The very complex nature of forex trading, coupled with all the warnings about the risks involved in forex trading can be overly intimidating to a new trader. The fact that there are two types of analysis also does not make it any easier for the traders. Then there are the technical indicators which seem to shout buy and sell all at the same time.
Faced with this predicament, many new forex traders choose to use a fund manager to operate their accounts. This type of an account where you deposit money and leave a fund manager to trade for you is called a managed forex account.
Definition of a Managed Forex Account
A managed forex account is an account that is traded by a fund manager on your behalf. Typically, you pay the fund manager an agreed fee for running your forex account.
The concept of managed forex accounts is very similar to hiring of an investment manager, something that is very common in real estate investments, stocks and bonds.