Forex brokerage house Alpari increased on Monday the minimum investment amount for structured products to $3,000 or EUR 2,500 for classic and capped products and to $500 or EUR 400 for touch products.
Structured products, also known as market-linked investments, allow the simultaneous investing in riskier and less risky assets. Investors can control the allocation of funds to financial instruments based on the level of risk and reward they prefer. Riskier assets provide higher potential profit, but also carry higher risk. These could be options or other such instruments. The low-risk assets, usually fixed-income securities, provide guarantee of an income at a minimum risk in case investment in the riskier assets doesn’t meet expectations.
Traders with Alpari can choose between 20 instruments – currency pairs, gold, silver, indexes, shares, oil and agricultural products. The broker offers four types of structured products:
- Classic Products – Here, potential profit depends solely upon the movement of the base asset, the more it moves – the greater the potential profit. Suitable for novice traders or traders who wish to invest a large amount over a long period.
- Capped Products – They offer higher potential returns than Classic Products. Investors place a cap on potential profit, but use better investment terms. This product is aimed towards more experienced investors with prior knowledge and experience that they can apply and to maximize their investment.
- Touch Products – Traders can choose a base asset and then set a price level that they believe the base asset price “will touch” or “won’t touch”. Designed for active traders and applicable for forex instruments only.
- Products with a Coupon Payout – They have the highest potential profit and can be used across forex, spot metals, stock indices, shares, and commodities. Traders can earn if they correctly forecast by how much the price of the base asset will rise over a certain period of time or if you correctly forecast the direction in which the price will change over certain period of time, even if the price doesn’t reach the level which they indicated.
Alpari is headquartered in Russia and has offices in Saint Vincent and the Grenadines, Mauritius, and the UAE. The group has units based in Russia, Saint Vincent and the Grenadines, Mauritius, Belize, and Belarus. Alpari used to operate a UK-regulated branch, which went insolvent in January 2015 after it faced exceptional volatility and extreme lack of liquidity as a result of the EUR/CHF collapse. The group companies are registered with and regulated by the relevant authorities in Belize and Saint Vincent and the Grenadines. Last week, the broker got entered into the register of the National Bank of the Republic of Belarus (NBRB) as an authorized forex broker. It also applied through for a license in Russia, but it was rejected without explanation.