Managed Forex Accounts
Managed forex accounts are accounts that are managed by a professional trader who makes forex trades on behalf of the account holder. Some of the more successful services can return 5 - 10% per month or more, however, if you are considering opening a managed forex account, there are certain things you should be aware of:
- Forex trading can be very risky
Most forex accounts are highly leveraged, and while superb returns are possible, it is also possible to lose all your money. Only invest money you can afford to lose.
- There are many forex scams out there
Be wary of services that promise astronomical returns (such as 30%-40% a month). These services are often scams similar to HYIPs. A reputable managed forex service will allow you to open an account in your name with a forex broker and allow you to maintain control over your account at all times. Be cautious of services that ask you to send them money directly.
- There will be a fee, which is usually a percentage of profits
The manager of managed account will typically take a percentage of the profits as his fee. This is usually around 20% or slightly more. Remember to take this fee into consideration when calculating what your profits.
HOW TO FIND A MANAGED FOREX SERVICE
Simply googling "managed forex" will get you a lot of suspicious results, many which I suspect are HYIP-type scams. The best way to start researching a legitimate service is to check objective third-party sites that review Forex services. I have found one forex review site that you can use to begin your research:
ForexPeaceArmy - Yes, they have an odd name, but this is a great site where users rate various forex services, including managed forex.