By Johnny Smiths
Due to Forex trading getting a lot of media coverage on news channels and the internet, opening a Forex account has popularized. Along with the banks and investment companies, individuals can also trade on this market with just an internet connection and computer. However, small or individual investors often have a high loss rate with the forex venture. Forex Managed Accounts are the best solution for them.
The most risky part in this market is that the rate of currencies changes abruptly. In such situations new users may find it difficult to profit without the assistance of experienced traders. For this reason traders have to devote a lot of time, may be the full day, full week and even the whole month observing the pattern of the market. Generally sole traders are often not disciplined enough or do not have so much time because Forex is a secondary source of earnings.
Pertaining to the liquid nature of this market, losing is a common phenomenon. Traders must not invest any amount which they cannot afford to lose. In a market where turn-over touches some billions every day, these personal loses are puny though it may be big for the individual trader. But with an account which is managed by professionals and experts the risk reduces substantially.
The broker companies or firm uses the money in the individual trader’s account to buy and sell currencies in this market. Though there may not be any guarantee on the brokering company but the few reliable ones have benefited the trader.
The individual does not need to pay the fees for the professional handling of the account until and unless there is some profit. There is some percentage on the profit amount that the firm deducts as fees leaving the main investing balance intact.
The best part of getting the account managed is that the account holder can supervise the trading going on. Both the parties want to gain advantage and hence, the trader is more on the profitable side. The trader does not need to waste his time and energy but gets a good return at the end. At the same time the same trader can invest in other funds and investment options. There is no restriction in investing alternatively.
The trader also has this option of accessing the account the check the broker’s status at any time. If the trader wishes the account can be monitored 24 hours a day as the foreign exchange market runs all day for 5 days of the week. The managed accounts are also held as individual client’s account so that the management has no real access to the money.
With all these facilities given by the management of a broker company individuals are at low risk to lose their wealth for reasons like inexperience and bad management. The professionals are good at such jobs because they know the ins and outs of the market. The only requirement from the trader’s side is to choose a good Forex managed account.
About the Author
There is a high risk of inexperienced traders losing money in the forex market. With a forex managed account you can trust your money in the hands of a talented forex trader with a proven success rate. Many people are now turning to forex managed accounts as a means of creating a stress free, profitable forex trading environment.
