subject: Top 8 Helpful Hints To Find A Good Forex Money Manager [print this page] 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. This gives a retail investors a lot of possibilities to invest in the forex market, where before they just didn't exist.. This editorial explores 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 the case?
Well, yes, most forex money managers do make more money than an ordinary retail investor. It is a fact that most retail traders have blown their accounts within 3 months. After this period, they either go back to investing in stocks and other asset classes, or look to find a professional to manage their money in the forex market. Finding a honest and high performing foreign exchange manager can sometimes be tricky, 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 hedge funds require investors to invest up to a minimum of a million dollars. However, with the majority of managed forex accounts, retail investors can access the potential high returns of the currency market with as little as $10,000.
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. The key to this, is that you open an account with the relevant currency brokerage, and at no point do you need to send money across to the fund manager. This means that the manager will have no access to your money.
Additionally, not only does the forex money manager have no control over your funds, but the structure of a managed forex account means that you have complete control over access to your funds. This comes in a number of different ways. Firstly, you have the ability to withdraw part of, or all of your account balance, at any time, and free of any charges. This offers a flexibility which does not exist in other forms of investment, such as traditional asset classes like mutual funds or other investment funds.
This element of security gives great comfort to the great majority of investors. In the past few years, there have been lots of cases of investment funds defrauding their investors of their funds. Perhaps the biggest case reported in the press was that of Bernie Madoff.
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.
