The most important thing when opening a managed account is transparency. You need to do your due diligence on the company and the brokerage as mentioned above.
There is no reason to give any money over to a fund manager when you can keep it in your own account. By keeping it in your own account you are cutting off one layer of potential things that could go wrong! If you send your money over to the fund manager to keep on your behalf, you never really know what their true results are! You will get a monthly/quarterly or yearly statement, but how do you know if that is true?
The answer is you don't! You have to take their word for it. Unfortunately in the Forex world, not many people tell the truth! Another big fear people have is are they going to run off with my money! The point is there is no need to take this risk and instead you can retain control of the situation by keeping the funds in your own account.
How a managed account works with us...
You open up an account in your own name, directly with the reputable forex brokerage. Once you have done this then you wire the funds directly from your bank account to the broker. At this point only you have access to this money and only you can withdraw the money out of your account.
Because of money laundering laws the broker by law can only send any money back to its originating bank account. This means even if a third party company tried to withdraw your funds, the funds would still end up back in your own bank account. So this is a great safety factor which gives you peace of mind.
LPOA - Stands for Limited power of attorney. This form once signed, allows your account to be placed in a master account. When the professional trader makes a trade if you are in the master account, the trade will be automatically duplicated in your account and the correct lot sizes will be automatically allocated depending on your account balance.
So this LPOA does not give the trader access to your money in any way, as its limited but does allow you to be placed in the master account for you to receive these duplicate trades in your account, so that you can profit from the professional traders skill and live trading experience.
We also provide you with a read only viewing platform. This allows you to view each and every trade in real time allowing full transparency on the actual results. You will see live trades in action, pending trades and past trades in the same trading terminal. You can see the P&L and even run reports for specific dates. It gives you total transparency.
About this Author
ForexManaged.co.uk provides a great deal of versatility, security, and generally finer performance returns in both managed forex and forex managed accounts. Visit http://forexmanaged.co.uk for more info.
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