Forex managed account understanding the mechanics of how one works
Forex Managed Account Understanding the Mechanics of How One WorksA Forex managed account is very similar to a regular FX tradingaccount with the only difference that FX managed accounts aretraded and handled by a team of professional traders.This means that you as the trader/ investor keep the control ofthe account while you still can let the professionals trade foryou. There are many things that people don’t understand abouta forex managed account and in this article we will try to explainthe basics of how they function.Technology and smart investments are now used together: With the advances in technology more andmore resources have been given to the investors and traders in the Forex market.The financial markets have been changed by the way people have started to invest online. In the past, ifyou wanted to invest in stocks, currencies, options, or in other instruments you needed to get in touchwith a stock trader, a fund manager, or your local brokerage firm.Now, with the creation of online investing solutions more and more people are learning that they canstill take advantage of the moves in the financial markets and all from the comfort of their own home.An Overview of the multi account manager software used in a Forex managed Account: When youinvest in currency funds the money manager who will be trading FX managed accounts will most likelyuse what is known as a MAM account (or a Multi Account Manager account) .The MAM account is the software responsible for applying all of the trading done by the fund managerto all of the client accounts while it respects the money management rules that the fund manager uses.For instance, if you have an account of $10,000 with a manager who has $1,000,000 undermanagement, and he takes a 2% trade, then the MAM account will make sure that the trade is open for2% of your capital or 2% of $10,000, or $200.As you can see this allows the investors to have an account of the size they wish without having to worryabout their account being too small or too big for a fund manager’s strategy.Your monitoring software to keep tabs on your managed FX account or FX managed accounts: As aForex managed account investor you will also receive a monitoring platform that will allow you to trackyour account. This platform is in many cases the same exact platform used for the money managersthemselves to trade for their investors.
The difference is that your account is a view only account that will only allow you to see the trades thatare taken in your account, monitor the balance, and gains and losses.Performance fees and how they are calculated in a managed account: Most money managers whooffer the option to open a managed Forex account normally charge performance and/or managementfees. In this occasion we will focus on the performance fee. The performance fee is only charged in newprofits that are created in the account. The performance fee is automatically deducted from the profitscreated by the money manager. This allows you to only pay based on performance, and not payanything if new profits are not generated in your account.We hope this article helped you to understand how a Fx managed accounts work and how you can startto take advantage of combining high technologic investment solutions with simple yet powerful tradingstrategies and managers.Learn how to produce consistent returns with a professional managed Forex account >>> Produce 3%to 10% return on investment per month >> click here now!