Hey there readers. You’re probably here on this page because you’ve come across a system or strategy on FXTM Invest that you’d like to invest in, and you’re wondering if ForexTime broker’s FXTM Invest platform is a reliable way to do so.
Before anything, I wish to state that I AM a IB for ForexTime, a.k.a. FXTM Broker, and I also have a system running on the FXTM Invest trade-copy platform – but that doesn’t stop me from giving my frank opinion on the platform, and what I like and dislike about it.
First and foremost, FXTM Invest is a Trade Copy or Copy-Trade that operates like a Percentage Allocation Money Management (PAMM) in that trades are executed at the server level. This means what when I, the Strategy Manager, take trades on the Master account, trades are simultaneously executed on customer’s accounts who follow me with NO LAG. The broker ForexTime is also one of the top ECN and STP brokers with lightning execution speeds due to their extensive network of liquidity providers. Rather than other copytrade platforms like “Signal Start”, FXTM Invest is on a totally different level. But if you want my honest thoughts, the “good” and “bad” about it, read on…
What’s Bad About FXTM Invest?
Client’s Can’t See Open Trades and How The System Works
The reporting. I HATE it. I don’t get it why investors don’t get to see their open trades. Instead, they only get to see their account equity, which is what you would be left with if all the open trades were closed – whether profit or loss. While the investors do get to receive daily closed trade reports, they in the dark about their account performance.
As a trader managing a strategy account, I believe that my main focus should be on making constant improvements to the strategy’s functions and algorithms, and monitoring the master account for situations not covered by my bespoke automated trading system that require my manual intervention.
While it is true that ForexTime broker is one of the biggest European brokers out there which also recently got acquired by the Forex industry-giant, Alpari, and has among the top trade execution times out there, their spreads are not cheap. When I compare them with FXPrimus, the other broker I run my Forex Managed Accounts on, I find that their ECN commission + ECN spread works out higher than FXPrimus’, and also their ECN Zero costs more spread than FX Primus’ standard “Variable Spread” account.
If you are looking to do self-directed trading, you may want to check out FXPrimus standard Variable accounts, which for starting capital up to $2000, offer 1:1000 leverage via client support request. Be advised that when you click the link, if you are from Europe/UK, you may be directed to Primus Markets Intl – a subsidiary company which allows you to trade at the same high leverage.
Doesn’t Offer High Leverage to European and UK Customers
If you are planning on joining a PAMM or trade-copy with FXTM Invest platform and you happen to live in Europe or UK, this is not going to be possible because they’ll only grant you a 1:30 or 1:50 leverage account which is not possible at all for most Expert Advisor (EA) Forex Automated Trading. I suggest you don’t even read further. Instead click on the other broker’s banner in the paragraph above^^^^
Strategy Manager Ends Up Having To Provide Client-Support
Unfortunately, because investors can’t see their open trades, drops in their “Equity” due to floating loss makes them wonder if they’ve taken a loss, and if the equity swings back into a profit within a short time – investors will wonder if i’m using high lot size and trading dangerously. Because of this unfortunate configuration, I therefore have to spend time in replying enquiries of worried investors.
This is also the reason why I put videos explaining my trading approach on my Forex Managed Account page, so that at least people can know what they are getting into before to get into it.
Withdrawals Require Consulting The Trader For Minimal Loss
Also, if someone wants to withdraw without losing the open trades, they would have to ask me (the strategy manager), so I can inform me so that I can help monitor for a good time to exit with minimal floating loss.
At least, this is still possible with if they joined my system through my Forex Managed Account (PAMM) page, because then, they would be in contact with me via Telegram – but what if it were someone on a different system with no contact with the strategy manager?
Recommendation for Those Looking To Follow A Strategy Manager On FXTM Invest
After running my “FireYourBossV2” Strategy on FXTM Invest, I recommend that investors in my system, and systems with similar risk profile to mine allow at least 1 month to pass in order gauge it’s worth, efficacy and potential.
Due to the nature of forex and also hedging EAs, there will always be some sort of floating loss in the account. For my system, the normal range is 3-9%, although this can sometimes be a bit more, like 10 or 11% if there’s economic surprises. Therefore, those following my system will only see profit after a “buffer” of profit has been built up that is greater than this range of nominal floating loss.
What’s Good About FXTM Invest?
For clients from all accepted countries. ForexTime broker offers up to 1:1000 leverage for EA trading and for FXTM Invest. Not many brokers offer this. Most only offer 1:400 or 1:500. Despite the higher spread cost, clients who knowingly come here do so because the higher leverage allows them twice the ability to trade.
If you are looking to do self-directed trading at FXTM to take advantage of the high, up to 1:1000 leverage, you can open your account HERE.
*As Though Client’s Don’t Have To Pay Any Commissions For (Nearly) 1 Month!
Despite the bad things I mentioned, what’s good about FXTM invest is that they charge investors commission only based on profits based on Equity, instead of balance.
This may be frustrating for strategy managers, as they’ll have to deal with tiny commissions, or not see any fees on profit at all, until the achieved profits exceed floating loss. However, this is very favorable for investors. This means that investors would usually have no fees to pay in their first month, when the trader is still building up the “buffer” of profit which I mentioned in the previous section.
(*Note: “*As Though Client’s Don’t Have To Pay Any Commissions For (Nearly) 1 Month!” refers to the way commissions are calculated on equity gain, which is nett of floating losses, if any. Based on my own strategy’s average floating loss and average gain, it is a 3-4 week period)
Follow Fund Manager’s Trades Exactly 100%!
From a Strategy Manager’s perspective, what attracted me to how this platform behaves more like a copy trade, is that clients can follow my money management very precisely – there will be no instance that the client’s trade is under-sized compared to how it is intended to be run (having said that, this can be a double-edged sword depending on the strategies used, and I will cover more about this in my next review of the FXPRIMUS Broker PAMM System).
Lower Minimum Starting Capital Requirement
Another benefit is the low starting capital requirement. Unlike other brokers’ trade copy or PAMM systems which require at least $300 or $500 to start, FXTM Invest only requires a minimum starting capital of US$100. This is great for wary investors to test a system out and see actual results before deciding to invest more.
No Early-Revocation Fees
One more benefit that is that because FXTM Invest is more of a trade copy – it doesn’t have any early-revocation fees like most PAMM programs out there which may charge 5-10% penalty to discourage people from withdrawing indiscriminately which may affect the master account’s lot sizing and funds pool.
I’ve explained some of these things in this video.
If you are interested in my Forex Managed Account system, you can find out more HERE.
In my next post, I will also do a review on FXPrimus Broker’s PAMM system, which is the other platform where I run my forex managed accounts at. Look out for it!