What Are the Steps Required to Set Up a Forex Hedge Fund?
Forex Traders
Feb 2011
Trading currencies has become a very popular investment activity over the past few years. Many have determined that the medium is either too high risk or too stressful for their tastes, but a relative few have invested the time required to learn the craft, have felt a personality match with the rigorous trading regimen, and have achieved a level of success and consistency over time. As the word has gotten out regarding their prowess, friends have come forward with funds to add to the pool. Success breeds growth, but at some juncture in the timeline, the successful trader may soon want to formalise the informal arrangements at hand.
The entrepreneurial spirit takes many forms in our culture, and the financial services industry is not an exception to the rule. At last count, some 10,000 estimated hedge funds populate the planet, with a subset of those devoted specifically to forex trading. To form a hedge fund, you will encounter many regulatory obstacles, but their intent is to protect investors, not block the path of an aspiring forex trader.
Experts have written many pieces on this topic of a highly technical nature, but from the outset, the following checklist can be used as a guide for future areas of effort:
