Managed Forex Accounts Explained by T Stevens

By now, you probably know there are many Forex accounts ranging from the smaller Forex accounts opened by traders at home to the larger Forex accounts that banks and large firms use. One type of Forex account is called the managed Forex.

The word manager stems from the word manage which means to guide something like a career or an account. When something is managed, it means an individual with the skills necessary to be successful with what's being managed is handling it.

A Managed Forex account is a Forex account that's being managed by someone other than the investor who opens the account. Usually the investor is charged a fee by the person who runs the managed Forex account.

When you set up a managed Forex account, you are giving the manager of the Forex account the right to make your trading decisions for you, so it's important that you choose the manager wisely.

Look for someone who has years of experience handling managed Forex accounts and not someone who is hoping to learn how to handle a Forex account by making yours the guinea pig.

If you decide to set up a managed Forex account, you do have the right to tell the manager what you expect in terms of performance and what your financial goals are. When you discuss the managed Forex, if the person you're thinking of using to handle your account starts talking about making trades that you're not comfortable making, you might want to consider whether or not you should open a managed Forex with that person.

Since the person operating the managed Forex will be the one handling your investment and basically running the show, you need to make sure they know what they're doing. Find out if they have a bulldog reputation-which can be good when trading Forex, because bulldog managers know when to grip and hang on, but when it comes to running a managed Forex account, you don't want someone who won't listen to your input.

The good news is that nine times out of ten, the person managing a managed Forex account acts in a professional manner and you stand to gain from his professionalism and years of trading know how.

One of the bad sides to having a managed Forex account is if you think a currency pair is going to go one way and you want to make a decision to buy or sell, you won't have the option of having that choice to make.

The person behind the managed Forex will be the one who gets to move or stand still. So when it comes to a managed Forex , you want someone who would move when you would and sit still when you would.