If you open a forex account and manage all your trades yourself, it’s run by only you. A managed forex account, on the other hand, is not run by you. You open a forex account, put money in it, and let the professionals run the trades for you. You can oversee the trades but you don’t engage in decision making as to which trades should be performed and which ones shouldn’t. There are lots of forex account management services from where you can choose one to run your trades. But before choosing one, you should know if you should have a managed forex account or not.
A Managed Forex Account Is Right for You
To find out if managed forex accounts are right for you, you need to ask yourself some questions and see the answers.
Are You Too Busy to Watch the Market?
If you have a day job which keeps you busy all day, and you have to spend time with your family and friends later, you may need a managed forex account. Some people are too busy to keep an eye on the market, and the forex market changes every minute which means you have to keep updated all day to make the right decisions regarding your trades.
Are You Not Experienced Enough?
Forex trading requires a certain level of expertise. If you aren’t well-versed in the trade of foreign currencies and don’t know how the market operates, you are likely to lose a lot of money. If you don’t know well enough about the market, or if you are learning, you probably should hand your account to an experienced forex account manager.
Do You Have Psychological Make-up?
Some people are just not made up of trading. They may not be able to admit their mistake and hold onto a currency long enough to let the whole account go down the drain, others may be addicted to trading and do excessive trading which may lead to financial downfall. But that’s okay. If you are one of those people, you are better of finding a forex account manager.
A Managed Forex Account Is Not Right for You
You Want to Foresee Your Account Yourself
If you are confident enough that you’re able to run your account by yourself and want total control of it, you shouldn’t have a managed forex account.
You Don’t Have Enough Capital
Forex account management services require you to put at least $2,000 in your account in order for it to be managed by them. If you don’t have that much, or don’t want to spend that much, just run the account by yourself.
If you want to get a really good managed forex account manager, you have to have a good amount of research and a considerable amount of paperwork. But they are worth it if you don’t want to go through the hassle of managing your own account or simply don’t have the time or expertise to run it on your own. Remember, the forex trading market is a high risk, high return market and not trading with good knowledge may lead you to lose a lot of money.