Forex Managed Accounts is perhaps the easiest way for a trader to fall victim of fraud. Why is that? Well, because in this case you admit downright from the beginning that you have no idea about the forex market and thus you hire another person, the account manager, to invest your money and do your trading on your behalf. This entails a complete transfer of trust and if you make the mistake of trusting the wrong “professional” and end up trusting a scammer instead, then this person can easily wipe all your funds away and go on a long holiday to some obscure safe heaven on your courtesy!
Sounds horrible? That’s because it is. We don’t want to say all the forex managed accounts on offer are scams. Some are truly professional and trustworthy and may offer a good way to invest one’s funds through a third party if the investors themselves lack the necessary time or knowledge.
However, unfortunately such trusted forex managed account services are the exception and not the rule. Moreover, some long established brokers that are trust worthy may offer you the chance to use their account structure and act as an account manager and this is a much safer alternative than trusting an “independent” manager to trade your money.
Forex managed accounts may sound to appealing to someone with no knowledge of the forex market, who still wants a bit of the action and the chance to invest and make some money. But the chances of stumbling on to a fraudulent scheme and end up losing your money are great. Moreover, if you get someone else to trade for you, then you are missing out on all opportunity to train and learn how to do it yourself. As a general rule, always remember that the best traders are the traders who are educated and knowledgeable on the markets and how they operate and on the effective trading techniques. Even simply discerning who to trust and who to avoid requires a significant level of knowledge. If you enter the world of retail online forex trading blind, lacking the understanding of even its basic fundamentals then you are doomed to fail, to fall victim of scam and eventually lose your money!
Therefore, don’t trust your money to a complete stranger and since perhaps the only way to be profitable in the forex market is to be knowledgeable, practice, and stay disciplined, find the time and make the effort to acquire the necessary knowledge and experience yourself. However, if you find this impossible and still want to try out forex managed accounts, make sure you do your homework and find a forex account manager that is credible and trustworthy.