Forex Funds

Written by Josh Dodes
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With so much information about both forex funds and traditional hedge funds online, even experienced investors can find it hard to discern the differences. And indeed, in many respects, forex funds and traditional hedge funds offer a greater number of similarities than disparities. However, it is precisely those disparities which not only set foreign exchange funds apart, but also render them more innovative investment vehicles.

Certainly the most important difference between the forex and traditional exchanges is that the forex offers an over-the-counter market not in securities, but in global currencies. Among other significant consequences of this difference is that the forex offers the capacity for international diversification of holdings. That wider--indeed, global--diversification of holdings provides a far wider distribution of risk than even the best intranational securities funds can achieve.

Forex Funds for the Long- and the Short-Term

Another substantial difference between forex funds and traditional hedge funds is that, while both typically design clients' strategies for long-term growth, the forex's 24-hour exchange creates the potential for short-term flexibility in response to global economic events, wherever and whenever they may occur. That means no more waking up to discover that events in Japan overnight have caused your funds' securities to open in a hopelessly different world than the world they closed in the night before.

With substantial advantages in both reach and flexibility, the forex represents a logical choice for serious investors looking to grow their wealth for the future. Top fund managers will always provide personalized attention to your needs prior to establishing your account. If you know where to find them, you can place your money in their capable hands with speed and with the confidence that you require and deserve.


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