We had the opportunity to talk with the smart folks over at the The Fiscal Muse about Currensee and the Trade Leaders Investment Program. They asked our CEO, Dave Lemont, a bunch of questions – some of which we are asked pretty regularly. So, I thought…why not post them here to our blog so everyone can share in the answers. I present….all the things you wanted to know about Currensee and Trade Leaders but didn’t have the chance to ask. Enjoy!
Currensee is the alternative investment service that puts the power of world currency markets in the hands of every investor. With the Currensee Trade Leaders™ Investment Program, investors build their own automated trading portfolios of Trade Leaders, top foreign currency traders hand picked from the over 8,000 members of the Currensee social network, who trade over $50bn USD annually.
The Fiscal Muse managed to secure an exclusive interview with their CEO to discover what exactly Currensee has to offer the complex world of the foreign exchange markets.
Q1) Currensee sounds like an interesting undertaking. Can you tell our readers more about the whole project in general and what you hope to achieve with it?
I’d be delighted to. Currensee launched the first Forex trading social network in 2009 just as social media was beginning to change the entire trading and investing landscape. What made Currensee different and continues to set us apart is that our social network is comprised of “real” Forex traders, meaning traders who use real money to trade and who link a live trading account when they sign up with us. We all know that it’s one thing to trade in a demo account and quite another to put real money on the line when making trade decisions. We were the first to deliver this trust and transparency to the Forex market, which are two of the key cornerstones of our company. We aim to ensure that the fast growing Forex market is open to everyone, in a clear way. We have already seen encouraging growth and with the launch of our Trade Leaders program, we are confident that investing in Forex will become easier for investors.
Q2) What do you think are the main benefits of combining foreign exchange trading with social media?
The Currensee Forex trading social network was launched to bring Forex traders from around the world together to share trading ideas and strategies and to deliver trust and transparency to the Forex market. Our company created a new way for traders to collaborate and work together to make trading decisions using social media, and we take great pride in being first to the market.
As we launched our new Trade Leaders platform, we took the idea of a Forex social network one step further. We combine the power of social networking with social investing, creating the next generation of online investment services. The Trade Leaders program is the first social trade automation program that allows anyone – regardless of their knowledge of Forex – to take advantage of the Forex market. The program provides trust, transparency and control by allowing investors to follow and automatically execute the trades of the Trade Leaders, in their own trading account. Unlike other trade automation services that serve to increase trading volume and customer churn, Currensee delivers an auto trading product that strives to make our investors profitable, while giving them complete control and visibility to every trade.
Forex social networks are providing new opportunities for investing, as they’re opening new asset classes such as Forex to the “average investor.” Social networks allow members to share trades by real traders in real time. Using social networks, investors can leverage the expertise of advanced traders by following and automatically executing their trades. Members know that sharing real trades and positions can often lead to new insights and new ideas that can help make more informed trading decisions.
The major benefit of investing with Currensee is that we put the Forex market opportunity into the hands of every type of investor. Now, for the new Forex trader or perhaps a savvy trader who is ready to leverage the trading expertise of experienced and professional traders, we have the Currensee Trade Leaders™ Investment Program. For the investor who may know very little about the Forex market, but who is looking for a way to diversify and take advantage of foreign currency investing, the Trade Leaders program is a new way to access the market.
Q3) Would you say that Currensee is aimed more at Trade Leaders or at Traders themselves
Both. Without either, Currensee’s unique selling point wouldn’t exist! We encourage Trade Leaders to apply for the program as it allows successful Forex traders an innovative and easy way to leverage Currensee to boost their profile and their Forex trading business. We are very selective about who we approve to become Trade Leaders and spend a good deal of time assessing performance and risk management. We aim to provide our investors with the best Trade Leader choices possible. We also spend a significant amount of time talking to new investors and cultivating relationships with existing investors. We are excited to see existing investors continue to deposit and allocate new money into the program and we have had great traction building our investor accounts and assets under management. At the end of the day, we need both Trade Leaders and investors to help the site flourish.
Q4) Currensee currently has 7,000 active members. Is this predominantly traders or trade leaders? Can you give us a breakdown of how many members and participants you hope to attract in the coming year?
Actually, we have over 8,000 members of our social network and membership is growing every day.
Q5) According to internet sources Currensee recently raised $8m from investors. What do you hope to achieve with this? Will you be expanding into new markets, or updating infrastructure?
Our latest round of funding was $4M for a total of close to $17 M USD and will be used to develop new decision-making, collaboration and portfolio management tools for investors, and to make currency investing even simpler and more transparent. It will also be used to fortify the Currensee technology infrastructure including data center expansion and enhancements to the Currensee Intelligent Trade Replication Technology™, a sophisticated trade automation engine that precisely manages the timing and round-turn execution of trades. The funds will also drive further international development, including the expansion of the Currensee sales teams in the United Kingdom and Europe, as well as new global partnership deals in Asia and Europe.
Q6) Aside from foreign exchange trading can you see Currensee diversifying into other financial markets or products?
For the moment, we are primarily focused on the foreign exchange market. However we are looking carefully at adjacent asset classes that will continue to give our customers a true alternative investment to the stock market. We will continue to revolutionise the financial services industry and the social investing category. We aim to stand out in whichever marketplace we compete in rather than just fit in.
Q7) What do you think sets Currensee above its competitors?
There are some pretty significant differences between Currensee and our competition. First off, our Trade Leaders are all real traders with real Forex trading accounts. We do not allow any back testing or demo accounts. These are professionals-level traders who have been trading for many years and who have passed our rigorous review process and been tested as a Trade Leader before being added as a selection for investors. We review our Trade Leaders on a weekly basis and make changes as necessary to keep the top traders in the program and provide the best possible choices for our investors.
We are also different than our competition because the success of our investors is our top priority. We see investor profitability as our top goal and we work tirelessly to make it happen. We have a simple and transparent fee structure that focuses on investor success, rather than trade volume, which is how most of our competition charges fees. It ends up that the investor pays for many trades that don’t make them money and it becomes near impossible to make money in most of the other auto trading programs.
As our social network grew, we launched the Trade Leaderboard™, Forex’s first Leaderboard ranking top Forex traders based on historical performance along with a proprietary performance authority and risk index. The Leaderboard shows annual returns, historical and real-time performance along with risk scores for the top traders in the network. Traders are ranked against the Currensee Trader Authority Index™, a proprietary algorithm that combines performance, risk and experience into a single number. Any type of investor can participate in Forex by creating diversified portfolios that mirror the trades of our elite group of expert Forex traders. As the Leaderboard started to catch fire with traders, many members of our social network began asking us how they could “follow” the trades of some of the top traders on the list. We discovered that we had a unique value proposition for traders and investors looking to follow the trades of top traders because our traders had months of real performance, and we could easily report that performance through the Leaderboard feature. We began to hand-pick those top traders, our Trade Leaders, and vett and analyze their performance and risk management across a variety of strict criteria. For us, less is more. We’d rather provide our investors with fewer Trade Leaders, but who are of much higher quality. We also believe that fees should be very straightforward, which is why we have a simple model of a 2-percent service fee and a 20-percent success fee. We do not charge transaction fees and the Trade Leaders are compensated for success – not trading volume. We also deliver a variety of account controls to our investors, which provide the ability to modify or delete Trade Leaders from your portfolio at any time.