Is Forex Managed Money a Good Idea?

| Posted: 11-05-2008 | Comments: 0 | Views: 33 | Rating: (55)

(?)

Managed Money is a much more common phenomenon in other areas of investing than Forex, but some companies offer this service, as well. Managed money is any means of investment where the investor decides to place their money in an investment fund that is handled by a professional or professional company instead of making their own choices in investments.

In theory, by having a professional handle the account you are more likely to see better profits result.

One of the best examples of managed money is a mutual fund. While managed money is much less common in the Forex, some professional firms still offer it. Most of the time the firm will have an account in your name, and then they will make all the trades for you.

They can do this through various agreements, basically a limited power of attorney that lets them trade that money in that account for you.

The investment firm makes a small amount of money on the bid/ask spread (this is normal for managed Forex accounts) and then most take a certain percentage of the profit made at the end of each month, anywhere from 15-40%.

This does give the company incentive to make sure you do well, since the more profit you make, the bigger a cut they get. The reverse is also true: if you don't make any profit, neither do they.

Most of these firms will have their own policies and paperwork to fill out in order to set up a Forex managed money account. Accounts should be available via Internet so the investor can see what trades are being made and what the results and account balance is. You should also receive the traditional paper statements via snail mail.

All accounts should also have some sort of stop loss to make sure that even if they take a beating, you're not in danger of losing all your money.

If you decide to use a Forex managed money account, you will not be able to trade yourself off that account. The entire point of having your money managed is trusting professionals to make the right transactions in order to gain you a larger profit than you would be capable of managing on your own.

Most of these accounts will have a minimum amount of deposit, often times at the $10,000 range or even higher. You will have to check out each individual investment firm to figure out what the minimum amounts are.

Managed money is one way to go, but it's still no guarantee of profit. If this is the direction you want to go, make sure to do your homework to end up with a reputable investing firm you can trust. Otherwise, look for a trading system that works and see if you can do it yourself. Everyone who trades profitably needs a successful system, so if they're just following a system - why not do it yourself?

Then you can keep that extra 30% profit, not too shabby at all!

Rate this Article:

Current: 0 / 5 stars - 0 vote(s).

Article Tags: Forex Trading, Forex Managed Money, Managed Money, Currency Trading Managed Money, Forex Money

Article Source: http://www.articlesbase.com/currency-trading-articles/is-forex-managed-money-a-good-idea-410321.html

Print article

Send to friend

Publish this Article

Author feedback

About the Author:

And now I would like to offer you free access to a Forex trading system that is 89.1% accurate, so you can literally start trading the Forex today. You can access it now by going to: http://www.foreximpact.com/reports/89percent/ From Jason Fielder - Founder, ForexImpact.com

Submitting articles has become one of the most popular means of generating quality backlinks and targeted traffic to your website. Join us today - It's Free!

Article Comments

Add new Comment

Forex Secret Income Society
By: Adrian Pablo | 06/08/2008 | Currency Trading

Forex Exchange Market History, Growth and Development
By: Roman Sadowski | 19/09/2008 | Currency Trading

Brief Overview and Main Aspects of Foreign Exchange Market
By: Roman Sadowski | 22/09/2008 | Currency Trading

Forex Trading - The Next Wave
By: Winson Peh | 13/07/2007 | Finance
Free Finance articles for use on your Finance related website. Find articles of the subject of Finance

Short-Term Trading - Forex v Shares
By: James Woolley | 03/07/2008 | Currency Trading

Learning Forex the Easy Way – Part 1
By: Mac X | 08/07/2008 | Investing

How to Read Forex Quotes Correctly
By: Ian Armstrong | 10/07/2008 | Currency Trading

Creating a Successful Forex Trading Strategy
By: Tyler Ziggler | 11/07/2008 | Currency Trading

Got a Question? Ask.

Ask the community a question about this article:

Frequently Asked Questions

Is credits/courses available from medceu accepted ...
By: mritech | 26-04-2008
Is credits/courses available from medceu accepted by the ARRT?

In commerce what is the lease holding land
By: jyothikumar75 | 04-04-2008
in commerce what is the lease holding land

How do i know that the name i m applying for trade ...
By: ahmar | 04-04-2008
how do i know that the name i m applying for trade mark ragistration is not registered already?

Hi, I am preparing for my upsc prelims exams can ...
By: venkatesh | 01-04-2008
hi, I am preparing for my upsc prelims exams can please provide me some test papers where my optional subject is commerce and please guide me to prepare for general knowledege paper . regards. thank you kavitha

What is my qualification as person holding a trade ...
By: holdenfish | 01-04-2008
what is my qualification as person holding a trade certificate in fitting turning and machining in the uk? does it hold hnd or hnc relavance

I am looking for a reliable indicator/s to signal ...
By: basilc | 23-02-2008
I am looking for a reliable indicator/s to signal entry and exit points in the forex market. Trades lasting for 1 to 10 days are what I am interested in - not intraday trading.

