More and more people are turning to the currency market to get better returns on their investment. Whilst many people lost money in the recent crisis, investors in the currency market reaped large rewards, and as a result, more and more forex money managers are offering management services through managed forex accounts. As we will see, having your investment looked after by a forex money manager offers a variety of possibilities and advantages for the retail investor. This article explores why this has been the situation, and questions why so many people are now investing with a forex money manager.
So why hire a forex money manager to look after your funds? In the first instance, it is the belief that they will make you money. Is this the case for the majority of money managers?
Well, yes, most forex money managers do make more money than an ordinary retail investor. It is a fact that most retail traders have blown their accounts within 3 months. After this period, they either go back to investing in stocks and other asset classes, or look to find a professional to manage their money in the forex market. Finding a decent and high performing foreign currency manager can sometimes be hard, but it well worth the search.
So what is so great about these so called managed forex accounts? The first benefit of a managed forex account is that it gives you access to top quality forex money managers, without having to invest hundred of thousands of dollars. Most hedge funds require investors to invest up to a minimum of a million dollars. However, with the majority of managed forex accounts, retail investors can access the potential high returns of the currency market with as little as $10,000.
A key benefit of managed forex accounts is that the investor retains full control over his investment, and the opportunity for fraud is virtually eliminated. The great selling point is that the fund manager, whom you may not know personally, never gets to receive your funds directly – they are sent from your account to the broker that you have agreed. This means that the manager will have no access to your money.
The forex money manager trades your funds via a power of attorney that you have granted him, but at no time does he have any other rights, such as to withdraw funds from your account.
This element of security gives great comfort to the great majority of investors. Over recent years, there have been several cases of hedge funds defrauding their investors of their funds. Many investors have trusted their funds with a manager, only to lose everything.
Thus to conclude, it can be seen that getting a forex money manager to manage your forex account has a distinct number of advantages over a traditional form of investment. In this uncertain world, where the housing market is in free fall, and stock markets are collapsing, the ability of a retail investor to access offshore portfolio bonds is of great benefit.