Managed Forex Accounts

There is no question that you can make a lot of money in the Forex markets. You can also lose a lot if you do not know what you are doing! If you have a decent amount of money and want an alternative for you money to the exceptionally low interest rates available from banks at the moment, then perhaps managed Forex accounts are for you.

If you are highly sceptical whether a $99 robot or $1,200 a year signal service will not pass muster, and if you are interested in gentle equity growth curves that represent conservative trading, then you should definitely take a look at what companies that offer managed Forex accounts have to offer.

How Do Managed Forex Accounts Work?

Managed Forex generally work in the following way. The company that runs the fund(s) will have one master account or several smaller ones that offer different strategies. You can either choose the strategy that best suits your needs based on the latter model, or go with the collected efforts of the traders in the former.

When the fund makes a monthly profit, you will get your share of the pot based on how much you put in. The fund management company will take their share as profits, and this can be anything from 25-40%.

A model that is used by hedge funds, should you choose to go with one is that of the “highwater mark”.

When a hedge fund applies a high water mark to a managed account, the management company will only receive performance fees when the value of profits is greater than the previous greatest value. If the trading strategy has a bad month, the management company must bring it back above the previous greatest value before they can receive performance fees again.

Learn More About Managed Forex Accounts

If you want to learn more about managed Forex accounts, I would strongly recommend that you learn a little more about Forex first – Forex trading is a transferable skill and because you can trade on daily and weekly charts, it does not have to be time intensive.

You can download a copy of my free Forex eBook, “How to Trade Forex” by filling in the details below.