A managed forex account refers to a trading account in which a financial professional trades for you and pays you a performance fee for his services. You would have to pay him based on the amount of profit he earns for you. If he earns a loss, you would also end up paying a portion of that loss. It is considered a more secure form of forex trading than your own. It gives you a chance to trade at a much lower margin and in this way you can enjoy maximum profit potential.
Managed forex accounts come in various forms and each one has their own risks and rewards. They are managed by people who have been professionally trained in the art of currency trading. They have the ability to reduce the risks of your trades and thus maximize your returns.
Forex investors who use managed accounts will find it easier to make fast transactions because they are not under any time pressure as they would be if they were trading individually. They are able to invest at any time of the day as per their requirements. Also, there is a constant supply of funds that can be withdrawn or transferred between different investors. This gives them the ability to diversify their investments in order to get maximum profits.
One major benefit offered by multiple investors is the opportunity to participate in various trades without having to worry about the consequences. If the market fluctuates drastically, the trades of a single investor may become useless. With a managed account, you would be able to maintain a constant and stable trading margin even when other investors lose confidence in the market and start selling. The account manager handles the trades, hence there is no need for you to invest a huge sum of money to start up your own managed account.
Investors who open multiple sub-accounts will also benefit from this service. With a single managed account, they would have to manage each and every account separately. They may be required to increase the risk levels for these sub-accounts. However, with the help of a dedicated managed account manager, investors can effectively and easily divide up their trading activities among these sub-accounts.
A high level of efficiency is ensured with a managed account. You can use all your capital in the best possible way and increase the profit you earn without putting in much effort. You can keep close watch on the currency market and place winning trades according to the conditions. You can place orders for buy and sell depending on the prevailing conditions and you can keep a close look on the market trends.
Unlike other types of investment funds, managed accounts provide a flexible and convenient platform for investors. There is no need for you to follow a specific strategy or invest blindly. These investments are designed specifically for those investors who have limited knowledge and experience. You do not have to follow a specific strategy; just go with what you know and have a clear picture of the market. There are no restrictions and there are no limitations.
With managed accounts, there is no need for inexperienced traders to participate in the markets. These investments are available for traders of all experience levels. You can start small and increase your profits gradually. You can avoid risks associated with placing trades in volatile markets and you can increase your earnings by gaining profit through trading in the market.
Traders working with managed accounts are able to gain profit by being part of a team that has a predefined set of rules and strategies. The teams are made up of professional traders who work together as a team and they are accountable for making trading decisions together. Team members share their knowledge and experience, while newbie traders learn from the experiences of the veteran traders. This helps in reducing risks that are involved in trading activities.
The Managed forex funds have their own managed account management module that provides the necessary assistance for investors. The trading activities are carried out according to a set of rules and regulations laid down by the fund manager. The fund manager ensures that investors do not risk excessive amounts of money through trading activities. This is done through careful monitoring of the performance of the investment and a management module takes charge of the other aspects of the investments.
Some managed accounts providers include sub-accounts in their plans. These sub-accounts are meant for small investors who do not wish to invest in the main account. Small investors are advised to open multiple sub-accounts, depending on their investment goals, so that they can gain access to the fund at different levels if required. These sub-accounts are designed in such a way that investors can benefit from them individually or in accordance with their trading activities. This helps to maximise returns.