Since we know you can NEVER broker deals with insufficient education, we’ve provided another great article on alternative investment law. To get you started, we will review some of the basic legal facts for alternative investment brokers, covering all of the major markets in the process.This will allow you to protect yourself while brokering, making all of your transactions safer and far more efficient.  First things first, let’s scroll down and see how the law effects the investment market you are interested in!

Laws for Alternative Investment Markets

Private Placement:  If you choose to broker private placement investments, you MUST act within the law. First, you should always attain PPP investors indirectly without solicitation. This is extremely critical due to the strict laws associated with private placement programs. If you solicit investors before they inquire about the PPP opportunity, the fact is, you are breaking the law. To remain effective and legal, you should always contact investors citing “networking” as your main objective. Once trust opens up the conversation and they request information, you can discuss any PPP investments you want. Also, when providing PPP documentation to an investor, it should never state yields or commitments.  By quoting yields either verbally or via documentation, you are once again breaking the law, and this times it gets far more serious.

Forex Investments:  If you want to become an “introducing broker” for a managed forex investment, there are two routes you can take. First, you could become an “introducing broker” for managed forex traders within the USA, earning commissions for every investor you find. Though this sounds great to most, you must have an NFA (National Futures Association) license before you can start soliciting investors. Second, you can become an “introducing broker” for offshore managed forex investments, collecting commissions for investor referrals. By working with FX traders who utilize offshore forex brokers, you are not subject to the laws in the USA. This does allow you to earn commissions, but the reality is, attaining forex investors can be very tough if you’re unlicensed. Overall, whether you want to broker domestic or offshore forex investments, you must always keep the law in mind. Though there is are a lot of money in managed forex brokerage, if you slip up, you could lose it all in a heart beat.

Managed Futures:  If you choose to broker managed futures investments, you can take one of two paths. First, you can broker managed futures within the USA, utilizing domestic traders to earn commission.  This requires an NFA license, which adds strict regulation and oversight into the picture.  Though there are drawbacks to having an NFA license, the fact is, licensed futures brokers have the potential to earn Millions every year. For this very reason, it always a good idea to get a NFA license if you are working in the managed futures market. Since the license is recognized by investors worldwide, and futures have become so popular, you can truly raise limitless equity if you’re smart. On the other hand, if you choose to broker a managed futures investment without a license, the futures trader must offshore.  In this case, since you are working with an offshore futures trader, USA licensing requirements do not apply to you as a broker.  Though it would seem appealing to broker futures without regulation, in all reality, it’s harder  than it sounds.

Other Alternative Investments:  If you want to broker investment related products, you must define your niche. Whether it’s REO’s, private equity, hedge funds, private loans, funding or more, there are always opportunities to capitalize on. Though there’s a lot money in the alternative investment markets we listed, you must know one thing above all, the law. In every investment market, there are laws which you must understand and abide by if you want to succeed, and stay in business. Do yourself a favor, and thoroughly research your alternative investment niche before actively pursuing deals. The reality is, you could need a license, or you may just need a firm to sponsor you. Remember, alternative investments are great to broker, but just like everything else in life, there are ground rules.

As you can see, there’s a lot of opportunity in alternative investment brokerage, but you must always act within the law to remain successful. The reality is, each market has its own parameters, and they are usually rather easy to succeed within. If you want to broker alternative investments, do yourself a favor and know the law “like the back of your hand”. The fact is, if you do some basic legal research, it will help you to avoid mistakes which could threaten your future success. Remember, you never want to break the law in the beginning, or you could lose everything you worked for in the end.

In summary, if you want to become an alternative investment broker but you don’t like strict laws, too bad!  The fact is, each alternative investment market has rules which apply to everyone, at all times. By working within the laws creatively, the truth of it is, you will have far more credibility with your client anyways. All in all, just set your goals and be patient. If you don’t feel educated enough in the market you are brokering, you should NEVER push deals until you are completely comfortable. It’s always better to gain experience slowly, rather than risk your entire future from the beginning. Remember, brokering investments is a double-edged sword which can lead to riches, or legal disaster…

InsideTrade LLC Staff
(412) 235-2855

In this article, we will define the term “broker”, and explain its relation to the alternative investment markets.  As you will see, brokers are the key to a company’s success or failure.  In fact, without brokers, most companies would shut down and our economy would fall apart instantly.   Could “brokers” really be the glue that holds our global economy together? Well, first things first, let’s define the concept of “brokerage” and its place within the supply chain.

By definition, a “broker” is an individual who creates a business relationship, connecting the buyer and seller of a product.  Since this is VERY important to both the buyer AND seller, the broker earns a commission for creating and maintaining these relationships.  For example, a real estate broker earns a predefined commission for connecting a home buyer with the right seller.  Simple enough, isn’t it? Well, now that you understand the concept of brokerage, let’s see how brokers fit into the alternative investment markets.

