Electronic Trading Platforms

Managed Forex Trading Accounts Becoming Increasingly Popular

19
Jun0

In recent times, the foreign exchange market became one of the largest most liquid and fastest growing trading markets in the world. It comes with an estimated over USD $3 trillion traded daily on forex trading, effectively exchanging and speculating on currency prices.

The bulk of the trading has traditionally been large banks and multinational corporations wanting to|hoping to minimize their exposure to fluctuation in currency exchanges as well as professional forex fund managers.

The advent of electronic trading platforms such as zulu trade, has resulted in the accessibility and availability of foreign exchange trading to a growing number of retail investors on a global scale, and they are trading on a 24 hour basis producing a very liquid and volatile market, effective at generating huge profits, but also potentially huge losses.

Forex is an incredibly complex market, influenced by many factors and with very sudden movements and changes. It is important to keep abreast of financial market news, major economic announcements and follow market fluctuations. Various charts and technical analysis are available to assist traders to understand market movements and make decisions based on factual evidence and statistical modeling. However, in a time-poor world, learning to effectively take in all this information and decide on strategy and oversee performance is difficult if not your full time profession. So more and more investors are turning to managed forex accounts and professional traders as a solution to being involved in a potentially hugely profitable market versus risking losses through lack of time or understanding of the complexities of forex trading.

Fascination with managed forex accounts has been growing since the early stages for many online forex brokers. Last month alone, one leading EU licensed forex broker noted a two-fold increase in the number of clients being put forward through professional fund managers. As stated by industry experts, having your account managed by someone who has a positive track record in trading profitably and has superior understanding and knowledge of the forex markets, is a potentially large advantage. Many traders choose to begin this way, as it is effectively like shadowing on the job and you have the opportunity to watch an expert trade your account while you follow the markets and soak up all the information available to you. It can be an excellent way gain experience and to speed up your learning curve, without the risk of making too many mistakes which will cost you real money.

The challenge as ever is finding someone who can do this for you effectively and who can provide sufficient proof of successful trading history and experience to know that they will manage your funds properly and capitalize on opportunities when they present themselves.

Although most forex brokers do not actually manage accounts for retail investors, some do provide fund managers with ideal conditions for forex account management as well as all the tools they need in order to effectively monitor their managed forex accounts on behalf of individual clients. Fund managers are particularly keen on brokers who offer a high level of service, in particular on an individual basis, and some will prefer direct contact to an account manager with a no commission or fees structure which lets them trade under the best possible conditions for their clients.

Some brokers also offer various tools for managed forex accounts including the Multi Account Manager tool or MAM and MultiTrader. Professional money managers also often become business introducing partners for online forex brokers, enjoying additional supplementary income.