Forex Managed Account

Forex Managed Account

by Brian Tewes

Investing in the Forex market is a great opportunity to diversify and benefit from the liquidity that global foreign exchange provides. A good way to leap into Forex trading is through Forex managed accounts while receiving professional training and learning how to trade by oneself. Ultimately, good trader's fine tunes their own trading system and learns how the market reacts to specific news and patterns. The big players in Forex trading are primarily central banks, commercial banks, non-banking International Corporation, hedge funds, private investors and speculators. Huge investments in form of deposits are required in Forex trading hence previously small investors were unable to trade in the Forex market. However until recent years, with the continuing growth of the internet and competition, small investors can now open a Forex account with as little as $250.

There are a few factors as to why Forex is starting to attract more small investors. For one, Forex can be traded 24 hours a day 5 days a week. Before now, trades used to be made through phone, but these days, the internet now offers traders the opportunity to keep an eye on their trading accounts from anywhere in the world and also execute market trades in real time with the click of a mouse button. Managed account accommodates those investors who wish to allocate part of their initial investment capital to the Forex market but are either unable to watch the markets 24 hours a day or prefer to have their risk capital managed by professionals. Managed Forex trading depends on certain strategies which may be known to the investors or exclusively to the fun managers.

It is not enough for one to simply invest money without knowing the basics of what s/he is into. Even if a Forex fund manager does not know the technicalities involved in trading, it makes a lot of sense for such a person to know what goes up and comes down or stays there as it concerns the trading activities. Having a Forex managed account can be compared to an investment with a mutual fund related to the buying and selling of foreign currencies, but with one notable difference being that with a managed Forex account you can be in control of your account. A modest managed account whether it is traded by another person or an automated robot can earn up to 20% per month or more depending on how good the system is. There have been stories of managed accounts earning 20 times the amount they started within a year.

However, finding an automated system that is consistently profitable is a difficult challenge and most accounts are on the slower side of about 5% to 10% per month. Searching for a good managed Forex account is not an easy task. Some trading systems take too many trades causing the trader to margin out too soon or give poor signals all together. Clients are advised to be sure of trading system that is able to back up its data with proven results and back tests their system in real-time. Choosing an automated trading system with the highest monthly returns isn't always the best choice. Depending on the broker that is managing your account and their ability to pay out is what counts the most. There are hundreds of Forex brokers and not every broker is able to fill positions on trades.