Managed Forex Accounts

Managed forex accounts offer a way to spread your market risk to currencies. Spreading risk this way (from stocks) is one way not to "put all your eggs in one basket".

Most of the managed accounts are forex futures accounts. The managers of the accounts usually take two kinds of fees for their services, a management fee and a percentage of the profits. Some managers also use benchmark perfomance figures that have to be met before any performance based fees are paid.

Some of these managers of forex accounts operate as Commodities Trading Advisors (CTAs, mainly operating with forex derivatives) or other registered forms of handling investment accounts. There are also hedge funds of which most operate in off-shore locations.

Managed Forex Accounts - Resources

Unlike mutual funds that invest in stocks, CTAs and hedge funds are not allowed to publicly advertise their services. There are information resources that offer lists of these managers, but you have to give certification that you understand the risks inherent to these investments and that you have enough funds to qualify as a certain type of investor.

If you're interested in using these managers, you should do full investigation to the past and present of the company. Any past problems of the management or the company may indicate that you should choose another manager.
Look also for reasonable management fees and fees attached to funds profits.

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