There are two main types of managed forex investments. The first is the kind we have already described, where the company trades on your account and charges a percentage of the profits. Their percentage may change significantly because some companies also earn from the brokers. This can seem to cut back the cost to you but keep in mind that sometimes you might not finish up with the best broker this way. An unscrupulous manager could have you sign up with a broker who charges a charge per trade and make a lot of small trades on your account to extend their commission. However, not all management corporations behave in this way and this type of foreign exchange management means you can always see what is happening with your account. Here you haven’t any control over the account and must simply wait for the results and the payouts. There is a high potential for scams in this circumstance so check that the company is a member of a respected regulatory body before investing anything in this type of managed currency exchange account.
• Saturday, May 22nd, 2010
Category: Forex
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