A managed forex account in India varies from other investments in a wide variety of ways. Initially, and maybe most obvious, is that a managed forex account in India invests, or trades, in different currencies. Today, the choice for a potential forex investor is litererally massive. Forex funds can invest in both short term and long term positions. Other forex funds may only take positions for the short term, indeed they may be within and outside the market only in some hours, or occasionally, less than an hour. We call these latter types of traders day traders, or ‘intra day’ traders. Quite often, these traders will exit trades in the late day, so they’re not exposed to any risk overnight. Another unique feature of managed forex accounts in India is that, unlike a mutual fund, an investor has real time, 24/7 access to their account. This will be illustrated with some examples. To begin with, the investor can login to their account online, any time, and see their account balance. This gives you an independent view of the status of your account, and cannot be manipulated. Secondly, a managed forex account in India is unique in the very fact that the investor can withdraw some or all of his funds at any time, and there’s no withdrawal penalty, or restrictions. Contrast this with other investments, where you may be locked in for many years before having access to your money.
Another thing to consider with forex managed accounts is accessibility to your funds. With many forex managed accounts, you are required to lock in for three to seven years. In other words you wouldn’t be in a position to withdraw or gain access to your money should you need it until your contract is mature. Other forex managed accounts only ask that you not withdraw till the end of the month or quarter. So be sure to call on the right questions about forex managed accounts if you decide it’s the path you’d like to take. In the face of stocks these days, it is an option worth exploring.
Moving forward with this idea…
The structure of a managed forex account in India is that the fund manager only has access to your trading account to make the trades according to his strategy, but nothing else. The manager only has permission to trade your account through a power of attorney. Another key gain of managed forex accounts in India is that the performance isn’t connected to traditional investments such as stocks and shares. As a result, in an economic downturn, like the world has witnessed over the past two or three years, the performance of managed forex accounts in India hasn’t been negatively affected. It can therefore be considered that currencies are a great way to create alpha through diversification. Ironically, the crisis has made it easier to benefit from the forex market, and returns have skyrocketed. However, a final point to note is that whilst there are significant advantages of allocating part of your portfolio in a managed forex account in India, one requests to do their due diligence before making an investment in such a fund. The number of fraudulent investment managers is on the rise..
Careful research has to be first conducted. First of all, you gotta see evidence of the fund performance. Hence, it can be observed that managed forex accounts in India offer a number of benefits over regular forms of investment funds. Please note, though, that one wants to analyze the investment returns of the different managed forex providers, and conduct prudent due diligence to ensure that you’ll get the returns that you’re seeking. It is only with such research that an investment in a managed forex account in India will be a successful one.
FAQ’s: Are Forex Managed Trading accounts worth the risk?I know most people tell you to manage your own money but I wouldn't know where to start. I'm looking for trustworthy sites that would allow me to start with a mini managed account, under 10k. I tried to find out the past return for some of these companies and I couldn't find nothing from no one. Shady?
The Smart Money link Joe provided was very good. The only managed Forex fund I'm aware of (there are surely more) is one run by GFT. The publish their monthly performance (http://www.gftforex.com/services/gftmanagedaccounts/history-wallwood.asp) but you have to be careful because they charge a quarterly performance fee of up to 25%. The performance fee is based on any profit you show for the quarter. If they make $10,000 for you in the quarter, their fee is $2,500 – a bit steep. As far as doing it your self in Forex, unless you are an extremely disciplined trader, have an appetite for reading everything you can about the economies of other countries, understand how the economy of one country affects that of another, can deal with large amounts of risks and enjoy watching the computer screen for hours, stay away from Forex. I've been trading Forex for a couple years and have become marginally successful but frankly, I make more money in the stock market doing short term trading (a few days to a few weeks) using technical analysis (something I don't advise unless you are willing to put in a lot of hours every week). Whatever you do, stay far away from those highly promoted "systems" that promise to make you rich by buying when the lights are green or that generate income based on the carry (interest rate differentials in different countries).
They are not Shady. You just have to know what you are doing. Before you invest. Take Care, Incomestorm http://3in7s.ws – -
Forex trading is known for having a large number of scams. I have never heard of any managed account or mutual fund in Forex worth trading in. They all seem somewhat shady. The federal government recommends finding out about a company's past record before investing. I quote from the first link below: "8. Be Sure You Get the Company's Performance Track Record Get as much information as possible about the firm's or individual's performance record on behalf of other clients. You should be aware, however, that It may be difficult or impossible to do so, or to verify the information you receive. While firms and individuals are not required to provide this information, you should be wary of any person who is not willing to do so or who provides you with incomplete information. However, keep in mind, even if you do receive a glossy brochure or sophisticated-looking charts, that the information they contain might be false."
If you only have $10,000.00 USD then you should invest in ETFs and forget about Forex. Top 4 Answerer.
I don't think there are any legal "Managed Forex" traders Reputable trading companies require you to tell them what to buy and what time element. they may advise you before the trade, but do not trade without your say-so on each trade.
Personally I have a difficult time entrusting my hard earned money to a stranger. I appreciate your concern that the Forex market may seem overwhelming but there are some fairly conservative, simple stragtegies that can be used to generate a very fair rate of return. I have just completed an analysis of the system that I currently use. I randomly selected the past 10,000 hours and calculated what the results would be. I would be happy to share the results with you and answer any questions that you may have. Just send me an email at email@example.com Best wishes for a profitable 2007. Paul 925 236-1839