Types of Alternative Investment Brokers

1. Forex Introducing Broker (“IB”):  As a managed FX broker, your commission is based on the number of trades (“round turns”), profit-sharing agreements, or “rebates”. If you are paid by the trade, you should review the strategy of the managed FX trader, focusing on how many round turns they do. Most FX traders have a strategy which aims to raise capital, placing as many trades as possible without putting the investor at risk. Many of the most successful FX brokers can make over 1M per month, while maintaining a 50M+ book of investors. Currently, you need to get a Series 3 License and join the National Futures Association (NFA) if you want to broker managed forex in the USA.  If you are brokering offshore FX traders, the laws vary, as long as you are not soliciting USA investors.

2. Private Investment Broker:  When you are a private investment broker, your commission varies based upon the type of transaction.  Just like any other investment, you find the opportunity and introduce an investor to it, aiming to create a synergy between the two parties. After doing so, you can then create a Joint Venture (“JV”) agreement to secure your financial interests as a broker. Though there are several types of private investments, private placement has become the market of choice for most brokers.   Despite the fact that private placement deals are hard to close, brokers have flooded the market, chasing the dream of getting rich quick.  To add to this growing problem, as a private placement broker, there are NO licensing requirements.  Even though that may sound like good news, in all reality, it’s lead to a market FULL of misrepresentation, fraud, and inexperience.

3. Managed Futures Broker:  If you are a managed futures broker, your commission is based on the number the trades (“round turns”) placed, or profit-sharing agreements.  As we mentioned before, if you are paid by the trade, look for a managed futures trader with a large number of round turns, and high yields.  By raising equity for a trader who places a lot of trades, you will earn far more in commission from the investors you introduce.  If you are a successful managed futures broker, your commission is almost limitless.  Since managed futures is widely accepted amongst institutional investors, you could honestly raise 1B+, and make over 20M+ per month in commission!  The only downside is, as a managed futures broker, you MUST get a Series 3 License, NFA License, and become affiliated with a seasoned futures firm.  Though this sounds quite tough, in all reality, brokering futures can be well worth the effort.

4. Hedge Fund Broker:  If you broker hedge funds, your commission is either collected upfront (“load fee”), or you are paid a small residual on the investor.   Since the term “hedge fund” is really just a corporate structure, there are very few things which are present in ALL hedge funds.  For example, you can have a hedge fund that trades options on futures, and another that just buys securities. The only thing that’s present in all hedge funds is the “JV” agreement, which outlines the relationship and fee structure for the parties. In short, the laws, fees, and potential for brokering hedge funds depends COMPLETELY on the strategy and background of the fund.  If you are working as a broker for a successful FX hedge fund with high yields, it could be VERY easy to become wealthy.  On the other hand, if you are working for a equity-based hedge fund with conservative yields, it could be VERY tough to raise money during unstable markets.  All in all, remember, FX and commodities are the wave of the future, NOT securities.  If you are going to broker a hedge fund, focus on these two markets ONLY, and you’ll be set.

5. Private Equity Broker:  As a private equity broker, your commission is either a fixed % of the investment upfront, or a residual payment which varies between firms.  If you are collecting your brokerage commission in residual payments, as with most alternative investments, you get paid as long as the client is invested. In order to broker private equity markets, you MUST be affiliated with a firm carrying a FINRA license, and have one hell of a drive! Though the private equity market has some opportunity for brokers, due to the recent financial crisis, we advise our readers to place their efforts elsewhere.  Until the economy and housing market completely recover, it would be an uphill battle to solicit a private equity product.   Despite this fact, there are ALWAYS “stars” in every investment market, so keep your eyes peeled for good private equity firms, because they are around.

Though there are other types of alternative investment brokers, we have covered the most popular markets for our readers.  As you can see, any type of brokerage can be lucrative, but in today’s market, FX and futures have become the emerging trend.  With FX and commodities attracting more investors than ever, it isn’t hard to see why most brokers believe they’re the markets of the future.

In summary, the concept of alternative investment brokerage may appear simple, but it’s not as easy as it sounds.  To be a successful broker, you MUST have people skills, confidence, integrity, ambition, and strength to overcome adversity.  Without even one of these characteristics, in most cases, you will eventually realize you were “barking up the wrong tree”.  Whether you want to become an alternative investment broker or not, the one point to remember is, BROKERS make the world go round….

InsideTrade LLC Staff
(412) 235-2855

In this article, we will outline the facts of alternative investment brokerage, while providing great tips for aspiring brokers.  This will help you grasp the facts of the industry, and adapt to future circumstances as an alternative investment broker.  What are you waiting for? Scroll down and take a look!

