Without a doubt the one key factor in sourcing a managed forex account is to make certain that you have control over your own account at all times. That is the ability to revoke the ability of the trader to actively trade your account and also to withdrawal funds at any time you wish. Any other situation leaves your account wide open to abuse, fraud and just general trader incompetence. Over the years we have witnessed many managed forex scams where funds have been fraudulently stolen or misappropriated leaving investors with little or nothing in their account. Make sure that before you send funds you are provided with an LPOA or “Limited Power of Attorney” form and that any funds you send are directed to the account of the broker, who is authorized to receive client deposits.

Most pooled investment accounts, where the funds are controlled by the fund manager or trader themselves normally do not offer this type of protection to investors. Those registered brokers conducting business in a regulated environment on the other hand are subject to such measures as minimum capital requirements as a high degree of statutory requirements that invariably include the implementation of regular and stringent audits.

Managed forex accounts are a great solution for those people who find they do not have the time or necessary skills to trade the forex market. This alternative allows investors to benefit from the opportunities made available in the forex market. However, experience has shown us that many investors are exposed to the darker side of managed investments, such as trader incompetence and less than scrupulous forex brokers.

Managed Forex Accounts also give people of relatively modest means the ability to access to the potentially profitable returns made available by the Forex market. Factors such as virtually unlimited liquidity, volatility and leverage add up to make forex a suitable investment type for those with reasonable small amounts of capital and a reasonable risk tolerance to enjoy higher than average returns. As usual it needs to be stressed that with increased ROI comes an increase in risk. Of course no form of investment comes without exposure to some form of risk. Managing this risk is the principal task of the money manager.

The forex manager is primarily charged with the task of managing risk on behalf of the client. This includes managing the trading process and assessing risk exposure at any given moment. The forex manager will inevitably succeed or fail according to their ability to implement a sound risk management strategy. The success of the managed account trader almost always decided by the skill of being to remove emotion from the trading process altogether, so that trading is based on the application of a sound trading strategy, logic and sound money management. If they can master this process and deliver consistent results then they will be suitably rewarded.

The main aim of any managed investment is to achieve long term consistent returns, with minimal periods of negative returns as well as a proven record. Look for an investment provider who can demonstrate these attributes over an extended period of time. Three to 6 months of trading statements is simply insufficient to make an informed opinion on the longer term prospects of a managed investment offering.

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