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If you decide to invest in Forex trading you have probably already heard of the forex managed account. This is a particular type of account, offered by some brokers.
Today we will analyse the questions we are asked most frequently:
- What does Forex managed account mean?
- And how does it work?
- But above all is it convenient?
Let's try to answer these questions exhaustively ...
How the forex managed account works
Let's start from the beginning, a Forex managed account is nothing more than a type of account provided by online platforms.
This account, however, has a peculiarity: you have to pay the money, but you don't have to operate. In fact, a manager or a financial analyst who works for the broker will work in your place and trade your forex account for you.
In theory, they are people who possess a great knowledge of the financial markets; who knows when and how to invest online.
Usually, with a managed forex account you will be able to see the operations that are carried out by your account manager so that you can always stay informed about the performance of your managed forex account.
There is also another type of similar account, but it is a shared forex account, in which there are multiple investors depositing money into the account.
It must be said that the legislation in force in Italy on the subject is very rigorous and there are very few companies that can offer a service of this kind and in any case, there is talk of investing significant amounts.
If you choose this option, the registration procedure is the same as for a classic account.
Is the managed forex account reliable?
In general, it is always possible to run into dishonest Forex brokers, who take advantage of their clients' inexperience and in some cases offer their own managed forex account.
However, such platforms are fortunately recognisable. These forex brokers often advertise their managed account as a "risk-free" account, or as a possibility of " certain and safe earnings ".
Pay attention and stay away from anyone who offers you a “safe and risk-free” investment in the world of Forex trading.
Remember, it is impossible to invest without taking a risk! Therefore, managed forex accounts also have a high level of risk.
So, in summary, avoid as much as possible:
- Brokers who promise you investments that are 100% safe or with zero risk.
- Brokers who ask you to deposit additional money in addition to the first deposit you made.
- Brokers who want to force you to register with a forex managed account by promising you fast profits.
The case of the Ponzi scheme
We cannot fail to mention the famous Ponzi scheme scam, which is also applied to managed forex accounts.
Specifically, it involves convincing the user to deposit money in the managed forex account, guaranteeing, however, a monthly profit percentage (5-10% for example).
But where is the deception?
In short, the broker in question will never invest your money. In fact, the monthly percentage will be repaid with your own money.
A Ponzi scheme can go on for many months and even many years, as long as new customers are coming in and depositing more money.
In other cases, the scam is less elaborate. The forex broker convinces the client to deposit money into the managed forex account. Then, in the short term, the assets will be drained of the account through somewhat risky investment operations.
In doing so, the lost money is earned directly by the broker. After this happens, these brokers often contact the client and try to extort more money from him, asking for an additional deposit, with the promise that everything will be fine.
Conclusions: is it worth it?
In summary, this type of forex account hides many risks, so if you decide to invest in this type of account, you must be very careful and always choose a regulated forex broker.
A licensed forex broker should always be chosen, even if you want to start trading forex on your own.
Should you would like to determine the number one method to invest some of your funds and want it to make as much profit for you as it possibly can, you should to have a look at a forex managed trading fund.
Various providers can yield an outstanding average return of ten percent monthly. That’s roughly 100% gain per annum.
After all of the operating charges are deducted, usually 30% with numerous managed forex trading services, the profits have been abundant to change £10,000 into quarter of a million pounds net gains in 4 short years.
The most effective fx managed trading facility should be licensed, in order to be permitted to handle finances on the behalf of investors, with the purpose of making enormous returns.
These days, fx managed trading groups are offered to one and all and are similar to trading groups on Wall Street that manage finances of up to one hundred million pounds.
The fx managed providers ought to be legalised by associations as by ASIC as an example. Additionally, it is a requirement to have their trading systems and operations audited independently.
FX managed trading facilities exploit currencies (Forex Spot market) as their dealing instrument. Each and every day in the forex spot market, in excess of £4,000,000,000,000 pounds is dealt with. USA’s stock market is small in comparison, trading at only about a thirtieth of that inconceivable amount.
Savers can put in and withdraw funds from their accounts as and when they like. There isn’t any charge to withdraw funds. FX managed trading companies have just a limited power of attorney so that they are able to apply the funds in the trading account to make the transactions for the saver.
At the conclusion of the day when deals have occurred, an email is forwarded by the managed forex trading group giving details of the transactions. Additionally, the trading platform that is employed by the forex trading organisation can be set up onto the investor’s pc. If the investor is logged into the system at the same time as the traders are putting on a trade, they will be able to see it as it happens.
Investors that are eager to determine the top method to invest £10,000 pounds would find a managed fx trading service an ideal vehicle to amass a fortune for earnings start to rocket over time due to the effect of compounding of those revenues. Pensioners will discover it to be it an ideal investment as funds can be withdrawn as part of their ongoing cash flow.
A forex managed trading account is a comparatively protected investment vehicle for it is regulated and assessed vigilantly and savers have control over their accounts. The trader's priority is to protect saver's principal.