The 10 Facts of Alternative Investment Brokerage

1.  Brokering Alternative Investments is Not Very Easy:  Even though you can be very successful brokering alternative investments, it takes a lot of effort. First, you have to define the market you are going to broker.  In most cases, this will either be the forex, futures, private placement, or hedge fund markets if you’re focusing on alternative investments.  After you choose the market to broker, the next step is to find a good alternative investment opportunity.  Though this seems like it would be the toughest part, you haven’t heard the next step yet.  Once you have completed the two prior stages, you then need to do the hardest thing of all, raise equity.  As you can see, brokering alternative investments is rather hard, BUT there are thousands of self-made millionaires who make it look simple every day.

2.  Alternative Investment Brokers Need the Right Personality:  Everyone is NOT born to be an investment broker.  It takes an aggressive person who is willing to speak to thousands of people just to find that one big opportunity.  If your AMBITION and VISION don’t set you apart from others, you will NEVER succeed as an alternative investment broker. In addition, when brokering volatile investments, you must realize it can take you on an emotional rollercoaster.  All it takes is one big mistake to devastate an investor’s account, and finally at that point, you’ll know if you are right for the position.  Be honest with yourself, if it doesn’t feel exciting to broker large investment deals, then don’t waste your time.

3.  It’s Tough to Find a Good Alternative Investment to Broker:  If you choose to broker alternative investments and find your market of choice, the next step is finding a good opportunity.  Though there are some GREAT alternative investments in the market, they are also hard to find. To be honest, you MUST get creative via the Internet, or already be well-connected beforehand. If you are working in the managed FX or futures markets, look for traders with high yields and a history of infrequent draw-downs.  Also, if you want to pad your pocket, look for traders who place a large amount of trades.  This will allow you to earn far more commission, which is the goal, right? The one thing to remember is, don’t broker deals until you are experienced, and 100% sure of the opportunity you are offering.

4.  Private Alternative Investments are Hit or Miss:  Brokers who focus on private alternative investments can get rich far quicker than any other market.  Despite this fact, the main drawback is, they also have the HIGHEST rate of failure.  Depending on the market you are brokering, legitimacy is always a problem you run into.  If you are working with a private FX or futures trader, you can make a killing, as long as you find that needle in the haystack.  On the other hand, if you are brokering private placement investments, your chances of success are far slimmer.  The SECRET to private placement success is found in one concept, “ratios”.  If you educate yourself and then speak with thousands of PPP brokers, you should have a good chance to close a large deal.

5.  Managed FX and Futures are the Fastest Growing Markets:  If you are wondering which alternative investment may be best to broker, it’s managed FX or futures.  Though there are great opportunities in other markets, if you are working with the right trader, NOTHING can compare.  In FX and futures markets, commissions are far greater than almost any investment industry.  On top of that, interest is growing faster than ever for these high yield investments. With hedge funds, private equity, and real estate ALL recovering from the financial crisis, why not look elsewhere? The truth is, if you found a good futures trader, and gradually acquired 5M of investors, you would be immediately retired and a multi-millionaire.

6.  Some Alternative Investments Require Licenses for Brokers:  When you choose to work as an alternative investment broker, you also need to decide if you want to get a license or not.  If you choose to broker transactions unlicensed, you can only work in private placement, real estate, or certain types of FX investments.  Though this severely limits your options, it also removes the hassle and cost of becoming licensed.  If you are someone who is “swinging for the fences”, then it is best for you to get licensed.  By getting a Series 3 License, and then registering with the National Futures Association (NFA), you can legally broker managed FX and futures investments.  Even though this process can seem arduous at times, if you want to make the big money, you should just suck it up and get the appropriate licenses.  At that point, you can solicit institutional or retail investors, and in all reality, the world is in the palm of your hand.

7.  The Amount of Equity Raised Measures Success for Brokers:  If you choose to become an investment broker, don’t think you are going to close one big deal and walk away forever.  Though this can happen if you broker the right private investments, REMEMBER, relationships fade when you don’t nurture them.  If you do choose to become a licensed broker, this is where it gets interesting.  Before you can become an independent broker, you must affiliate yourself with a licensed firm in that market.  By doing so, you open yourself up to the constant pressure of account “quotas”, among other things.  In many firms, you have to raise a certain amount of new money every month, or your job can be in jeopardy.  The truth is, raising equity isn’t really that hard, as long as you have support and a good product to pitch.

8.  Beware of Broker Circumvention in Alternative Investments:  Unfortunately, in the alternative investment business, greed can show up out of nowhere in deals.  With so much money on the table, the truth is, some people will change for the worse.  By sharing your contacts with brokers or investors, you are jeopardizing your commission and niche all at once.  Unless you have a GREAT relationship with either the fund manager or the investor, in many instances you can get cut right out of a deal.  Though this isn’t very common in licensed investments, if you are brokering a private investment, you should ALWAYS be on the look-out.  It just could be the difference between a Million Dollar check, and “another deal gone wrong”.

