Managed forex trading accounts offer an alternative investment that has little or no correlation to the global stock markets. As a result of this it can be great for a further diversifying your investment portfolio. However, it must be placed under high risk alternative investment vehicles.
However, if you have read my other articles, I am always quick to say FX Trading is not easy and the vast majority of traders lose money. This is a very important point when it comes to a managed forex account.
The statement of most traders lose money is certainly not any different when it comes to a forex investment companies. The difference for the trader who is trading the managed accounts is that he or she has the opportunity to trade the fx market risk free. The trader is risking YOUR money, whilst earning commissions if he is successful, but will incur no personal loss if he blows the entire account. Unfortunately as a result of this, most online managed investment accounts perform very poorly and result in losses.
Managed currency trading accounts give the bad trader the opportunity to improve his trading ability, whilst risking other peoples money. This is clearly very appealing to a bad trader looking to improve his FX trading abilities, but not what you want for your money!
It is very important to do considerable due diligence on the trader or team you are letting trade your money. Most will claim to offer Professional managed Forex Accounts, but the reality is, very very few can actually live up to this title.
As always, a managed forex investment must be considered as high risk and only throw away money should be used. Whilst it may seem unlikely, many Online Managed Accounts actually do end very badly with huge losses. BEWARE!
Personally, I have seen literally hundreds of foreign exchange investments, below are a few of the better ones. These are not recommendations by me personally.
GalleonFX This foreign currency investment has been around for since late 2005. The returns have been high, but the volatility has been VERY high. 2006 returned +40% and 2007 returned +60%. Good returns. This could provide a good
FXCM Sentiment Account This Forex Investment Fund earned +36% in 2007. A good start, but it would be ideal to see a longer time frame before investing.