Related Links

Forex Trading:Using Managed Accounts

If you wish to avoid the risk involved in trading on your own, you could employ the services of Forex trading professionals to manage your trading accounts. Managed forex accounts are the easiest and safest way to trade. That is not to say that using managed accounts is a sure shot way to making guaranteed profits, but the great thing is that you could avoid some of the pitfalls of trading on your own. It is commonplace to loose your money in forex trading simply because you were in a bad mood and consequently you might have made an emotional decision. Besides, if you were to do forex trading on your own, you need to have a demonstrated ability to understand Forex market signals, charts, analysis and reports. If you don’t know these aspects of forex trading, you would not know when to enter and exit the market. Therein lies the danger. Needless to say that if you still proceed to trade on your own without understanding these facets of forex trading, it could be simply disastrous.

What are the things to look for while selecting forex traders to handle your managed accounts?

Consistency of returns: Imagine yourself as a prudent investor, and just like everybody else in the market, you are in it to make profits. Losses are the last thing you want. How could you achieve that with a managed forex account? You would have to first select a company with a consistent delivery record of highest possible interest on the managed accounts. This proven track record of consistency in delivering reasonable returns must be coupled with reliability. So you have to set up a managed forex account with a broker that is well known for consistency of returns and reliability.

It is all right to say all these things, but the key point is how would you find such a broker for setting up your managed accounts? At first instance you might be tempted to set up your accounts with those brokers making the maximum headline news. That could be a terrible mistake. The best ones aren’t the ones necessarily making the maximum headline news in various forex sites. On the contrary you should be looking out for those brokers having the maximum percentage of positive reviews. Reviews made by whom? Obviously it should be reviews by their clients and not by someone who has never actually used the broker’s services. Visit forex blog sites, visit forex discussion forums like babypips.com, and participate in the exchange of views. Only after that, you should formulate the comparative picture and then decide on which broker you would entrust your money with.

Dealing spread

Another vital point you should reckon with pertains to the dealing spread of the broker you would entrust your money to operate your managed account. Since you know what a spread is, finding a managed broker with normal market spread of 3-5 points ought not be very difficult for you. Once again visit the forums, evaluate the discussions on dealing spreads and decide on a broker that best suits you. For example, if you select a forex broker with a normal spread of 3-5 points, you could be rest assured that the broker could move in and out of a trade with very low slippages.

Avoid brokers promising fantastic returns

Just avoid any company that promises super profits on your managed accounts. A consistent monthly gain of twenty percent or more is to be deemed as a wild exaggeration. A legitimate managed broker would normally refrain from making these claims, and so you got to be extra careful with brokers promising fantastic gains on your managed accounts. Also be wary of brokers who make amazing short-term gains, because if they do so, they would be susceptible to enormous risks, which if compounded over a lengthier period of time are bound to lead to a burnout situation.

Where do you look for these managed forex brokers?

It sure might be difficult to find the best traders to handle your managed accounts if you simply don’t know where to look. Several websites offer currency analytical reports, together with the list best Forex traders. It is worthwhile remembering that if you find the best traders to handle your account then it is half the job done in reaping higher profits. It is pertinent to remember that, the forex trader you select to handle your managed accounts must possess the ability to profit in both rising and declining markets. In short, the best forex traders for managed accounts must be able to profit under any market conditions. According to me, the best listing of forex brokers offering managed accounts can be found at forex-brokers.com

Related Posts

  • No Related Post

RSS feed | Trackback URI

Comments»

No comments yet.

Please Rate (You can rate only if you leave a comment)
1 star2 stars3 stars4 stars5 stars (No Ratings Yet)
Loading ... Loading ...
Name (required)
E-mail (required - never shown publicly)
URI
Your Comment (smaller size | larger size)
You may use <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong> in your comment.