A forex managed account trader needs a variety of trading tools to help him run his business. The trader, also known as a money manager, buys and sells currencies for clients who've given him money to invest on their behalf. To set trades for his clients, the managed account trader might need to use a forex brokerage firm which has the cabability to bundle all client funds together in one central account.
Back Office Brokerage Service
A broker that offers back office support should help the trader to run his business. A back office brokerage service keeps track of each trade the managed account trader places in the account. A daily summary is usually available for each account transaction. The back office handles all client deposits and withdrawals, as well as new client applications the managed trader submits. The back office will also keep track of any management fees, commissions or performance fees the trader charges clients. If certain clients have a higher risk tolerance, the trader can use the back office to improve the client's account leverage. Many managed traders allow their clients to log in to the broker's website, and keep an eye on the account activity.
Forex Charting Program
A managed account trader watches the forex charts to spot an investing opportunity. The most important forex trading tools a managed account trader needs is a charting program. The trader uses the forex charts to help identify currency trading opportunities. How many different currencies the trader follows depends on client profit goals and the trader's own expertise. The managed account trader may choose to daytrade currencies by using the charts. She could also choose to gradually build a portfolio of currencies for her clients, by using a trading plan that she designs using the forex charts. An investor who is a capable programmer may use the currency charts to design an automated trading system. Orders will automatically execute through the brokerage when the system generates a trade signal. The trader will still monitor each position, but doesn't always have to be in front of the computer to place a trade.
Client Tracking Program
The trader must keep an eye on each client's funds. A managed account trader must monitor each client's deposits and withdrawals. Some traders require prior notice before allowing a client to make a withdrawal, considering that the reduction in total funds under management may affect the size of a position the trader wishes to enter in the account. This contingency is generally a part of the contract clients must sign once they agree to let the trader manage their funds. A simple spreadsheet program is normally sufficient for tracking client deposits and withdrawals. The brokerage firm will also have a record of each client's transactions, which the trader can use as a backup source.
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