In times of falling interest rates for bank deposits, Alpari offers you the chance to invest money in investment products which are similar to bank deposits (products have 100% investor capital protection), allowing you to receive returns which significantly exceed those of bank interest.
To increase your potential returns, you can also take advantage of our unique service of secured financing. After a structured product has been purchased, you can activate this service in myAlpari and receive funds for use in trading Forex as collateral for your structured product commission-free!
Let’s take a look at how this works with an example:
On 8th February, 2016 you acquire a structured product for 3,000 USD. The product is calculated on the basis of a rise in the share price of MasterCard. The product had a 100% capital protection level and its investment term lasted until 2nd June, 2016. The share price for MasterCard at the moment the product was formed was 80.65 USD.
To get the maximum out of your investment, you received secured funding of 2,400 USD and invested these funds in a PAMM Account.
On 2nd June, 2016 when the structured product expired, the share price for MasterCard was 96.88 USD (share price growth for the period of 20%). The dollar yield of the structured product with 100% capital protection was 10% (if the forecast didn’t come true and MasterCard’s share price would have fallen in value, you would still have received 100% of your initial investment funds back).
The returns on your PAMM Account investments for the period were 40%: you invested 2,400 USD and turned this into 3,360 USD. The net profit received thanks to the use of a Capital Account with secured funding was 960 USD.
The cumulative profit received from investing 3,000 USD was 1,260 USD, i.e. 42% (or 133% annual).
You can learn more about our secured funding via the Capital Account service on our website.
You can see our latest investment ideas for what’s best to do with your funds on the Investment Ideas page of our website.