Q&A Powered by:

Latest Currency Trading Articles

How to Trade Forex Smart
By: Joshua Geralds | 13/10/2008
Trading is a business, it can be played like a game but it really is a business .I you do it well, trading can potentially outstrip any conventional business in terms of monetary returns. But you should know this already, that’s why you are reading this in the first place. What you probably don’t know at the moment is how to trade Forex smart so that you will be a top earner and not a top loser.

Why is it so Difficult to Make Consistent Profits in Forex?
By: Joshua Geralds | 13/10/2008
We start off in Forex learning the easiest parts, things like chart reading and interpretation of data. We waste all that time and more trying to get the entry and exit correct, and it never crosses our mind that the most important aspect is ignored.

Why is a Good Broker Essential?
By: Joshua Geralds | 13/10/2008
It is hard to define good and bad, especially when they are terms slapped on to something as subjective as a brokerage service. A broker serves a few primary functions in the trading cycle. The brokerage takes orders from sellers and buyers and matches them. The broker also provides the most recent prices and most brokers provide a charting service as well.

How to Stop Losing Money in Forex
By: Joshua Geralds | 13/10/2008
When a trader begins to trade, what normally happens is that the first few trades are usually successful ones. The new traders then becomes so confident of their supreme abilities in trading that their carefully crafted trading plan and money management rules are cast aside.

How to Make Money Like a Professional Trader
By: Joshua Geralds | 13/10/2008
There is a large difference when you place a professional trader next to a rookie trader. Let us assume that both traders the professional and the rookie both use the exact same trading plan, and trade the exact same currency pair. One will be profitable the other would lose. Needless to say the profitable trader would be the professional trader. Just how then does the professional trader so it?

How to Keep a Trading Journal?
By: Joshua Geralds | 13/10/2008
A trading journal is an essential tool for any serious trader who wishes to make money. Many traders know its value but very few actually put it into practice. The ones that do write in a journal are the traders that are most often successful.

Increase Your Profits 100% With an Edge
By: Joshua Geralds | 13/10/2008
If you have ever played at any game of chance you would realize that sometimes you seem to be on a wining streak. Luck seems to be your best friend and everything you do makes you more money. This is what we term as an “edge” in trading. This is where the trader has a temporary advantage over the market and the probability of success becomes higher than normal.

Automated Currency Trading System - a Free One That's Made Big Gains for 25 Years!
By: Kelly Price | 12/10/2008
Here is an automatic currency trading system, that's been used by some of the world's best traders and its totally free for you to use. Take a look at how it can lead you to currency trading success. Everything you need to know about it is enclosed...

More from Jason Fielder

Forex Day Trading - Why You Should Not Try This
By: Jason Fielder | 09/09/2008 | Currency Trading
An article tackling the dangers of day trading the Forex, and explaining why it should be avoided.

How to Start Trading Forex
By: Jason Fielder | 09/09/2008 | Currency Trading
An article walking the beginning trader through the early steps needed to get into trading the world Forex market.

Forex Orders: Do You Want Your Pips Crispy, Fried, or Super-Sized?
By: Jason Fielder | 26/08/2008 | Currency Trading
An article about the many different types of orders you can execute while Forex trading.

Forex Pairs: Understanding How Forex Currency Trading Works
By: Jason Fielder | 20/08/2008 | Currency Trading
Article describing why trading minor currencies is never a good idea when the major currencies offer better stability and potential.

Day Trading Forex Currency: Not for the Beginning Trader
By: Jason Fielder | 20/08/2008 | Currency Trading
An article warning against the dangers of Forex day trading.

Margins in Forex Trading - Importance of Margins for Profit
By: Jason Fielder | 23/07/2008 | Currency Trading
To trade the Forex market successfully, you need to know the importance of margins and leverage.

Forex Moving Averages - 3 Ways to See the Forex Move
By: Jason Fielder | 23/07/2008 | Currency Trading
An article about three of the most common moving averages that can help you trade the Forex.

Understanding Pips in Forex Currency Trading
By: Jason Fielder | 24/06/2008 | Currency Trading
An article about how profits and losses in the Forex are measured by "pips," and how pips work in the Forex market.

Article Categories

Article Marketing

Article Notepad

Stop Duplicate Content

Term Papers

Need Help?

Sign up for our email newsletter

Receive updates, enter your email below

Use of this web site constitutes acceptance of the Terms Of Use and Privacy Policy | User published content is licensed under a Creative Commons License.
Copyright © 2005-2008 Free Articles by ArticlesBase.com, All rights reserved. (2.06, 17)

Is Forex Managed Money a Good Idea?

Article Comments

Related Articles

Got a Question? Ask.

Latest Currency Trading Articles

More from Jason Fielder

Need Help?

Site Links

Webmasters

Business Info

Sign up for our email newsletter