Forex Managed Account - Is It For Everybody?

Forex managed accounts have grown in popularity throughout the years, and I can certainly understand why.

Forex managed accounts have grown in popularity throughout the years, and I can certainly understand why.

A lot of people don’t want to trade for themselves and they would just rather outsource the job to somebody else, and I guess if you are making money than that’s all that matters.  But is this really a good idea?

Let’s start with the obvious.  You are letting someone else handle your money.  I don’t know about you but I’m a little paranoid when it comes to something like that.  It’s a lot easier to play fast and loose when it’s not your money, and that’s what happens a lot of the time.

I always think it’s a much better idea to learn to trade for yourself.  There is nothing like being able to control your own destiny.  I sleep a lot better know that my money is handled by somebody who’s attached to it…..ME!!!

Let’s not forget the fact that there are a lot of account managers that aren’t good traders.  Sure….they’ll tell you that they’re experts, but when you look at your statements, you’ll wonder if they know the difference between a limit order and a market order.

You also have to consider the fact that it’s not cheap to open a forex managed account.  Most of them have minimums of $15,000-$25,000.  That’s a lot of money to most people, especially when you are just starting out.

And, I haven’t gotten to the biggest downside of forex managed accounts….THE FEES!!  Oh, yes…..they don’t come cheap. You’ve got annual fees, trading fees, and profit fees.  And it goes without saying, there’s always some kind of “hidden” fee thrown in their for good measure.

Make sure to read the fine print when you sign up with one of these guys.

I suppose forex managed accounts are just another sign that traders want to make money in the forex market…..they just don’t want to have to work for it. It’s why we have so many forex trading robots being sold.

All I can say to traders is that if you want to succeed in the forex market, you are going to have to get your hands dirty, and really learn what makes the market tick.

Learn about things like price action, and build a forex trading system off of that.  Learn how to read a simple bar or candlestick chart without any indicators. 

I know it’s not as flashy as forex managed accounts or forex trading robots, but I can assure you that you’ll be ahead of 95% of the trading public, which coincidentally is the percentage of traders who are losing money.

Learn Forex From Price Action Trading