Heather McLean
Heather McLean

Diversifying Investment Portfolios: the case for FX Managed Accounts

The FX market is attractive to investors because it is uncorrelated with equity markets. A managed account provides an investor with the opportunity to participate in the FX market and benefit from its high profit potential without having to trade for themselves. Accounts are also actively managed, so the investor is not invested in the market all the time. Heather McLean looks at what's involved and the key importance of trading technology in FX Managed Accounts.

Profitable FX trading involves gaining experience and developing criteria to trade against; using a managed account ensures that all beginner mistakes and emotions are taken out of the trading equation as trades are only made based on strict criteria, and are executed by experts. That is the theory, anyway. The four benefits of a managed account are, for Joe Conlan, global head of FX sales at FC Stone, safety of the money invested, the option for notional funding, account transparency and control over funds. Alain Broyon, CEO at Dukascopy - SWFX Swiss FX Marketplace in Switzerland, states that managed accounts allow less experienced or time-lacking investors to benefit from a market that can boast being the biggest market in the world with 24/6 market open hours. “Investors in managed FX accounts are able to diversify their portfolios by choosing different types of trading strategies and risk ratios, according to their invest profiles,” he says. Short life span The big problem...continued

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