9.  Integrity and Realism Attracts Investors, Not Sales Pitches: It is great to have investors as an alternative investment broker, but ONLY if you obtained them the right way.  If you are completely honest and empathetic with your investors, you will build life-long relationships that will pay you the entire time.  On the other hand, if you overemphasize the benefits and fail to explain the risks of the investment, you’re on a path to disaster.  Even if you find a few investors who fall for your “slick” sales pitch, remember, it will ALWAYS leave you behind in the long run.   Be real with your investors, and remember the Golden Rule: “Treat others as you would like to be treated”.  This will make things far easier for you during the good times, and the BAD!

10. Alternative Investment Brokers Make Great Commissions:  If you are a successful alternative investment broker, you can get filthy rich in very little time.  Lawyers work day and night for $250K per year when all it takes is one big investor, and you’re instantly retired as a broker.  For example, if you had a 100M book of investors for a FX trader, you could be making over 2M per month.  The great part is, all you have to do is make sure the relationship remains stable, and you get residual payments until they close their account.  The reality is, if you want to become as rich as possible in the shortest amount of time, brokering alternative investments is the way to go.

In summary, with any job there are facts of the industry which must be acknowledged and adapted to.  As we mentioned, the 10 facts listed above will ALWAYS determine your level of success, or failure as an alternative investment broker. Remember, you CAN make a TON of money as a broker, but ONLY if you find the right investors AND close deals. Hopefully after reading this article, you now understand the realities of alternative investment brokerage, because if you’re sharp, there’s ALWAYS a pot of gold at the end of this rainbow…

InsideTrade LLC Staff
(412) 235-2855

Before we get to the good stuff, let’s identify the 3 critical steps that must be followed when considering any alternative investment.  Generally, these processes should be used by all investors, and MUST be completed correctly to succeed in the alternative investment world.

Steps to Evaluate Alternative Investments

1. You must define the risks associated with the investment you are pursuing, and make your choice based upon your tolerance of it.
2. You must properly estimate the reward, focusing on realism rather than hopeful expectations.
3. You must weigh the risk of the investment and against the reward, choosing the decision that is best for your investment goals.

Though this may seem simple, it is really not that easy in most cases. Without proper analysis of both risk and reward, deviation from expectations can develop, and problems can start to follow shortly thereafter.  Despite the fact that weighing risk vs. reward is the key to success, to complete this process correctly, you must first understand how to evaluate each separate from one another.  In the section below, we will teach you how to do just that, while providing tips for private placement, forex, and futures investments to ensure we address all of our reader’s interests.

In the alternative investment world, RISK is thought of differently than it is in other facets of life.   In all actuality, by definition, RISK should be thought of as the CAPITAL INVESTED + OPPORTUNITY COSTS.   To help you understand a few typical risks of the alternative investment markets, and give you a better idea of what we are talking about, we listed a few tips below.

Managed Futures:   Risk is typically assessed by looking at the audited history of the managed futures trader, and focusing on the maximum “draw down” months.  Though this usually worst case scenario you will encounter, it is quite possible the losses could be higher in future months. Once you view the history of the managed futures trader, have a discussion with them about the “stop loss” strategy and procedure to prevent losses for their investors. Usually, good traders will “flag” the accounts, and trade conservatively until the balance is built back up.  Generally, risk is usually limited to 15-20% of the account value.

Managed Forex:   Risk in managed forex investments is usually defined by the leverage and “stop loss” procedure of the trader.   Though it is always good to look at the history of a forex trader, in many cases, we have found that investors are choosing private fx investments over licensed ones.  Since private traders are not audited by a governmental agency, their returns should be ALWAYS considered hypothetical.  In licensed forex investments, you may have lower returns, but you usually will have lower losses as well. In private managed forex investments, you must be prepared to risk your entire account value, no matter what the promises of the trader are.

Private Placement:  Defining risk when pursuing private placement programs is critical to ensure you make an educated decision.  Despite what many uneducated brokers may claim, your assets must be collateralized (i.e. put at risk) to stimulate a line of credit for the trader.  If you choose to work with programs that “ping” your account, or let your funds remain in your account unencumbered, you are usually setting yourself up for disappointment. In this area, more than any other alternative investment, you are prone to lose a huge amount of money in OPPORTUNITY COSTS. In many cases, people spend years looking for a program, when they could have doubled their money several times over the course of that search.

As we have said before, identifying risk properly is the key to protecting yourself.  Even if you don’t have the guts to pull the trigger, it is crucial to learn and understand your risks at all times.  Once you properly determine your risk, you have accomplished the hard part and are on to the next important step, projecting your reward.

