It is a good thing that forex brokers are into managed forex accounts. This means that you can invest in the forex market and make some money from it with o experience or skills on how to trade the forex market. In this article, we will discuss the following points
What managed forex accounts are all about
Brokers offering managed forex accounts
WHAT IS A MANGED FOREX ACCOUNT?
A managed forex account is a forex account owned and managed by different people. A managed forex account is owned by a real forex investor alright, but the investor is more like a passive one. The account owner, after all the process of registering the account and funding it, hands it over to a forex account manager to take control of all the forex transactions carried out through it.
With some negative facts about the forex market, it only makes sense that there should be an arrangement between someone that is a professional, and someone that only have the money to invest in the forex market but not the experience. This is exactly what a managed forex account is all about; there are some terms and conditions attached to this sort of forex trading arrangement though.
WHO IS A FOREX ACCOUNT MANAGER?
A forex account manager is simply a professional forex trader that manages the accounts of forex investors for an agreed commission. A forex account manager is either an individual or a forex firm. The job of the forex account manager is to invest the money of its clients, try to make more profits than losses, and share the proceeds with the manager according to the terms and conditions, which the both parties must have agreed to earlier on.
It happens that some individual forex account managers scan their clients. They take the clients’ money and spend on whatever they wish to instead of investing them into the forex market. This has resulted to some really uncomfortable lawsuits in the past, and people that want to venture into the forex market this way are advised to really be sure they are subscribing to a trusted professional. Another option will be to go for a forex firm.
FOREX BROKERS ROLE IN MANGED FOREX ACCOUNT TRADES
Forex brokers can serve as a mediator between the professional forex trader (that is the forex account manager) and the passive investor (that is the managed forex trader). Some brokers offer sophisticated software features that allow the account balance to be traded by experts without the opportunity to divert the funds.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.