In this article, I share proven tips to find the best managed account services in 2021. Managed accounts are accounts owned by investors (individual or corporate) and managed by professional traders. Certainly, money managers look for trading opportunities and adjust the risk. Moreover, they implement their strategies via the broker’s allocation tool.
There is a big variety of services including managed forex accounts, managed futures, and managed stock portfolios. But how to find a legit service and recognize a scam? So, let’s get started.
Complete Guide On How To Find Best Managed Accounts
Money Manager Recognition
Always, look for a recognized trader. Definitely, I am not talking about complimentary articles. Very often it can be just part of the marketing strategy. By recognition, I mean how the industry values a trader’s expert opinion. If a money manager has a good track record and strong reputation his thoughts on markets and the economy will be widely featured on leading outlets. And by the way, it is a great way for investors to see how a professional trader’s judgments are. No doubts, if money manager brings value to the industry, he will bring value to your account also.
Managed Account Services Accomplishments and Awards
Sure, the number of managed accounts is growing each year as well as the number of money managers. For this reason, the best thing you can do is to invest with market leader.
Managed Accounts Schematic
A strong brand with a proven track record and happy clients will likely have accomplishments. Definitely, each nominee has to pass the verification process and be the best in his field to get approved by an expert commission and receive an award.
Always Pay For Result of Your Portfolio
It is fair, no result – no money for the trader. There are many managed accounts services charging management fees. It can be 1 – 2% of your initial investment, sometimes even 10%. In other words, no matter if a trader earns or loses your money you will have to pay for management. Doesn’t sound fair, right? So, look for services working on a profit share basis. Therefore, you will pay only for the real result.
Never hunt small fees. You always get what you pay for. Will a profitable trader spend his time managing your account for a small profit share? Highly unlikely. A good trader knows what he and his work are worth. For example, you can buy a smartphone for $300 or $1500. Are they of different quality? Definitely, and the same with managed accounts services.
Managed Forex Accounts, Managed Futures, or Managed Investment Accounts (Stock Portfolio)?
Forex and CFDs are over-the-counter markets. On the other hand, futures and stocks are traded on the exchange. In short, they are more regulated and safe for investors. Strict regulation and authority control don’t leave the broker a chance to cheat traders. Yet, it often happens in CFDs or forex trading. Besides, you own real stocks or futures. By the way, the absence of swaps and other extra fees will save you thousands of dollars each year!
Safety of Your Funds
Control Over Your Funds
What can be better than keeping full control over your funds 24/7? Always hold funds on your trading account. And, never deal with offers to join the pool by sending money to the trader. Don’t get me wrong, pools can be legit. But there is a bigger chance to be scammed in some countries. In any case, it is better to have all funds on your trading account. As result, you always have full control over it and can see all open trades. Most importantly, you can withdraw your money any time you like without any problems.
Open Your Trading Account with Trusted Broker (third party)
To stay on the safe side, always look for a trader who partners with a trusted and fully regulated broker. In other words, who has an authorized master account and allocation tool. In case your money manager is an entity (not a person), open a trading account with a third party (not with your money manager’s entity). It will give you more transparency and protect your funds. Once you agree on terms with a manager, you sign the Limited Power of Attorney (LPOA). That is to state the terms and conditions set and to authorize the manager to trade on your behalf. Note, all trades should be allocated via a broker’s tool without giving a trader direct access to your account.
Regulation is good but it can differ a lot depending on the jurisdiction. Not all countries offer deposit guarantees in case of broker bankruptcy. It is what happens very rarely but still, it happens.
There is no doubt legit managed accounts have many advantages:
- Full-time, attention by trader with a proven track record.
- Systematic balancing of investment risks relative to returns. As a result, we get a portfolio that delivers high returns.
- Access to your advisor to answer your questions.
- Expertise to draw upon all categories of investments.
- Managed portfolio and trading strategy that best matches your financial goals.
- A relationship based upon the investment success of your portfolio. In other words, you pay only when returns are delivered.
- Full control over your funds.
If you follow the general recommendations in this article, you can successfully earn money in the stock and futures market with the help of best managed accounts 2021. How To Find Best Managed Accounts 2021. Inna Rosputnia
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