How to Invest in Forex Without Trading In India

What are Forex Managed Accounts?

Managed accounts services are excellent for passive investing with the leading Forex brokers of 2023. Essentially, a managed Forex account is a type of currency trading account that a professional trader or money management team will use to make trades on your behalf. Such accounts charge a fee for this service, but that fee is often quite negligible and can definitely be worth it.

A managed Forex account can take the burden of day trading off the plate of passive investors and less active traders as such accounts provide access to different markets and assets beyond stocks and bonds. Nevertheless, any trading account should be considered high risk as the objective is usually to better optimize investment capital and take advantage of more frequent opportunities to make money in the markets. This is where utilizing the benefit of a more experienced trader or trading team to work on your behalf can pay off.

Because there is a large amount of online free and paid information about learning how to trade and do it yourself, most traders do not consider workable alternatives. They also frequently fail to assess the degree of difficulty and time commitment required to learn how to trade themselves. By using a managed Forex account investors can continue to receive revenue from their company while their money is working for them generating extra income. Think of it like owning a boat. How many ex-boat owners can you find that will recommend it as a good idea? Maybe renting a boat would work fine.

Types of Forex Investment Accounts

The main types of managed forex accounts that are offered by brokers include Forex copy trading, PAMM accounts, MAM accounts, advisory services, managed portfolios, and some other rarer types of accounts. It is worth noting that some of these “types” of managed accounts are technically not managed accounts at all, but are very closely related, as they utilize the expertise of more experienced market participants.

Forex Copy Trading

Copy trading can be a part of a managed Forex account, but it is a concept all of its own. Copy trading is simply the process of finding an expert trader with high profits and mimicking each and every one of their trading movements. Many traders will monitor major exchange networks and follow famous traders in order to make the best possible trading choices. Some platforms even automate this process, like eToro. You might be able to request that the manager of your managed account uses copy trading.

PAMM/MAM Accounts

PAMM, or Percent Allocation Management Module, is an account management system that uses ratios to determine volume and returns. The activity of the account owner, such as trades, profits, and losses, is split between managed portfolios using the PAMM ratio.

MAM simply refers to Multi-Account Manager accounts. These accounts make it possible for a money manager to assign different ratios of leverage to different sub accounts, if the investor prefers. This makes managed accounts owners who have a high-risk tolerance gain better opportunities to invest.

Advisory services

Advisory services can be a part of a managed Forex account, but such services are very different from simply having an account. With a basic managed Forex account, you can briefly consult with your money manager and leave the entirety of trading to them. With advisory services, you’ll be able to meet with a financial advisor. That financial advisor will provide holistic portfolio recommendations to help you build your wealth. Such advisors will offer consultations that detail strategies, best practices, and market recommendations. When you open a managed account, you might be able to receive advisory services for free.

Managed Portfolio

A managed portfolio is an investment portfolio that a professional Forex trader or financial expert will make investments through on behalf of a client. Managed portfolios are pretty much synonymous with managed accounts, though it is worth noting that managed portfolios tend to include a diverse range of investments that go beyond just forex trading. Typically, a client will pay a financial advisor a flat fee or monthly fee to manage their account and make trading choices, though this fee will be based on the size of the portfolio itself.

Generally, a 1% to 2% annual fee applies.The manager will usually take a portfolio allocation approach with a focus on more traditional assets, such as stocks, bonds, ETFs, and mutual funds.

Other Services

Managed Forex accounts can include individual accounts, which are solo accounts based on an individual client’s financial goals and requests. Such accounts typically require a minimum deposit of around $10,000 to get started. Pooled accounts are also quite popular among newbie investors. Pooled accounts deal with a number of different investors in one single account. A client can open an account that is managed by one investor, who oversees the trading decisions of the entire account. Usually, the minimum deposit for such an account is a lot lower at about $1,000 to $2,000 to get started.

Are Forex investments legit in India?

In India, Forex trading is legal. Citizens cannot, however, trade on electronic or online platforms for trading currencies. If they are Indian citizens, traders can trade Forex on the National Stock Exchange (NSE), Bombay Stock Exchange (BSE), and Metropolitan Stock Exchange (MSE). In India, Forex trading has developed into a continuous market with daily transactions.

For the purpose of policing and regulating currency exchange in India, the Securities and Exchange Board of India (SEBI) was established in 1992. It is a self-governing body that protects investors, organizations involved in forex, and issuers of foreign exchange securities. To operate in India, forex brokers need a SEBI licence. The use of foreign-regulated brokers who accept Indian clients is not prohibited, though.

How much can I earn?

The answer is that it depends on a number of variables, such as the size of your investment, the trader's performance, the account manager's fees, and the amount of risk you are willing to accept. On managed Forex accounts, investors can typically expect returns of 30% to 50% annually; in exceptional market circumstances, some traders can even expect returns of 100%.

Despite the fact that managed Forex accounts can provide appealing returns, there is a risk involved. Even the most experienced traders can suffer losses in the volatile and complex Forex market. Before investing your money, it is essential to carefully review the track record of performance and risk management approach of any prospective account manager.

What are typical minimum investments?

A Forex managed account typically requires a minimum investment of $100 to $500. Sometimes it is equal to the typical broker's minimum deposit. Trading involves risk; therefore, never invest money that you cannot afford to lose. Also, make sure that this minimum deposit is within your comfortable trading range.