Managed Trading Accounts (MTA)

[20MillionDinar]

Managed Trading Accounts (brief overview)

It’s important that you understand something here: no stock broker or financial advisor cares about your hard earned money like you do. We’re all currently living in the perfect economic storm and there’s a good chance that you’re going to get screwed if you haven’t yet taken your financial matters into your own hands. The solution to not only surviving, but prospering in these challenging economic times, is to take steps towards becoming more self-reliant. The first key in that process is to adopt the proper mindset and then seek out those who can help you get the results you’re looking for. However, accomplishing this is easier said than done... especially when you’re dealing with a financial industry that’s incredibly full of B.S., hype, manipulation, and lies. It shouldn’t be any wonder that so many investors are confused – it’s by design. In fact, there’s a very concerted effort to keep you in the dark so that you’ll never figure out your finances, and you’ll have no other choice but to hire a professional to help you. Most people never create wealth in their lifetime because they spend the majority of their lives being seduced into following the dangerous “advice” of the bought-and-paid-for cronies in the media... or ‘shocking’ headlines on websites like CNBC.com or CNNMoney.com. Only a very small percentage of the population knows that many Wall Street investment banks operate almost in the form of a syndicate – a method of operation to trick, manipulate, and separate the majority from their money. These vultures use all kinds of stealthy fear-driven tactics to divert and distract you from what’s really going on in the markets.

The Growing Popularity of Managed Trading Accounts

Managed account programs have taken off in popularity over the last few years, with many providers offering solutions that have dramatically reduced the risk of fraudulent transactions. Investing through managed account programs certainly provides lots of advantages over direct fund investing, particularly when it comes to transparency, ownership and liquidity. However, it’s crucial for investors to fully understand the potential positive or negative impact these programs can have on their investment portfolios. Now, it should come as no surprise to anyone reading this that every investment vehicle –no matter how automated or “hands-free” it is – requires a certain base level understanding of how it works. So, in case you’re not already familiar with this kind of terminology, a managed account is an arrangement whereby a trading firm (or individual trader) trades your account for you on auto-pilot, and in return, they take a percentage of the monthly profits they earn you. It’s a fair system, because they generally only make money if you do.

Transparency and liquidity

A major benefit of having a managed account is its increased transparency and liquidity compared to other alternative investment products like hedge funds, which pool investors’ money together. In other words, managed accounts – at least the genuine ones – don’t operate as a “secret institution” where your capital could be locked up for months and transparency is often limited to just monthly paper statements. Account funds in managed trading accounts are segregated and not comingled or “pooled” together. This means your money always stays in your account and under your control. Furthermore, a bona fide managed account is established in your name (or business name) and all or part of your funds can be redeemed within a few business days via bank wire (as long as they’re not in trade). So there’s a high degree of liquidity here that’s not found in other IVs.

How does it work?

Once you open and fund a live account with a trading firm, the fund manager/trader will usually use what’s called a PAMM, LAMM, or MAM System to automatically tie your account to the trader’s master account. PAMM stands for Percentage Allocation Management Module. It’s a technical software solution provided by the broker that allows the creation of an unlimited number of Investors’ Accounts under one “Master Account” (or Manager Account).

The funds from all clients and the Master Account are traded as one unit, and the PAMM software distributes gains, losses and fees on an equal percentage basis. In other words, all accounts obtain the same percentage returns regardless of their size. LAMM stands for Lot Allocation Management Module and allows the trader to allocate different trade lots to each investor’s account. This allows the trader to have the flexibility to use different leverages for different types of investors.

**Not my work, but I wanted to share with you folks a brief overview of what a MTA is and the benefits it can provide versus trying to trade yourself. Aren't we shooting for Passive Income in the long run? If you are trying to learn to "day trade" yourself then kudos to you. But doesn't that now becomes your job and is not considered an investment? If you don't work you don't earn... Hope you enjoyed the info, and again, this is not my work.

[LaGrange]

As a pro trader I can say without a doubt that managed accounts can be sound if you do your research. Avoid someone that promises high rates of return because there are very high risks involved in forex trading. A slow grow in forex is still better than any other market fund (overly simplistic). I know of at least a hundred money managers and many of these are crappy traders imho because they are reckless. It's not gambling folks, it's trading. lol A 2% a month return is realistic. There are only 3 people on this planet I would allow to trade my money besides me..........so do your research!

[20MillionDinar]

As a pro trader I can say without a doubt that managed accounts can be sound if you do your research. Avoid someone that promises high rates of return because there are very high risks involved in forex trading. A slow grow in forex is still better than any other market fund (overly simplistic). I know of at least a hundred money managers and many of these are crappy traders imho because they are reckless. It's not gambling folks, it's trading. lol A 2% a month return is realistic. There are only 3 people on this planet I would allow to trade my money besides me..........so do your research!

Exactly! I agree with you LaGrange 100% on this. Don't just go trusting anybody with your money...

Fund managers are dime a dozen. Research, due diligence, following a proven track record, these are all very important factors when choosing a trader or Managed Trading Account.

Thanks for the input LaGrange.