Managed Forex - Investing Your Capital in a Managed Account

As a trader or an investor you may decide that investing your capital in a managed account is the best way to invest. This is an option that is chosen by many traders who want to invest in forex but may want to have their capital traded by a pro money manager who is knowledgeable in money management methods.

A managed account is managed together with other accounts of other investors and traders. The person who is managing the account is the money manager that places trades on this account on behalf of the traders who have invested their money.

Traders will then share the profits and losses according to the amount of capital that they have invested calculated as a percent of the whole account total. Because the money manger has a lot of combined account then the money manager is able to control risk appropriately because of being well capitalized.

The other thing is that the managed accounts are managed by many traders from which you can choose your trader which will invest and trade your money on your behalf. The track record of each money manager will be available for you to look at before deciding on which currency trader will trade on your behalf.

PAMM Accounts

A pamm account is the type of account provided by a broker to a money manager.

PAMM - Percentage Allocation Management Module

To register in a PAMM account a trader has to open an account with a broker and then fill forms for opening a PAMM Account

The PAMM account will be traded by a money manager.

This managed account will mean that all traders under this PAMM account will get to share the profits based on a percent basis calculated by the PAMM system.