There are a lot of traders who look at the managed accounts that forex brokers have on offer. When you look at these accounts you should try and get as much information as possible from the forex brokers. You need this information to rate the manager of these accounts. It is very important that you have a good manager because they are using your money to trade on the forex market.
What is a Managed Account that Forex Brokers Offer?
Before you can determine how to rate your manager you need to know what managed forex accounts are. These are trading accounts where you do not do any trading, but you do invest a certain amount of money. With these accounts a professional forex manager will use your investment to trade on the forex market and make a profit for you.
The fact that you do not have to trade makes this a very attractive option for people who do not have time to trade. People who are wary of trading themselves also look at this option because they get the benefit of a trained professional. However, you need to make sure that this trained professional is doing their job effectively and not needlessly risking your money.
What Information Are You Getting?
When you have a managed forex account you should be given a certain amount of information regarding what the manager is doing with your money. If you are not able to get more than a summary of the profits you have made then you should ask for more information. The manager should be providing you with details on what trades have been completed and the level of risk for each trade.
This information is important because it is the only way that you know what is being done with your money. When you open a managed account you are generally asked about the risk levels that you are comfortable with. If you have a set risk level and your manager is going over this then you have to worry about this. You should bring this to the attention of the manager before you take any further steps.
What is the Trading Strategy Being Used?
It is recommended that you find out what kind of strategy your manager is going to be using. The strategy they use should line up with what you are looking for. When you are rating the performance of your manager you need to know the strategy to understand whether or not the manager is keeping to it. If the strategy was meant to be short-term trades, but you have been holding a trade for a number of days then something is wrong.
You should also find out the type of analysis that the manager is doing. It should not be a problem for the manager to provide you with information about the analysis techniques. If they do then you need to consider whether they are actually completing any analysis when they trade. If you feel that this is the case you should contact the manager again about the strategy they are supposed to be using.
It is impossible to rate your manager on profits because there are no guarantees with the forex market. If you have been promised a certain level of returns you should be nervous because the account could be a scam.