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How do Forex Managed Accounts Work? |
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With a managed account it is most important to always have complete control over your own funds. This means investing directly with a reputable, regulated broker and offering only limited power attorney to the account manager, to allow them to trade the account. A pooled account, whereby the funds are handled directly by the fund manager or trader do not offer the investor this type of protection. Regulated brokers are subject to minimum capital requirements as well as some degree of regulatory over site including regular audits. |
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How Not To Lose Money With Managed Accounts |
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Managed forex accounts present a viable alternative for those people who find they do not have the time or inclination to trade their own forex account, to benefit from the opportunites offered with the forex market. Unfortunately, experience has shown that they also open up investors to the down side of this type of managed investment, such as ponzi scams, trader mismanagement and unscrupulous brokers.
Sadly over the years we have witnessed a lot of managed investment scams, most recently of course, perhaps the largest scam of all is the Bernie Madoff case, where tens, perhaps hundreds of billions of investors funds were lost, in the worlds biggest Ponzi scam. Managed account scammers invariably ask victims to invest more money than they can really afford for this type of risky investment. |
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FX Street News |
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Managed Forex Accounts give people access to the investment opportunities presented by the spot forex market. Liquidity, high volatility and leverage combine to make forex an attractive investment vehicle for those seeking higher than average returns. Of course as we all know with increased returns comes the inevitability of an increase in risk.
There are immense opportunities to profit from relatively small movements or from the long trends that occur in the forex regularly. But, be under no illusions, trading the forex is at best a difficult endeavor, and amateur traders have absolutely no chance of consistently making money from the forex market. It is a well known fact that 95% of forex traders lose their accounts in a very short period of time.
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