Transparent Forex Leaders – Making Forex More Mainstream

6

Not all investors want to actively trade. Some want to put trust in known, reputable traders that they can follow. In the fifth article in the series about making forex more mainstream, this option is examined.

In stocks, many investors don’t trade actively. The put their money with a some kind of trust fund and hope for it to succeed. Some of them do a more serious research about the reputation of the funds’ managers, success rate and level risk. Some just get a tip from a friend or go with their guts. In any case, they have a significant level of trust in this investment fund, and they can leave their money there for years. As far as I know, there’s no such thing in forex trading.

The bigger investors go for another option, that does exist in forex: managed accounts. When depositing big sums, an account manager will personally manage client’s funds according to personalized preferences. Forex managed accounts exist, but it isn’t a common way of investment. Most people who are into forex, trade by themselves.

Best Forex Trader

Apart from having forex managed accounts become a more accessible option for investors, we need to have easier solutions for small traders. A solution can take the shape of having successful forex traders expose their real trades and let others follow their actions. There are are already a few initiatives in this direction: Currensee, FXBees and others are in different stages of such solutions.

This is a good direction, but these things are still in their infancy. How can you tell? Well, can you point your finger on the 5 best forex traders? Not yet. When you think of a successful forex trader, the first name that comes to mind is George Soros. This famous investor is famous (or infamous) for making huge moves against the British Pound and cashing in on it. Unfortunately, we can see Mr. Soros’ moves by reading the news only after his moves are complete.

We need normal forex traders, which can lose money, but that all-in-all are successful and transparent – seeing their actions and understanding their methods. Being able to follow such traders in real time and having long-term positive yields, will sure make the forex industry more mature. The industry needs to open its doors to a new specie of forex enthusiasts – forex investors who don’t want to be actively involved in the industry – people who want to put their trust in known and transparent figures.

This is the fourth article in a series about the road of forex to the mainstream. Previous articles:

  1. Forex Education – The First Step to Make Forex More Mainstream.
  2. Forex in Banks – Essential for Bringing Forex to the Masses
  3. Proper Money Management Will Make Forex More Mainstream
  4. Serious Regulation Will Make Forex More Mainstream

Want to see what other traders are doing in real accounts? Check out Currensee. It’s free..

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About Author

Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

6 Comments

  1. Yohay,

    I completely agree with you, what this market needs in order to expand is to provide a transparent (and accurate) way of finding good traders.

    We have managed to find quite a lot of these successful traders just by having a huge social network that required traders to link their real accounts and even though talent is rare it is out there and there are plenty of traders that consistently make decent returns.

    — Asaf.

  2. Queensknight on

    Aren’t these traders also called signal providers? Signal providing services have already been in existence for quite awhile.

  3. Queensknight,

    This is a very good point.

    There is a huge difference between being a signal provider to being a successful trader, trading is all about risk and money management and this is something signal providers don’t do – they focus on market analysis which is very important but when you approach investors like Yohay mentioned they are not capable or willing to invest the time that a day trader has to manage his auto-signal service and to assure he uses the maximum potential and contain the risk – they are interested in a “set it and forget it” approach.

    — Asaf.

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