Forex managed accounts are becoming increasingly popular with investors. In a managed account, a financial advisor or fund manager takes control of your deposits and executes trades on your behalf. The goal is to achieve better returns than would be possible in an unassisted forex trading account. In this article, we’ll explore the advantages of using a forex manager service, how it works and how you can choose an effective manager for your own portfolio.
What is a Trading Account Manager?
A Trading Account Manager is a person or company who trades a range of financial instruments on your behalf. The manager takes trades on your account, and is paid a percentage of the profit he or she makes for you. The fee charged by managers varies depending on their experience, reputation and other factors.
One benefit of using a managed account service is that someone else (the Account Manager) does all of the work for you. That way, you don’t have to spend hours scrolling through charts and data feeds looking for opportunities.
Most account managers focus on the foreign exchange (Forex) and stock markets as they are the most liquid instruments and provide many opportunities to profit.
What is a PAMM Account?
PAMM stands for Percentage Allocation Money Module and is a special account type used by account managers to trade for a large number of clients. Deposits made by clients are added to a single PAMM account which is traded by the account manager.
Gains and losses on the PAMM account are distributed between clients based on the funds they deposited. The system also deducts performance fees automatically and pays them to the account manager once a profit has been made.
What are the Benefits of PAMM Account?
PAMM accounts are opened by clients who want the ability to make money from their investments but don’t want the responsibility of making trading decisions.
The main benefits of using PAMM accounts are:
• The trading is done for you by professionals
• You don’t need to spend years learning to trade
• You don’t need to watch charts and data feeds for hours each day
• You can make deposits and withdrawals to control exposure
4 Ways to Select a Good Forex Money Manager
When choosing a Forex money manager, there are several factors to consider. The first is the manager’s track record. Look for a track record that shows consistent gains over time and across different instruments and trading strategies.
The second factor is experience. How long has the manager been in business? Has he or she managed other peoples’ money before? What are his or her credentials?
Thirdly, look at risk management. Do they have protective measures in place to minimize losses when things go wrong?
Fourthly, consider trading style: does it match your risk profile? Are you looking for an aggressive trader who will take risks in order to maximize gains or would you prefer someone who takes less risk and makes smaller profits?
Why Choose Reid FX?
Reid FX is a professional team of traders who have a proven track record of success.
We manage your account to ensure that you get the best possible returns over time. You can expect us to invest in markets around the world using a selection of sophisticated trading algorithms.
Our systems take advantage of opportunities in a variety of market conditions, we don’t simply ‘buy and hold’. Clients can generate a report each month, so that you can see how well your account is performing and make any changes as necessary.
Our account management team will also assist you with any questions or concerns that you might have.
We hope that you have found this information helpful and informative. If you are still not sure whether or not a forex managed account is right for you, please feel free to contact us at any time so that we can assist you with your decision-making process.