2. Advisory Account Management
With advisory account management, the trader provides investment advice and recommendations to the investor, but the investor retains full control over their trading account. The investor can choose to follow the trader's recommendations or make their own trading decisions based on the advice provided.
3. Managed Account Programs
Some brokerage firms offer managed account programs where investors can choose from a selection of professional money managers who specialize in forex trading. Investors allocate funds to a specific manager or a pool of managers, and the managers trade on behalf of the investors following predefined strategies or mandates.
4. Pooled Investment Vehicles
In this structure, multiple investors pool their funds together into a single trading account managed by a professional trader or a team of traders. Profits and losses are distributed among investors based on their share of the total capital in the account.
Account management services in forex trading can be attractive to investors who lack the time, expertise, or desire to trade forex markets actively. However, it's essential for investors to conduct thorough due diligence before entrusting their funds to a money manager or a managed account program. Factors to consider include the manager's track record, trading strategy, risk management practices, fees, and regulatory compliance. Additionally, investors should carefully review and understand the terms and conditions of the account management agreement, including any potential risks and conflicts of interest.