Know Your Forex Account Type (Managed Account)
Two types of forex accounts that we discussed in the previous article, the type of standard and mini forex accounts, now the third type of account is managed-account account. We do not translate in Indonesian to make it easier to understand.
The Managed-Account account type is a forex account managed by an experienced account manager, where the capital is yours but you do not participate in deciding buying and selling in the market. The account manager handles the account acting as a broker / trader in dealing with managed accounts.
There are two types of account manager:
Joint funds: your money is put into one joint account with other investors and becomes a mutual benefit. These accounts are grouped according to the risk tolerance specified by the fund owner. A trader can look for higher profits by placing his money in a joint account that has a higher risk / reward ratio. For this combined account manager account usually has a good investment portfolio.
Individual Account: A broker will handle each managed-account individually, making decisions for each investor instead of a combined group.
Having a professional account manager who handles an account can be an advantage for a novice investor or investor who does not have much time to manage his investment. And also, if you want to diversify your portfolio without spending much time throughout the day watching the market, this is a great choice.
Keep in mind that managed-accounts will require a minimum investment of $ 2,000 for joint accounts and $ 10,000 for individual accounts. Primarily, the manager account will charge a commission, called “account maintenance fee”, which is calculated per month or per year.
If you look at market movements, you will not have the flexibility to place a position. Instead, you must rely on the manager account in making the right decision. This type of account is recommended for investors with high capital and no time or interest to follow market movements.