In the alternative investment world, REWARD should be thought of as the profit that you earn and withdraw over the course of your investment.   Until you have the money in your hand, any talk of “rewards” should be considered premature. Unfortunately, many people focus on future hypothetical earnings, losing touch of reality and risk in the process. Once an investor drifts away from acknowledging the risk associated with an investment, all hell can break loose.  As we have stated prior, prospective “rewards” should NEVER be the sole reason for making a decision to pursue an alternative investment.  If you are smart, you will address every other aspect of the transaction, and then view the yields before making your reward projection, and final decision.

Now that you know how to evaluate risk and reward separately, you have arrived at the final step, weighing the two against each other.  The good thing is, this is really the easy part! If you have already defined your risk and reward properly, it should be as simple as comparing the pros and cons of your: (A) decision to move forward, or (B) choice to pass on the opportunity. Once you complete this final stage of the 3 step process, it will become increasingly easier to substantiate future alternative investment opportunities. Eventually, by adhering to the process we have discussed, your experience and diligence may just carry you to a life of success, and wealth.

To summarize, whether you choose to list “pros and cons”, ponder the risks and rewards in your mind, or ask someone with relevant experience, risk assessment techniques are fundamental to promoting success. Once you identify the specifics of the transaction you are evaluating, it is always good to go through the process and key points we have listed above. By nature, due to the cutthroat world we live in, it is best to evaluate your risk before your reward, and weigh them based upon your risk tolerance. This will keep your eyes open, facing the facts of the transaction, rather than daydreaming into your fantasy of riches…

InsideTrade LLC Staff
(412) 235-2855

Despite what many biased financial advisors may say, there is not one investment out there that is good for everyone.  The fact is, people have different preferences, goals, and risk tolerances, so what is good for you may be bad for another. With managed futures, things are no different. As you would expect not everyone is a perfect fit, and like other alternative investments, it either alligns with your goals or not!

To help our readers make the right decisions, we will explain what type of investor is right for managed futures, and will list certain qualities that MUST be present for those considering futures trading.  This will allow you to understand more about managed futures investments, and will provide you the opportunity to determine if futures trading right for you or not.

To get started, let’s take a look below at some of top qualities one must possess to invest in futures.

Top Qualities of a Managed Futures Investor

1.  High Net Worth: Typically, those who invest in managed futures have a net worth of over 1M, and most of the time, it is far more.  If you want to get into a managed futures investment, you must at least have 100K to invest, and you never want to invest more than 20-30% of your net worth.

2.  Moderate to High Risk Tolerance:  Since managed futures investments can be volatile at times, it takes an intelligent and risk tolerant individual to invest.  If you can’t handle seeing your account go up and down over the course of a year, managed futures may not be right for you.  Smart investors understand that either way, by the end of each year, their account will be far higher than it initially started at.

3.  Understands Basic Futures Trading:  To be a successful investor in managed futures, you must grasp the basic concept of what is happening. If you just skim your account statements, and avoid them because they look confusing, you are losing educational benefit and increasing your risk.  If you can take an educated assessment of the strategy the trader implements, and discuss it with them, you will sleep alot better and catch many problems before they get bigger.

4.  Must Possess Diligence and Realism:  You may have heard about amazing returns in other private investments, such as forex and private placement, and be expecting the same with managed futures. Well, though you can achieve yields as high as 300+% per year with the right managed futures trader, in all reality, you should be looking for the one that will perform consistently over the long haul.  Chasing high yields can lead to short term success, but in the long term, steady traders will always come out on top.

5. Long Term Investment Goals: If you think you would like to invest in managed futures, it is best to have long term investment goals in mind. Though some investors may only get in for a year or so, and withdraw, it is most effective to let your funds compound over the course of several years.  For example, in just a period of 10 years, a 100K account could be well over 10M with the right trader.

If you are someone who has most of the qualities we have listed above, managed futures could be a good investment for you.  On the other hand, if you do not possess any of these qualities, then managed futures may not be the right choice for you.

Though managed futures can assist almost anyone to diversify their portfolio, like most alternative investments, it is best for those who are less conservative. In short, if you have the money and interest, then go for it! If not, then revisit the opportunity when you do.

InsideTrade LLC Staff
(412) 235-2855

From the beginning of mankind until about 30 years ago, almost all business deals were done face to face.  People would make decisions many times with their intuition, and since they had a face for the name, trust was much easier established.   Even though this technique has been used for thousands of years, the Internet and phone have now taken over this role, especially in the alternative investment markets.

Despite the recent trend in the investment world, we still believe that face to face meetings are invaluable. For those of you agree, we have listed some tips to help you prepare for a typical meeting with an alternative investment trader, broker, and fund manager. Scroll down, and take a look below.

