The decision to invest in a managed Forex account can be a difficult one. This is a significant decision just like any investment you might make. The big difference in this investment compared to others is the leverage used.

Basically, you are trading with money that has been borrowed and because of this the broker can and will interfere with any trades to protect its own entity. Once you make the decision, sign up for it, put funds into the account, and you are ready to go.

When you have decided you are ready to invest in the Forex market there are three types of accounts you can choose: standard, mini, and managed. Each has their pros and cons but it is you who has to decide which option is best for you.

1. The Standard account. This is the most common account. This account trades standard lot sizes which are for $100,000 per lot. Because of the leverage you will only have to put down $1,000 to place the trade but you will be controlling $100,000 worth of currency.

Pros Forex brokers will often times give extra benefits and services to this type of account. The potential gain is also the very high as you are investing a serious amount of money into each and every trade.

Cons Capital – Their is a much higher requirement of capital to open an account as you will be trading large size trades. Losses – Because of the larger size of each trade your potential losses are also great just like the possible gains.

2. Mini – The mini account lets you trade much smaller lot sizes. Each lot on the mini account is only $10,000.

Pros The risk – Because you can trade much smaller lot sizes the risk is lower. This is ideal for those who are new to trading the Forex. It can also allow for you to try out new trading ideas with much lower risk. Capital – The amount of money to open an account can be as small as $250.

Con Reward – When the amount you risk is small the so is the amount you can make. This is a beginners type of account.

3. Managed – A managed Forex account is where the capital in your account is yours but you do not have the decisions to buy or sell. Professional traders will place the trades for you.

Pro Professional trader – A trader with years of experience will be trading your account giving you more time as you will not have to constantly watch the market.

Cons Fees – You will be required to pay a fee of 20% to 50% of all the gains made on the account each month. Capital – Most managed accounts will have a minimum investment amount of $5,000 to as much as $100,000.

It is always wise to research as much as possible to see which option best fits your needs. Always remember it is your money and you have to be the one watching over it.