Many of you probably heard about Forex. Lately, uncountable sources talk about forex trading on the Internet and it is no wonder that the Forex is a booming business. And why not, if a 20% profit per month is real and achievable? You might have also heard of those who lost their money in the Forex market. According to the statistics (only) 20% of all traders are successfully trading over a long period of time. Well, to be honest, forex is no miracle, and you can earn money as easy as you can lose it. The latter is even more likely and faster if you have no idea about what you are doing.
So how can you get an interesting profit if the chances are so low? The only thing you need is to find someone with a lot of experience and satisfying results over a long period. But where can you get someone like that? Why should you trust him? What shall you do? What should you be aware of? To answer these questions read more.
The anwer is: forex managed account.
I would like to start with the definition of the managed account. More precisely with the definition of the Forex managed account. Forex managed account is a trading account opened at a broker company in your name, managed by an experienced Money manager / trader. This type of trading account offers a lot of advantages. Because it is opened in your name, nobody but you can withdraw your money, and send nowhere but to your bank account only (we mean a bank account opened in your name). This rule is included in the legislation that every broker must obey. It ensures that your money will not be defrauded or withdrawn by somebody else. Money you invest remains in the bank account used by your broker and your propriety only.
Next characteristic is that the Money manager is paid only if he makes profit for you. Let’s say you agree on 40% performance fee. In this case, the broker company’s duty is to divide the profit as following, 40% of the profit for the Money manager and 60% is yours. On the other hand, if he makes a loss, he is not paid until he makes more than the last highest trading account balance. This system ensures that the Money manager is motivated to make profit for you.
What profit can you expect? As I have already mentioned, 20% profit per month is achievable with an adequate risk rate.
How to choose a good Money manager? The thing you should be certainly aware of is his trading history; it means profits and the equity curve shape. Everybody is interested in earning a lot of money as safely as possible; therefore, forex money managers should use a sophisticated system of Money and Risk Management and cooperate with several traders to ensure good diversification of the account for each client.