More and more people are turning to the currency market to get better returns on their investment.  Consequently, more managed account services have sprung up, offering their services to retail clients.  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 editorial looks at why this has been the situation, and looks at why managed forex accounts are the ‘next big thing’.

So why hire a forex money manager to look after your funds?  Perhaps the obvious reason is that they are professionals, and will make more money than you could.  Is this the case for the majority of money managers?

In the majority of situations, this is true.  For the average retail trader, forex trading is an extremely difficult skill to master, and the vast majority of traders fail 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 respectable and high performing forex manager can sometimes be tricky, but it well worth the search.

So how can a managed forex account help you in practice? Well, a big benefit is that you don’t need to be a millionaire to access a managed forex account. Whilst most hedge funds often require commitments of over a million dollars, you can set up a managed forex account with just a few thousand dollars.

What a lot of investors like about managed forex accounts is the element of control they have over their investment.  The key to this, is that you open an account with the relevant currency brokerage, and at no point do you need to send money across to the fund manager.  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.

These different levels of security are a key reason why managed forex accounts have become so popular in recent years.  In recent times, there have been countless cases of investment funds defrauding their clients of their investment.  Perhaps the biggest case reported in the press was that of Bernie Madoff.

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 the forex market through a well managed forex account is of great benefit.