Managed Forex Account
The forex market is a great investment tool with its high transaction volume, round the clock trading and relatively low start up costs. It's also a great way to diversify your portfolio along with the usual stocks, bonds and fixed deposit vehicles. This gives the opportunity for many investments firms to offer a managed forex account service to cater to investors not willing or able to learn currency trading due to lack of interest or time. Some of us just want to watch our investments grow without the tedious task of studying charts or keeping track of economic news everyday!
A typical managed forex account has a minimum start-up capital of $10,000, with brokers and investment firms promising returns as high as 5-20% a month. Most companies charge a monthly fee for managing your forex portfolio with some taking a cut from your monthly profits.
The advantages of having a managed forex account are numerous. With the foreign exchange market active 24 hours a day, you’ll want a system that works for you even while you sleep. By outsourcing forex trading to an investment firm or commercial broker, you’ll benefit from the numerous professional traders employed by them who are active day and night. You’ll never miss an opportunity because you are in bed.
Additionally, the wise investor knows how to diversify his investments and would never put all his eggs in one basket. This means having a portfolio of stocks, bonds, fixed deposits, forex, property, etc. But how does one become an expert in so many instruments especially if you have a full-time job unrelated to financial investment? By signing up for a managed forex account, you leave currency trading to the experts and reap the benefits. The benefit of having your account professionally traded is that an experienced currency trader will have more opportunities to grow your account, even in falling markets, something a newbie forex trader may not have the knowledge of. It is also much easier to take money out of a managed forex account than other investments such as fixed deposits and property.
So what is the catch? Firstly, a managed forex account typically requires an initial start-up capital of at least $10,000, far more than the $250 required of some brokers offering forex mini accounts. In addition, most investment firms take a cut of the profit or charge a monthly management fee or both. Like all professionally managed investments, you might not really know the people behind the trading and their skill and experience levels so there’s a very real risk of making a loss. Even if you do make a small profit, your account might turn negative after taking into account monthly management fees. Therefore it is extremely important to find an investment firm with a good track record if you’re interested to open a managed forex account.
A managed forex account can be an excellent opportunity to diversify your portfolio and provide a steady rate of return on your investment, taking away the trouble and emotions of participating in currency trading yourself. But please remember to do your homework and find a broker or investment firm with a good track record before embarking on this venture.
A typical managed forex account has a minimum start-up capital of $10,000, with brokers and investment firms promising returns as high as 5-20% a month. Most companies charge a monthly fee for managing your forex portfolio with some taking a cut from your monthly profits.
The advantages of having a managed forex account are numerous. With the foreign exchange market active 24 hours a day, you’ll want a system that works for you even while you sleep. By outsourcing forex trading to an investment firm or commercial broker, you’ll benefit from the numerous professional traders employed by them who are active day and night. You’ll never miss an opportunity because you are in bed.
Additionally, the wise investor knows how to diversify his investments and would never put all his eggs in one basket. This means having a portfolio of stocks, bonds, fixed deposits, forex, property, etc. But how does one become an expert in so many instruments especially if you have a full-time job unrelated to financial investment? By signing up for a managed forex account, you leave currency trading to the experts and reap the benefits. The benefit of having your account professionally traded is that an experienced currency trader will have more opportunities to grow your account, even in falling markets, something a newbie forex trader may not have the knowledge of. It is also much easier to take money out of a managed forex account than other investments such as fixed deposits and property.
So what is the catch? Firstly, a managed forex account typically requires an initial start-up capital of at least $10,000, far more than the $250 required of some brokers offering forex mini accounts. In addition, most investment firms take a cut of the profit or charge a monthly management fee or both. Like all professionally managed investments, you might not really know the people behind the trading and their skill and experience levels so there’s a very real risk of making a loss. Even if you do make a small profit, your account might turn negative after taking into account monthly management fees. Therefore it is extremely important to find an investment firm with a good track record if you’re interested to open a managed forex account.
A managed forex account can be an excellent opportunity to diversify your portfolio and provide a steady rate of return on your investment, taking away the trouble and emotions of participating in currency trading yourself. But please remember to do your homework and find a broker or investment firm with a good track record before embarking on this venture.
