Why Investing in a Managed Forex Account is a Safe Way to Access the Currency Markets

The fact that managed forex accounts can provide a number of benefits that more conventional investments in mutual funds cannot is a key benefit of doing business with them. The nature of how your capital is held and protected is the first of these. In a conventional mutual fund, the investment company holds them. Your only access to them after investing is a monthly statement that details your account balance.

However, you have total control over your money when using a managed FX service. Your investment is held by a licenced broker who is not allowed to give the professional money manager access to your money. The only person who can access your money is you.

To find the most recent balance, you can look online. Because the statement is produced by the forex broker, this is independent confirmation that the account details are accurate. This is particularly helpful as it eliminates the possibility of fraud on behalf of the currency trader who is managing your managed currency account.

You can withdraw all or part of your money whenever you want, which is yet another important advantage of using an administered FX service. This is so that you can ask for a full or partial withdrawal at any time since you still have a direct relationship with the forex broker. 

This significantly lowers the likelihood of fraud, as, for instance, in the Madoff case, where investors had no access to their money and relied solely on the assurances of a single man that their investment was secure; assurances that turned out to be wholly false.

In conclusion, it is clear that having a managed forex account as opposed to a traditional mutual fund has a number of distinct advantages. To ensure that the money manager you choose has the necessary experience and expertise, as with all investments, you must perform your due diligence. 

Due to the manager's subpar performance, there are many managed accounts with poor performance. Therefore, be sure to conduct your research before investing any money in a service that is administered by a currency.