Forex Managed Accounts
Forex managed accounts are just that – accounts funded by an investor, but managed by a professional trader. For those who don’t understand how the Foreign Exchange market works or those who just don’t have time to participate in exchanges, a managed account may be a good option to invest in.
There are two basic kinds of forex managed accounts: an experienced trader or an automatic “robot”. Each has their own advantages and disadvantages. Which is right for you?
An experienced trader making your trades for you is a good move on your part. Someone who knows the market inside and out and has made successful trades for years will be able to spot trends and movements in the market almost as well as a robot can.
However, even the best trader incurs losses sometimes and may be more expensive for you in terms of commissions and fees.
Because of the ability to program and store multitudes of statistics and indicators, an automatic account can be a very efficient choice.
Human error is eradicated and you can rest assured that your robot won’t cheat you. However, an automatic account may miss a huge opportunity if it is outside of its parameters and lacks the “instinct” which makes some traders the most profitable.
Perhaps you’re wondering why you should have a forex managed account at all. You’re pretty smart, why not cut out the middleman and do the trading yourself in your spare time? The forex market is a trillion dollar market with trades being made every minute of every day.
Up to ninety-five percent of beginning traders lose an average of sixty thousand dollars trying to understand and compete in the forex market. Why shouldn’t you try to trade yourself? Because unless you understand the statistics and market trends and are prepared to spend a good amount of time following the capricious movements of the various currency pairs, you should just hire a professional to do your trading for you.
