How to Start a Forex Hedge Fund or FX Business

How do I Start a Forex Hedge Fund?
Starting a forex hedge fund (forex pool) is one of the most efficient ways to make money today. Small hedge funds attract the working wealthy and their IRAs and small businesses looking for safety and superior returns.

What is the typical legal structure?
To start a forex hedge fund you need to create the fund entity and its investment management company. In the United States, the fund is established as a limited partnership and in some cases as a limited liability company for offerings with multiple share classes. The investment manager typically functions as the fund's general partner and is set up as an entity taxed as a pass through entity(in most cases). For an offshore forex hedge fund, both the fund and investment manager are set up as corporations in different countries for tax and regulatory reasons.

What is a forex pool?
A forex pool is a pool of funds which is managed by an investment manager in return for a fee. The manager solicits funds from investors, combines those funds into a pool and uses the funds in the pool to trade forex or managed futures..

Forex Fund Incubation and Incubator Forex Hedge Funds
There is an alternative approach for those who want to test the waters before spending $10k or more to set up a fund or family office. Setting up an incubator forex hedge fund allows you to develop a track record which will assist in attracting investors later in time. The incubator hedge fund is created by breaking down the fund development process into two stages. The first stage sets up the fund and investment management company. Completion of the first stage allows you trade and develop a performance record using your own or other's money as seed capital. In the second stage your offering documents are written and the fund's trading history is compiled. Learn More About Incubator Forex Funds