Managed Forex Accounts are normally managed by expert traders who have very good capability to use market opportunities and multiply their gains. Forex market is the most liquid market in the world because of being faster in pace as compared to the equity market. Transaction costs in the Forex market are lower than the stock market that makes it more attractive for the speculators and investors. Forex market is very dangerous and risky for inexperienced investors who don’t have enough experience and patience to handle the ups and downs of the market, besides not having knowledge to predict effects of various economic and political events in the market. it is advisable for inexperience investors or those who don’t have time to trade themselves to consider a managed Forex account.
Managed Forex accounts are handled by experienced forex professionals who offer a very lucrative opportunity for the Forex investors. Managed forex accounts are best for investors who want to take financial risks but want their investments to be handled by forex professionals. The professionals managing their accounts have to take all kinds of decisions concerning selection and trading of their accounts. The Forex investors interested in managed forex accounts mostly expect to earn large profits and gains from their investments. However, they must also understand that they can lose huge amount of money in case of market decline. Individual speculators and investors mostly open their forex accounts to earn quick returns on their investments. However, most of them fail to multiply their investment returns as they have very limited amount of information about the market trends. Therefore, they decide to hire expert forex professionals to manage their investment funds to save them from hassle and time wastage.
Investors are always in search of most profitable investment opportunities. However, they have to take high amount of risk while looking to earn high rate of returns. Imagine a scenario in which risk and investment are low but returns are very high. Actually, we are telling u about an opportunity to open a managed forex account. We have listed some benefits of opening a managed forex account below to give a clear understanding about a managed forex account.
Reliability
Managed forex accounts provide asset class exposure very different from stocks and bonds. The investors make a transition from trader to investor by selecting a Managed Forex Accounts. It is very beneficial as investor just has to manage and control his/her investment rather than indulge in day to day tiresome trading. This will also save the time of investor.
Save themselves from extreme level of stress, depression and greed
Investors can save themselves from extreme level of stress, depression and greed by selecting for the managed forex accounts. Since, it is a well-known fact that trading can be very stressful and depressing for the traders during extreme volatile market conditions. The financial professionals managing forex accounts know how to deal with volatile conditions of the Forex market.
Transparent environment
A Forex managed account offers a very transparent environment to both investors and traders. Since, it offers a secure and safe environment for the financial transactions of both parties. This shows that it is a win-win situation for both parties as they both can also earn extra returns from their time and financial investments. The past experience of the account manager also provides an added advantage to the investors. The managed forex account is normally managed by experienced people who have all the needed skill and knowledge to be successful in market.
Huge profits
Actually, people invest their money to generate returns in form of huge profits. Undoubtedly, making investments in right investment option brings huge returns for the investors. However, investors have to be extra careful while pouring money in an investment option. Managed forex account is one of the best investment opportunities for the forex investors. Since, a managed forex account can be easily opened with an investment of as low as $5000. Moreover, this account can easily bring you a profit of 10%-20% each month. Investors can easily increase their returns to 70% to 100% of their investment through further increasing their investments in managed forex account.
Investment
Forex trading is not an easy task for new and inexperienced investors. Since, they can lose major portion of their investment during bearish market trend. Managed forex account can easily aid investors in overcoming this issue. Investor just has to open a managed fund account with some reliable forex company and then he is ready to earn good amount of profits from his investment. On the other hand, investor needs huge amount of experience and knowledge while investing alone in the forex market. Otherwise, he will make huge amount of money in the forex market.
Assurances for earning definite profits
In addition to that, some brokers also offer assurances for earning definite profits from forex investments. However, they do charge some percentage of commissions. The Forex investments are also very liquid and they can be withdrawn anytime from the managed forex accounts. The brokers managing the funds provide consistent and reliable information to the investors. This information is very useful for the investors for making long term decision making.
PAMM systems
The brokers managing the managed accounts mostly use PAMM systems which are also known as percent allocation money management. It is a kind of software application utilized primarily by foreign exchange (forex) brokers to permit all their clients to attach money to a some selected trader managing one or more accounts appointed due to a restricted power of attorney. PAMM system is very useful as it permits trader managing accounts on one trading platform to handle large amount of trading accounts continuously without any interruption. The management of the PAMM is dependent on the size of the investment deposit made by the investor . The trader results and reports are also dependent on this ratio. Since , PAMM system used by the managed forex brokers help investors to achieve profitability with very narrow margin. Since, PAMM system permits to circulate and invest high amount of money while distributing the risk of one investment across various kinds of investors.
Risk selection options
The managers handling the managed forex accounts also give various risk selection options to the investors. Therefore, investors can easily decide about the level of risk before making an investment decision. They also advise investors to select investments according to their risk tolerance level. For example : They advise risk averse people to invest in less risky investment options. Good brokerage houses offer managed forex accounts according to the Risk tolerance levels of investors.
Creates an automatic stream of income from trading in the Forex
Investor is very relaxed and content while using the managed forex accounts services. Since, his/her account is managed by an experienced expert who has all means to take care of forex transactions with complete care. The account manager also provides various kinds of performance and return reports to the investors. Moreover, investor gets his all return payments on time without any hassle which makes his work easy and relaxing. It also provides him opportunities to do other things.
Conclusion
Many investors think that they can easily outperform the market by using managed forex accounts services of a reliable forex broker. However, they must keep in mind that they must also use their mind and they must avoid blindly relying on the financial professionals. The usage of the managed Forex account is very useful for the investors but he/she has to do some research before selecting a Forex broker. Investor must check the Calmar Ratio of the prospective account manager. This ratio is very beneficial as it compares average annual compound rate of return of their trading fund to the maximum draw down during the period. This ratio is usually calculated during the 3 year period. It is mostly recommended to select account manager of higher Calmar ratio as it shows that manager has better risk adjusted return.
Investors are mostly comfortable whole pouring money into the managed forex fund. The sensible investors always like to invest in managed forex funds as it secures their long term investment. Foreign Exchange funds are mostly handled and managed by companies who hire highly skilled and professional fund managers who know how to manage large and complex portfolios with many basket of currencies .The investor must also keep an eye on the years of operation of the company managing the managed forex account. They should be in forex business for at least 5 to 10 years. Investor must also read the complete prospectus given by the brokerage company.
Managed forex accounts provide asset class exposure very different from stocks and bonds. They provide returns to their holders’ according to the appreciation rates of the currencies. The investors pour their money in these accounts because of opportunities to make large shifts between values of international and national currencies.