One way or another, you have heard about managed forex accounts, (forex managed accounts as some people say), and you want to find out a bit more about them. Well, this website is all about them, so please read on to discover more.
A forex managed account that is run by a management company and traded by professional traders is an alternative investment that is becoming more and more popular. If you have some money to invest and have been thinking about this opportunity, you will need to understand the primary reasons why forex managed accounts can be a great way to invest your money.
If you want to find out how much profit you can make, have a look at our interactive compounded profits calculator.
Following, I have made some thought provoking reasons why need to include a forex managed account in your portfolio.
Creating some decent profits is the main reason why most people want to put their cash into an investment and a managed fund could generate a nice lot of it for you.
Property investment is not bad but there are better things out there. The baby boomers that instigated the property boom have all purchased their properties and are now putting their cash into different avenues such as setting up their own franchise business.
Stocks and shares can make you, or they can break you. Mutual funds, annuities and bonds are normally slightly profitable but won’t quickly make you a lot of money. Think about a typical savings account which will bring you about 5% per year maximum.
A well-run forex fund is going to give you twice that 5%, 10% on a monthly basis. In reality, you could generate over 15% monthly with a opening capital balance of ten thousand dollars.
There is no point creating bags of cash if you are going to lose it again. So, the next reason for beginning a well managed foreign currency account is that it is low risk safe investment.
A good management company could get a 70% plus winning percentage of trades. The best professional traders can beat 90% of winning trades. The top priority for any well run forex account is keeping risk to a minimum.
You have control over your account and can deposit and withdraw funds at any time. Traders have access to your account by virtue of a limited power of attorney (LPOA). This allows them to trade on your behalf but it stops them from taking money from your account, apart from the performance fees.
The trading group is strictly controlled and certified by regulatory bodies such as the Securities and Exchange Commission and also have to be independently audited.
Saving time and effort is another strong point. Since the account is managed, you don’t have to do a thing once it is configured and up and running. No need to sit day long in front of your computer waiting and searching for signals.
There is no need to learn about and comprehend the hundreds of methods, charts, tools and indicators that can be overwhelming. The traders make your profits which mean that you are free to do your own hobbies and interests.
Another vital thing to think about is the high liquidity. The thing with a lot of other investments such as buying property and long term savings is that you will not be able to access the cash at your convenience.
It is tied up for months before you can make use of it. A managed forex account allows you to put in a withdrawal request and in as little as 24 hours, normally 48 hours, you can have your money sitting in your personal bank account.
Check out this UK managed forex account that has generated over 800% since 2014.
There are very few investment vehicles that can equal the accomplishment of a well-managed forex account with as minimum as ten thousand dollars opening capital. High performance accounts typically require a minimum of $1,000,000 dollars starting capital, and many require ten million dollars.
Pensioners and retired persons as well as anyone that has a requirement of a monthly income can take advantage of a managed account because funds can be withdrawn at will.
To realise the true potential of this investment, profits must be left in the account to accrue and compound over time. Einstein called compound interest “the 8th wonder of the world” and “the greatest mathematical discovery of all time”. He is not wrong.
If you invested ten thousand dollars a year ago with a 10% average monthly gain, it would now be worth twenty one to twenty four thousand dollars, (depending on the percentage of the performance fee). After 5 years, that ten thousand dollars would be worth around half a million dollars.
I have invested in four managed forex accounts now so I do have a fair amount of knowledge about them.
I am certain that you are the same as me and don’t like to think that you are going to lose your money, so the most important question that you have to ask yourself is, “Can I afford to lose my money?”
Don’t invest what you can’t afford to lose.
I am not being a scare monger at all, but there is ALWAYS a risk in investing, no matter what the investment is. A good friend of mine thought his money was safe with an offshore bank, however he lost many tens of thousands of pounds. Good for him that he has got the majority of it back now.
What I am trying to say is whatever you invest your money in, there will be a certain amount of risk. The idea is to minimise that risk to the smallest degree that you can, and that means doing your homework.
And that is why some of you are her I guess, to find out more.
“The wealthiest people of the world are the ones who are willing to, and have taken the most risks. They are prepared to take losses because losses are part of winning. Without taking the risk and being proactive, unless you are lucky, you more than likely won’t achieve your target passive income and live the lifestyle that you have always dreamed of”
You have made a decision that you want to invest into a forex managed account.
There are literally hundreds providers to choose from, but which service do you opt for? I know how many there are hundreds because I am forever checking them out for business purposes, and to invest in.
Of course you could choose the first company that offers you a great return. I wouldn’t advise it though.
First of all, you are going to have to conduct your due diligence.
What I tend to do is look for some companies on the internet. You can find them on forums such as https://www.forexpeacearmy.com, but I start with a Google search.
Due Diligence On The Company
Managed Account Regulation
My first bit of due diligence is to check that the provider is regulated. This provides an extra layer of security for the investor. Getting regulated is not a cheap thing to do and it is a very stringent process so the very fact that they do this means that they are serious about their business.
It should say if they are regulated on their website, otherwise you can get in touch with them and ask them. If they are regulated, you can go one step further and get in touch with the regulatory body and check with them if the company is in good standing.
If they are not regulated, it’s not the end of the world. I have invested in two unregulated managed forex accounts and found them to be transparent and trustworthy. Just make sure the pass the other due diligence tests.
3rd Party Audit
A 3rd party audit is carried out by an independent accountancy firm and validates and confirms that the trading performance is correct and legitimate.
Once again, have a look on their website to see if there is a link to the audit on it, If there isn’t, get in touch with the company and see if they can supply one for you.
Online Verified Accounts
There are online automated analytical programs for traders and investors trading accounts. One of these is www.myfxbook.com. Companies that provide forex managed accounts for investors can use them to present their live trading accounts for the world to see.
If a provider gives you a link to their account, you will be able to see how their live account is performing. The part of the page that is of interest to you, doing your due diligence, is just above the chart.
There will be two sections where is says “Track Record Verified” and “Trading Privileges Verified”. What you are looking for a little green tick. This will signify that –
A) The system’s algorithm has automatically checked, verified and removed any errors. It will have also reinstated any lost data, and then it recalculates the account. This means that there is no manipulation of the live performance charts.
B) The system’s authentication algorithm confirms that the managed forex provider is definitely trading the account and is not utilising the password from another trader that has a superior account.
Being listed on myfxbook.com is essentially an audit since the accounts and the trading results are authentic. For due diligent purposes, this could be used as a replacement for the 3rd party audit, although there is no reason not to perform both checks.
Performing a regulatory check on the forex brokers that the managed account provider employs is crucial. Have a look on the broker’s website for the registration number and if it isn’t visible on there, get in touch with the company and ask them if they are regulated and what their registration number is.
If the brokers are regulated, you could get in touch with the brokers’ regulatory body and ask them if the brokerage is indeed regulated and if they are in good standing.
If you discover that the brokers are not regulated, DO NOT invest your money into that specific managed forex provider. There is too much risk if they are not regulated. Move on to another provider that employs a regulated forex broker.
One more piece of due diligence that you can perform is check the performance of the trading history. Ask the provider to see trading statements for a minimum of the last two years. The longer the better because if they have good trading performance over a long period of time, it means they have been consistent over time.
Bear in mind that historical trading results don’t guarantee future trading results.
This check could also be obtained from a fully verified online analytical tool such as www.myfxbook.com.
If you want to reduce your risk drastically, the above due diligence should be carried out prior to investing your money.