Trades are usually focused on the most liquid currencies – including the U.S. Dollar (USD), Japanese Yen (JPY), Euro (EUR), British Pound (GBP), Swiss Franc (CHF), Canadian Dollar (CAD), New Zealand (NZD) and Australian Dollar (AUD).

The forex broker is compensated by the bid/ask spread on each trade in addition to monthly management and performance fees associated with the account. A reputable broker will have a detailed explanation of the fees involved and you should carefully review them before opening an account.

To open a managed forex account you will need to download and print an account application, read the customer agreement and Limited Power of Attorney, then complete the application and submit it electronically or via regular mail or fax. Once your application has been processed, a minimum initial deposit is required to fund it (as low as $5000). This minimum deposit varies from broker to broker and is usually greater than a deposit required for a non-managed account. The minimum for all subsequent deposits also varies with $250 being the most common.

There are four easy ways to fund your Managed Forex Account:

1) Bank wires

2) Certified Bank or Cashier’s Check

3) Credit Card deposits via Visa and MasterCard

4) Personal or Business Checks

Once your account has been approved and funded, your initial deposit and all subsequent deposits will accrue interest. You can submit deposit or withdrawal requests from your managed forex account at anytime with funds usually being made available 2-3 business days after the withdrawl request is received.

Any profit/loss has tax implications so you should consult your financial or tax advisor. U.S. residents receive a Form 1099 for tax purposes at the end of the year. Non-US account holders are responsible for reporting any relevant tax information to their governmental and/or regulatory authority and should also consult a financial or tax advisor.

The forex market represents a viable and potentially profitable alternative to investing in the stock market. Profits can be made in up markets, down markets and even sideways markets. The markets are open 24 hours a day 4:00 pm ET Sunday through 5:00 pm ET Friday which provides almost endless trading opportunities.

With today’s busy lifestyles, managed forex accounts are becoming more and more popular as investors look to diversify their investment capital with a hands-off approach. The beauty of managed forex accounts is that you can have market professionals manage your trading account while you open a free fully functional demo account to learn the forex markets yourself without risking any real money.


Source by Mark Crisp