Top 10 Recommendations To Find A Good Forex Money Manager
More and more people are turning to the currency market to get better returns on their investment
. Whilst many people lost money in the recent crisis, investors in the currency market reaped large rewards, and as a result, more and more forex money managers are offering management services through managed forex accounts. As we will see, having your investment looked after by a forex money manager offers a variety of possibilities and advantages for the retail investor. This editorial looks at why this has been the case, and investigates why managed forex accounts can be such a good investment.
OK, so why invest in a managed forex account? In the first instance, it is the belief that they will make you money. Is this true?
Well, yes, most forex money managers do make more money than an ordinary retail investor. For the average retail trader, forex trading is an extremely difficult skill to master, and the vast majority of traders fail within 3 months. Most then give up, or lose even more money in forex, or try to find a reputable managed forex account to invest their money in. Finding a highly regarded and high performing currency exchange manager can sometimes be hard, but it well worth the search.
So what are the advantages of investing in a managed forex account, and how, in practice, can a forex money manager help to assist an investor get superior returns? The first benefit of a managed forex account is that it gives you access to top quality forex money managers, without having to invest hundred of thousands of dollars. Most reputable hedge funds have a minimum investment of $1,000,000.
A key benefit of managed forex accounts is that the investor retains full control over his investment, and the opportunity for fraud is virtually eliminated. When you open your account, you do not open the account directly with the forex money manager, but with the forex broker with whom the manager will be taking the trades. This means that the manager will have no access to your money.
Of course, the manager will get access to trade your funds. This is set out in a power of attorney which you are required to execute, and return to the broker. What this says, in effect, is that you have granted permission to the manager to take trades on your account, and to give him full trading privileges. It does not, however, give him any other rights over you account, such as to make transfers or withdrawals of funds.
This element of security gives great comfort to the great majority of investors. Over recent years, there have been countless cases of investment funds defrauding their clients of millions of dollars. Many investors have trusted their funds with a manager, only to lose everything.
A further comfort in terms of safety of funds for investors is that your funds will be held by a properly regulated forex broker. All regulated brokers need to deposit a capital amount with the government regulator, and to comply with strict regulations in order to be able to conduct forex broking business. In addition, most countries will offer some form of deposit protection to the investor, so that in the event of the broker going bankrupt, the investor's funds will be guaranteed by the government where the broker is based.
by: Andy Curtis.
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