Managed forex accounts – how do they work?

Managed forex accounts have been developed for investors who have little or no knowledge, experience or time to trade themselves. Typically, professional brokers manage these accounts in a very careful, yet competitive way. Thanks to these professionals, a managed forex account can provide a higher return on investment than other financial instruments, such as treasury bonds.

Opening a managed account 

Anyone can open a private, password-protected forex account under his or her name with a forex broker. The account owner has access to his or her account from anywhere in the world. An essential aspect that each investor should be aware of is that brokers have access to operate these accounts, but not to withdraw funds.

To ensure profitable results, the accounts are connected to each other under a forex trading platform. Brokers use specific forex systems to place orders simultaneously across the forex platform, giving registered users the opportunity to trade funds. The managed accounts are traded on investors’ behalf via a ‘power of attorney’ and usually ensure significant monthly returns. 

Top things to consider

Before opening a managed account, the prospective investor should check the professional he or she intends to hire. The broker should not only be experienced in managing foreign exchange accounts, but also a have good reputation. Only such a professional will be able to help the investor achieve consistently profitable results trading the forex market. The easiest way to locate a good broker is to check out the opinions of experienced investors on Forex Factory, a platform that is recognised as being the leading forex forum currently available.

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