Managed Currency Accounts – A Safe Investment in a Recession
July 29th, 2010
During this time, however, a well managed Forex account will have increased steadily, perhaps by 10%, 20% or even 30%. So what makes a managed Forex account so unique, and why can accessing the Forex market protect you from the volatility of the stock markets?
The first thing to note is that when you are trading foreign exchange, the value of a particular currency pair is not correlated to a particular stock market, or other asset class, such as gold or oil. Therefore, a professional trader will make money for you when the stock market is going up, and more importantly, also when equities are falling. This factor alone makes investing in a managed currency account a perfect addition to any portfolio.
Another factor which makes a traded currency account an attractive proposition is that your funds are completely safe from fraud. All of your money in a typical fund arrangement are held by the fund manager himself, so you are potentially putting your funds at risk if the fund manager fraudulently steals the money for himself. However, with a managed Forex account, the manager only has access to trade the funds, and not to withdraw your funds. In this case, your account is with the Forex broker, and no-one can touch these funds. Therefore, you can have peace of mind that your funds are safe.
Finally, one of the biggest advantages of a managed currency investment is that you can get daily updates of your account positions from your broker directly. You can usually access your account online, and therefore do not need to rely on the fund manager to provide you with this information.
Entry Filed under: Investing