Using a Managed FX Trading Account

Posted by admin 13/02/2014 Comments are off 2429 views

FX Managed Accounts

This article looks at the use of an FX managed trading account.

There are many traders who consider the use of a managed FX trading account.  If you are thinking of using one of these accounts then you should consider whether or not this is the right choice for you.  You should also consider the pros and cons of the use of the FX managed trading account.

What is an FX Managed Trading Account?

The first point you need to consider is what the FX managed account is.  These accounts are the trading accounts that you can get where the trading is done by a manager.  There are two types of trading accounts that you are able to get.  The first is the pooled account and the second is the individual account.

The pooled account is the cheaper of the two accounts that you can get.  When you use these accounts you are going to be investing with a number of other traders.  The pooled account will have a number of investors and the profits that you are able to get will be divided among the investors.  The amount of the profits that you get will be determined by the risk you are willing to take.  The more risk you allow the manager to use the more money you are going to be able to make.

The individual account will be the more expensive one that you can get.  This account will only have you investing.  You will be able to get all of the profits from the trading that it done, but you will have to produce all of the capital that is needed.

Should You Use the Managed Account?

The idea of being able to make money with forex without actually trading is one that many people want to use.  However, you have to consider whether or not this is really the best option for you.  There are some traders who should not be using the managed account because this is not actually the right option.

If you are going to be using the managed account you should be willing to not trade on the market.  The basis of this account is that you will not have to trade on the market yourself.  If you want to trade on the market then you should not be using this account.

Another reason why you should consider not using this account is the costs that you will face.  The cost of opening the trading account will be much higher than any of the retail trading account.  The minimum amount of capital that you need to use to open a pooled account is $5000 and the minimum amount for an individual account is $10000.  These amounts will vary depending on the broker that you are going to be using.  Some brokers will need higher amounts and others will need lower amounts.

The Pros and Cons

There are a number of pros and cons that you need to consider.  The benefit of the account is that you will not have to trade and you do not have to worry about the way that you are going to be trading.  The drawback of the account is that you are not going to be trading yourself and you have no way of knowing how the manager will trade.



Get a free Forex PDF PLUS:

  • 14 Video Lessons
  • Free One-on-One Training
  • A 5000$ Training Account
  • In-House Daily Analysis

Become a forex trader!

Comments are closed.

Latest Tweets

  • Loading...
Free PDF and UNLOCK website features



Google Plus

Google Plus

Follow Me on Pinterest