The Truth About Forex Managed Accounts
The foreign exchange market or forex market is the largest trading place in the world. It is the venue of exchange between currencies of different countries. Since the forex market is open 24 hours a day, seven days a week, this makes it difficult for individual forex traders to really remain updated for any changes in the market.
Forex is also the fastest changing markets. This market always closes deals every single day. This can mean lots of missed trade opportunities.
Managing your forex account is one of the most important things you will do when trading in the forex market. It can determine whether you will win or lose in the trade.
However, you cannot manage your forex account by yourself very effectively. To effectively manage your forex account, you have to hire someone, like a broker, to manage it for you.
There are several ways to manage your forex account. If you don’t want to hire a broker you can download managed forex account software in the internet. This gives you the ability to know what’s going on in the market and personally manage your forex account.
The automated managed forex account is a strategy used by seasoned traders. Because the computers manage your forex account, automated systems can have your trades placed without any human intervention required.
You own your money that makes up your portfolio in managed forex account. This means that unlike mutual funds which are mixed in with other investor’s currency, a managed account is yours alone.
For those with little or no experience alone place your investment with companies offering managed forex accounts. Companies who offer managed forex accounts have professionals to manage the investor’s capital themselves. With this, investors can be confident that their investment is in good hands and can be sure that they will profit more than by just handling their accounts themselves.
Here are some advantages of having a managed forex accounts:
The client who has managed forex account will receive financial statements and reports of all transaction with accurate prices from the forex broker company that manages his or her account.
Since the account is owned by the investor, they can be sure that their investment is secured. Also, the broker company has limited power of attorney to trade their client’s account. This means that you still have the decision on what to do with your money, the forex account manager will just advice you on how or when to trade it.
Investors can participate in forex programs or cash in their investment right away. You can also fund your managed account if you want to maximize your earnings by using leverage.
To start opening a managed forex account, you will be first presented a list with selected manager. Choose the manager with the highest qualification and the best reputation. Secondly, you will issue a Power of Attorney that will state that the manager will have permission to manage your account.
Keep in mind that forex trading is very complicated and with the market always unpredictable, it makes it difficult for forex traders to know the outcome of the market. If you have not yet been in the business for quite sometime you will find it hard to predict and analyze carefully the flow of the transaction so hire or trust your investment to a company with the best reputation in this field .