What is a Managed Account?
A managed forex account is a trading account where a professional forex trader (money manager) manages the trading on the clients’ behalf and charge a performance fee for the service. Managed Forex Accounts are fully segregated accounts individually owned by each investor at a brokerage firm
Structure of a Managed Account
Managed Account investors will fund their personal trading account. The total invested amount from all investors is pooled into a master account where ForexBriefcase manages that account. During the investment period, any profits or losses will be distributed immediately and proportionately among investors, with fees only deducted on the day of settlement.
Suppose the money manager made a profit of 5% during Month 1 and a loss of 2% during Month 2.
The MAM investor is not required to make any trading decision. Unlike other forms of investments where investors are required to have some form of financial knowledge to make continuous investment or timing decisions.
Transparency of Account
Investors will be able to view records of the trading activities carried out.
Full Control of Funds
Investors have full control of their funds. ForexBriefcase can only carry out trading activities on investors’ funds. ForexBriefcase cannot perform any form of deposits or withdrawals on investors’ funds.
Low Barriers to Entry
Since MAM works on a pooled funds structure, the minimum sum to join is much lower than typical investments.