Tips for Face to Face Alternative Investment Meetings

1.  Assess Gut Feeling:  Despite what some rationalists may believe, your gut feeling is right more often than you think.  If you are smart, and don’t allow your judgment to be clouded by “high yields”, you should have a good or bad sense after leaving your first face to face meeting.  Once you have left the meeting, you should assess the facts, claims, due diligence, risk, and reward, and most importantly, your gut feeling.  Now, with the help of your new found intuition, it becomes far easier to make the right decision.

2.  Observe Minor Details:  When you are meeting with an alternative investment broker, trader, or fund manager, it is critical to evaluate a wide number of small details.  First, ask yourself, “How did they portray themselves over the phone before meeting with me”?  Then ask yourself, “Is their body language, confidence, and overall appearance in alignment with who they claim to be”?  Since there has been an influx of fraud in the alternative investment world, you must thoroughly evaluate their personality, appearance, sense of confidence, and vibe, looking for red flags along the way.   Remember, if things seem a little shaky in any area, you may be in for a surprise in the future.

3.  Evaluate their Preparation:  If you are investing a large amount with an alternative investment firm, the company should always come to the meeting well prepared.  During the first meeting, real alternative investment firms will try to stress a long term relationship, and will go out of their way to address worst case scenario. In contrast, those with less experience or ill intent will “be there to make you feel comfortable”, and will usually press you to open an account shortly after the meeting ends.  Though scammers can prepare for meetings just as well as real investment firms, remember, this can be another valuable tool to determining your success upfront.

4.  Sense their Confidence Level:  If you are meeting with an alternative investment professional, the most important thing to focus on is their confidence and tone.  If they seem overly confident and excited, they are probably less experienced than they’ve told you.  When you first start to be successful, most people are anxious, excited, and overzealous since they have so many unaccomplished goals to meet.  On the other hand, once you have had steady success, your mood shifts to one of calmness and you develop a “professional arrogance”.  Remember, during all stages of the alternative investment meeting, look for subtle signs to support your belief that their “confidence” is backed, or all a front.

5.  Ask Blunt Questions:  When you ask people unexpected or straight to the point questions, those who are less confident are easy to identify.  Though you don’t want the investment manager to think you are crazy, always remember, it is good to throw a few blunt off-topic questions into the conversation.  In our opinion, this is the best tool to get a true gut feeling on someone.  People who are guilty or unprepared will always show their true color if they are caught off guard. If they slip up in times of pressure or don’t appear as “on point” as you thought, it may be a sign to move on.

If you understand and implement these tips, it will allow you to make a well-rounded decision after your meeting.  As we have mentioned, you should NEVER walk in there with your mind already made up, let them reaffirm your decision and make you feel comfortable. Though many of you may want to save time by avoiding face to face meetings, the importance of one on one conversation can not be understated. Remember, concrete information is critical when making investment decisions, but in many cases, your gut feeling can be more accurate.

InsideTrade LLC Staff
(412) 235-2855

In today’s market of uncertainty, alternative investments have been gaining important ground traditional investing.  At one point, alternative investment managers were in low demand, but things have dramatically changed since then.  Now, markets like forex, futures, private equity and others are taking over, leaving stocks in the dust.  With little hope for stocks in the future, it seems as if every alternative investment company has immense opportunities for growth.  With Trillions traded per day in the alternative investment markets, you may ask, “How much bigger could they grow”? Well, with rapidly growing interest, time will only tell.

If you choose the right alternative investment fund to work with, you could become wealthy from that single decision.  Whether it is an opportunity that focuses on forex, futures, or other alternative investments, the yields can be very high with the right manager! For more education on alternative investments, take a minute and navigate through our blog.  Also, if you are interested in brokering alternative investments, take a look at our “Broker Education Category”.  It covers everything you need to know to brokering alternative investments, whether its futures, forex, or other markets you are interested in.

With today’s market turmoil, alternative investments have been gaining important ground on other markets.  At one time, stock brokers were the trend of the investment world, but now, it is the alternative investment advisor.  With more investors seeking alternative investments than ever, there is a growing demand for brokers who can assist these clients. Those who are smart will take advantage of this trend in alternative investments, and those who don’t, will only have regrets in the future.

In summary, if you find the right alternative investment company, you could become very wealthy from investing or brokering.  The reality is, alternative investments offer far higher yields for investors, and much stronger commissions for brokers. In fact, when you look at the benefits of alternative investments versus equities, it’s like day and night.

If you’d like to learn more about the alternative investment markets, take a minute and navigate through our unique blog.  Also, if you are interested in working with a good alternative investment manager, take a look at our Broker Education Section.  It will give you all the tools you need for alternative investment brokerage, and far more to help you shorten your path to success.

The idea behind a “PING” private placement program is that the client leaves the money in their own account, and the trading bank checks on it to make sure the full balance is still available.  This verification of the funds by the trading bank is referred to as “PINGING” the account, and supposedly is done on a daily or weekly basis to ensure the balance remains stable. This is also the same premise behind an “administrative hold”, which many inexperienced brokers will refer to as well.

