Forex account managers are fundamental building blocks of the trading environment, for all their simplicity (relative to the other financial markets), Forex markets can still pose a daunting challenge to an inexperienced trader, as the numerous factors can overwhelm and confuse even the best of us at times. Furthermore, many people simply lack the time and resources to cope with Forex markets on a daily basis. All those things can seem intimidating to an individual with little training in economics or finances. The solution many Forex traders turn to is to hire somebody to manages their Forex accounts – a Forex account manager.
This is especially true if your Forex trading relies on hedge funds or currency mutual funds, as they require professional Forex account managers and traders to make executive decisions in real time. Forex account managers are also among the employees of central banks and large corporations, because the foreign currency values and their changes can directly affect their business. Nowadays, many individual Forex traders also seek to hire personal Forex account managers to achieve their financial goals and assess the risk in their stead.
Naturally, a Forex account manager should be highly qualified, with a university degree in finances and/or economics. Their reputation has to be impeccable, as it reflects on their client’s reputation, trading options and ultimately profit – and to curb the risk of fraud, of course; after all, nobody in their right mind would hire a Forex account manager if they thought he might run away with all their money. A Forex account manager should be a successful trader in his/her own right, preferably not just in Forex markets, but also in stocks, commodities and other markets as well. A word of warning, though: Forex investors should thoroughly investigate their prospective Forex account managers, as there are unscrupulous people out there who claim to be Forex account managers, advertizing all kinds of services despite having no background in business or economics.
Forex account managers work for a fee or a fixed share of the profits. In return, a trained professional will devote his full time and energy to your finances. Another good point is that a legitimate Forex account manager will have lots of experience in currency trading which will be a boon to any inexperienced Forex trader. The risks will also be better managed by a professional. Trading psychology and emotions will not be an issue either, as the Forex account manager is less prone to rash judgment calls.
However, while it is convenient to hire other people to do your finances, by doing so you may be missing out on some great learning opportunities. You might even become dependent on their skill and services, unable to make your own decisions. Besides that, past record is just an indicator, not a guarantee of future profit.
Ideally, you would want some control over your finances and decisions even if you hire a professional to help you. Such partnerships can take years to build, so you better be sure your Forex account manager is the right person for your financial needs.