Some of the world’s largest banks pay thousands a year to professionals who specialise in trading Forex. But in a market where only a small percentage of traders manage to become highly successful, it is no wonder that many Forex traders turn to quick fixes to try and turn profits in times of desperation. Most experienced traders know that there is no quick fix and that products like Forex robots are ultimately useless in a liquid and volatile market. As a result, those who can afford to will often invest in managed Forex trading accounts.
By selecting a managed Forex account, traders new to the world of Forex can leave their money and their trading decisions in the hands of someone with many years experience in trading Forex. Whilst still risky, Forex traders can avoid larger risks that they may have taken due to emotional involvement.
Account managers will work to trade in your interests as their salary or commission will depend on the profitability of a trade. However, the Forex trader’s profits will be reduced and they will not learn to trade the Forex markets themselves. In most cases, it comes down to the type of Forex trader you are. Managed Forex accounts are not for everyone. If a trader finds it difficult to make trading decisions without emotional involvement, an account manager can manage the risk of the account. However, a trader with little to invest and an appetite for the market may fare better by trading small amounts tentatively in order to progress within their trading career. As with any industry, entrusting your investment to someone else comes with inherent risks. Some scammers will promote themselves as Forex trading account managers. Fraudulent behaviour can go undetected if Forex traders do not understand the market sufficiently. As a result, it is essential to learn as much as possible before entering into a managed Forex agreement.
Forex traders looking for a managed account need to seek out the most appropriate manager for them. Their management history must be thoroughly examined in order to determine their ability to trade and previous successes. Ensure you select a managed account from a broker that is regulated by the Financial Services Authority (FSA) to protect your funds in the event of a discrepancy. Once you have found a trustworthy Forex trading account manager, it is often advisable to monitor actions and keep a close watch of your funds in order to exercise control over your assets.
Thu, 1st Jan - * UK markets gave back Tuesday' slight gains as traders continued to take positions, or stay on the side lines, ahead of the all-important policy decision - and accompanying market reaction - from the US Federal Reserve due out later this evening.