A forex managed account gives permission to a professional account manager of choice to use your funds for trading. By doing so, the professional manager will have a share over the profits that you will earn or you can give a fixed salary. But with the advancement of technology, the account manager need not be an actual person who will do the trading for you. In fact, there is already a kind of software for trading that can do the trading for you if you are too busy or too afraid. This kind of manager is by far the safest kind since it will not run away with your capital and funds.
There are several advantages that you can get from relying on a forex managed account. For one, you can benefit from your manager’s years of experience. If you will be watchful enough, you can learn a lot from the moves, decisions, and trading style of your account manager. If you are a beginner who lacks the experience but is serious enough to proceed with this kind of business, getting a money manager is a sound decision.
You no longer have to deal with emotional distress connected to trading if you are into forex managed account. In addition, if you can only devote a portion of your time because you have a full time job or a day job, hiring a money manager can be your best option to proceed with your forex trading career. At last, not having sufficient time will no longer be a reason for a person with sufficient funds to stop trading.
All of these advantages and benefits can be quite appealing and tempting. But in order for you to come up with a good decision, you should also be exposed to the dangers or risks that come with it.
For one, depending solely on forex managed account might deprive you of the much needed experience so that you can handle your own account in the long run. You can never learn fully by simply watching. You will need to have a lot of hands on experience so that you can be finally ready to face the changing tides and current. Hiring an account manager will not be contributing to the long-term plan of gaining independence.
You will forever be dependent to the skill and the will of your money manager once you give up the responsibility of handling your trading account to another person. Yes, you might be earning consistently but you can never learn to trust your own decisions in the long run. What will happen to you if the manager of your forex managed account suddenly decides to resign? Without sufficient practice, you can never trust your own judgment.
A piece of advice to those who have already opted to have a forex managed account: never give it up totally. From time to time, give you account manager a day off and give trading a try. You were the one who decided to open it, so you should use it. Maintain the necessary control of the account and make sure that you are ready to handle your own account at any point. After all, it is yours.