For those professional traders and investors, making money in the Forex market is so easy. But in reality, FX trading is actually the hardest and the most complicated way of earning some easy money. Just the thought of trading against huge financial institutions and organizations, makes other retail traders cringe. Though it is risky, an ordinary person can venture to the market and actually profit from it. There are just other traders who fail because they can’t manage their time and their trades well.
But if you are unwilling to take the risks and doubts about your knowledge and capability when it comes to Forex trading, then you can try the help of a skilled trader. This is referred to as an FX managed account. It connects investors into skilled FX traders. FX managed account is like an investment pool wherein a single, experienced trader trades many investors’ investment.
How Can You Profit From FX Managed Account?
As long as the trader implements the FX managed account properly, you can surely profit from it. With these managed accounts, more skilled traders usually trade for other investors. Therefore, before you let another trader trade instead of you, it is important to check the capability and skill of the trader first. And since all trading activity in the FX market is done online, there is a huge possibility that you can get scammed if you fail to pick the right and reputable trader to trade instead of you.
Identifying a Profitable Trader For FX Managed Account
Check the Portfolio of the Trader
Before anything else, check the portfolio of the trader if he is indeed profitable or not. Most of the time, investors require at least three months of trading activity for them to verify the performance of the trader.
So for fund managers, they should focus more on building a good portfolio that has a reasonable risk: drawdown and reward ratio. Additionally, the portfolio should include a sustainable number of profits. Only experienced and reputable traders in the Forex market are capable enough to build a portfolio that shows continuous growth.
Picking a Platform
One of the problems shared among investors is finding the most appropriate trading platform which has the highest security offered for their funds. Therefore, it is much better to pick a reputable trader to manage your account, someone who is regulated and trusted.
Monitoring the Trading Activity
Since the only certain thing in the Forex market is uncertainty, there might be unexpected events along the way. As you let an investor trade on behalf of you, it is also your responsibility to monitor the trades that he makes. You need to check if his performance is going on the right track as well. You may have regular checking every week so you can determine the trader’s activity.
FX Managed Accounts are profitable in a way that it expands your FX trading capacity as well as increased trading gains. This is ideal for those investors who are not confident enough to trade on their own in the Forex market or afraid of the risks that revolve around new traders.