5 Best Forex Traders on Earth and How You Could Be One of The Next Great Forex Fund Managers

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It does not matter what field you are in, you have to make an important distinction—your goal should not always to be the best; just be the best you can be! Focus on your goals, get the basics right and persist and there is absolutely no obstacle that can prevent you from reaching your peak.

Believe or not, the same principal applies to FOREX trading too. If up to now you have been wallowing in self pity or confusion, know you are not alone, others passed that same road and against all odds they made it through and even prospered!

You see, even among the greatest FOREX traders of our time there was initially poverty, lack and numerous, seemingly insurmountable obstacles that paved their path.  Some people inherit money that leads them into trading.  Others start with very little.  It is possible, that no matter where you start, that you can earn a significant income from forex trading if you will simply persist and continue to improve yourself and your trading.

I’d like to share with you the life stories of some of the most successful traders known to us and how they ultimately found the road that crosses under the rainbow, passing right by that coveted pot of gold.

Here are some of the brief stories about how the best of the best in the land of forex were able to get started and become some of the wealthiest men on the planet.

Bruce Kovner

Although this man, Bruce Stanley Kovner, is the most unknown of all New York’s billionaire’s, he is a very skilled trader. His decision are intelligent and brave, and his methods should be employed by all FOREX traders. As he gained experience, he shifted into hedge funds. The Caxton Associates firm—a very successful money management fund—was founded by him. Kovner entered the trading market with a initial investment of $3000, in soy beans and traded futures much of the time.

His profits climbed steadily to $40,000, but then took a dip to $23,000 before he sold those shares. He said himself that his first trade taught him the value of risk management because of the significant loss he had to endure. During his employment at another trading company, he made millions and he gained a reputation as a very skilled trader.

Those successes lead to the establishment of his current company, Caxton Associates, which was very successful, so much that it was closed to new investors in 1992.  Kovner is relatively unknown outside of professional circles. He avoids interviews and is a very private person.

Bill Lipschutz

Bill Lipschutz is a very successful trader. He started his trading career as a young man while he was still in college. When his grandmother died he inherited $12,000, which he invested in risk management and forex and those profits climbed to $250,000 very quickly, sealing his reputation as one of the best forex traders.

In 1995, with the help of former classmates he formed Hathersage Capital Management, basically a hedge fund. This company manages only fourteen investors, worth a staggering $200 million. He runs it out of his home, along with his faithful friends, and his wife; the employee total is only seven. However each has a very precise role in this unusual company and its daily operations to make it successful.

Andy Krieger

As a successful currency trader, Andy Krieger initially stayed away from the forex arena. When everyone was forsaking the US Dollar due to a sudden devaluation and fled to more profitable currencies he saw an opportunity. He expected that certain currencies would soon be overvalued and Krieger made a decision to target the New Zealand Dollar, also known as the Kiwi. His choice and techniques paid off big time. By issuing very large selling orders, larger than what even New Zealand could supply, he managed to gain hundreds of millions of dollars in profits.

There are rumors that his sell orders exceeded the entire money supply of New Zealand. The pressure created, combined with a lack of available Kiwi dollars in circulation, resulted in a sharp drop of the kiwi. Krieger make millions for his fund with this move.

Stanley Druckenmiller

Stanley Druckenmiller made what is known as a successful double bet on the same currency. This is maybe the reason why he is viewed as one of the finest forex traders. He made his first bet right after the collapse of the Berlin Wall. With this maneuver he made a billion dollars worth of profits in a single day. This was the reason why, the German mark became an important currency in the forex trading field. His next bet on the same currency was also a magnificent success.

In 1988, he was employed by George Soros. He and Soros became famous for “breaking the Bank of England” when they sold British pound sterling short in 1992, and gained $1 billion in profits in one go. They calculated that the Bank of England lacked sufficient foreign currency reserves to buy enough sterling and to sustain the currency.

The Best Trader in the World – George Soros

George Soros is the undisputed king of forex trading; that’s a fact. Both Stanley Druckenmiller and Andy Krieger had worked for him. Soros benefited the most out of his trainee when he partnered with him in breaking the Bank of London, a feat that forced the British pound to its knees. They sold short more than $10 billion in pounds, making huge profits because of the UK government’s unwillingness to raise its interest rates. This caused a severe devaluation  of the pound, earning Soros an estimated $1.1 billion.

Several of the most successful trades he brokered earned him $1 billion or more. He became a role model for many of the forex traders. Any trader eager to taste some victory in forex trading should study Soros’ trading strategies.

How You Can Tap Into Some of The Most Profitable Forex Money Managers

It is nice to read about these famous ‘money men’ but it really doesn’t help us too much with growing our accounts, does it… so I wanted to create this article to tell you about a fantastic tool that can.  These are basically ‘funds’ where a group of investors pool their money together and allow their funds to be traded by a professional money manager.

For this article, I am going to be explaining a tool that a company/broker called Alpari UK uses.  These are available elsewhere, but Alpari has done an amazing job with them and Alpari also has a very good reputation as a broker so I do not feel bad about referencing them.

