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Forex Account Article:

Forex Carry Trade: Free Interest On Leveraged Money
By Corbin
Do you purchase or sell your own stocks on the stock market? Do you trade the securities that are in your IRA? Are you the type of person that manages your own mutual funds?

If you answered yes to any one of these questions, then you may be competent enough to manage your own account. If not you should have a managed account, so traders that are qualified can do all the heavy work for you.

Forex Trading - Not for the Faint of Heart

The sun never goes down on the foreign exchange currency market. Five days a week, Monday to Friday, 24 hours a day, it feels like every small piece of world news makes fortunes rise and fall. For many people it is in their best interest to find an experienced discipline broker and have them do a managed account for them then try to manage the accounts on their own.

When you choose a brokerage for your managed account, seek out a brokerage house whose sales team has experience and has worked for the larger names such as Fuji Bank, Societe Generale, Swiss Volksbank, or Merrill Lynch.

Something else to watch out for when you choose a account manager is a company with experienced staff of brokers who often write articles that have to do with the market or direct seminars about the market. These individuals will know quite a bit about the market, and they have a reputation to maintain as a teacher and as a trader.

Senior
Management

New traders that are fresh have unbelievable energy that may translate into a trading strategy that is aggressive. A better approach would be to combine new traders that are fresh along with senior traders that are experienced who might give advice to be more disciplined in their approach to trading. It is this mixture of enthusiasm and experience that makes having a managed account a better idea.

The primary idea of a managed account is a reduction in risk to you. Trading decisions need to be made by consensus, on a committee basis, to draw from the experience of everybody on the trading team.

Memberships

A clearing firm for your managed account should be a member of the National Futures Association, the Commodity Futures Trading Commission, and the FSA. A clearing firm should have a lot of excess cash on hand and should be able to clear millions if not billions of dollars each month.

How Do Managed Accounts Work?

To open a managed account, you add money to your account and assign trading responsibility by signing and conveying a limited power of attorney. The trader then makes all the trades for you and keeps 30% of all profits on trades made on your behalf; you keep 70% of all traded funds. This type of compensation system provides excellent motivation for your trader to do the very best that they possibly can for you.

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