blueskuini
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Q. What is a managed forex account, what are the benefits they provide, and how is a typical managed account traded?
A.
Self-trading currencies are at best a very difficult proposition. Many forex investors do not have the time, experience or desire to trade in the forex market themselves. Being able to follow the market movement 24 hours a day is a very essential part of the trading. Managed Accounts are created for investors with risk capital who do not necessarily want to trade on their own.
In a managed account you own the currencies that make up your portfolio. Unlike mutual funds or hedge funds, which commingle your funds with other investors, a managed account is in your name and all or part of your funds can be redeemed within one day.
How it works, is the investor opens up an account at a reputable brokerage firm, the investor then funds his account. No one can touch the money in this account but the investor. The trader cannot even deposit or withdraw funds from the investor's account without the proper authorization to do so, and the investor retains full access and control over the account at all times. A managed account allows an investor to have their funds traded professionally by an experienced trader or automated system via a limited power of attorney agreement (LPOA).
managed forex account enables the trader to trade an investor's account on their behalf without having to transfer the funds into his account. It is the ideal way to have your money traded for maximum safety and control. You can check the balance of your account at anytime, see the daily trade activity, or withdraw or deposit funds when you please. You can also revoke your LPOA at anytime if you are not happy with how the trader is managing your funds.
Investors are typically granted live read only access to their managed account either through an online report viewer or the trading platform. They can then view their account, including balance and activities, however they will not be able to place their own trades on the account, unless they revoke their LPOA, which enables the trader the ability to trade on their behalf.
A.
Self-trading currencies are at best a very difficult proposition. Many forex investors do not have the time, experience or desire to trade in the forex market themselves. Being able to follow the market movement 24 hours a day is a very essential part of the trading. Managed Accounts are created for investors with risk capital who do not necessarily want to trade on their own.
In a managed account you own the currencies that make up your portfolio. Unlike mutual funds or hedge funds, which commingle your funds with other investors, a managed account is in your name and all or part of your funds can be redeemed within one day.
How it works, is the investor opens up an account at a reputable brokerage firm, the investor then funds his account. No one can touch the money in this account but the investor. The trader cannot even deposit or withdraw funds from the investor's account without the proper authorization to do so, and the investor retains full access and control over the account at all times. A managed account allows an investor to have their funds traded professionally by an experienced trader or automated system via a limited power of attorney agreement (LPOA).
managed forex account enables the trader to trade an investor's account on their behalf without having to transfer the funds into his account. It is the ideal way to have your money traded for maximum safety and control. You can check the balance of your account at anytime, see the daily trade activity, or withdraw or deposit funds when you please. You can also revoke your LPOA at anytime if you are not happy with how the trader is managing your funds.
Investors are typically granted live read only access to their managed account either through an online report viewer or the trading platform. They can then view their account, including balance and activities, however they will not be able to place their own trades on the account, unless they revoke their LPOA, which enables the trader the ability to trade on their behalf.