Managed forex accounts have increased in popularity over the past five years, and especially over the past 12 months.  Investors in traditional asset classes such as equities, and real estate, have seen the value of their investments fall dramatically, and have actively sought alternative forms of investment.

Investing in forex managed accounts can be an ideal way to add diversification to a traditional investment portfolio, and to increase overall returns.  Studies into professionally managed forex accounts have shown that returns are not related to the stock market.  As with any other forex managed funds , there are a variety of trading strategies and styles that Managed Forex Accounts can take.

Managed forex accounts can give an investor who cannot watch the forex market 24 hours a day an opportunity to participate in the $3 trillion day forex market.  Managed forex accounts are an effective way for retail investors or forex traders alike to benefit from the knowledge and expertise of an experienced professional investment manager without the often onerous restrictions and entrance charges of a hedge fund. 

Generally speaking,  Managed Forex Accounts offer investors the following benefits over traditional investments in the equity markets and mutual funds:

• Absolute returns in either a rising or declining equity market
• diversification from a traditional equity/bond portfolio
• disciplined, risk controlled trading of liquid assets
• daily reporting, usually online, of account positions
• the option to participate in the forex market through an individual retirement account via a forex IRA account .

You can learn more about specific managed forex accounts here.

Managed Forex Accounts - Safety of Funds 

One of the key reasons that managed forex accounts are growing in popularity is that your funds may be safer than in a hedge fund.  When you open a managed forex account, the professional money manager will never have the access to withdraw your funds.  Unlike the recent hedge fund fiasco of the Madoff case, an investor in a managed forex account has daily access to his account. His funds are held by a custodian, and the manager never has the opportunity to gain access to those funds.

You can get more information and reviews of a variety of forex managed funds here.