Things to Consider When Choosing a Forex Managed Account
The most important factor with any managed forex account is to always ensure that you have absolute control over your own funds at all time. Any reputable Managed Forex provider will offer this feature. To be certain you are investing with a reputable Forex broker, make sure that the broker is indeed regulated in their respective jurisdiction and that the trader of the funds only has access to the funds by means of a limited power attorney.
On the other hand, funds where client funds are aggregated into a pool, and where the funds are controlled by the trader themselves don’t offer this type of protection to clients. Registered brokers operating in a regulated jurisdiction are subject to rigid and substantial minimum capital requirements and regular audits on all financial records and client funds.
Managed forex accounts are a great solution for those people who find they do not have the time or necessary skills to trade the forex market. This alternative allows investors to benefit from the opportunities made available in the forex market. However, experience has shown us that many investors are exposed to the darker side of managed investments, such as trader incompetence and less than scrupulous forex brokers.
Unfortunately in recent years we have seen a lot of managed investment scams, most infamous in recent history being perhaps the largest scam of all in the case of Bernie Madoff and his associated scams. This scam involved perhaps hundreds of billions of dollars of investors funds. This not only sent a jolt through Wall Street but also the whole managed investment arena worldwide. Here was a former NASDAC Chairman, someone almost beyond reproach and something of a Wall Street icon involved in the biggest scam of all time. The simple fact of the matter was that he had managed to scam even those charged with overseeing the industry and had succeeded in doing so for perhaps 20 years.
Managed Forex Accounts give people access to the unique opportunities made available by the Forex market. Factors such as liquidity, high volatility and leverage combine to make forex a suitably advantageous investment vehicle for those with risk capital and the desire to seek higher than average return on their investment. Of course it always needs to be stated that with these increased returns inevitability comes with increased in risk. Managing this increased risk is the key task for the money manager.
The principal purpose of any managed forex account is to achieve sustainable high, long term results, with a minimum amount of draw down and a demonstrable long term record. Search for an investment provider who can prov these attributes over an extended period of time. Three to 6 months of trading statements is simply insufficient to make an informed opinion on the longer term prospects of a managed investment offering.
If you would like to learn more about Forex Managed Accounts visit Brendan’s Forex Website.
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