Managed Futures AccountsManaged Futures Accounts are when a third party trades your Futures Account for you. Generally the third party who trades your account will take a share of any profits they make. However, you will be fully liable for any losses incurred. It is important to note that the vast majority of Futures Traders lose money, so it is highly important to do your research thoroughly when selectiing a trader.
Alternative investments to stocksManaged Futures Funds provide an ideal for those seeking Alternative investments to stocks. Many Futures contracts have little or no correlation to the stock market.
Managed futures account performance track recordWhen selecting a trader to trade your funds, it is absolutely essential that they can provide a good track record for at least a year, preferably a lot more. Don't forget, most traders lose money and allowing them to trade your funds gives the trader the opportunity to trade, completely risk free to them, whilst still profiting if they do show a profit. However, it must be understand that past performance is certainly no guarantee of future results.
Managed Futures FeesThe fee structure of managed accounts is a very important aspect to consider. Many Managed Futures Accounts actually charge you a small flat rate, regardless of results. Personally, I am not a fan of this as it is my view that investor is doing the trader a favour just as much as the trader is trying to help the investor. The investor is giving them funds to trade, risk free to the trader!Many firms charge a percentage each month the account shows a profit. This is good in theory, but if the trader has 10 positive months of 3% and takes 25% of the profits, then had 2 months where he loses 25%, your account is going to be negative at the end of the year, but the trader will still have made his commissions. This is not a good deal for your money. Commissions based on yearly performance are much better.
Managed Futures SpecialistsThere are many firms out there claiming to be "Managed Futures Specialists" when in reality they are simply amateur traders wanting a risk free opportunity to trade. These must be avoided at all costs, because large losses are often inevitable.
Managed future brokerThere are many brokers out there. Ones I have used personally are Saxobank and Optionxpress.
Managed Future TradingIn conclusion, A Managed futures investment is a viable alternative to stock investment, however it is unquestionably very high risk and in depth research into the trader and his/her abilities is a major part of the success.Return from Managed Futures Accounts to the homepage
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