Imagine having the firm that handles your Forex currency investments putting together an “all-star” team of traders to manage your accountunrestricted by geographic location and taking advantage of round-the-clock market opportunities.
Today’s new trading technologies, or platforms, are making it more viable than ever to accomplish thisallocating an account’s assets among multiple managers, with the purpose of diversifying portfolios, spreading risk and being able to quickly shift assets to the most successful traders, or those whose strategies are best suited to existing market conditions. And you have much to gain from it.
From a central location, your Forex firm can manage this elite group of tradersusing advanced communication, trading, monitoring, and reporting platforms that allow immediate and continuous weighing of criteria to make the best possible trading decisions on your behalf.
Of course, an advanced system like this is only as good as the people who run it and the platforms they use. As alwayswhether you’re an institutional investor or a serious individual investoryou should choose a firm with a verifiable track record of success and a reputation for meeting their clients’ long-term goals.
Strive, for example, to entrust your assets to a Forex management company that carefully screens traders and selects those whose strategies are particularly suited to your investment objectives. Using a special platform, the primary manager of your account will be able to make multiple allocations, monitor individual performances, then shift, add, or remove traders as needed to produce the highest rates of return. It works in much the same way as a manager of a professional sports team strategically deploys, maneuvers and substitutes players in response to game situations to produce a winning result.
Another important consideration in choosing who manages your Forex account in today’s fast-paced, high-tech exchange markets, is to ensure your broker adheres to high standards of integrity in preserving your capital by making safe and prudent investments. This means assigning manger-traders whose risk tolerance is aligned with yours, who trade with low drawdowns on your account, who maintain low margin-to-equity ratios that optimize usage of capital, and who endeavor to achieve a high reward to risk ratio. In essence, rather than displaying a retail trading mentality, you want your account management team to be committed to a low-cost, capital growth strategy over the long term.
The commissions you will pay also figure prominently in the profit equation. Since Forex brokers don’t actually charge commissions per se, but are compensated by the difference between the buy and sell prices of currencies, or the spread, be sure your broker historically affords its clients the benefit of a narrow spread.
New technology platforms also give you, as the client, the ability to monitor your managed account’s activity and performance and in real time, stay in close communication with your account manager and receive frequent detailed reports on your account’s overall performance.
In summary, for investors seeking long-term portfolio growth in the Forex markets through managed accounts, the latest technology offers significant advances that afford you greater certitude and control over your investments, while allowing you to participate in trading opportunities that were once the sole domain of large financial institutions. Key to this is retaining a hard-working, reputable and highly competent Forex company that can fully utilize these new technological platforms to your best advantage.
Michael Spencer is a principal of FX-Protocol, a Forex company offering an array account management services. For more information, call 866 405 7508 or visit: http://www.the4xgroup.com