Managed forex accounts are speculation activity. The difference between managed forex accounts and regular accounts is that professional finance experts and brokerage companies who specialize in the Forex market handle a managed forex account.
A managed Forex account is excellent for investors who don’t have the experience needed to trade successfully in the Forex market. Companies that specialize in managed Forex accounts often can secure a bigger profit for you. A managed Forex account has many benefits, but some people simply cannot afford the initial investment cost. The high investment rates, while not as high as some investment programs, are what drive many people away from getting a managed Forex account.
There are numerous legal concerns in the creation of a private placement memorandum (PPM) and it is definitely recommended that a lawyer review the document at some point. Pro: Deep Legal Expertise and the con: Business Expertise
However, while the lawyer is busy crafting the PPM to protect your legal interests, they are not tending to the business requirements of the document. Con: Payment Up Front
Furthermore, lawyers will require payment for the PPM at the time it is created, well before capital has been raised. Con: Need for Separate Brokerage Services
Futures markets are uncorrelated with equity markets. A managed futures fund is optimal for an individual not looking to trade; they want to use futures solely as an addition to their current investment portfolio. Managed futures accounts are similar to a mutual fund. An investor deposits funds with a Commodity Trading Advisor (CTA) who will fully manage the trading and risk from within the account.