One good way to secure your money in Nigeria is by investing. Investing comes in various forms such as real estate, oil, gas, etc. but the type of investment you would be looking at today is the financial investment.
You will be learning about managed forex accounts and who forex account managers are. Over the years, you have heard about forex money managers and might have been wondering what do they do? Not everyone has the leisure to trade the forex market in Nigeria due to various schedules.
So, people hire experts in the financial market to trade for them at a fee. Most times. Accounts get wiped out due to the high volatility of the market or not using enough preventive measures against a trade.So, these experts are trusted with funds to execute these trades.
This is sounding interesting right? In this article. You will be learning about what to know about managed accounts in forex. You would be looking at the following topics in this article, and they are;
- Who is a forex account manager?
- What are managed accounts in forex?
- Pros and Cons for managed accounts in forex
- Understanding the type of account in forex
But before proceeding, it is important you know and understand who and what a forex account manager does on a daily basis. Want to learn more? Read on.
Who is a Forex Account Manager?
A forex account manager also called a money manager is one who handles the investment of a client on their behalf. They do this by leveraging on investment opportunities, and trading platforms, by adjusting risk, and implementing their strategies on how they would want to trade to get a potential return. Most times, traders in Nigeria who have their clients can also decide on what asset they would want to be traded on.
What are managed accounts in forex?
A managed account is the type of currency trading account whereby a professional manages to trade and transact on behalf of a client.
In Nigeria, investors who seek to invest in some foreign assets but do not have the knowledge of how to go about it can hire a professional who has knowledge about the market and can help them in executing these trades.
Pros and Cons for managed accounts in forex
There are some basic pros and cons that should be understood when deciding to use a managed account in forex in Nigeria. They are;
- Freedom to leverage on other things
- Choose between two trading platforms
- Competitive price spreading sheet
- Very risky on highly volatile markets
- A high percentage cut on early withdrawal
- Attention to accounts being traded
Understanding the best type of account in forex
In Nigeria, the majority of the accounts we trade on is the standard account. Whereby the user has access to a standard lot of currency worth $100,000. Looking at this, you do not need to have to deposit 100k as your capital to trade. It just works with the rule of margin and leverage which means that only $1,000 needs to be in your account.
But, if you are a beginner in forex trading, it is recommended to use mini accounts which is more risk-averse for traders with limited funds. This can take up to $200 to $500 for a start.
Trading in the financial market is very good and rewarding big time. If you stay in Nigeria, and you have the capital to invest in the financial market, you should consider it. One thing you should understand is that it is a risk-rewarding investment. Whatever loss you incur from it shouldn’t be taken personally. Find structure, find a strategy, and you are off to a great future.