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Forex Managed Trading Accounts (Pros and Cons)

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Managed trading accounts are forex accounts in which the capital is yours but the decisions to buy and sell are not. Account managers handle the account just as stockbrokers handle a managed stock account, where you set the objectives (profit goals, risk management and so on) and they work to meet them. There are two types of managed accounts:

Pooled Funds: Your money is put into a mutual fund with that of other investors and the profits are shared. These accounts are categorized according to risk tolerance. A trader looking for higher returns will put his or her money in a pooled account that has a higher risk/reward ratio, while a trader looking for steady income would do the opposite. Read the fund's prospectus before investing.

Individual Accounts: A broker will handle each account individually, making decisions for each investor instead of the combined pool.

Pros
Professional Guidance
Having a professional forex broker handle an account is an advantage that cannot be overstated. Also, if you want to diversify your portfolio without spending all day watching the market, this is a great choice.

Cons
Price
Be aware that most managed accounts will require a minimum $2,000 investment for pooled accounts and $10,000 for individual accounts. On top of this, account managers will keep a commission, called an "account maintenance fee", which is calculated per month or per year.

Flexibility
If you see the market moving, you won't have the flexibility to place a position. Instead, you'll have to rely on the account manager to make the right choice. This type of account is recommended for investors with high capital and no time or interest to follow the market.
Source: http://investopedia.com/articles/forex/08/forex-account-type.asp