Making a decision to get into a managed Forex account is a difficult one. It is a big decision just like any other investment you may decide to experience. The prime difference in this versus the others is that you have to sign what is called a margin agreement.

The leverage is actually borrowed money that the broker has given you. Because you are borrowing money you give them the right to close any trade as they need to protect themselves. If you agree to this then sign up and start trading.

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. Standard. This type of account is the most common. Basically you have access to a major amount of currency. The worth is $100,000. You do not have to put the $100,000 down in order to do trading. Basically, you need $1,000 in the account for t his to work.

Pros Service – Brokers provide perks and services for investors in this account. Potential to Gain – The pips equal $10 each and if you move position by 100 pips during a day, then you will actually gain $1,000.

Cons The capital requirement is very high as you will be trading large sized lots. The potential for large losses of capital is high as you are trading with such a large amount of money.

2. Mini – This account allows money to be moved in blocks or lots. The mini lot is roughly $10,000.

Pros Risk is low – Since you trade in blocks of $10,000 traders who have no experience can trade without going through the entire amount. Those who have experience can test new strategies out. Requirement Capital is low – the account can be opened with as little as $250 through $500.

Con Low reward – Because you are risking such a small amount of money then of course the potential gains will be much smaller.

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 Capital Requirement – Each managed forex account will have a minimum amount required to invest which can range from $5,000 to $100,000. Fees – You will have to pay a percentage of your gains each month to the account manager and this can range from 20% to 50%.

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.