All about Managed Forex Accounts
Getting a measly single digit interest rates in banks does keep your money safe and risk-free, but they will be just that, safe. If you want to make your money grow then keeping them in a savings account is not the way to go. You need to diversify your portfolio and a great way to invest is through Forex Trading.
The foreign exchange market or forex market is the largest, most liquid, and fastest transaction market in the world. Forex is a trade of currencies by different countries. This market has no actual market floor and trades often occur via telephone communications and via the internet. Since this market involves different countries in different time zones, it is open for 24 hours a day. Since people cannot trade for 24 hours day after day, this means a lot of missed good trade opportunities.
Managing your forex account can solve this problem. It is one of the most important things you will do, especially if you’re an active forex trader. Managing your forex account properly will determine whether you will gain profit or lose money.
However, managing your forex account by yourself can be a daunting task and you probably can’t trade and manage forex account effectively. You can get your forex account managed by a professional, like a broker, to do the managing work for you.
There are different ways to manage your forex account, either you can download forex management software or you can hire a broker or other financial institution to manage your forex account for you. This enables you to know what’s going on in the market and at the same time manage your forex account.
Using software’s to manage your forex account is not recommended for beginners for forex traders, software’s are more efficiently used by seasoned traders because they know how to manage their forex account effectively. Automated systems can have your trades placed without requiring any human intervention.
In a managed forex account, you own your money that makes up your profile. This means that unlike other types of management, like mutual funds, which are mixed in with other investor’s money or currency, a managed account is yours and yours alone.
Managed forex accounts can be very beneficial for traders who are beginners or novices in the forex market. Having little or no experience in the forex market can be risky, it is wise to hire professionals to manage your forex account for you. Financial institutions who offer managed forex accounts have professionals and brokers to manage the investor’s capital. With the knowledge of having your money handled by professionals, you can be confident that they will be working to get you profits and minimize loses.
There are so many benefits that a managed forex account can do for you. Here are some of them:
A managed forex account gives the investor security. This is because the professionals or brokers who work with your account have limited power of attorney. This means that you still have the decision on what you want to do with your investment. Forex account managers are only there to advice you on how to trade, when to trade and what to trade.
With a managed forex account, you are not stuck with your initial investment; you can fund your managed account if you want your earnings to increase by using leverage.
Starting a managed forex account is easy; you will be first presented a list with selected forex account managers. Before choosing a manager, you first have to look at their qualifications and also find out how many successful forex accounts they have managed. You will also be required to issue a limited power of attorney. This is because it will enable the forex account manager you chose to have permission to manage you account but not trade it.
Always remember that the forex market is a very unpredictable and risky market. This unpredictability is difficult for forex traders, even seasoned ones, to determine the outcome of the market. Having a managed forex account can help you minimize your loses and maximize your profits.