What is a Forex Managed Account?
A forex managed account is a service that provides investors with high-grade investment opportunities managed by successful portfolio managers. A forex managed account is ideal for investors who are looking to reduce their risk exposure while seeking stable capital gains. Moreover, it is a practical solution for investors who are looking to diversify their investment portfolios without hands on involvement.
A forex managed account is a useful way for investors to capitalize on the experience and knowledge of an expert asset manager without the restrictions of investing in alternative investment programs. Forex managed accounts have recently grown in popularity and, by all accounts, are a very smart investment option.
The Importance of Risk Management
Understanding risk management is a very important aspect of trading forex. Basically, risk management is the ability to identify, assess and prioritize uncertainties when making important investment decisions. Implementing a good risk management strategy is fundamental in achieving long-term success and profitability as a trader - it's all about keeping your risk under control. With a forex managed account, the key role of the asset manager is to properly control the risk in the managed account, so that the returns obtained by investors relative to the risk taken are rewarding.
Characteristics of Forex Managed Accounts
Forex Managed Accounts such as Liquid Markets' AlphaSystematic FX Multi-Strategies Program help investors reduce their risk exposure while they benefit from capital appreciation with long-term steady gains. These programs usually aim at achieving a 10%-30% annualized return, trading a diversified portfolio of currencies by combining multiple strategies on different time-frames. These trading programs are often based on advanced computational intelligence algorithms, resulting from years of active research and development by experts in quantitative analysts and developers.
The trading process is fully systematic designed and automated, with no discretionary interventions whatsoever, but remains under full-time human supervision. FX managed account programs offer a very attractive risk-reward ratio while generating a higher than usual return.
Advantages and Promises of Forex Managed Accounts:
* Expected stable capital gain (10% to 30% net per year)with many of the programs
* It works in falling and rising markets
* It trades only high liquid markets, and trades the major forex currency pairs
* It adapts to fast changing market conditions: mid to high frequency trading
* It is fully automated with constant human supervision
* It offers full trading transparency
How to Register for a Forex Managed Account?
Registering for a forex managed account is simple. Investors just need to open a Forex trading account with a reputable Forex Trading platform and then download and fill in the usual and standard Limited Power of Attorney (LPOA) document. If investors already have a trading account, they just fill in the LPOA.
The Bottom Line
Forex managed account programs are innovative, unique and offer transparent fund management services. Moreover, it is a true value based offering not only on the execution side, but also now on the fund management side.
Liquid Markets is a leading Online Forex broker offering premium brokerage services to individual and corporate clients around the world. The website also offers educational materials related to Forex trading and online trading in general.
The Importance of Forex Managed Accounts