You may have already heard a lot about the international Forex Market. You might know that it is the largest and highest volume market in existence. You may even have read much of the online literature, and have a good idea about how the market works. After going through several demo accounts and applying all of the strategies you can understand, you may realize that your ability to predict the market is not good enough to make Forex a viable investment if you manage it yourself. The good news is that with managed Forex trading, you can open an account that is run by experts and get a piece of the action, and the money, for yourself. How does it work and what are the fees? Read on to find out.
How Managed Accounts Work
Managed Forex accounts are to Forex trading, what mutual funds are to stock trading. You open an account with a specialized Forex company and put money in it. Then the company’s experts decide which trades to invest your money in. If the company is good, your account will earn money as a result of good trading decisions the company has made. If the company isn’t so good, you will lose your money. The big advantage of a managed account is that you don’t have to spend a lot of your time watching the market and trying to decide when to buy and sell. The big disadvantage is that the company will receive a significant percentage of any profit you make on your account.
There Are No Guarantees
Every once in a while, some criminal will come up with the brilliant idea of offering people the opportunity to open a managed Forex account with guaranteed performance. This sounds so great to people that they invest their money in his company and he disappears with it. So let us reiterate, there are no guarantees in Forex trading. It is an investment, and carries a certain amount of risk. Even the experts who offer managed accounts can make the wrong decision and your account will lose money when that happens. You can limit your risk and increase the chances that your Forex investment will be successful by choosing a managed account with a company or broker that has been trading currency for a while and has had consistently good performance, a company like ACM Forex. Whatever company you choose to trade with, remember to pay attention and be wise about when to cut your losses.
Your Options in Managed Forex Trading by Steve