# FX Hedge Fund Links: [[FX]], [[Hedge fund]], [[FX Fund]] ### [Are there any FOREX hedge funds?](https://qr.ae/pGjN4E) [[Quora]] *There are, we trade forex extensively via crypto deposits using cfds targeting 150%-200% returns on medium risk in our Star fund, but can skew to low risk 70%-100% returns, or 300%-500% returns high risk, all crypto volatility is hedged to zero.* *Another fund using the same tech and methodology as us trade forex and futures in the capital markets directly via USD, EUR, GBP, but as such there is extensive AML and KYC taking up to one to two month to join, it's for accredited investors normally and they target 70%-100% returns.* ### [Is it possible to start a forex hedge fund?](https://qr.ae/pGjNuG) [[Quora]] *Hedge funds can specialize in whatever makes money. There are no limits. That is one of the reasons hedge funds are created, and that is why only qualified investors can invest in hedge funds. The risk is higher because hedge funds are less regulated. ==There are some regulations including auditing the funds books, but there are no restrictions regarding what the fund can trade, how much leverage can be used, etc.==* ### [Why are retail forex traders only allowed 1:50 leverage in American brokers, but institutional traders can have 1:500 or whatever they want?](https://qr.ae/pGjNUq) [[Quora]] That’s not really true. In fact, the more capital you have in your account the LESS leverage you will have. If you have 100 Million or more, you’d be lucky to get 10:1 and the market is not really that big - although FX trading is the largest on a volume basis, a few big orders can really move the market as trading can be very thin. ### [Do traders at hedge funds use normal forex brokers?](https://www.quora.com/Do-traders-at-hedge-funds-use-normal-forex-brokers) [[Quora]] **Troph Emma** *Many individuals prefer to trade forex with hedge funds brokers with the usage of hedging, as they secure their positions by opening an opposite position. Such a trading approach is strongly unwelcomed and even prohibited by some brokers but there are few that allow this kind of trading. The top brokers who allow trading with hedged funds are HYCM, FP markets, and Turnkey forex. All these brokers are trustworthy and give ample freedom to the trader for practicing any kind of trading strategy.* **Alpesh B Patel** We use Prime Brokers - these tend to offer superior services and prices eg Goldman Sachs, who offer Capital Introduction and specialist software. When I launched my first hedge fund in 2004, our Prime Brokers were Bear Stearns, and after our first board meeting in New York at their offices, with our directors in Cayman (we were Cayman domiciled) they gave us a tour of the brokers who would fill our orders on the NYSE floor (we were equity long short fund). I forgot to wear a jacket so had to borrow one! However, increasingly ‘normal’ forex brokers are starting to offer Prime Brokerage ‘lite’ services to hedge funds like mine as they realise smaller funds, say under $50m cannot afford the minimum fees being charged, because they do not do the volume of trading brokers need. And funds like mine also dont necessarily care for fancy software. **K.b. Choi** The broker that a hedge fund will have access to will be determined by the amount of AUM (assets under management). Smaller hedge funds will likely be trading through the corporate side of a retail brokerage, while mid-size and larger funds will likely still have access to trading through a prime brokerage. ### [Which kind of broker should I use if I establish a Forex trading hedge fund?](https://qr.ae/pGjNbt) If you’re talking about a real hedge fund — something with $100mn or more under management — you would trade directly with banks. All the major banks have salespeople dedicated to dealing with hedge funds. Probably they would give you access to their electronic trading system and you’d just input your trades there. By the way, this kind of hedge fund hasn’t made much money (on average) for the last 10 years, so I’d do my due diligence about getting clients before I set something up. ![[Pasted image 20220209002938.png]]