Managed forex traders are forex investors that are invest passively into the forex market. It is a good way of making money from the forex market as a newbie with no trading experience or skills. This will in effect reduce the rate of failure in the forex market. Unlike the usual forex account many are used to, the managed forex accounts can be accessed by the owner of the account, and the forex account manager.
WHO IS A FOREX ACCOUNT MANAGER?
A forex account manager is a one believed to be well grounded in trading forex. This meant experience, skills, and general knowledge of the forex market. In other words, a forex account manager is a professional with good reputation.
When the forex community is aware that a certain professional manages the account of others, passive investors will start to sign up with the manager, and the forex account manager is presented with the responsibility of managing the accounts of others. The forex investors (or managed forex traders) invest with the professional, who trades the forex market with the investors’ capital for an agreed percentage of the profit.
WHAT DOES IT MEAN TO BE A MANAGED FOREX TRADER?
A managed forex trader does not really trade the forex market per se. What they do is to invest with a professional (who is the forex account manager) and let the forex account manager to take care of all transactions. This is particularly beneficial to investors who may not have enough time to trade the forex market themselves, or those of them that do not know much about trading the forex market.
This means that the one may not get to learn the skills needed to trade the forex market, as well as gain the experience of it. But then, it is better than trading the forex market with no skills, no knowledge, and no efforts to gain them.
FOREX ACCOUNT MANAGERS AND SCAM
There has been cases where investments are made with a forex account manager only for them to find out later that the account manger used their money for other things that does not have to do with forex trading – a breach of contract you may say. These account managers are probably excellent and skilled, but in one way or the other, they fell to the temptation of spending their investors’ money instead of trading with it. As a result of this, investors are advised to be really careful when investing with an account manger to make sure that the account manager is a reputable one. One way of being careful with this is to work with the brokers to keep the money till the fruition of the profits.
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.