Forex managed accounts are forex accounts managed by a full time trader such as myself for you the investor .Forex investments are an alternative investment to the usual main stream investments such as shares, bonds and mutual funds. They involve trading accounts on your behalf for a percentage of the profits.You however do not have to be a forex trader in order to have a managed account. You can contact me and I will be more that happy to walk you through the process of owning your own forex investment account.
Why invest in forex trading ?
The foreign exchange market is the most liquid market in the world with more than $2 trillion a day.There is also:
Liquidity in the market - Because of the size of the Foreign Exchange Market, investments are extremely liquid. International banks are continuously providing bid and ask offers and the high number of transactions each day means there is always a buyer or a seller for any currency.
The market is accessible – The market is open 24 hours a day, 5 days a week. The market opens Monday morning Australian time and closes Friday afternoon New York time. Trades can be done on the Internet from anywhere.
The inability of market fraud – Currency fluctuations are usually caused by changes in national economies. News about these changes is accessible to everyone at the same time – there can be no 'insider trading' in FOREX.
Market size – The Forex market is so vast and has so many participants that no single entity, not even a central bank, can control the market price for an extended period of time. As the market has grown, even central bank interventions have become increasingly ineffectual and short lived as a tool for controlling the value of a particular currency.
Ability to trade both sides of the market – Unlike the Equity markets and the local stock market, which require that investors only short a stock if the prior trade was equal to or lower than the short sale price, Forex markets allow the short sale of currencies without any requirements. Trading opportunities exist in the currency market regardless of whether a trader is long or short, or which way the market is moving. Since currency trading always involves buying one currency and selling another, there is no structural bias to the market.
The cost of trading is low – The over-the-counter structure of the Forex market eliminates exchange and clearing fees, which in turn lowers transaction costs. Costs are further reduced by the efficiencies created by a purely electronic market place that allows clients to deal directly with the market maker, eliminating both ticket costs and middlemen. Because the currency market offers round-the-clock liquidity, traders receive tight, competitive spreads both intra-day and night.
Potential for Profit/Loss – The potential for profit/loss exists because there is always movement between currencies. Even small changes can result in substantial profits/losses because of the large amount of money involved in each transaction.
RISKS: Trading foreign currencies is a challenging and potentially profitable opportunity. However, before deciding to participate in the Forex market, you should carefully consider your investment objectives and risk appetite. Most importantly, do not risk money you cannot afford to lose. There is considerable exposure to risk in any foreign exchange transaction. Any transaction involving currencies involves risks including, but not limited to, the potential for changing political and/or economic conditions that may substantially affect the price or liquidity of a currency. Moreover, the leveraged nature of Forex trading means that any market movement will have an effect on your deposited funds proportionally equal to the leverage factor. This may work against you as well as for you. There are also risks associated with utilizing an internet-based deal execution software application including, but not limited, to the failure of hardware and software and communications difficulties. Also, the fact that Forex is traded off-exchange means that there is no regulatory agency that can oversee and maintain standards of functioning designed to help prevent abuses, malfunctioning, unsound business practices, or deleterious attempts by unscrupulous entities to take money from investors. Off exchange also means less legal recourse in the event of business failures.
The market is accessible – The market is open 24 hours a day, 5 days a week. The market opens Monday morning Australian time and closes Friday afternoon New York time. Trades can be done on the Internet from anywhere.
The inability of market fraud – Currency fluctuations are usually caused by changes in national economies. News about these changes is accessible to everyone at the same time – there can be no 'insider trading' in FOREX.
Market size – The Forex market is so vast and has so many participants that no single entity, not even a central bank, can control the market price for an extended period of time. As the market has grown, even central bank interventions have become increasingly ineffectual and short lived as a tool for controlling the value of a particular currency.
Ability to trade both sides of the market – Unlike the Equity markets and the local stock market, which require that investors only short a stock if the prior trade was equal to or lower than the short sale price, Forex markets allow the short sale of currencies without any requirements. Trading opportunities exist in the currency market regardless of whether a trader is long or short, or which way the market is moving. Since currency trading always involves buying one currency and selling another, there is no structural bias to the market.
The cost of trading is low – The over-the-counter structure of the Forex market eliminates exchange and clearing fees, which in turn lowers transaction costs. Costs are further reduced by the efficiencies created by a purely electronic market place that allows clients to deal directly with the market maker, eliminating both ticket costs and middlemen. Because the currency market offers round-the-clock liquidity, traders receive tight, competitive spreads both intra-day and night.
Potential for Profit/Loss – The potential for profit/loss exists because there is always movement between currencies. Even small changes can result in substantial profits/losses because of the large amount of money involved in each transaction.
RISKS: Trading foreign currencies is a challenging and potentially profitable opportunity. However, before deciding to participate in the Forex market, you should carefully consider your investment objectives and risk appetite. Most importantly, do not risk money you cannot afford to lose. There is considerable exposure to risk in any foreign exchange transaction. Any transaction involving currencies involves risks including, but not limited to, the potential for changing political and/or economic conditions that may substantially affect the price or liquidity of a currency. Moreover, the leveraged nature of Forex trading means that any market movement will have an effect on your deposited funds proportionally equal to the leverage factor. This may work against you as well as for you. There are also risks associated with utilizing an internet-based deal execution software application including, but not limited, to the failure of hardware and software and communications difficulties. Also, the fact that Forex is traded off-exchange means that there is no regulatory agency that can oversee and maintain standards of functioning designed to help prevent abuses, malfunctioning, unsound business practices, or deleterious attempts by unscrupulous entities to take money from investors. Off exchange also means less legal recourse in the event of business failures.
