Alan’s Money Blog

Good day my fellow forex traders. I am back after a somewhat long hiatus from blogging about forex to bring you a brief review of a forex investment opportunity I came across a while back. I knew about this company for a while as it was introduced to me by a buddy forex trader of mine who also happens to be one of the people behind this company (I’ll leave it to you to guess which one).

The company’s official spiel goes like thus:

MILBAY FINANCE S.A. was started by three individuals in 2006 and its original name was FXPool.
Rapidly, people from all over the world started investing with our company. Our commitment with our investors is to offer the most transparent and secure possible way to earn profits, and thanks to the overwhelming response from the investors we became a financial institution in 2007.
MILBAY FINANCE S.A. is formed by:

• Luciano A. Barbarini, President and Director.
• Jose Leon, Support and Customer Service.
• Miguel Valero, Accounting.

The company is based in Montevideo , Uruguay , and it´s registered in the Public Registry of Commerce with the number 6439 (14th of March, 2007), as a Financial Investment Bearer Shares Company under the Decree Law 11.073 of 1.948 and subsequent amendments.

So now you have at least a cursory understanding of how this company got started. So let’s move on to what it is they can do for you. As the title says, they offer a “forex pool” geared towards small investors as well as standard managed forex accounts. The forex pool may be just what the small investor is looking for as it has a minimum of only $1000. However, I would say that even the managed account minimum of $5000 is fairly reasonable and should make it available even to the small investor. Let’s face it folks $5000 is not a lot in the forex world - especially when dealing with managed accounts.

Ok, so let’s go through each offering.

Pooled Funds:

A Pooled Funds account is an account where the risk capital from investors is gathered and traded by our Milbay Finance’s traders. The projected earnings per month are from 0 % to 15% of the invested capital with a low risk strategy. Minimum Investment is US$ 1000 and a performance fee of 25% of profits earned will be charged for this service in a monthly basis. Withdraws are performed once a month and the Investor will be paid through a wire transfer to the original bank account (there is a fee of course). Also you have the options of withdrawing via e-gold. With e-gold the only fee you’ll have to pay is their transaction fee which is nearly insignificant when compared to a wire payment fee, especially since some bank take a percentage of the funds received (2-3% is common). Withdrawing via e-gold is far more economical of course if you don’t intend to withdraw a large amount or if the amount doesn’t justify the banking fees. Naturally since it’s a pooled account you also have the option of leaving the fund in there to compound.

Here is the past performance for the Forex Pool:

Past Performance

NOV2006:	10.07%
DEC2006:	9.09%
JAN2007:	5.86%
FEB2007:	10.94%
MAR2007:	9.74%
APR2007:	6.74%
MAY2007:	1.36%
JUN2007:	2.19%
JUL2007:	1.03%
AUG2007:	1.97%
SEP2007:	1.56%
OCT2007:	3.61%
NOV2007:	2.01%
DEC2007:	-0.51%

Managed Accounts:

Nothing much to say here. This is your standard managed forex account. Here is how Milbay Finance describes their service:

The Investor must open a trading account under his name, with an MT4 platform based broker firm and provide us the account number and the access password. NOTE: Only the Investor has access to withdraw funds from the account with a special code provided by the broker, nobody can withdraw funds without that special code.
The projected earnings per month are from 0 % to 15% of the invested capital with a low risk strategy.
Minimum Investment is US$ 5000 and a performance fee of 33% of profits earned will be charged for this service on monthly basis.

As far as the performance for the managed accounts it is exactly the same as the forex pool but of course the advantage of having a managed account is that it is safer as the trader doesn’t actually have complete access to your money.

Although for $1000 I’d give the forex pool a try even though it is slightly more risky.

Now let’s talk performance. Admittedly this offering is on the conservative side, but given that “high performance” managed forex accounts like GalleonFX have been getting their buts kicked by the market it certainly does pay to have some money in a more conservative offering which can at least give you a small but consistent return or in worse case scenario a tiny loss - not a 20% drawdown or loss as GalleonFX once pulled. But anyways, I should not go brewing storms of fury over here about GalleonFX’s crappy performance, so let’s move on.

Those of you who wish to know more are invited to just visit Milbay Finance’s website at:

http://www.milbayfinance.biz

Also if you wish to chat and share your opinion of or experience with Milbay Finance S.A check out my forum over here:

http://alansmoneyblog.com/forum/index.php?board=10.0

That’s all for now. Take care everybody.