Global Transition : Forex Trading News

12Apr/120

Do it yourself or managed forex accounts?

The excitement and satisfaction of choosing currency pairs and developing one’s own system for trading is appealing to some, but not all, forex investors. While many would rather rely on their own expertise, derived from trial and error, others prefer to have a managed forex account. Managed accounts are, as the name implies, accounts managed by professional traders who make trading decisions for a commission.

In some cases, investors will employ an account manager because they do not feel they are well schooled enough in the intricacies of currency trading to do a good job. Some investors feel they are equipped to make the necessary decisions, but do not trust themselves to put their emotions aside or have the discipline to manage their own forex account, but do not feel they have the necessary time to devote to trading.

Whatever the reason for deciding to go with a managed forex account, the investor pays a commission only if an account increases in value. While it is still possible to lose money, at least they do not have the expense of paying the manager unless a profit is made. Because account managers are only paid when they are successful, it is likely that they will invest conservatively. As a result, an investor’s profit would logically be smaller, but more certain, than if they managed their own account.

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