Trading forex can be a profitable business, but it does involve a high element of risk.  Anyone embarking on forex trading may also need to invest in forex software, or feel that they need to undertake forex training, which will incur costs before the first trade is made.  For those who want to enjoy the potential benefits of online trading in the forex market, but who do not want to expose themselves to any unnecessary risk, invest in software, or learn forex, there is an alternative.  It is managed forex.

Managed forex allows people to make an investment with the aim of securing a return by trading forex, but through a third party.  In this case, the third party is a forex brokerage which manages the forex account on the client’s behalf.

The client actually owns the managed forex account, but it is the brokerage which deals with its trading.  With some accounts the client, especially if he has knowledge of currency trading, may advise the account manager of the particular forex signals to look for.  Otherwise, the client will rely on the use of the forex broker’s own proprietary system.

A managed forex account is opened by the individual who is finding a forex broker, and opening an account. He is then responsible for putting funds into the managed account.  Trading will be carried out by a professional trader, but he will not be able have access to, deposit or withdraw funds, without authorisation from the client.

By the very nature of managed forex accounts, clients have access to them and can view balances and profits as well as trades that are currently open or have been closed, but they are unable to make their own trades.  This is one of the issues that anyone interested in currency trading should consider before opening a managed account.

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