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.

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.

If you have made the decision to invest in the Forex market then there are three different accounts you can invest into: standard, mini, and managed. Each option has both pros and cons and it will be up to you to decide which account is best for your needs.

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 – Many brokers will give perks and service to investors who choose this option as you are investing more money. Gains – possible profits in this type of account are much higher because of the high amount invested.

Cons Capital Requirement – Most brokers would require you to have a starting balance of at least $2,000 and others more than that. Potential to Lose – Just like you could make $1,000 a day, you could also lose that $1,000 in a day.

2. Mini account – This type of account uses much smaller lot sizes. The lot size on a mini account is $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 is low – when you don’t risk much you don’t get much. This is a type of account for those beginning in the market.

3. Managed Account – The managed Forex account is different than the others. You allow your money to be traded by a professional trader in the hopes that he can do a better job than you.

Pro Guidance – The managed Forex account will have a professional trader placing all of the trades. This means you do not have to watch the markets all day.

Cons Capital – Many managed forex accounts have a minimum of $5,000 to $100,000 to invest. Fees – You must pay a percentage of your gains to the account manager. This fee can vary from 20% to 50% of the gains on the account

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.