What is asset management at Forex market? What advantages managed account trading at Forex brings to an investor? What asset management companies can offer and how they work?
One of the most prospective methods to multiply your money is investing in financial assets. Asset management as a part of Forex online investment is one of such relatively new methods.
As you know, Forex trading can be a very profitable business. At the same time the success as a trader at Forex involves too many difficulties not everyone can handle. You have to learn a lot and invest not only your money but time and efforts in rather risky Forex trading. Even in a case of a good preparation it is difficult to succeed at Forex without any money losses. However, there is a simple way which can help to reduce risks and earn profits regularly.
Asset management or managed account trading has developed along with the internet. One by one reputable Forex brokers turned into asset management companies. Their main purpose was to attract more traders who were not experts in Forex investment. To achieve this goal there have appeared the system of managed account trading. Within this kind of relationship between an investor and a Forex broker emerged the third participant – a Managed Trader, a trusted professional with years of successful trading experience at Forex. His function was obvious – assist to multiply an investor’s initial deposit and take commissions from the earned profits.
Asset management or managed account trading is mainly about trusting your finances to a professional who will multiply them by trading on your behalf. Managed traders and asset management companies in such way get new clients and commissions. And inexperienced investors do not have to learn the complicated nuances of Forex trading.
As you see, such scheme is quite profitable for all involved parties. But foremost is for an investor. His main purpose in this scenario is to find a reputable asset management company and trust it his money.
Any reputable asset management company is interested in success of its clients. A broker and a Managed Trader of such company get their commissions only in a case of successful trading. Pay attention to this fact while picking up an asset management company. And we can give some hints to help you. The criteria we point out are not crucial, but can be useful.
Criteria for choosing an asset management company:
- professional team of brokers and traders – ONLY experienced people can help you to earn money regularly at Forex.
- reputation – positive as well as negative reviews left by clients, partnership of a company with other asset management companies can prove its stability and reputable status;
- numerous types of managed accounts, flexible investing programs and consideration of client’s preferences. Consultants and managers have to explain all nuances of collaboration to investors. Only then an investor should choose his/her managed account trading plan.
- technical support, Help Desk and other additional services are necessary.
Usually reputable asset management companies provide few programs of managed accounts trading for investors. Buran Trade is one of the companies that can offer profitable deals for everyone who desires to earn at Forex via asset management accounts. Check our investing offers, asset management plans and terms. Estimate flexibility and advantages of investment programs we propose.
Pros of Forex Managed Account Trading
The major advantages of asset management for an investor are clear. But still we want to enumerate what benefits you may get after choosing managed account trading in Buran Trade:
- You will get an opportunity to manage your trading deposit any time you wish. Trading occurs in real-time mode letting you trace all changes happening within your managed account.
- You can expect to get professional consulting and support. Experienced managers can advice how to manage your funds wisely and how to reduce inevitable risks.
- Comparatively low commission depending on your managed account type and asset management company rates.
- Minimum of time wasting and maximum of efficient trading operations.
- Fast and convenient converting of your managed asset of a virtual account into real cash. A client is offered to choose among few ways of money withdrawal.
These are the major advantages of trading via a managed account in an asset management company. The main benefit is saving time and money of an investor. In addition to these pros one can choose among common types of managed accounts.
Major Types of Managed Accounts
Conventionally, all managed accounts offered by asset management can be divided into two major types:
- simple managed accounts where you completely trust your money a professional trader;
- advanced managed trading account where you learn to trade guided by a professional.
Recently there has appeared another method of asset management – PAMM Accounts. They bring to an investor plenty of benefits and opportunities.
To make it simple, PAMM Accounts (Percentage Allocation Management Module) stand for a bunch of investors’ accounts managed by a professional trader. The flexible PAMM system is open for all involved participants – both for Managed Traders and investors whose accounts are included. The benefit is obvious – via PAMM accounts a trader get a chance to accept invested deposits from other traders and investors. Then he/she can trade on his/her own or continue to invest trusted deposits in account of another expert trader to get commissions from profits.
A newbie in Forex trading should understand PAMM account as a kind of trust asset management where all involved traders have equal shares from earned profits. The advantage of PAMM system is that every involved trader is able to withdraw his/her money any time he/she wishes. Earned profits are shared equally between all participants but a Managed Trader except his share (if his/her account is included into a system) also gets a fee for his/her services.
Such approach of Forex asset management reduces risks of losses. At the same time few different Managed Traders can trade on your behalf. You can invest deposit’s parts in few accounts of Managed Traders involved into one PAMM accounts system. Frauds and scams are minimal as well because Managed Traders are interested only in earning money.
That is why all reputable asset management companies except standard managed account types and schemes offer to try PAMM account trading. You can compare, estimate and choose any type of asset management trading proposed by Buran Trade including the abovementioned PAMM scheme.
While making a decision, bear in mind one wise proverb: “Don't throw yourself on the mercy of the Forex market, use proper money management”.
The article was provided by Buran Trade Team – bntrade.ru