|Fees: 2% Higher fees, but superior performance
|100 Min. Account Size
FXOptim is a trade name of IronFX Global Limited. The Company is registered and headquartered in Cyprus, with offices in the UK (London), Australia (Sydney) and South Africa (Johannesburg). It holds regulatory and licensing approvals for the aforementioned countries. IronFX Global Limited is also a member of the Investor Compensation Fund. The ICF can pay compensation to consumers if a financial services firm is unable, or likely to be unable, to pay claims made against it. This is a major positive.
The original, core focus of IronFX Global Limited was to provide an online trading platform and support to their retail clients. FXOptim is an extension of the company’s range of offerings to include robo advisor services. FXOptim places clients’ funds in the foreign exchange (forex) market and aims to profit from the fluctuation in currency values. Based on their own needs, expectations and risk-tolerance levels, clients can choose from three investment strategies; Hybrid, Dynamic and Alpha Growth.
Launched in June 2015; requires a minimum investment of $5,000 and 5 days notice period before application can be made to redeem your funds. The Hybrid strategy follows a medium-term outlook. Both fundamental and technical analysis underlie trading decisions for this option. Activities are therefore essentially conducted by human traders, appropriately guided and assisted by technology. The best annual performance measured was a very impressive return of 13.45%.
For the most recent 12 months measured –May 2016 to April 2017- the strategy posted a profitable return of 10.45%. This is definitely towards the higher end of robo advisor performance. See table below.
Conclusion on Hybrid strategy performance:
The returns for the selected 12-month periods referred to above are impressive, despite the relatively short period of its existence of just over 2 years. It might be prudent to abstain from participating in this option until it has traded for a longer period, but making these returns and rivalling more 'established' funds will be a compelling enough reason to invest for most.
Launched in May 2015, it requires a minimum investment of $5,000 and 5 days notice period before application can be made to redeem your funds. The Dynamic strategy follows a short-term outlook. It relies mainly on automated, computerised activity which focuses on the execution of a high volume of trades, based on technical indicators and algorithms. The best annual performance measured was a profitable return of 4.1%. For the most recent 12 months measured –May 2016 to April 2017- the strategy posted a profit of 4.1%.
Thee returns for the most recent 12 months reflect a profitable situation.
Launched in August 2016; requires a minimum investment of $50,000 and 5 days notice period before application can be made to redeem your funds. The Alpha Growth strategy is the most aggressive option and focuses on performance. It concentrates on profiting from market events which affect activity and movements within the major currency pools; minor and exotic currencies receive reduced attention. Trade execution in the Alpha Growth strategy is mostly supported by technical analysis. The best 12-month performance measured was a profitable return of 29.39%. However, since its inception in August 2016, the Alpha Growth strategy has made an overall loss of 4.79%.
For the most recent 12 months measured –Aug ‘16 to Apr ‘17- the strategy posted a negative return of 2.8%. This kind of aggressive investing does involve inherent volatility - the higher returns and slight losses reflect this. The fact that the gains far outweigh the losses is testament to their optimal risk management style, and should reassure investors looking for aggressive investing that maximises profits whilst limiting drawdowns.
This is FXOptim’s youngest strategy and is only 14 months old. Although the overall performance of this option is still in a loss position, the negative result is fairly insignificant. The positive, upside is that for one 12-month-period measured –above- there was a significant return of more than 29%. As this might be a taste of things to come as the strategy matures, it is worthwhile watching for possible participation in the future.
The key policy on fees charged by FXOptim is reflected in the table below.
Management fee – is payable on all the strategies, except for Dynamic. The automatic charge to your account is made monthly on the last business day and calculated at 0.167% (2% annualised) of your portfolio value.
Performance fee – the Dynamic strategy incurs a 50% performance fee and the others 30%. It is charged monthly on the last business day and calculated on the amount by which your portfolio value exceeds the “High Water Mark”. The high-water mark is the highest peak in value that your account has reached whilst under management at FXOptim.
Entry fee – entry fee is applicable only to certain cases where the client was introduced by an affiliate IB, and the client agrees to pay the entry fee.
The 2% (equivalent) management fee charged by FXOptim is considered high compared to other robo advisers, which generally vary between 0% and 1%.
Registering as new client with FXOptim is an easy, step-by-step online process. After clicking on the “Register” button, a new web page opens.
After selecting one of the three investment strategies to participate in, the prospective client may choose to have an account with any of two platforms partners; IronFX or FXGiants. From there, the applicant is linked through to the website of the partner platform selected, where the opening of a new account commences. Personal information is entered directly into the website template, whilst documents for proof of identity and address can be uploaded in a portal or emailed.
The client registering process at FXOptim is found to be quick, intuitive and as user and time-friendly as it can possibly be.
FXOptim clients can fund their accounts by means of credit card or bank transfer.
Accepted cards are Visa, MasterCard, Diners, Maestro and Discover credit cards. Funding takes place online, in the secure client portal of the customer account. The client receives an email confirmation and funds are immediately available. For bank transfers, the client is advised by email as soon as the money is received by FXOptim.
The funding of clients’ accounts is made as easy as it can possibly be.
To withdraw funds, clients have to advise FXOptim by email, at least 5 days prior to the required withdrawal date; the notice period is required to allow the manager to liquidate market positions where necessary. The next and final step is to click on the “Withdraw” button inside the secure client portal area of the online account.
The redeeming of clients’ accounts are as easy as it can possibly be; the 5 days notice period for liquidation purposes is considered to be reasonable.