How PAMM Accounts Work

The Alpari PAMM Account follows a twofold strategy namely; it gives investors a viable opportunity to make a sizable profit in Forex without trading themselves and secondly it opens the door for managers to earn additional income by administering client funds for them.

The manager seeking a second income must open a PAMM Account and allocate a certain amount of his initial investment which will be referred to as the Manager’s Capital. However, he or she will not be allowed to remove any money from this account, which is intended as a further motivation for him to exhibit restraint and prudence in his trading choices. This manager must then put together his investment proposal in which he must provide a complete layout for all investors in the account. The investment plan must specify what percentage of their investment profits the investors will set aside to compensate the manager for his efforts.

The investors don’t enter into this arrangement blindly; to the contrary they get an opportunity to search through the PAMM Account Ratings until they find the specific one they feel comfortable with and decide to invest in.

When a group of dedicated investors commit themselves to a PAMM Account, the appointed manager of that account will commence making trades on the account, investing both his personal funds along with those of his investors. All accrued gains and losses on the account are shared among parties, manager and investors, in direct relation to each ones personal share in the account.

Simple Example of How A PAMM Account Works

A trader named Morgan with a reasonable amount of experience comes along and creates a PAMM Account with Alpari, and subsequently deposits an amount of 2000 USD into the account as manager’s capital. Morgan now qualifies as a PAMM Account manager.

Morgan starts trading on his account and keeps it up for several months and in doing so he has also been building his track record as a trader. Now he decides to expand and to accept clients. The next step is to publish his proposal, in which he establishes that he will receive 20% of each of the investor’s share of the profits who have decided to join the account.

Two investors realize the potential and join the account. Investor James deposits 5000 USD and investor Smith 3000 USD.

So at the launch of the trading interval, the total balance of the PAMM Account is 10,000 USD.

After the 1st trading interval

By this time after considerable successes, manager Morgan earns a 50% return on his trading for the month. And subsequently the balance of the PAMM account has increased from 10,000 USD to 15,000 USD.

In accordance with the prearranged rules of the account the 5,000 USD in profits that was gained will be distributed between all the investors in the account, as well as the manager as compensation for his services, all other profits are shared based on individual levels of investment.

Breakdown of dividends.

We will remember that Investor James invested 5,000 USD into the account, his earnings was 2,500 USD, which corresponds to (50%) in profits. His manager’s fee runs up to 500 USD or 20% or what he earned.

Investor Smith has deposited 3,000 USD and has earned 1,500 USD on his investment and therefore pays the manager 300 USD in compensation.

Manager Morgan has invested 2,000 USD and earned 1,000 USD.

Total earnings were Investor James: 2,000 USD, Investor Smith: 1,200 USD, Manager Morgan: 1,800 USD (1,000 USD earned by his share of the profits, 800 USD in compensation for managing the account).

Commencement of the second trading interval

Manager Morgan, after a successful first interval withdraws his earnings of 1,800 USD. His initial Manager’s Capital remains untouched at: 2,000 USD. After his excellent first run Investor James ended up with 7,000 USD and decides to keep all funds in the account. Investor Smith withdraws a small amount of 200 USD, but leaves the remaining 4,000 USD in the account.

At the Beginning of the Second Trading Interval, the PAMM Account stands at: 14,000 USD

After the second trading interval

During the second trading interval, due to prudent decisions, Manager Morgan earns a 100% return on the PAMM Account. The account has grown in value and is now worth, 28,000 USD, up from the initial 14,000 USD.

Just like before the accumulated profits on the PAMM Account, which now is: 14,000 USD will divided according to each investors share in the account and likely the manager will be compensated.

As the largest shareholder, Investor James earns 7,000 USD for the month. His managers fee will be 1,400 USD or 20% of his profits. Secondly Investor Smith has earned 4,000 USD and his managers fee will be 800 USD. The third Investor, Campbell earns 1,000 USD in profits and will pay compensation fees of 200 USD.

As the successful manager of the account Manager Morgan has earned a total of 2,400 USD in compensation from his investors besides the 2,000 USD he earned from his trading.

The total individual earnings are; Investor James: 5,600 USD, Investor Smith: 3,200 USD, Investor Campbell: 800 USD and Manager Morgan: 4,400 USD which include 2,000 USD in trading profits and 2,400 USD in compensation.

Invest in a PAMM Account – Invest in Forex

An investment in a PAMM account is an investment in Forex.  PAMM Account benefits: The returns are potentially higher with the PAMM Account, than with traditional investment options, do yourself a favor and check out the PAMM Account Ratings.

You see, with a PAMM Account, you are not the only one who is risking your hard-earned money.  The manager of the account has to put his money where his mouth is, so to speak. In other words a PAMM Account manager must make a substantial personal investment into the account before he can start to recruit clients and manage their money.

This measure effectively ensures a manager who trades prudently, and not rashly or unwisely. Whenever you are in doubt about your manager, you can access real-time reporting on his performance in your Alpari account or if you have signed up for the service you can have all relevant reports emailed to you on a regular basis.

