Literally, you can sit back, relax and watch your investment grow with zero effort and risk reduced to a minimum. And we are talking about a field that is considered to be one of the riskiest investment platforms – foreign exchange trading market. With forex managed accounts, you can stop worrying and proceed with your daily routine. You can be a profitable investor without having to go through the process of trading. – (Check out all forex account types from FXCC).
Nowadays, brokers offer a managed account program. This is an option that you can always take if you are too busy with many things to learn trading yourself. In the process of selecting a broker that will provide you with forex managed accounts, you have to take a look at several factors:
- Transparency:As much as possible, choose a broker that allows you to monitor your own managed account anytime and anywhere you want. This is the only way that you can be sure that your account balance, trading position, profit and loss figures, and all other factors are managed properly. It also counts if all information that you receive via updates are accurate.
- Fees: Of course, it is understandable that forex managed accounts are not for free. But some brokers give much more leeway than others. For example, it is wise to pick brokers that do not require investors to pay a management fee. In the foreign exchange trading market, when an account is managed, the standard sharing of net income is 70/30% (investor/broker).
- Risks:A good trader or account manager will always inform you of the risks and will not give you the false illusion that everything is going smoothly when they are not. Trading risks include the following: credit-worthiness, leverage, and volatility in the market. If your account manager means well, he will discuss these risks with you in full detail. After all, it is your money that he is using every single time he trades.
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- Disclosure of Risks:
Just like any other account, forex managed accounts consider past performances as mere guides that are in no way indicative of what results to expect in the future. Take note that any outcome may vary because there are a lot of market factors that you should put into consideration. Any account manager will tell you more about these kinds of stuff. Yes, you may not have the time to trade for yourself, but it does not necessarily mean that you are not interested about the details.
Take note that most forex managed accounts have a minimal investment requirement. The usual range is between US $ 3,000 – US $ 10,000 on the average, depending on the features of the trading platform.
In order for you to succeed, you should have a well-defined list of expectations based on the promises made by your trader of choice. Never hesitate to ask questions and express your dissatisfaction whenever you think that your account manager is falling short of the agreed returns.
At the end of the day, most of the implications brought about by the forex managed accounts – be it a gain or a loss – will be shouldered mostly by you as the major financier of the trade.
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