As a Mechanized FX Investor your money is always under your control in a bank account with your name on it. Varengold Bank in Hamburg, Germany is a duly registered financial institution. Client deposits are insured according to Germany’s Bank Deposit Insurance Act. As the account holder and signatory you are the only person able to withdraw funds from the account.

With a Mechanized FX Account, you will have real time on line access to follow all activity in your account. There is no need to wait for quarterly, monthly or even weekly updates. Watch all investment activity as it happens. Trade by trade and hour by hour. In addition you will receive a free market updates through blog posts and Twitter about the general market situation. As an opt-in benefit, you are also welcome to subscribe to the twitter feed which will update you in real time on market movements and trading decisions taken throughout the day.

Because your money is held in your own bank account, you, and only you, can make partial or complete withdrawals at any time without prior notification. We employ a strict maximum limit on account size, to ensure that any withdrawal of funds from a single account or small group of accounts will not detrimentally affect our trading positions. While we will not limit your access, we would like to point out that this investment is not a checking account and it will be impossible for us to assist you with any quality advice if your account balance fluctuates drastically within short periods of time. Also, as a courtesy we ask that you inform us of any imminent withdrawals. It will allow us to factor in these changes without diusturbing trading positions.

Opening a Mechanized FX Account is free of charge. There are no inception or set-up fees. There is no fixed management fee. The advice we provide is based on a pure profit sharing arrangement. We charge a profit share of 30% of all net profits. In addition, our performance compensation is tied to a high-watermark to avoid ‘up and down trading’. You will only pay once on any profits earned. This means we only receive our profit share for additional profits that increase the account balance even further. In the event that during any given month the account balance decreases, no profit share will be charged until such point in time that the account balance surpasses the previous high watermark (adjusted for any deposits and/or withdrawals you may have made during that time frame).

When it comes to tabulating profits or losses at the end of each month the high watermark and the profit share, when applicable, are calculated on the account balance which is based on all transactions that have been concluded before the end of each month. Open positions, regardless whether they show a profit or loss, are not part of the profit share calculation.

We purposely offer our services in conjunction with a bank instead of an FX/CFD broker for the following reasons: Banks are better regulated and perhaps more important, and what most people do not know, FX brokers are often market makers in their own right. According to their fine print they are not required to send orders to the currency dealers. Brokers are allowed to take the other side of an order. In this situation your profit is the broker’s loss. This is a material conflict of interest. A bank is forbidden from taking the other side of the trade. All orders are routed to currency dealers. We trade in the most liquid markets available. Our dedication and experience will ensure that we always get the best possible price for you. Combined with our pure profit sharing/no fixed fee policy, the Mechanized FX Account is specifically designed so that our interests are perfectly aligned with yours.

Please note that we provide an equally suitable solution for our North American customers with a different Institution.

In order to maintain a risk profile that offers a healthy combination of profitability and investment protection, you funds are invested across as many as 25 different currency pairs. The maximum size of each position is such, that a single position is unable to cause material harm to the account balance. Gradual movement of the account balance is the desired result. We never engage in trading activity that uses the potential of leveraged buying power in your Mechanized FX Account to the limit. Typically the account trades at 25% or less of the margin provided by the bank. In addition, The FX market is the most liquid market in the world with orders of magnitude more liquidity than any equity market. The better the liquidity, the better the defense against being unable to exit a position. More liquidity equals less risk.

In the past we have managed to achieve double digit returns on a year over year basis. While we aspire and expect to meet our past goals in the future, please be aware that past figures offer no guarantee in regards to future performance. Keep in mind, however that you remain in charge at all times. You are able to monitor the performance of your money in real time, and if you are not satisfied, or feel you can do better with a different investment you can withdraw your funds at any time.

Apart from the obvious benefits of transparency ( you can see your account at all times) and flexibility (you can withdraw funds at any time), Mechanized FX Accounts are strictly limited to a minimum account size equivalent of EUR 10,000. We are confident that Mechanized FX offers an attractive balance between risk and return. Trading is a professional business, not a game. And we do not want gamblers as clients. We believe that a successfull investment strategy is founded on diversification. In other words, Mechanized FX should represent one component of your portfolio instead of being the only investment you make.

We welcome every client. It is mandatory however, that you meet the following compliance requirements.

• A certified copy of your government ID, proof of address and your original signature are required to open your account.
• The minimum account size is 10.000 EUR.
• Accounts are offered in EUR and USD denomination. Please be aware that only EUR accounts are covered under the Government’s Deposit Insurance Act.

"Varengold Bank FX" is an online Foreign Exchange Trading Service provided by Varengold Investment Bank AG (Varengold Wertpapierhandelsbank AG). The German investment bank was founded by the current management board Steffen Fix and Yasin Sebastian Qureshi over fourteen years ago. It is the only German financial institution with an exclusive focus on brokerage and managed futures. Varengold Bank FX provides a superior level of service to retail and institutional customers to sustain long-term relationships that will enable us to respond more efficiently and proactively to their changing needs. Varengold Bank FX’s goal is to provide our customers with the very best trade execution and service in the FX industry. In order to meeting our goals, Varengold Bank FX employs three strategies that are the backbone to our success: Customer Service, Safeguard and Execution.
Varengold Bank is regulated by the German Federal Office for Financial Services Law - BAFin - and it appears on the BAFin register under number 109 520/100.