Who can give an honest forex managed accounts review other than someone who has invested in them? Not just one of them but four of them.
That person is me. I feel that I can give an honest review because of my experience with them over the years.
This article IS NOT meant to deter you from investing in forex managed accounts, far from it. This review is meant to highlight what you should look for and what you should avoid when looking into investing your hard earned money into them.
There is so much information… or misinformation out there that you don’t know who or what to believe.
I hope that by the time you have read my review of this alternative investment, you will realise that what I have written is true and honest.
My history with forex managed accounts.
I started investing with a company called Prophetmax in 2011. Originally, they recommended stock market trades for clients where the client would do the trading for themselves. Eventually they focussed on managed forex accounts persuading existing clients to invest their funds into them.
They promised 9% profit per month so I invested. It turned out that 2% per month was the average return once I started investing.
I started to get disgruntled that the profit was not as great as I had been promised and was thinking about withdrawing my funds.
Over two days, my account made massive gains… and then lost them again, then went on to lose two thirds of my investment.
We were told by the founder of Prophetmax that it was an administrative error.
I withdrew my remaining funds and put it down to bad luck and put it down to experience.
Not long after, I found out that there was going to be a mass lawsuit against Prophetmax for fraud. I truly trusted them and they stitched investors up for I think it was about 60 million dollars.
The law case is still going on now, after 6 years.
I should have smelt a rat when I mentioned the name of the broker in a blog post I made. On a webinar later in the week, the founder of Prophetmax was annoyed that I mentioned the broker’s name in my blog post and told everyone not to say who the brokers were. He didn’t want it common knowledge because the brokers said that they would withdraw their brokerage services.
They didn’t want it common knowledge because they were in the process of committing fraud, theft or whatever it is you call it.
My point here is that I didn’t do my own due diligence. I trusted the founder of Prophetmax. He took us all in and made us trust him.
Looking back now, I feel so stupid and annoyed at myself.
The take away here is – conduct your own thorough due diligence and don’t trust anyone but yourself.
Thefxhelpers Forex Managed Accounts Review.
Not put off by being scammed, I went ahead and invested in another company called thefxhelpers. This time I did my due diligence. I checked if they regulated, and they were. The brokers were regulated also, they had a two year 3rd party audit completed and their historical performance was okay. Not as much as I wanted but I was happy with it.
Unfortunately, once again, after I had invested, the performance didn’t match up to the historical performance. I didn’t lose any money, in fact I made a slight profit, but I wanted to make more money out of my investment.
I needed my funds for another project so I withdrew them without any problem.
Take away – due diligence did the trick.
My blood boils when I think about this. It’s my own fault.
I invested in VistaFX because the profits were quite high. My hopes were renewed because of thefxhelpers positive experience.
They weren’t regulated but the brokers were. They didn’t have a 3rd party audit.
After a few months, yet again, profits were up and down and I was thinking about withdrawing them as I wasn’t satisfied with the performance. I decided to give it a while longer.
They had a maximum drawdown limit of 30% so I felt safe in the knowledge that if there was a major drawdown, my account would cease trading. That’s what they promised on their schedule.
However, my account went down and down, past the 30% drawdown. It continued down and down until I had about 2% left in my account.
I kept on asking them to stop my account but they didn’t.
In the end, I had to go direct to the brokers to ask them to stop my account or else I would have ended up going overdrawn and paying them my losses. This could have been thousands of dollars, anything.
I am not sure if this was a scam or not because they didn’t close my account when I asked them to.
Take away – do your due diligence and keep an eye on your account in case your account doesn’t stop out when it should.
Solidary Markets FX Review.
I invested in Solidary Markets because they were a group of individuals with the investor at heart, because they were all investors themselves.
As a managed forex account company, they were not regulated but they were the brokerage also and they were regulated for this. I don’t recall that they had a 3rd party audit.
They had a number of accounts on the go at once and you could choose one, two or any number of accounts and put them in a basket to spread the risk. The performance overall was pretty good.
There was nothing essentially wrong with this company. I didn’t make any money, or lose any. I withdrew my funds as I was not satisfied with the performance.
Take away – not all managed forex providers that are not regulated are scam artists or cowboys.
Good providers are out there, its just a case of finding them. Since I started investing in them, I have seen dozens and dozens appear and then disappear in a short amount of time.
That’s why you always have to conduct thorough due diligence to minimise the chance of you losing money.
Do this by making sure the company is regulated, the broker is regulated and they have a 3rd party audit for at least 2 years proof of performance.
Ask them if they regularly update or upgrade their trading system. After 2 or 3 years, all strategies seem to lose their effectiveness, so look for a company that has more than one strategy or has an ongoing strategy update which they can bring in if the current strategy falls down.
The company that I have my eye on now has had superb results for the previous three years but the last year it has gone flat. During this last year, they have been working on, testing out and perfecting a new strategy until it has proved consistently profitable and it has now replaced the previous strategy.
For comprehensive reviews on more forex managed account providers, please visit www.acorn2oak-fx.com/managedforexaccounts/reviews.html