How to Choose a Forex Account Manager
The Forex Account Manager is a service that allows you to invest in the Forex market. A Forex Account Manager charges a fee for managing your account. Read on to learn more about the fees and benefits of Forex Account Management. Here are some tips to choose a Forex Account Manager. These services are popular because they have a proven track record. However, you should be cautious about their scams. You should only invest your money in companies that have a good track record and a low turnover rate.
Lessons learned from CentreForex’s experience as a forex account manager
There are many benefits of using a forex account manager. Firstly, you are assured of the level of expertise and knowledge of the person managing your account. The company also uses proven market strategies and employs stop losses on every trade. As a managed account manager, CentreForex gives you full control of your account. The money manager only trades from your terminal. This means that they cannot access your money.
Secondly, a managed forex account offers you exposure to a different asset class than stocks and bonds. While traditional securities deliver returns in the form of share growth and interest payments, forex trades earn value when the value of one currency increases in relation to another. In addition, forex investors are speculators and hedge their risk in international markets. Nevertheless, you need to understand how forex trading works and how to find a forex account manager who can provide you with a safe, reliable, and profitable trading experience.
Components of a well-managed forex account
A well-managed forex account can offer investors exposure to an asset class other than stocks and bonds. While traditional securities deliver returns in the form of share growth or interest payments, forex trades gain in value whenever the value of one currency changes. This makes forex trades an attractive option for both speculators and hedgers alike. However, it’s important to note that these types of accounts come with considerable risk. To ensure that you’re making the best investment decision, consider signing up with a forex account manager.
Unlike regular brokerage accounts, managed forex accounts are fully managed by a professional trader. Instead of trading on your own, a money manager will conduct all transactions and trades on your behalf. With a well-managed forex account, you can sit back and relax while a professional manager takes the reins. It’s important to find a good money manager with experience, because not every broker is suitable for every investor.
Fees charged by a forex account manager
The fees charged by a forex account manager depend on a number of factors, including the type of account and the geographic location. Generally, managed forex accounts are operated by professionals who have extensive experience in trading. These managers charge fees that can range anywhere from 20% to 30% of net profits. This fee is typically paid as a percentage of each trade’s value. In some cases, a forex account manager will only charge a small portion of profits.
Forex account managers typically receive a commission for managing their clients’ accounts, in addition to the fees they charge. These fees may be separate from the forex broker’s fees. Most fund managers manage many different accounts. Their dashboard allows them to view each account in a single view. Because of this, they are more likely to maintain a higher level of transparency. Ultimately, they are less likely to make unprofitable decisions or behave unfairly to investors.
Other benefits of using a forex account manager
A forex account manager is a service that you can hire to handle your Forex account. In return for taking on the responsibilities of running your account, you can enjoy guaranteed percentage returns. Most forex account managers will charge you a certain percentage of your profits. Typically, the fee ranges from 1% to 20% of your profits. Fees are usually agreed upon by both parties. However, you can set the amount that you are willing to pay for a particular service.
Some forex account managers charge a fixed monthly fee, or a percentage of your profits. If the fees are too high, you may end up with no profits at all. To avoid this, consider using an account manager who bases their commission on your high-water-mark account. This way, if you lose money, you won’t have to pay them until after you make new losses. Depending on the service you choose, your fees may range from under 25% to as much as 50% of your profits.
Making money by Forex trading is a complicated business and it requires a lot of knowledge to even begin with. If you simply lack the skill set and knowledge of an experienced Forex trader, you simply won’t grow your money. The ability to make money anywhere in the world as long as there is an internet connection and with a few clicks takes a lot of time to master. Of course, there is luck in play but if luck was the main priority, there wouldn’t be thousands of Forex traders.
Surely you would want to double the amount you have in investments. Forex trading is a great way to double or even triple what you have. Just like how companies announce bad news, so do countries and it affects the value of their currency. However, finding a quote currency that isn’t strong against your base currency but will rise up without a doubt is a hard trick.
For this reason, many top-level Forex traders have advisers and even a team of people to point out potentials. Not being comfortable with Forex trading or not wanting to sit and analyze the market is a common behavior. To overcome this, you can always find a Forex account manager.
What is Forex Account Management?
To put it simply, you will hand over your money to a professional Forex trader also referred to as a money manager and will handle all the trading on your behalf. For this, you need to open a Managed Forex Account which are segregated accounts that are individually owned by each investor at a brokerage firm.
As with any other investor, you want to get the best out of Forex Account Management. Here is how you choose a reliable brokerage firm.
The managed forex accounts are 100 percent secure and you can count on the fact that your money will not get stolen or lost. Before you open a managed forex account, there are a couple of documents that you must complete with the trader. From this on, we’ll refer to it as the money manager and you as the investor.
The investor and the money manager has to sign the Limited Power of Attorney agreement. This agreement gives the money manager the right to trade the investor’s (you) money. It doesn’t end there though. There cannot be a transfer of funds between the investor and the money manager, further increasing the security and the transparency for the investor.
Forex Money Manager Costs
Without bringing the money manager into the deal, yet, Forex trading is quite costly. If you’re just beginning with Forex trading, there is the ask price in which the price that you buy the quote currency and the bid price which the price you exchange the quote currency to the base currency. Whether you see this as a cost or not, there is that.
Now that’s cleared out, we can begin with the actual cost of having a Forex account manager. The fees that you will pay for the managed account is always going to be a mixture of different fees. The most important two fees are the management fee and the performance fee.
The management fee is usually between 2 to 3 percent while the performance fee can be between 15 to 30 percent. Given that you simply won’t even move a muscle while the money manager handles your money, the fees shouldn’t make you shy away from opening up a managed Forex account.
Just getting started with Forex trading and want to learn more? Read our brokerage firms to get a basic understanding of Forex trading from the link above.