7 Factors Why Managed Forex Accounts Are So Popular

Managed forex accounts have become more and more popular

, and especially over the past eighteen months. The reasons for this popularity are plain to see - the world has seen one of the biggest world recessions in living memory, as the global housing market has collapsed, stock markets have crashed, and millions of people have lost their jobs. This item will look at the increase in popularity of managed forex accounts, and will look at how they can help investors looking for a safe and flexible investment.

If you like to be in control of your own destiny and finances you might you may choose to open a managed forex account. These accounts are not right for everyone, but are a great solution for many. Investors in traditional asset classes such as equities, and real estate, have seen the value of their investments fall dramatically, and have actively sought alternative forms of investment.

One aspect of the forex market which needs to be addressed is that of leverage. An investor needs to be aware of how much leverage a manager is using, as whilst this can multiply the returns on an account, it can also exacerbate losses if the manager suffers a string of losing trades.

If you're still not convinced, there have been studies performed that show increased returns for those who choose this form of flexible trading. These were independent of how the market was doing at the time of the study.

It can also be said that there is a strong argument for saying that a managed forex account is safer than a regular mutual fund. When you open a managed forex account, the manager will never have the access to withdraw your funds. As your funds are held by a regulated bank or custodian, the possibility of fraud is eliminated, and your funds are guaranteed by a government body. Your funds are held by a custodian, and not directly by the forex fund manager. How this works is that when you open your managed forex account, you transfer your funds to the forex broker, who will be a regulated organisation.

One unique feature of managed forex accounts is the ability to withdraw your funds if the manager loses a certain percentage of your account balance. This feature does not exist for any other asset class - you have to monitor the investment, and take a decision yourself if you want to decide to withdraw your investment. And even then, there may be a fee or penalty involved.

New comers to the trade will find no better alternative to managed forex accounts as it offers them a 'learn while you earn' experience. To finalise, hence, it can be witnessed that a managed forex account offers a great deal of mobility, protection, and generally bigger performance returns when compared to other investments. Yet, it is still crucial to make certain that appropriate research is carried out, to ensure that you invest in the right fund for your circumstances.

by: Andy Curtis..

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