How to Choose the Right Forex Funds Management Team


When breaking into Forex, many new traders opt to run with managed funds as opposed to trading on their own.

Forex would be a whole new concept in trading and there is a whole new set of financial terms to learn as well as tips to help you make wise investments. Although it can be advantageous to buy into managed Forex funds, it could be equally dangerous to choose the wrong funds manager. It would be as bad as using the trial and error method by yourself, perhaps even worse. Here are some tips on choosing the right Forex funds management team.

Look at the Funds Management Team’s Track Record

Unless a managed Forex funds team can show a history of continual growth, start looking for another funds manager. For example, Synergy FX has a strong track record and has continued gaining even during the Black Thursday debacle. With a growth pattern that continues over an extended period of time and through market upheaval, you can feel safe that you are choosing the right funds team. It would be in your best interest to validate the history of a company by using a third party audit so that you are not simply taking the word of a Forex funds manager that of course wants your business.

How Are They Regulated?

One of the mistakes that many new traders make is in choosing a Forex funds management team that isn’t properly regulated. Make absolutely certain to see which financial services authorities are governing them and of course, check out the country in which the funds are located. You need to make absolutely certain that your funds manager is answerable to the proper authorities and will be working on your behalf to protect your interest in the funds.

Understand What Fees and Commissions You Will Be Paying

The funds manager you choose may have a long history of successful funds management but if their fees and commissions are through the roof you will not want to use them. There are managed Forex funds out there that don’t charge outlandish fees so make sure what you will be paying is reasonable. Bear in mind that you are trading to make a profit and if you are paying exorbitant fees and/or commissions you will not be realising as great a profit as you would with a fair and reasonable funds manager.

Any type of investment platform can be a bit scary, but when there are so many financial definitions to learn and a whole new set of trading strategies to learn about, it might be wisest to break in through a Forex funds manager who trades on your behalf. The above ‘tips’ should help you choose just the right management team that will work on your behalf to gain you the highest profits. Just remember that it is important to validate their trading and funds history with a third party audit and then ascertain that any fees and commissions are fair and reasonable.


Laura Tolentino is passionate about blogging. She writes for several blogs online. She is a manager for Smiths.

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