Advice On Choosing A Top Forex Managed Account

Perhaps the overriding consideration when selecting a managed forex provider is their results. Have they been able to get consistent long term gains? The main point being consistency. It isn't a lot of help to you if your provider makes 50% one month and then loses it all the next month. You need to watch for good results across a period of time of at least 2 years. Over a 2 years period you would expect that the trading strategy they used would have been exposed to a wide range of market conditions and if their results are consistent then you can be reasonable safe in assuming that their trading methodology is sound. Of course the markets being what they are future results can never be guaranteed.
The trader is principally selected for their ability to manage and minimize any risk. This is usually applied in the form of knowing when best to take a loss and when to take a profit. The success of the managed account trader is decided by their ability to remove themselves emotionally from the psychological factors that effect the cycle of trading. This in itself is very difficult to achieve and hence why consistent traders are both well paid and highly sought after in all areas of money management. The fact is that emotion usually dictates that we behave in a way that is contrary to producing consistently profitable results.
A crucial consideration when investing in the foreign exchange market is to have absolute control over your funds at every stage of the process. Always deal directly with a registered and regulated broker who operates in a well recognized jurisdiction. Reputable managed account providers will always offer this type of facility as well as providing you will an "LPOA", or Limited Power of Attorney", that effectively gives the investment fund the power to execute contracts on your brokerage account, but not give them any control to deposit or withdrawal any funds. In other words you have absolute control over your own funds at all times.
Trading on margin with high leverage is classified as high risk, however, managed correctly the down side risk is manageable. Through the use of methodically placed stop losses and disciplined money management it is possible to have effective risk management with forex. Of course a strict and professional level of trading discipline is required if this risk management is to be effective, which is why it is wise to invest with a managed account program run by a team of professionals.
Managed Forex Accounts accounts are a suitable solution for those investors interested in the type of returns available to Forex investors, but who simply don't have the time or the necessary discipline to profitably trade this potentially lucrative but challenging market. The challenge is always to find a competent money manager with this skill set and with a longer term view of the market. Unfortunately too often money managers don't the best interests of the client in mind when they trade their hard earned money. Often money managers over trade or "churn" accounts simply to get the profitable rebates offered by Forex Brokers. Whilst it may benefit the trader or money manager, over trading can eat away your profits or simply offer no net benefit to the client.