Simulation Using The MCM Programme
It is possible to simulate exactly the performance of a multicurrency debt reduction programme using a separate currency trading account.
This has many advantages:
- No need to switch debt to a new lender.
- No commission on currency transactions.
- Reduced set up fees.
- Fees are only payable out of profit.
- Risk can be capped at 5%.
- No tax to pay on any profits (potentially).
The disadvantages:
Margin funds need to be placed in the currency trading account in order to facilitate the simulation, typically 5% of the nominal amount traded. This is not a charge as the money still belongs to the account holder, but capital needs to be in place in order to simulate the currency switching. It is possible that all of these funds may be lost.
The MCM Programme
The key to debt reduction using currency switching is being in the right currencies at the right time. In order to reduce debt, the debt is required to be in a weakening currency. Although it is possible for individuals to make the currency selections themselves, many choose to appoint a currency manager.
The team at Arbiter have been trading currencies for 15 years. The MCM programme is a systematic approach which is designed to identify trends in the currency markets. When the system identifies a trend, currencies are traded. All trading points are market dependent: there is no human influence involved.
