TrustForexTrade Company specialists developed a set of investment plans, to take into account interests of each client. Now you can choose the investment strategy that suits your needs better by yourself.
There are four characteristics, and combining them you not only select a particular investment plan but also configure it to meet own needs:
• investment amount;
• investment period;
• compound interest rate;
• TrustForexTrade commission.
The details of these characteristics will be discussed below, in description and comparative analysis of investment plans.
All TrustForexTrade investment plans are divided into two essentially different types: fixed (MINI, BASE, PROF plans) and demand (FLEXIBLE plan).
Demand FLEXIBLE plan.
FLEXIBLE plan has no fixed investment period. Withdrawal of a principal or earned profit is available at any time. This is the only advantage of this plan. In terms of profitability it is much less interesting (!) than fixed plans, because for the FLEXIBLE plan:
• selecting of compound interest rate is not available (it is fixed 0%), that makes it impossible to receive «interest on interest» – and it is that particular option provides excess profits to investors, who have chosen one of fixed plans;
• in addition, on this plan an increased TrustForexTrade commission is provided.
FLEXIBLE plan is developed by TrustForexTrade Company as a supportive, test plan for doubting novice investors. Therewith at any time the demand FLEXIBLE plan could be transformed into one of fixed plans (MINI, BASE, PROF), it can be implemented in Profile «in one click». Return change of plan from fixed to the demand FLEXIBLE plan is not allowed.
Investment plans with fixed period (MINI, BASE, PROF plans).
The basic investment product offered by TrustForexTrade Company to its clients is, undoubtedly, investment plans with fixed period of 200 trading days: MINI, BASE, PROF plans. Let’s look at them in more details.
Deposit amount. For each plan a minimum amount of deposit is required: $100 (MINI); $1,000 (BASE); $10,000 (PROF). Maximum amount is unlimited.
Investment period. It is a fixed term of 200 trading days, for which the trust agreement is concluded. Under the trading days we mean working days (Monday – Friday). Withdrawal of principal is available only at the end of the investment period; early withdrawal is not allowed. Withdrawal of earned on fixed plans is allowed only either simultaneously after the expiry of investment period (together with a principal), or at any time during this period – according to a chosen compound interest rate.
Compound interest rate – an investment characteristic, which shows what part (what percent) от daily earned profit is invested back in trading. Compound interest allows you earn excess profits due to charging «interest upon interest». Consider the following examples. Assume that deposit amount is $1,000 and the level of income is 1% per day*, in that case:
• if compound interest rate = 100%, profit earned after the end the first trading day - $10 (it is 1% of $1,000) will be added to the principal, i.e. will be returned in trading. Thus on the second trading day profit will be $10.1 (it is 1% of $1,010); at the end of the third trading day it will increase to $10.2 (it is 1% of $1,020); and at the end of the fourth – already to $10.3 (it is 1% of $1,030.3). The profit margin will increase further; furthermore the whole amount will be returning in trading daily. At first glance it seems the earnings growth is slight. However, this impression is misleading: day by day its growth is accelerating and to the end of 200-day investment period the compound interest rate = 100% provides a very high level of earnings. You can check this out for yourself, using our Financial calculator.
• if compound interest rate = 0%, earned profit DOESN’T return in trading, but arrives to the client’s available account balance. As the result profit margin doesn’t increase; and profit is constant over the whole investment period. In this example it is $10 per day (1% of $1,000).
* in these examples calculations are simplified for illustrative purposes: 1) income is fixed at the rate of 1% per day, whereas in reality it is floating, refer to the Financial statistics section; 2) TrustForexTrade Company’s commission is disregarded; 3) the sums are rounded off to tens of cents while calculating.
Compound profit – profit, which returns back in trading. Therefore, it is available for withdrawal only after the expiry of the investment period, together with the principal. Early withdrawal is not allowed.
Non-compound profit – profit, which DOESN’T return in trading, but arrives to the client’s available account balance. It is available for withdrawal at any time.
Choosing 100% compound interest rate definitely guarantees investor the highest possible profit (which will be available for withdrawal only after the expiry of the investment period). However, each investor selects their own investment strategy by themselves: for example, they can set up compound interest rate = 90%. It means that 90% of the earned profit (compound profit) will return back in trading, and 10% of profit (non-compound profit) will arrive to the client’s available account balance, i.e. will be available for withdrawal at any time. Therefore, by reducing a total investment return, you can provide yourself with small operating income (non-compound profit) during the investment period, not waiting for its end. Please, use our Financial calculator to select an investment strategy suitable for you personally.
TrustForexTrade commission. For trust asset management services TrustForexTrade Company charges a fixed commission. The amount of the commission depends on selected investment plan: 10% (PROF); 15% (BASE); 30% (MINI). On demand FLEXIBLE plan an increased commission at the rate of 50% is provided. The commission is charged not a one-time at the expiry of the investment period, but daily in the end of trading day.
It would seem that the difference in the amount of commission between fixed plans is relatively small (10, 15 and 30%), and it is true on conditions when you selected a compound interest rate = 0%. But if a compound interest rate = 100%, the amount of commission affects the total income earned at the end of the investment period greatly: the more everyday profit (compound profit) goes to a commission, the less of it (compound profit) returns back in trading. In practice, the amount of commission affects total income by the same principle as a compound interest rate.
You can estimate the influence of commission amount on investment yield by yourself, using our Financial calculator. For example, take the equivalent amounts: $999 (Mini plan, commission 30%) and $1,000 (Base plan, commission 15%) and estimate the difference in income at 100% compound interest rate.
Investment strategy selecting recommendations.
Each investor can select their own investment strategy, meeting their specific interests. We just try to help you with this choice, giving some recommendations:
• investment plans with fixed period – MINI, BASE, PROF plans are much more profitable than demand FLEXIBLE plan (because of the unavailability of compound interest and availability of increased commission 50%);
• compound interest rate = 100% guarantees earning of maximum possible profit. Try to use this 100% interest rate. Otherwise you will not earn a part of potential profit;
• there is a rule on fixed plans: «the higher amount of deposit – the higher is profit», because increasing amount reduces a commission (30% -> 15 -> 10%).
Recommendations for investment profitability improving.
For those investors who have already used TrustForexTrade services and have current deposits, we can offer a number of recommendations to improve their profitability:
• changing a demand deposit to a fixed deposit. Each demand deposit can be changed to a fixed deposit «in one click» in your Profile. Standard 200-day investment period counting will start since the next trading day. Return change of plan from fixed to demand is not allowed.
• compound interest rate increasing. The same way «in one click» you can raise your compound interest rate on your current deposit in your Profile: for example, from 0% to 100% or from 50% to 90% and so on. Implementation of new compound interest terms starts since next trading day. The reverse procedure, i.e. reduction of compound interest rate (for example from 100% to 0%) is not allowed.
• replenishing your deposit. At any time you can replenish your current deposit. Conditions of this deposit remain the same:
1) current investment period doesn’t change, i.e. no «zeroing» of previous 200-day period and starting a new period occurs;
2) no rising of investment plan type occurs: i.e. for example, the deposit was $800 (Mini plan), and replenishing it on amount of $300 will not change the deposit to a Base plan. Function of your current deposit replenishing is available in your Profile.
• reinvestment. The amount available for withdrawing, situated at the Available account balance, could be not only withdrawn, but also reinvested at any time. Therefore, it is possible to create new deposits using funds of available account balance, without the need of money depositing/withdrawing. You can reinvest funds in creating a new deposit, as well as replenishing one of your current deposits. Function of reinvestment is available in your Profile.