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Managed Forex Accounts: How Good an Option Are They?

Considering that trading forex requires a good measure of skill to pull off successfully, many traders who want to bypass the learning curve are turning increasingly to managed forex accounts as a solution to their desires of making money from the forex market without having to undergo the rigours learning forex trading and having to stare at charts all day long during the trading process.

It takes a good number of years to properly master the forex market and its workings. It also takes some effort to trade forex itself. You have to study many reports, monitor the market sentiment, look at the news calendar, analyse charts, study what the squawk boxes say, and do a whole lot of stuff in order to translate the knowledge acquired from trading to the practicality of making money from the trading activity.

The truth has to be said; it is not as easy as brokers make it out to be on their sales pages. It is normal human nature to take a shortcut to success, so many people turn to managed forex account services as a way out.

But are these really the best way to earn money from forex?

Advantages

If you are able to get a very good managed forex accounts service provider, then you will have cause to smile from this arrangement, especially if you are too busy to trade for yourself. Trading in itself is a high-stress job and you can save yourself a lot of stress by delegating your accounts to the managed forex portfolio services. Many of the world’s rich use these services and are smiling all the way to the bank. Even if you do not have the kind of money that hedge fund investors have, there are good managed forex accounts traders out there who can mirror the trades of the large hedge funds and make some decent money for you.

Disadvantages

Unfortunately, for every good managed forex account provider, there are at least a thousand bad ones. There is a risk of losing your entire investment in risky trades, or even have unscrupulous managed forex account providers abscond with your money. There is also the problem of regulation, as many managed forex account services advertised online are neither trained nor regulated fund managers.

Even the best traders can lose money, but you must ensure that in choosing a managed forex account provider, you choose one that can provide consistency in returns. The key word here is consistency. It is much better to have a managed forex account provider who consistently returns 10% every month, than have one who engages in high-risk trading, delivers 70% every month, and then has four straight losing months. In subsequent blog posts, we will highlight the importance of having a managed forex account portfolio that returns as low as 10% every month, and see what the investment will translate into after 5 years of consistent earnings. The results will surprise you.