Managed Forex Accounts

Written by Jacey Harmon
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There is a lot to learn if you are going to trade currencies. You must have an understanding of the fundamentals of a country's economy. The political and social climates will also play a role in the value of a currency. There are various technical indicators and chart patterns traders must learn to recognize. Not to mention the hundreds of different trading strategies traders employ.

Professional Forex Account Management

Self-trading the currencies market is a demanding proposition. Aside from learning the nuances of fundamental and technical analysis, a trader must monitor market movements six days a week. Many people don't have the time or desire to learn how to trade currencies by themselves. However, they still want to take advantage of the potential the Forex market offers.

For individual investors like that there are professionally managed Forex accounts. A managed account is not like a mutual fund. Your account isn't commingled with funds from other investors. Instead, your account is individually managed by a professional trader.

A managed account requires a minimum initial investment. Minimum initial investments range from $10,000 to $250,000. The manager is compensated in the form of an annual management fee as a percentage of assets under management. An annual fee of two percent or less is what you should expect to pay for a managed account. Though you are handing the responsibility of trading to a professional, a managed account does not eliminate risk. Some account managers employ high risk strategies that can involve substantial losses from time to time. When researching an account manager, be sure to hire one that matches your risk tolerance.

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