How To Invest in PAMM and Automatically Grow Your Forex Account

The PAMM Account is the signature investment product of Alpari. This investment vehicle gives you the opportunity to invest in the high liquidity (easily convertible to cash) Forex market and perhaps the best part is that you need no prior trading experience.

You see, as an investor in a PAMM account, you don’t do the trading. Instead the trading is done by an experienced trader known as the PAMM manager. The PAMM Account has a rating scale for their trading managers and investments—all you need to do is take a good look at the ratings, and based on the ratings and profitability, choose a trading manager/investment fund.  You then Invest a predetermined amount in their trading account and the manager takes care of all the trading work—hopefully providing you a return at the end of the day (year).

Deposits and Withdrawals

This is an investment account where you have total control about how your money gets invested. Whenever you desire to make deposits or withdrawals you are fully entitled to do so and there are no concealed fees or charges.

Getting involved with PAMM accounts

As with any investment portfolio you decide on the size of your investment.  As mentioned, to view all of the performance details, check out the PAMM Ratings and choose the account you would like to invest in. Before you invest in the specific account, it is important to verify that the manager’s proposal for the account you have chosen is “public”, which will indicate that he is in fact in the process of taking in new investors.

Specific Examples Of Alpari’s Best PAMM Forex Fund Managers

Here is an example of the top-rated traders that offer PAMM accounts through the broker Alpari-UK.  These traders/account managers have proven their merits by trading very successfully, in most of these cases, for more than a year.

You can see from this grid that the returns are quite exceptional.  This is a good system and one that you can embrace rather safely as a passive forex trader/investor.

PAMM account list

Do you think you have what it takes to be a fund manager like these fellows?  Have you been trading successfully for a number of years (or at least a number of months)?  If so then there is definitely a side-income that you can consider as a Forex fund manager, so let’s talk about that next.

Become a PAMM Forex Account Manager

The PAMM Account is a truly remarkable investment service that is the brain child of Alpari.  In a nut shell, this opportunity makes it possible for highly skilled traders to manage the funds of investors in the PAMM Account and to be rewarded for sharing their investment skills.

This specially designed account is uniquely structured and consists of several investment accounts—accounts that were opened by investors and the manager’s own account. When the manager trades with skill, that skill will be reflected by the account performance.

Trading on a PAMM Account by the manager follows the same pattern as when one trades on a regular account, with the distinction that not only the investor’s money is risked, but also that of the account manager. All accrued profits and losses are shared equally by everyone in the fund—Investors and manager and such division is directly in proportion to the size of each one’s share.

Why a PAMM Account Manager?

The first obvious advantage for a manager is security. Do you have a profitable trading plan that guarantees excellent returns for you and your clients?

Whatever your trading plan, it remains yours and won’t be copied. Everyone will take note of your success, because all trading results are duly displayed for the public to see, but your method and trading plan remain with you (and need not be shared with anyone).

How to Become a PAMM Manager?

First, you need to open a PAMM Account, and all that is necessary is to fill out an easy registration form and the relevant information will be emailed back and forth between the broker and yourself.

Once completed, you are officially open for business and need to make your account available for investors. On the web page in your Alpari account, you will specify the manager’s capital that you are depositing to your account. Transfer this amount from your personal account to the PAMM account; this action will activate your PAMM account.

You are almost there; now make your PAMM Account public. This will display on your account and will be displayed in the PAMM Account ratings.  As you can see, signing up for an account is the easy part.  Becoming a skilled trader with a consistent track record is the hard part.  Once you have the skill, you will have all the money you need, whether you manage your own account or whether you decide to open up a PAMM account like this and trade for others too.

Conclusion

You have now learned about some of the best currency traders the world has ever seen.  They are not too much different than you or I.  If you read the biographies of these men in detail you will learn that they often started off as failures in trading.  Some of them have had truly spectacular losses and several of them have wiped out entire accounts–more than once!  We all have the potential of being a great trader, but it is only through massive discipline and consistency that we will get there.  I hope you have enjoyed learning about these gentlemen and that this information will help you in your own trading career.

About the author

Rimantas Petrauskas

First I am a father, a husband and then the author of the book “How to Start Your Own Forex Signals Service”. I am also a Forex trader, a programmer, an entrepreneur, and the founder of ea-coder.com Forex blog. I have created two of the most popular trade copiers and other trading tools for MT4 that are already used world wide by hundreds of currency traders.

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Copyright © 2009-2018. Rimantas Petrauskas | Terms and ConditionsPrivacy PolicyEarnings Disclaimer
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
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Clearly understand this: Information contained in this product are not an invitation to trade any specific investments. Trading requires risking money in pursuit of future gain. That is your decision. Do not risk any money you cannot afford to lose. This document does not take into account your own individual financial and personal circumstances. It is intended for educational purposes only and NOT as individual investment advice. Do not act on this without advice from your investment professional, who will verify what is suitable for your particular needs & circumstances. Failure to seek detailed professional personally tailored advice prior to acting could lead to you acting contrary to your own best interests & could lead to losses of capital.
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