True Managed Forex Accounts

Once the beginner is clear about the basic rules, and then comes the next stage which is able to recognize a true Managed Forex Account of the large number of programs that exist in Internet fraud.

Forex accounts can be managed by brokers or traders who give the instructions for buying and selling to a broker. However, considering that by definition the broker charges for each transaction (spread), regardless of whether the client wins or loses money, we believe that any broker, you have the proper requirements for managing forex accounts. In fact, it is easy to see how the returns generated by these companies often leave much to be desired.

Although the choice of broker is important, the beginner must first turn its attention in selecting the appropriate traders to manage their capital.
As a rule, you should not rely on any high-income trader offering monthly fixed percentages. Even less if the trader claims that the money is deposited directly into an account belonging to the same company. 99.9% of these cases are fraud or deceit, where the client has no control or power over their money and ends up losing everything. This kind of deals is part of the world of HYIP (High Yield Investment Programs) that must be avoided in order to be serious and life of this business.

A real forex trader, be good or bad results, trading works by sending signals to an independent broker that is properly credited. The broker is the entity that eventually takes orders from the trader and performs the transaction. In this case the investor's capital never goes through the hands of the trader. The money is deposited by the client in an account established with a broker who guarantees the balance on it by supporting the U.S. Federal Reserve or entity of the country concerned.

Then, the investor authorizes the trader to manage their personal account or business through a Limited Power of Nature (Limited Power of Attorney or LPOA). Thus, the trader can only send signals to the broker (orders) to buy or sell currencies. It is important to ensure that the broker and trader are not related to ensure the performance and cost efficiency.

Thus, if the strategy that the trader has used does not meet expectations, the investor can revoke the power delivered and removed from the trader of Forex account at any time by sending a simple command to the broker.

Happy Investing :)

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