Managed Forex Accounts
Various companies offer professional account management services for forex investors. Clients of such agencies can have their accounts traded and handled by some of the top currency and securities trading experts in the world by paying subscriptions. Therefore, managed accounts can present the advantage of professional trading expertise with proven track record of success for the new entrants in forex. It is a perfect mix of freedom and flexibility.
You can open a managed forex account with any brokerage firms by signing up and paying the initial amount. You can start a managed account with any amount but $1000 is the most common type that provides the maximum flexibility with risk covers. This type of account ensures that you earn with regular frequency with the long-term capital growth.
Depending on the company the managed account types can vary greatly. For example, a company may form four different types of managed accounts to suit different categories of forex investors with recognizing their different and varied requirements.
The first type can be a mini-type account that targets the beginners and for someone who wishes to test the performance of the mechanical trading systems. You may have to make an initial deposit of just US $1. The lot size will be 100,000, minimal contract of 0.1 and maximum contract of 10, and leverage of 1:200 to 1:500. It may offer a margin requirement of 1%.
The second lot of investors can go for a slightly higher level with initial deposit of $50. These are the best options for investors who have just stepped in to graduate from a virtual to a mini trader. This helps them to manage the psychological aspect of forex trading. The lot size is same as the previous type. But the minimal and maximal contracts are 1.0 and 100 respectively. The leverage becomes 1:100 to 1:200.
Some mini forex managed account is one of the most popular types of accounts. It offers wide and flexible opportunities to get going with stable incomes.
But a managed account with initial investment of $3000 or above is for the investors who have sufficient experience in dealing with large sums. The leverage becomes 1:50 to 1:100. Now, when you know the different types of managed accounts and their pros and cons, you may take a decision on selecting the one, which suits you depending on your level of expertise.
July 5th, 2008 at 7:07 am
[...] Original post by Forex Recipe [...]
November 8th, 2008 at 4:41 am
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