy

FXTM Invest is a copy trading service that also functions as a social network. It is a simple and user-friendly platform that even beginners can easily understand. Copy trading is a portfolio management strategy that allows users to select a suitable strategy manager and invest. A strategy manager is an FXTM trader, usually a skilful trader willing to share their strategy with other investors for a percentage profit share of profits.

To get started, users need to open a demo account and choose the amount of virtual funds for copying traders. They can then select a strategy manager to follow and copy their trades. The trades of the strategy manager will be automatically copied to the user's trading platform. It is important to note that users will need to fund their account separately for each connected manager.

When choosing a strategy manager, users can review the Charts section, which provides information about the dynamics of trades, the assets or trading instruments the manager works with, the number of pips earned or lost on average per trade, and more. Users can also refer to the News section, where managers can publish trading information, although not all managers use this option. FXTM also provides a list of strategy managers, insights into their performance and trading styles, and rankings based on their trading performance.

By copying the strategies of more experienced traders, users can save time and avoid the need for complicated analysis. Users retain full control of their money and only pay a fee when their strategy manager makes a profit.

Risk and loss

The risk and potential for loss are heightened when trading Forex/CFDs, which are complex instruments. A high risk of losing money rapidly due to leverage is present, and 83% of retail investor accounts lose money when trading online Forex/CFDs with FXTM. Leverage can amplify both profits and losses, and traders should be aware of this double-edged sword before investing. The higher the leverage, the higher the potential profits and losses.

FXTM offers demo accounts to allow traders to practice their strategies without risking real money. This is especially important for beginners to get comfortable with the platform and understand the risks involved.

To limit potential losses, FXTM offers stop-loss orders. These are triggered when the price of a stock hits the stop-loss price, becoming a simple market order. The broker will then attempt to sell your stocks at the prevailing market price. However, long-term investors should be cautious when setting a stop-loss price to avoid unnecessary sales during temporary price drops.

It is important to note that clients are responsible for the risks of financial losses caused by system failures, including hardware or software malfunctions, and poor internet connections. FXTM does not accept any liability in these cases.

Trader education

Before you begin trading, it's important to understand the risks involved. Forex/CFDs are complex instruments that come with a high risk of losing money rapidly due to leverage. FXTM provides educational content on how investors follow strategy managers, how they profit from their trades, and trading ratios.

FXTM's copy-trading programme, FXTM Invest, is a portfolio management strategy. Investors can choose a skilled strategy manager and automatically copy their trades and positions. The size of the investor's position is based on a ratio calculated from the investor's deposit and the strategy manager's equity. For example, if an investor deposits $1,000 and the strategy manager's equity is also $1,000, the investor's position will be opened at 1 lot when the strategy manager opens a position of 1 lot. If the investor later withdraws $300, and the strategy manager's equity grows to $1,500, the investor's position will be opened at 1.6 lots when the strategy manager opens a position of 2 lots.

FXTM also provides information on the different types of trends, such as uptrends and trend reversals, which can impact an investor's profits or losses.

Customer support

FXTM's customer support is available 24/5 on weekdays, with limited coverage over the weekend. The company offers customer service through multiple channels, including phone, email, and live chat. The phone support is best for quickly resolving complicated problems or emergencies, while live chat is preferred by many users for simple queries. Email support is ideal for more complex, non-urgent issues.

FXTM's customer support team is responsive and provides useful and relevant information. The team is also praised for its quick response times and helpfulness. The company's website is user-friendly, and issues are typically resolved within 24 hours.

FXTM also provides a range of resources to support clients, including training and analytics tools, ebooks, and bite-sized videos on important concepts like swap fees. Third-party research from Acuity and MT4 add-ons further reflect FXTM's commitment to supporting its clients.

In terms of financial protection, FXTM's Exinity Ltd. entity is a member of The Financial Commission, which offers dispute resolution within the financial services industry. This membership provides a maximum of €20,000 in protection, although it is not a guarantee, and not all clients are covered.

FXTM also provides a range of local payment solutions and lists the available payment methods in your region when you log in to MyFXTM and visit the "My Money" section. A small $3 transaction fee is charged for deposits or withdrawals under $30 to optimise customer service efforts and provide high-quality support.

Compensation scheme

FXTM, or ForexTime, is a global, reputable brokerage firm that offers an investment programme allowing investors to connect with and invest in the strategies of professional or skilled traders, known as Strategy Managers.

Regarding compensation, FXTM is a member of the Investor Compensation Fund (ICF) for the Clients of Cyprus Investment Firms (CIFs). The ICF serves to compensate retail clients of CIFs, excluding professional clients and eligible counterparties. Covered clients can receive a maximum of €20,000 or 90% of their claim, whichever is lower. It is important to note that FXTM is not associated with FXTM Investment Option Ltd, which has been flagged as an unauthorised firm by the FCA in the UK.

FXTM also offers a Safety Mode feature, which allows investors to protect their funds by reducing their investment and trading activity by approximately half, thereby limiting potential profits and losses. Additionally, FXTM is a member of the Financial Commission, which provides an external dispute resolution service and a Compensation Fund that acts as an insurance policy for members' clients. This fund is financed by allocating 10% of the monthly membership dues and is used only for judgments made by the Financial Commission.

To qualify for compensation as a claimant, one must meet the requirements of an Eligible Claimant, submit a claim within 12 months of the insolvency event, and submit an Investor Compensation Claim Form within specified timeframes. It is important to note that losses not caused by FXTM or its employees, and those unrelated to cash and securities, are not covered.

Frequently asked questions