Managed Forex is a new and growing subset of the alternative investment space in which foreign exchange traders manage individual forex (FX) accounts for investors in much the same manner as a commodity trading advisor manages a futures account for an investor.
Managed Forex differs from online forex trading forex platforms and nearly all other FX related investments most people see advertised these days on the internet. The forex manager actually manages each client's individual account, trading within the clients' accounts directly on their behalf; acting as their own personal forex trader.
Investment through a Managed Forex account solution can benefit the client in the following ways.
PROFESSIONAL CAPITAL MANAGEMENT: In Managed Forex account solutions a professional money manager operates the account and makes investment decisions according to the client's agreed criteria. The experience of the manager helps to grow the profit and preserve the capital.
LESS INVESTOR TIME AND EFFORT REQUIRED: If an account is managed by a professional the investor need not worry about investment matters and can pay more attention to his/her business. The account manager takes all the decisions based on his knowledge and experience.
NO FOREX MARKET EXPERIENCE NEEDED: The investor does not necessarily need experience in the forex market, as the money and profit are handled by the account manager.
PROFESSIONAL ADVICE: The account manager uses his professional skills and experience within the relevant field to provide the investor with good professional advice that reduces the chance of losses being incurred.
LOWER INITIAL INVESTMENT AMOUNT NEEDED: Forex trading systems have a lower initial investment amount required than other types of alternative investments such as hedge funds.
INVESTING FLEXIBILITY: Another benefit that a Managed Forex account provides, is that the investor can add or remove funds from the account at any time with no extra time or effort, which usually ensures liquidity.
Management Charges in a Managed Forex Account: In return for the multiple benefits that a Managed Forex account provides, an annual fee is charged which is deducted from the account's profit.
• 0% to 3% annual management fee
• 15% to 30% incentive fee
POINTS TO BE CONSIDERED:
• By allowing the account manager to trade on their behalf, investors get the benefit of the manager’s experience but on the other hand lose the opportunity of learning more business skills by gaining trading experience in the market.
• Your invested money is accessible by the manager; you are allowing a stranger to deal with your money.
• If you are a new investor, always start with a small amount, the risks of a larger investment at the onset is not at all recommended.
• It’s better to go for an account manager who has been referred by a trusted friend or family member, as their past experience can help you to decide how to invest your money.
