How Do I Open My Managed Account?
Please note that the Managed Account Review does not recommend, offer, or operate managed accounts. However we do provide a convenient method if you wish to inquire directly with the account manager.
When you decide you’d like to invest in a managed account, contact the account manager and ask for his or her help. (On each account manager’s page, there is a contact form for this purpose).
The manager will guide you through the account opening process. That’s part of their job.
Remember that you’re not going to be opening an account with the manager, but with a broker. Once your account is opened and funded, you’ll be provided with a Limited Power of Attorney (LPOA) to sign. That LPOA gives your manage authority to make trades on your behalf.
The LPOA does NOT give the manager any authority (or ability) to access or withdraw funds from your account. (If the manager earns fees per your agreement, the broker will disburse funds directly to the manager.)
Many managers work with just one broker. However if you have a large account at your favorite broker, there’s a chance that your manager will accomodate you.
You should listen to the manager’s advice when choosing a broker. Managers have usually had experience with multiple brokers over the years, and will know which ones are superior to others.
Account Documents and Forms:
Remember, when you open your managed account, it will be with the broker… not the account manager. The broker holds your funds. This is what you want. You want a financially sound, well-regulated broker to hold your funds and offer the liquidity in the various currencies your account manager will trade.
The account manager will steer you to the correct account opening forms or pages with the broker. You should follow the manager’s instructions, otherwise you may have to start over with some of your paperwork.
Note that brokers require identification, and have rules regarding the transfer of money in and out of your account. This is normal. One rule, for example, is that when you ask to withdraw money from your broker, the transfer must be made to the same name and account from which the account was first opened. You are not allowed to open account in one name, and withdraw money in another.
Trading Begins!
Once you’ve funded your account and you’ve submitted the signed LPOA, the manager will soon start trading your account. The broker will give you access to “view” your account in real-time so that you can follow your manager’s trading activity.
Don’t Try to Armchair Quarterback or Second-Guess Your Manger
We encourage you not to sit in front of your computer watching the trades. This will drive you nuts, really! Why? Because no manager can pick exactly the instant when a currency pair stops moving in one direction and begins in another. Currency prices don’t zig-zag in definite angles on a chart. They bob up and down, like a float on the sea. So it’s very likely that when your manager enters a trade, there will be some “bobbing” up and down until the currency pair eventually moves enough to either take a profit, or “stop out” at a loss.
A trade which has a “floating loss” of $1,000 for three days can suddenly turn around and enter a profit of $4,000 on day four. That’s how the rhythms of currency prices go.
Don’t Withdraw Your Profits As Soon As They’re Earned
If you begin withdrawing funds from your account, it won’t be able to “compound” and grow quickly. Be patient. Allow the manager to go through a losing period. Don’t badger him or her. It won’t help anyone! The Review does not guarantee profits on any account. We don’t even get involved in the account process. But we do know that we’ve done our best to find managed accounts which have great historical records. So make your investment, give it time, and in all likelihood, you’ll be quite happy with the results.
