Managed FX Trading
The term “managed FX trading” refers to a forex trader managing the account of an investor, holding a limited power of attorney to trade. Since the managed forex trader is investing on behalf of the client, they earn a management fee on the account. In most cases, managed forex investors pay a “round turn” fee and an “incentive” fee which are deducted from the overall profits of the trader. Though the FX fees may seem unattractive to investors, they also give forex traders the incentive to earn the highest yields possible for their clients.
In recent years, managed forex has become an exciting industry to watch. Though the FX market has grown, the barriers to success have also. A good example is leverage, which went from 100:1 to 10:1 for USA traders. Why the dramatic decrease? Well, more investors are flocking into the forex markets than ever, and with equities struggling, efforts are being made to curb the growth of the FX market. Though this doesn’t seem fair to many of the people in the forex industry, “it is what it is”. The fact is, managed forex investments will continue to grow for decades to come, no matter what.
Whether you want to open a FX trading account or invest in managed forex, our website is the place for you. For unbiased education on FX markets, visit our “Forex Investments Category”. There are tips, videos, charts, articles, and far more FX topics for you to enjoy! What are you waiting for? Start building your forex knowledge right now by clicking on forex investment education!