Imagine you have no idea how to trade, but you are interested in the profits you can earn. You have heard a lot of people become successful in trading. What is more interesting is the fact that traders can trade anywhere they like. For instance, they can stay at home all day and still earn a lot of money. Now, you have the capital, but you do not want to study. Is it because you are only interested in the money you can earn but not the process you have to learn? So, you look for a way to trade without having all the mess — forex managed accounts!
How do forex managed accounts work?
Let us assume that you are an investor. You opened a trading account and deposited money. You hired a “professional trader” to trade for you, and he’ll get a percentage of your profits. This setup might seem too good to be true, especially for new traders who are clueless. Some entities claim that they are professional. Hence they gain your trust when, in reality, they are frauds.
The dangers of managed accounts
In a normal life situation, would you entrust your money to a person that you barely know? Even when he promises that he will grow your capital, would you do it? That’s what we thought! This is the same thing as forex managed accounts. While it is true that some experienced traders accept opportunities to trade for other people, most of the time, managed accounts are scams. For instance, these frauds can direct an investor’s capital in luxury items, lands, and the like. Later on, they get caught, and they can never return the capital that they stole.
There are trading platforms with an option in their software that traders can also be the manager to prevent this from happening. It is possible with the use of the broker’s account structure. In this way, people cannot take the funds where they do not belong. This option is better than letting a complete stranger manage your account and trade your hard-earned capital. However, there is a better option that we can suggest for you.
Here is what you can do
There is a saying that “Money does not grow on trees.” It is a metaphor, but this is especially true. If you want to earn, you need to work hard for it. Even those experienced brokers who stay at home conveniently worked their way up there. They studied a lot to become that profitable. Even self-made billionaires started from scratch. Study and learn how to trade if you want to earn money from trading. As you go through the process, you will realize that profit will not be the only thing you will earn. You will also acquire knowledge, discipline, patience, motivation, and more. But if you really can’t help it and want to try managed accounts, research hard for a credible person who will not run away with your money. If you can research for a good manager, then why can’t you research how to trade? Good luck!