5 Reasons Why Forex Account Management Services Are Advantageous For You

Indian traders have never been as unenthusiastic about standard bank interest rates as they are right now, in 2022. This downward trend was first spotted during the early part of the 2010s, and has since dropped sharply with each passing year. People with even a passing interest in the markets, and meagre savings in their bank accounts, are instead chasing higher returns in every possible way. As a result, one of the most popular alternative avenues for generating additional cashflow has been the Foreign Exchange market (Forex).

In fact, the demand for high bonuses and rewards has been such that the Reserve Bank of India (RBI) recently warned people against trading forex on unauthorised digital platforms like OctaFX, an official sponsor of the Indian Premier League (IPL). And if traders no longer want to fall prey to entities that are unrecognised by the Securities and Exchange Board of India (SEBI), then the answer is simple: forex account management services.

As we dig deeper into the necessity for forex managed account services to combat dangerous trading, let us first attempt to answer a simple question: How are the services offered by a forex fund management company better for you than when you attempt to trade by yourself?

Sweat & Toil of Self-directed Trading

When you trade through your account, a.k.a. self-directed trading, the main objective is probably to acquire a positive return on the original investment. To attain it, the forex money management plan of a first-time trader will usually set the bar high, in the hope of turning a quick profit, only to inevitably suffer a series of losses. This is because the process of being a consistently successful forex trader involves burning midnight oil, analysing every currency pair, perusing critical economic reports, studying charts across different time periods from different sectors, etc. Doesn’t sound fun or easy, does it?

And yet most first-timers continue to trod the same disastrous path. Why?

There are a few reasons. Some are curious to see how good or bad their trading ideas perform in a real-world scenario; some hear stories of people who became millionaires after just a few weeks of trading and want to emulate them; and others just want to develop an additional stream of income. In most cases, the luck of a first-timer runs out sooner rather than later, and they can’t escape the fact that they will have to pick up the broken pieces and move on with their life.

As mentioned earlier, the objective of a trader is to make a positive return on investment. But there is no rule to say that it can only be achieved through their wits and hard-work alone. They shouldn’t let ego or impatience or unrealistic ambitions stop them from accessing the best forex money management strategies or leveraging the talents of top forex fund managers.

So why not rely on forex account management services to help you across the finish line?

Advantages of a Managed Forex Trading Account

A managed forex account, on the other hand, is one where an experienced fund manager makes trade decisions and executes transactions with your account on your behalf. Let’s go through its advantages in more detail.

1. Reliable Returns

Hard-earned savings are invested in the market not for fun or to take risks; they are invested in expectation of healthy returns. Managed forex trading is not only safer in nearly every aspect, but also guarantees steady profits on a monthly basis. If you permit a fund manager to operate $5,000 from your account, for instance, it is reasonable to expect a monthly surplus return between 10–20% — without any need to expend time or effort on your part.

In other words, forex account management services put your mind at ease and, for a change, allow you to enjoy your earnings.

2. Minimal Risk

Volatility is the very definition of the forex market, and there is a strong possibility for new investors to be exposed to sudden and heavy losses, if they don’t have an experienced hand to guide them. A forex fund management company, however, is pretty much the perfect partner one could hope for to safely negotiate any currency-pair related risks popping up halfway across the world. With an experienced fund manager at your beck and call, you wouldn’t require in-depth knowledge of the market to make sound investments.

3. Full Transparency

Awareness is a great advantage when forex account management services are brought into play. Whenever a fund manager executes a trade or makes an important decision on futures, the investor is aware of it in real-time. There is no room for confusion or obfuscation, which in turn leads to a more trustworthy partnership. And a solid investor-fund manager bond has a high probability of registering greater returns over time — a virtuous circle of sorts.

4. Greater Flexibility

Based on an investor’s preferences and their chosen forex money management plan, the fund manager can be directed to either take more risks in order to win (or lose) big in return for a smaller rate of commission, or assure themselves of a certain level of consistent profit at a higher rate. Just because you’ve decided to avail account management services doesn’t mean that your decision-making process is suddenly inhibited. In fact, in many ways it becomes more flexible.

5. Complete Control Over Funds

There is a popular misconception among people looking to enter the trading world that handing over your forex account to a fund manager means you lose control, so let’s clear up a few things. Your forex account is in your name and will always remain in your control. Any of the initial deposit in your account, that is above the minimum account opening balance, is yours to open and close. Also, a fund manager can never transfer funds from your account; they are only authorised to place trades on your behalf.

So these are some of the hallmarks of the best forex managed accounts. Sure, employing their services doesn’t mean you can check out completely. You do need to keep an eye on their operations from time-to-time, but not to such an extent that your life turns upside down, a distinctive feature of running your own account.