If you are a Forex trader, then you know that it is not easy to excel in this field unless you have superior knowledge about various trends and techniques. Hence the importance of forex managed account is ever widening.
The last few years have witnessed a boom in the Forex industry with more and more people getting into the trade. With the introduction of a more advanced communication system across the world, it has gained a global reputation.
The main objective of a Forex trader is to make money by making good deals, but it involves skill and expertise. Most people look forward to sky-high returns which is unrealistic because Forex is a game of odds. One has to accept that a Forex trading career is bound to have both losses and profits.
Beginners are especially clueless about how to proceed in the business of Forex and end up making huge mistakes which can result in losses. But, that does not mean seasoned traders never make mistakes.
There are two ways to manage a Forex account. You can do so yourself and engage in self-directed trading, or hire an account manager to do it for you.
Why not self-directed trading?
Trading involves emotions which are why an investor can end up making serious errors in judgment. You may know that setting high expectations will lead to disappointment, but you end up doing it anyway because it is your hard-earned capital that you have invested. Not everyone succeeds in producing a high return in their first year of trading. If you are down on luck, then it is most likely that you will run into a series of losses which can kill your love for trading in general. Moreover, you will be left with a lower bank balance than before.
Why go for a managed Forex account service?
On the other hand, the entire idea behind a managed account service is that trading should be simple for the investor. Professionals who are well informed about new Forex trends and skilled at finding the best deals available will make sure that your account generates consistent results. While no managing service can promise you extraordinary profits within a short period of time, all of them will work to make sure that you do not suffer any huge losses.
When it comes to a managed Forex account, the investor is still in charge and is free to call the shots. You do not have to worry about your control slipping through just because you have hired a financial manager. All they will do is finish the tough work so you can enjoy the benefits of the positive return later on.
For example, they will:
- Analyse all currency pairs
- Keep track of important economic reports
- Maintain contact with major traders for advice
- Examine Forex trends and charts based on different time frames
If you are someone who is simply interested in the possibility of making a profit off trading in Forex, then you should definitely consider a Forex management service. It will not be permanent, and you can regain complete control over your account once you learn the ropes well.
5 benefits of forex managed account:
Traders hire Forex account managers mainly for the following reasons:
Save your time:
There is no doubt that most of us are knee-deep in work all the time. If you have joined Forex as a part-time trader- which means that you have a primary job to take care of during the day- you will find yourself struggling to manage time soon after you begin trading actively. If a group of professionals is managing your account in your place, you will be able to devote that time to better usage.
At first, it might seem like you are giving up on the fun of being an active trader by hiring someone else to execute the trades and follow the signals. However, it is not an easy road to go down because you will find yourself making errors leading to heavy financial losses. It will take you at least six months to come up with a unique and stable low-risk trading idea after which you need to test the strategy before adopting it for once and for all.
Forex trading is not a job that is limited by time. Once you come back home from work, you will feel low on energy. Unless you put your best foot forward when dealing with Forex, you are likely to fail. A professional, on the other hand, will have a fully developed trading system running in no time.
Learn from the experts:
Forex account managers are usually very skilled in Forex which means that you will have also found a teacher to guide you once you hire a service. Even if you are already good at Forex trading and need a manager because of lack of time, you will be able to pick up some handy tips and strategies from your conversations with the service manager.
If you are a beginner, then working with a working with a managed forex account service will be a boon in disguise. Not only will you be able to reap consistent profits, but you will also come in contact with a professional who would teach you the basics of Forex trading. No matter how many doubts and questions you have, they will be patent because their objective is to make your experience with the Forex account a little bit easier.
All Forex account managers are experts who have worked with Forex for years before getting into the management business. They know how to build a solid trading system and come up with ideas and strategies that would lead to positive results. When you are in close association with professionals from a field that you like, you can even pick up things just from observing.
Experience is a valuable asset, and it does not come at a cheap price, Only long-term involvement in the Forex market can give rise to excellent expertise and risk management skills, both of which a beginner lacks. Therefore, it is always a good idea to bond with someone who is experienced in the currency exchange field.
Control your funds from the backstage:
If you think that a managed account is permanent and absolute, then you are wrong. You are in charge of deciding your deposit amount after which you are free to start or stop whenever you want.
The idea of opening a managed account might scare some because of the common myths associated with it.
The truth is that you will be controlling the inflow of money into the account, and nobody else. You might have to adhere to a rule stating the minimum account opening balance, but after that, it is your decision if to higher or not.
A managed Forex account will remain entirely in your name. Moreover, you will be able to control it without having to consult your manager all the time. The managed forex account service will only be able to conduct trades for you.
These services do not touch the cash that you deposited into your account, and neither can they transfer any funds. This helps make the system more secure. So if you are thinking of using a managed forex service but are scared of being stuck in the loop forever, do not worry because you will be able to get out of it easily. The service will give up all access to your account once you make your decision known.
Keep your personal life separate:
To be fair, we are not robots. As a result, an average trader undergoes a variety of emotions throughout the day. Negative feelings can hamper the objectivity of a trader and result in undeserved losses. On the other hand, sometimes we are so giddy with happiness that we cannot remain rational in the world of Forex. In both these situations, one is likely to cause damage to his or her reputation.
If you are a sensitive person who occasionally needs some time off to bring their emotions under control, then you should definitely consider having a managed Forex account in order to avoid making mistakes that you will regret later. You cannot work when you are disturbed or euphoric; instead, you might undo all your efforts.
A manager will always be objective and stable no matter what your emotional state is. Forex deals do not wait for anyone, and having a manager will ensure that you do not miss out on something great.
No extensive research required:
As a good Forex trader, it is your duty to keep yourself up to date with all the latest news in the financial world. If you are not someone who enjoys exploring news sites looking for the most recent development or poring over charts, then you should consider hiring a manager to do it for you. Well-informed decisions will not go devastatingly wrong. You can hand over the job to your manager and ask him or her to summarize everything for you.
Hiring a Forex management service will change you trading experience altogether, and in a good way. Don’t hesitate!