There is no need to wait for the market to open like the stock market. It's difficult for some traders to learn the complexities of the forex market. It involves a lot of time and effort to understand the rules and regulations for a successful business in forex trading. Many traders don't have enough time to learn the currency trade because of a conflicting job or some other obligations.
For these traders managed forex accounts can play a vital role. Forex managed accounts can be defined as a live forex account that is funded by an investor and traded by a profession or a company. This will allow you to jump in the profitable forex market without spending a lot of time and effort. There are hundreds of such companies which offer these kinds of services with a minimal fee.
Some of the companies also charge a small percentage of the profit gained by the investor. These companies spend all their time and effort to monitor your account and they have full control over trading your account. The expertise of these companies in the forex market can give you a steady growth in monthly percentage of return. There are many companies of this kind who also charge you a management fee even if your account have not generated any revenue for the month.
There are two major types of managed forex. One is managing your forex account using a computer program and another one is using a professional individual or company. The computer programs that can manage forex accounts are also called Automated Trading Bots. These trading bots have software programmed by professionals who have their expertise in forex trading. They feed the software with all the rules for making high profit in forex trading. Forex account management by professionals can give you real time information of your account. You can withdraw money any time you wish.
Managed Forex is the name applied to accounts that are traded on your behalf by an experienced professional trader, usually referred to as the money manager. The money manager is responsible for the trading of accounts of many account holders and their primary focus is to trade according to a specific rule set, as well as applying risk management and money management in compliance with that rule set.
If you do not have the skills or time to actively trade you can still benefit from the potentially lucrative forex market. A forex managed account gives you access to be able to trade forex without the need to watch the markets around the clock. A professional money manager can trade your account and help add some more diversity to your investment portfolio, without the added exposure of adding to investments that already may have too much exposure to the equities markets.
When you decide to open a managed forex account you need to be realistic about the amount of "risk capital" you have to invest. Remember that the definition of risk capital is that capital that you can afford to lose without any major impact on your lifestyle. Plowing your whole life savings, your child's college fund or borrowing money at high interest to invest into forex is not a recommended practice.
Some forex investment funds require funds be sent directly to their own bank accounts, while other Forex Managed Account providers allow you to invest directly with their broker. The second scenario where you invest directly with the broker gives you far more control over your own funds and is preferable for that reason. The reason is so you can deposit or withdraw your funds as well as revoke the right of the money manager to trade your account.
Trading Forex and using high leverage is always classified as high risk investing, however, it is possible to manage this risk with correct money management and disciplined trading. Well placed stop losses and strict money management allow the trader to control risk with forex. Of course a strict and professional level of discipline is essential if this risk management is to be effective. This is why it is wise to invest with a managed account program run by a team of professionals.