For many of the beginners in the business this may make sense in theory, but the problem is simple, THERE IS NO COLLATERAL IN PLACE.  For the trader to be able to access discounted bank instruments, they must have liquid collateral to purchase the notes.  This liquid collateral MUST be derived from the client’s assets, which are usually blocked or conditionally assigned to the trader for the period of the trade. Once the assets are blocked or assigned to the trader, they can access a line of credit against the client’s collateral, and start trading on behalf of the client to generate profit.  Since “PINGING” the account leaves the client’s funds unencumbered and no assets in favor of the trader, the bank will NOT give the trader a line of credit, and therefore, the “program” will more than likely produce excuses, rather than returns.

The fact is, private placement traders always need a form of collateral to access a line of credit, and a “PING” structure does not provide this.  Without this line of credit, the bank instrument is never “cut” and trading will never begin. Despite what you are told, EVERY investment has a degree of risk to it, and typically the investments which offer higher potential returns, have higher levels of risk as well.

If you are a reader, and have closed a “PING” transaction in the past, please post your experiences, but after 7+ years of consistent effort, we feel this structure is nothing more than a sign of future disappointment.

InsideTrade LLC Staff
(412) 235-2855

In today’s wild market, alternative investments have been gaining important ground on traditional investments.   Though some frown on the idea of an alternative investment strategy, the truth is, alternative markets have produced far higher yields.  Why invest your money in equities when forex and futures have made better yields with lower risk?  That is a question that is making investors flock to alternative investments, looking for ways to recover from the damage other markets have caused.

If you choose the right alternative investment advisor to work with, you could become very wealthy from that single decision.  On the other hand, if you find an alternative investment that isn’t what it seems, you could be in for a lot of trouble.  Remember, always complete due diligence on every alternative investment company, or you could put yourself at risk. For more education on alternative investments, take a minute and navigate through our blog.  Also, if you are interested in brokering alternative investments, take a look through our broker education category.  It covers everything you need to know about brokering high yield alternative investments, and far more.

With recent uncertainty, alternative investments have been gaining important ground traditional investing.  Unfortunately, many misinformed investors still believe there is a large risk present in any alternative investment strategy.  Then again, these are the same investors who lost over 40% the last 2 years in the equity markets, when most alternative investments earned great yields during that time.  Obviously, it isn’t about the market you are investing in, it is the degree of expertise you have within it. The fact is, many alternative investment managers double their money every year, and if you invested in stocks, that could take 10 years.

If you choose the right alternative investment fund, you could easily be retired for life. The truth is, there is plenty of up and coming talent in the alternative investments markets, and if you invested with the right manager, you could ride their coat tail to riches. For example, if you found a great managed forex trader, you could be doubling your money every year or better.  Though good alternative investments are tough to find at times, if you research your niche, your chances of success will dramatically increase. For more education on alternative investments, take a minute to look through our blog.  Also, if you are interested in becoming an alternative investment advisor, take a look at the “broker education category”. By educating yourself through our alternative investment blog, you will learn everything you need to know about alternative investments, whether you want to make money investing or brokering.

In the alternative investment world, the most common question of all is, “How much are the yields going to be for this investment”?

Though it may seem like a straight forward question, it is anything but that.  In fact, depending on the investment market you are in, it can be one of the toughest questions to answer of all.

In this article, we will explain how yields can be legally quoted in various alternative investment markets such as private placement, managed forex, and managed futures.  In addition, we will also cover what to expect when speaking to someone quoting returns for an alternative investment. This will allow you to understand the laws associated with the investment market you are pursuing, while also helping you identify the true professionals amongst a growing crowd of inexperienced brokers.

Despite what many of the less experienced may think, there are strict laws that must be followed when referring to the yields of any alternative investment.  Since our blog focuses mostly on the private placement, forex, managed futures markets, we have provided a summary of each of their rules and regulations below.  Take a look!

Rules for Quoting Yields for Alternative Investments

Managed Futures:  For all licensed managed futures traders, yields must be audited and verified by the NFA/CFTC to solicit investors.  If you speak with a futures trader, ask for a performance history covering at least the last 3 years.  The numbers you will see are the actual yields which were achieved over that time, unlike with most private investments which offer hypothetical figures.   When quoting yields verbally, futures traders are ALLOWED to refer to past yields, but they must always state that those returns are not necessarily indicative of future results.  In addition, futures traders are NOT allowed to entice investors by showing the yields of one program, if the investor is not going to enter that specific program.

