Managed accounts

Beginner Questions
1

Hi All,

I’m looking at the FXCM.com broker . They offer “managed accounts” .

Anybody have experience with them ?

Umberto

2

Actually I’m curious about this too. I just deposited my first check into oanda, (5000) and I’m just waiting confirmation. I was reading their stuff in their forums and some guy was offering just that with the fxmanager feauture at oanda. He said he wanted 20 percent of the profits, but I don’t know much about it, if anyone has experience in these matters please feel free to share with us noobs. How do these work?

3

Managed Accounts make sense from a pure investment standpoint…What I mean, is that it does make sense to only pay a fee for performance on a financial instrument when it actually makes you profit using a high-watermark method.

I have spent many a search for managed accounts over the last year and a half and it is a bit like navigating shark waters.

Here are some guidelines:

  1. Don’t go for any account that has a management fee. Only go for performance fee based on high watermark. Never pay more than 35% for performance fee.

  2. Ask if the trader or trading firm is taking any spread on their trades. If they are, they are making money just for trading the account…This is way to tempting for a trader to “churn” your account and get paid large to just make trades…Make them accountable by only earning performance fees.

  3. Don’t go for any account that doesn’t have live trade reports that they can email you or fax you…and confirm them with the broker.

  4. Pay attention to all time historical peak to valley drawdown. This is not the worst losing month. This the highest high to the lowest low…ever…I call this the heart attack factor. You have to know how low this number can get. Also, does the firm have a max drawdown agreement in place so that if things go south on you, there is a maximum loss before the broker would close all trades…and if they tell you that would be a margin call…keep walking…I don’t like anything more than 30%, maybe 40% on something really agressive that was targeting 25% a month returns.

  5. Make sure that the broker they use for their trading is reputable.

  6. Only trade on LPOA (limited power of attorney) agreements. Do not send money to some company that is not a registered broker, that says they will keep track of your money…BIG NO NO! It’s your money, stay in control.

It is a great way to diversify your portfolio.

If you are interested in knowing about a site that I think is good, you can PM me.

Just remember, past performance is never indicative of future results and you should only use risk capital in any forex venture.

Sorry if it’s boring but that is the truth.

4

Sounds like a quick way to lose all your money. Quit trying to take the easy way to riches.

5

Hi

Don’t use managed account which offer forex brokers…it’s better way to find independence forex managed account fore ex. profinancial forex managed account , they are offer Euro Asia Managed forex account, On Target and Premier Managed forex account…

6

Well I have to admit, a lot of money managers have given us a bad name, that is why it has been so hard for us, legit money managers, to attract investors, I have mainly focused on word-of-mouth to spread my firm from 50k to over 800k in a couple of years. I have realised if you are good, your clients will refer you without you asking.

Anyways, don’t invest your money with someone you haven’t met in person. Also ask for references, statement for the last month and don’t accept performance fee higher than 25% and management fee higher than 2%.

Iyados