Forex Managed Accounts - Should You Be Using One Or Make Your Own Trades?

Trying to decide whether or not you should use1) Check
Forex managed accounts or do trades on your own?2) Bank wire
There are pros and cons to both.3) Money order
Forex accounts that are managed have traders that4) Credit card
buy and sell currency pairs with your money. They5) PayPal (only a few use this option)
make money by the spread between the buy andOnce your application and funds are received, you
sell points, a percentage of your profits andare ready to have trades started. If you want to
sometimes an additional fee per transaction.make a withdrawal, you'll need to contact your
When you trade by yourself, the most you pay isbroker unless you are using a discount account. Then
the spread between the bid and ask prices. A brokerit's just a transfer into your bank account through
that manages your trades will take around 30% ofthe trading platform.
your profits.Taxes on your profits need to be considered. You
If you go with a managed Forex account, you needare responsible for paying your own taxes as no
to fill out an application. This covers their customerbroker will remit it on your behalf.
agreement and other legal details that allow them toTrading in the Forex market can be far more
access your funds and make trades.profitable than trading the stock market. You can
Most of the top managed accounts will require verymake money if the market is trending up or down.
large deposits. You'll need to be prepared to depositIt's easier to do as there are only 6 currency pairs
up to $25,000 to even be considered. Personally, Ithat should be traded. With stocks, there are
would never turn over that kind of money to athousands you could be watching.
complete stranger. When you do your own tradesNow that you are armed with this information, you
through a discount broker, $250 to $500 is all youcan make a better decision on whether or not you
need. This is more than enough to get started.should use a Forex managed account or a discount
To fund either a managed or discount tradingbroker. I use a discount broker because I found an
account, you can do it by:easy way to trade.