Managed Forex:  With private managed forex investments, there is really no regulatory body to govern these transactions. Though the NFA/CFTC has tried to implement new laws, they have made little to no effect on the growing private forex market. Due to this lack of regulation, yields are typically quoted very loosely, and even guaranteed at times.   Needless to say, forex trading is not easy, and no one can EVER guarantee consistent success without error.  In short, be very wary of yields which are verbally quoted, or any “track record” you are presented when dealing with private forex investments. In contrast, licensed forex investments are regulated and audited by the NFA/CFTC, similar to the futures market.  In this case, you can conduct due diligence rather easily, and assess a trader’s expertise by evaluating their past performance, licensing history, and client references.  When speaking with a licensed forex trader, he must state the yields in the same way as a managed futures trader.  Since they are under the same governing body, they have most of the same rules to follow in respect to quoting yields.

Private Placement:  In the world of private placement programs, yields MUST be quoted in a specific manner after a series of events have already occurred.  To remain legal, brokers must first have the client request information, agreeing that they have not been solicited, and then the broker can proceed to explain the details.  When covering the yields of the specific program they are referring to, private placement brokers must ALWAYS use the word “historical” when speaking to investors.  Unfortunately, many of the less experienced brokers break the law everyday by stating definite numbers, and guaranteeing specific yields.  Though many may think of the private placement market as generally unregulated, it isn’t.  The fact is, at any time, you may have several regulatory agencies watching over you, just waiting for you to slip up!

If we haven’t listed the investment you are interested in, simply ask yourself, “Is this is a private investment or a licensed investment I am evaluating”?

If it is a licensed investment, it is in your best interest to thoroughly research the laws associated with that market, and visit the website of the regulatory body which enforces them (ex. SEC.gov, etc.).  This will give you inside knowledge about how to conduct due diligence for your investment, while helping you to determine which claims of high yields are backed, or full of hot air.  Typically, licensed investments must be audited, which makes it easy for investors like you to see REAL performance, not hypothetical figures.

On the other hand if it is a private investment, you must take an entirely different approach. First, you must evaluate their claims and conduct thorough due diligence on their firm and personal backgrounds.  Second, you MUST be provided references, or some sort of proof that they are generating the yields they claim to be. Third, you must be willing to lose all of your money before you ever invest.  “Wait, why would you say that”, you may be wondering? Well, as you should know by now, private investments can pay off, but are quite risky in most cases. Remember, yields are always hypothetical in private investments, and though it may seem appetizing, most times it isn’t worth the risk.

In summary, no matter what type of alternative investment you are pursuing, always remember to pay special attention to the way the “broker” or “trader” is quoting the yields.  In many cases, this can even be used as a tool to determine if an investment is in fact real, and can make it very easy to spot “bad investments” and misleading brokers.  Think about it, if you were a successful broker or trader, would you risk it all quoting investment yields improperly?  On the flip side, if you were NOT successful, would you exaggerate returns and bend the rules to close the “deal of a lifetime”?

The answers are simple, just like the rules are.  Even though many brokers choose to not pay attention, you should ALWAYS play by the rules. Remember, EVERYONE is watching, and ignorance of the law is no defense.

InsideTrade LLC Staff
(412) 235-2855

In today’s volatile market, alternative investments have been gaining a lot of ground on traditional investing.  In fact, the alternative investment company is now well-known throughout the investment markets, unlike years ago. Whether this company focuses on alternative investments like forex, futures, or private equity, they are always aiming for yields that exceed the traditional markets. The great part is, even if you implement a low risk alternative investment strategy, you can still earn higher yields than stock markets.

If you choose the right alternative investment fund to invest with, you could become wealthy for the rest of your life.  Though this is true, there are also risks to alternative investments. The point to remember is, education is the single determinant to your success or failure in alternative investments. For more education on alternative investment topics, take a minute and navigate through the different sections of our blog.  Also, if you are interested in possibly becoming an alternative investment advisor, take a look at our unique broker education category.  It covers marketing, tips, steps, preparation and far more for the aspiring alternative investment broker.

Hello Everyone,

With the unexpected popularity of “The BLACKLIST of Private Placement Brokers”, we knew we had to create a more efficient way for our readers to be able to view posts, and interact with one another.  Unfortunately, the Blog format just doesn’t support thousands of comments, and we were approaching that number well before our website even became live!

Due to the requests of many of our readers, we have created a Discussion Forum which is focused around preventing fraud in the alternative investment world.  Whether you want to BLACKLIST someone in the private placement business, or speak about any other investment fraud topic, this is the ONLY place on the internet that you will really be heard!!  With thousands of visitors per day and growing, this has truly become the Center of the Alternative Investment World.

Please take a moment to register and post some of your experiences on the new Forum.  As more posts are added, others will be encouraged to provide their insight and experiences as well.  Remember, every opinion counts, and a few seconds of your time may save someone literally millions of dollars!

Click Here and Start Posting on Our Fraud Protection Forum Today!

InsideTrade LLC Staff
(412) 235-2855