So, what is the best way to invest £50,000 pounds?
The answer to that question will be different for everybody as everyone has different priorities and goals. There is an endless array of choices and you will have to decide the best way to invest 50,000 pounds based on your own personal circumstances. Most of the options that you have at your disposal will generate returns of between 1% to 9%, give or take. The returns will fluctuate due to market forces and the strength of the economy, for example.
Some people may want a guaranteed return that is very safe and secure. Other speculators may have a higher risk tolerance and go for high returns. Others may go for the middle ground – medium risks and medium returns.
The purpose of acorn2oak-fx.com is to look into opportunities in the foreign currency market, or forex. This market is implausibly vast in terms of money that is transacted, about 5 trillion dollars – $5,000,000,000,000 changes hands daily. That’s over 100 times the amount that is bought and sold on the New York Stock Exchange.
There is almost unlimited money creating potential to be achieved.
Two ways that you could invest £50,000 pounds is firstly, with a foreign currency exchange account managed by professionals on your behalf, and secondly, by trading the market for yourself.
This is the easiest way because you don’t have to do anything once the account is set up. A professional trader does all of the buying and selling on your behalf and takes a percentage of the profits by way of a performance fee.
The second way of gaining from the currency market is by learning to trade for yourself. This way is a lot more work but so much money can be made that it’s a no brainer really. The most indispensable thing you need though is a quality FX trading course to learn from. No Exceptions. Without one you will fail. However, if you get the right tuition, you will be a winner.
I undertake thorough due diligence before putting your money in anything and a fund run by professionals is no different. I have a list of criteria that I use before I begin one. You can read more about how I conduct my due diligence here
What attracted me to invest in a professionally traded fund anyhow?
1. High Returns With Low To Medium Risk
The chief motivation that people want to put their money into something, clearly, is to make more money. It’s no good however if you want to invest your 50,000 pounds into something, only to lose it. A good quality foreign currency fund will employ professional traders whose main priority is to protect the capital of speculators.
The top ones have a winning ratio of anything from 65% to 85% or so, however drawdowns are inevitable. It’s how these drawdowns are coped with, that is the key. This is done by keeping drawdown limits to a set amount, for example, if the drawdown limit is set at 15%, if the fund drops by 15%, the traders will engage their drawdown/exit strategy. They may hedge their position or perhaps stop the position. Some will have a drawdown limit on individual positions.
2. Low Commitment, Hands Free
The FX marketplace interests many individuals is because there is so much money involved in it. More than 5 trillion dollars gets transacted every day meaning that it can’t be manipulated like the stock market can be. The thing that puts people off transacting the fx market is that it takes a long time to get to grips with it. There is so much to learn and remember and once it is understood, more time has to be spent studying charts and waiting for the right time to start. Therefore, administrated fx funds are ideally suited for those that have no time or desire to become traders themselves. It is a hands free investment that many individuals, and companies, find very attractive.
3. Low Opening Deposit
If you think that what you should do with £50000 is to put it an an administered fund, you will have no trouble opening up an account because you only need to have a minimum of $10,000 dollars or 5,000 pounds to open one. Not too long ago, only those that had a million dollars could open one up. Even today, there are funds that require millions of dollars to open, and these funds are usually only accessed by invitation only. They can however produce stunning returns.
Other Important Information
To enable the trader to work on your behalf, you would have to provide them with a limited power of attorney, an LPOA. Because the POA is limited, it enables the brokerage company to allow them solely to place positions for the investor and deduct the performance fee. (The LPOA can be withdrawn by the client whenever they wish to cease trading). They will not be permitted to withdraw funds from accounts or to amend any details or close it. Because it is in the persons name, they have complete control and can close it whenever they want to, as long as all positions are closed.
When it is set up, individuals can download the trading platform onto their computer. After it is funded, positions can be seen live, in read only mode. All history can be seen and downloaded as reports.
Traders that run the accounts make their money by charging a performance fee and sometimes management fees. The performance fee varies from 25% up to 50% and some are variable according to the amount of money that is deposited, the more that is deposited, the less the fees. Some companies charge management fees, they can be monthly or annual and are typically in the region of 2%.
Conclusion
Depending on the person’s profile, this could be the best way to invest 50,000 pounds. It is a relatively low start up, at £5,000. A well-run fund can produce great returns at a relatively low risk, as long as proper due diligence is undertaken. Individuals have complete control over their funds. Leaving returns to compound can produce soaring profits but they are excellent to be used as a part of the monthly cash flow. Being a hands free investment, people don’t have to spend valuable time learning the ropes and looking at the computer all day.
