Managed Forex Account
At some point of their trading career, traders that do not reach a very high level of success with their own skills start to think about using a managed Forex account. Of course, exceptional traders can earn themselves after just a little practice and learning, but for the majority of the beginning Forex operators, the frustration of losses and the inability to learn over a long period of time leads to the conclusion that they should use Forex account management services. There is nothing wrong with that, but there is something these Forex investors should know:
- Earnings may still fluctuate and become losses. When you rely on a managed Forex account the mechanics of your earnings is not much different from that when you trade yourself. The traders who manage your account can still experience losses and you may find that your earning is actually negative during a few months.
- There are many
scam-shopsin the managed Forex account industry nowadays. With the rising popularity of onlineForex trading, the number of scams in the managed account industry grows exponentially. Try to avoid shady managing companies and websites. It is always preferable to use an account at some reputable broker with trading-only access for the managing side.
- The performance of the managed account can be too conservative. Managed Forex trading accounts can turn out to be not as profitable as you might expect. The majority of the account managers use conservative strategies that tend to protect your assets more than gain profit. So, do not expect 100% yield in one month or even a year.
- Do not forget about management commission, transfer fees, withdrawal delays, and restrictions on minim holding period. When you trade with your own money you can do almost everything you want with them at any given moment. When your account is under external management, you will have to wait before you can withdraw some money or change the management. You tie up your own money with the manager. The management fees can be costly — do not forget to find out the real amount of money you will give away as a commission to your managing company.
One should not forget that it is possible to trade yourself and at the same moment have investments in some managed Forex accounts. Diversification is always great, and even highly successful traders do not miss the opportunity to invest into
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