Regulated Unregulated Does not matter. Less than 12 months 1 year to 3 years More than 3 years. Locating a trustworthy forex managed account provider is crucial. It will allow you to compare the best forex managed forex suppliers, all in one location. Our aim is to connect you with the top money managers.
They will provide you with the information and latest performance reports that will enable you to conduct thorough due diligence prior to depositing your funds.
Our aim is to help you with your investment by offering assistance and advice that will help you to save money and time.
Using this free managed forex account provider comparison site is simple and it will take less than one minute, just key in your criteria into the above form to receive your results. Thousands of investors looking to find a managed FX account provider trust us to help them make the right forex investment.
If you are looking at managed forex accounts as an investment opportunity, please feel free to use our compound interest calculator to discover what profits that you can potentially attain.
There are three variables for you to enter. In recent years with the increase in superior technology and market access in foreign exchange and forex investing, some forex dealers and traders now offer their services to retail customers, and this cross-over of managed forex account and trade for[…]. You are looking for answers and I know exactly how you ended up here? Do you want to invest in a managed forex account, or are you searching for how to invest in managed forex?
Well you have come to[…]. If you are new to forex managed accounts or even if you just want to find out a bit more about them before investing in them, you may be finding that it can be quite a daunting job. You can find out more about some managed accounts at our review page. This webpage is designed to help you find out the answers to your questions. I have invested in four forex managed accounts now so I am quite experienced with them.
I have written down everything that I know about them in the article below. In a nutshell — Definition — Forex managed accounts are foreign currency trading accounts that are traded by professional traders and are administered by a management company on behalf of the investor.
The management company charge performance fees and sometimes an administration fee for their services. The client has complete control of their account and can deposit and withdraw funds, and close the account when they wish. After you have made the decision to invest in a top 10 forex managed account, you are going to have to find one that fits your needs.
You will need to think about your tolerance to risk, the benefits that they offer and then do your homework on them. First of all, you will need to determine your risk tolerance level and how good you are at handling drawdowns percentage of decline from the account high to low in your account.
You can find out more about your risk tolerance by taking this risk profile test. If you have just enough capital to invest and you are not used to spending and also losing large amounts of money or any at all , your risk profile will be minimal so you may want to play it safe and go with a company that uses only small lots size of the trades , and also has a small drawdown level. The profits are typically less but there is less risk involved to your investment. If the capital is not an issue and you are used to large investments and spending large amounts of money, and often losing money, your risk profile will be higher so you may want to choose an account that trades with larger lots and has greater drawdowns.
Although the risk is greater, the rewards are potentially greater also. You might be somewhere in between. You may have had some experience with trading or investing and lost a bit of money in the past, so your risk tolerance is somewhere in between the two above risk profiles.
If you are not sure where you stand, you can always start at an account with a low risk to test out the waters. After a while when you feel more comfortable, and hopefully made more money to invest , you could move up to a slightly higher risk managed account with potentially greater rewards.
Once you have come to a decision about how averse to risk that you are, you can go on to the next part of choosing a forex managed account. Now that you feel comfortable with your risk profile, you can check out a few accounts to see what benefits they can offer you. First and foremost we want our capital protected but obviously the reason that you and I want to invest in managed accounts is to make money.
Great returns are what we want but you will have to consider the overall package, rather than base your decision purely on what the previous two years trading statements say that we could potentially make.
As I said earlier, the greater returns are generally made when you take on more risk, greater drawdowns and larger lots. Also, think about the performance fees that are deducted. So, by all means try to get the best returns you can BUT take risk and performance fees into consideration also.
You will have addressed this issue as you were deciding on your risk tolerance. Ideally you will want as low a drawdown as possible, even for a high risk profile. You will need to confirm this with the management company. There are accounts now where you can set your own drawdown limit so this is a great option if you can find one.
Look out for accounts that have a minimum opening amount requirement that fits in with your investment amount. Nowadays however, with the advent of the internet and fast broadband connections, it has made it really easy to open a managed account. With ease comes popularity and with popularity comes increased competition for business. The management company deducts a performance fee for their services, and they vary considerably. Keep looking around until you find what you want.
