There are 2 main types of managed currency exchange investments. The first is the kind we have already described, where the company trades on your account and charges a percentage of the profits. Their % may change considerably because some firms also earn from the brokers. This could appear to cut back the cost to you but keep in mind that sometimes you may not end up with the best broker this way. However, not all management corporations behave in this way and this type of currency exchange management means that you can always see what is occurring with your account. The money is held in your name and if you’re not happy with what is going on you can withdraw it or reject access at any time.
This is absolutely different from a pooled forex account where you pay your money over to a management company who places it into a pool with other people’s funds and trades it all together. There’s a high potential for stings in this particular situation so check that the company is an affiliate of a respected regulatory body before investing anything in this type of managed foreign exchange account.
