Thursday, August 6, 2009

Forex Managed Accounts

Forex managed accounts can give the investor an opportunity to invest who cannot watch the Forex market 24 hours a day. It is ideal for the investor who prefers to have his capital managed by professionals.

Forex managed accounts allows you to diversify or liquidate your asset quite easily. The basic idea behind forex managed accounts is to combine funds of a number of investors to trade in the foreign exchange markets, rather than trading for clients one at a time. Therefore you as an investor can work with smaller total investments like $1000, rather than the minimum $100,000 normally required. This allows you a broader spectrum to participate and diversify in the Forex investment.

A $1000 Forex managed account provides an investor a high transparency matched with significant and consistent returns with the flexibility of withdrawing cash easily. With a $1000 Forex managed account you are able to see what the actual transactions is being done with your invested sum.

Depending on A $1000 Forex managed account’s trading strategy and leverage used it shows uncorrelated returns compared to most other asset classes. A $1000 Forex managed account is traded by human operators using signals generated by "Pro Accounts" which are one of the most advanced artificial intelligence based systems.

Many brokers offer forex managed accounts. On these managed accounts you can quote, place an order, and receive confirmation online. Most do not allow voice/phone trading other than emergency situations when it accepts voice orders for liquidation of open positions only. You can close trades over the phone, by using their toll free number.

With some forex managed accounts, you must have approximately 1/2% of the value of the positions you hold in your account for each lot of currency being traded. That means the leverage is approximately 200:1. You can open a position of $200,000 with your $1000 Forex managed account.

A $1000 Forex managed account is traded by a third party where the first party is the brokerage. Once the account is funded, you can authorize to trade through a limited power of attorney. Therefore they can open and close positions but cannot deposit or withdraw funds. Only you retain the signatory rights to the $1000 Forex managed account.

When the period of service has expired or the profit limit has been reached your broker will close all positions and generate the final invoices for you. You can pay the brokerage on basis of the performance of the account. If your account does well, both you and your brokerage will be in a win-win situation. Finexo has an award winning trading platform, enjoys good repute and offers forex managed accounts.

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