Now that you feel comfortable with your risk profile and you are happy with the benefits on offer, the crucial part is choosing a trustworthy and dependable company to invest your money with.
The last thing you want to do is lose your money to a bunch of scammers, and there are many about. So doing your homework on the company you feel is right for you, is essential.
Investing in a managed account carries degrees of risk and some of those risks you can bring down to a minimum by conducting quality due diligence on the companies.
You can normally wheedle out the scammers by doing this. You can read more about it here vista-fx-trading-group-review-big-no-no-for-me. The main aim is NOT to lose your initial deposit and a good management company will have this as its main objective.
First of all you can do an investigation to see if the company has independently managed forex verified results with an audit report.
This is a statement of trading performance from an autonomous 3 rd party accountancy firm that states that the results and information are genuine and correct. This information may be available on the website, or if not, you can contact the company to see if they have one for you to see.
If they have, you can go one stage further and do your due diligence on the accountancy firm and then contact them to confirm the 3 rd party audit. If they are, the next step would be to get in touch with the regulatory body like the FCA UK for example, and ask them to confirm that they are actually regulated with them and if they are in good standing. If they have been profitable for that amount of time then you can more or less accept that they are a good trader.
Depending on which trading platform the trader uses such as MT4 MetaTrader 4 , you could do it online with the help of various analytical tools such as myfxbook.
With the online analytical tools, you can also check to see if the trading results are verified. This means that they have not been manipulated by scammers. Yes they get everywhere. You will need to check how to do this on the website because each analytical tool does it differently.
The fourth bit of due diligence you can do is check to see if the broker that the trader uses is regulated. The unregulated small brokers will not last long in this business because it is highly competitive. Once again, to check if they are regulated, have a look on their website as they will want to keen to reveal this information.
When you have the regulatory details, you can contact the regulatory body and ask for confirmation if the details are genuine. The leading brokers are splattered all over the internet so you can usually determine the good ones. If the above four criteria are passed, then you will reduce your risk of being scammed by a massive extent. There are other things you could do such as checking out forex forums such as forexfactory. Once you have defined your risk profile, checked out some accounts and done your due diligence, you should have come to a decision about which managed forex account that you want to go with.
Signing up to an account is very similar whichever management company you have opted for. It is basically the same process but with slight variations.
It is self-explanatory really and the company will guide you through it. First of all you will need to go to their website and look for the account opening page where you need to fill out the form with your details. If you leave your phone number, they may call you otherwise they will send you an email with the instructions of what to do next.
You should receive a contract to sign to agree to the terms and conditions such as the amount of the performance fee and the fact that they can withdraw it at the end of the month. Have a good read through it and if you agree to it, then sign it and return it. Normally, you will be instructed to open a trading account with the broker that you did due diligence on earlier.
Go to the brokers account opening page and fill out your details. You will get an email saying they have received your application and that when they approve it, they will get back in touch with you. After the brokers approve your application, they will ask you to send over some identification, usually some photo id such as a scanned passport or driving licence, along with a utility bill with your current address on it.
Upon receiving proof of who you are, you will receive another email from the brokers which has an LPOA, Limited Power of Attorney on it, typically in the form of an attachment to print, fill out and return by email, or it may be done online using an electronic signature verification.
They will have no access to your account for any other purpose such as withdrawing funds and changing account details. Sometimes, the above dealings with the brokers is carried out through the management company so you would be sending your identification and LPOA to them and they will sort out some of the administration with the brokers. You will receive an email from the brokers and also the management company saying that your trading account is activated and that you can add funds whenever you wish.
There are many ways in which to fund your account as all methods of payment are acceptable. On one of the previous emails from the broker or the management company, you should have had instructions to download the trading platform that the broker uses.
If not, you will be sent instructions in another email shortly. You will receive your login details and password also. Your account is funded and the trader is able to start trading your account. Well there is not a lot you can do apart from letting the trader get on with the job of trading. Once the last trading day of the month has ended, you will be sent a trading statement from the broker that contains open and closed transactions, working orders and your account summary with all of the amounts won and lost and current balance.More...