The majority of investors who are new to Forex trading have heard about spot trading Forex pairs but some have not heard about the lucrative relationship of Forex managed funds. It’s simple enough, you sign up for a managed account with a good Forex broker and then link your account to a forex account manager. You then give that manager limited power of attorney over your money. You yourself are not going to actively trade on the foreign exchange market; your manager is trading with your hard earned cash and if you think you have to have a lot of trust to do that, you’re right. You are fully warned here. A reputable forex account manager will not take money out of your account nor put money in. Instead of you trading currency pairs (like EUROS/US Dollars or Canadian/US Dollars) by yourself in a micro managing way, you sit back and watch the forex money manager do it for you. This macro managing relationship in no way relieves you of any stress. You cannot just sit back and have the mentality of simply putting your money in and forgetting about it. Although there is a lot of money to be made without knowing anything about Forex charting, you can also lose your bankroll. There are a few things to check up on before you sign up:
- If your Forex account manager promises exorbitant profits of say 40 to 50 percent per month, say goodbye.
- You should be able to access your account online any time you wish and see all the day to day and week to week transactions and reports.
- If you want to take out a portion of your money or even all of it at any time, you should be allowed to do it.
What kind of profits should you expect from the investment of your forex managed funds? Understand first that as with all investments, the more you put in, the more you can lose but also the greater the possibility of bigger returns. Count on investing no less than $10,000. Many of the best forex account managers won’t take less than $50,000. If you realize profits of between 2 to 4 percent per month, you’ve found a real star for a manager-an expert in Forex trends. Keep in mind, however, while watching your account that there will be losses (known as drawdowns) in this market.