Usually, individual speculators create forex accounts and try to trade using their own knowledge and conjecture. While the few that are successful can generate extraordinary profits that are multiples of normal stock markets, many find this to be very challenging. Using the services of a professional manager is a way to attempt skipping the extra time and eventual loss that comes to inexperienced traders in this market, and hoping that a more seasoned professional can be trusted to deliver the hoped-for returns.

Unlike stocks or bonds, managed FX accounts provide exposure to a quite different asset class. Forex transactions increase in value when the value of one currency rises or falls in respect to another, in contrast to these stocks, which provide returns in the form of dividends, interest payments, or share growth.

A managed Forex account could be a good option for people who are not very knowledgeable about foreign exchange but yet wish to be exposed to the market and another asset class. They may benefit from the experience and track record of a seasoned and successful Forex trader by using a managed account. The drawback of this strategy is that top managers usually demand high-performance fees that range from 20% to 30% of a trade’s profits.