Any new trader of any financial instrument, including forex, is frequently concerned about a number of concerns. They are worried about a number of things, but their main objective is to gain as much knowledge as they can without becoming bankrupt. New traders frequently choose between two options: either they have a thorough understanding of the art of trading, or they engage someone to trade on their behalf or, at the at least, offer them their professional judgment.
Is the second choice practical for everyone, then? Can someone else trade forex for you?
What is management of a forex account?
Forex account management is a trading procedure where the trades are managed for the client by the money manager (trader). Typically, investors retain full control of the account while money managers are simply given access. The standard commission for the account managers’ efforts is around 20% of the revenue.
You might employ a specialist to trade forex on your behalf. The market has a number of excellent Forex traders, which gives you plenty of choice. They can respond to your needs right away. You can take advantage of professional knowledge that you don’t have by doing this. Just keep in mind that not all forex traders will perform well and even the best forex traders can have losing streaks.
The majority of inexperienced Forex traders use this strategy because it can help them to take advantage of the skills of others. Hiring a professional also gives you the opportunity to learn from their management of your account since you can observe their actions.
Is it possible to have someone trade forex for me?
Yes, there are several ways you can pay other traders to trade forex for you:
- Place your money in a Forex-Managed Account PAMM account, where traders will trade in place of you.
- Invest in a program that allows you to track trading signals from various trading professionals.
- Invest in a hedge fund or trading platform where specialists will perform trades on your behalf.
In my many years in the forex industry, I have seen how hard it can be to find someone reliable who can trade on your behalf and produce consistent results for a sustained period of time. Unfortunately, it is nearly impossible to find someone who can handle your account, trade in your place, make choices, adhere to stringent risk guidelines, and make you money.
Finding some portals where PAMM traders and portfolio managers trade for you is an option, however these portals are controlled by certain corporations. Risk and maximum drawdown are the two trading segments that matter most. You will find there are many traders that manage money who will open numerous positions, leave open bad trades until they recover, and if they don’t, they can blow your account.
You can experience a significant decline if you typically receive signals. Typically, traders lose money, create new signal accounts, and keep harming the portfolios of investors. There are always new traders who are looking for a magic forex signal that simply does not exist.
PAMM accounts
What does Forex PAMM mean?
Percentage Allocation Management Module, or PAMM, is a trading platform that manages an infinite number of managed accounts at once when traders and investors use the same broker.
A forex-managed account is one that is run by experienced brokers or traders. Although it will be in your name, another person will administer this account. A trustworthy and knowledgeable forex broker is simple to discover online. You can save a lot of time by hiring a money manager or an experienced trader instead of spending it learning about the market or conducting research. However, I do not think anything can beat learning how to trade by yourself and making your own decisions. That is just my personal preference.
The majority of your work is completed as soon as you engage a skilled trader. Your willingness to invest money and your level of risk tolerance will likely be the first things they ask you. Your expert will maintain your account by hunting for trade opportunities once this has been resolved. The expert you engaged will use their skills and complete transactions in your name.
You can compare a managed Forex account to an investing in stocks with a broker-dealer if you’re still unclear about what it’s like to have one. These accounts are likewise handled by managers.
You and the money manager (trader in this example) enter into a written contract before hiring a professional Forex trader. All of the terms and conditions of this business partnership are contained in this paper or signed agreement. This agreement states that another party will transact business on your behalf using your funds and in your name. The Forex expert is in charge of carrying out this contract after it has been signed. If all goes according to plan, you can still reap the rewards without having any practical technical expertise in this area.
This is a possible method for developing a new revenue stream without exerting too much effort. You merely need to confirm that the professional you are hiring is reputable and trustworthy. We are all aware that nothing in this world, particularly in trading, can be guaranteed. Similar benefits and drawbacks come with engaging a professional to trade in place.
Mirror or copy trading
Copy trading is the practice of using mirror trading technology to duplicate the real-time FX deals of other active traders (forex signals). When a trade is created concurrently in your platform by another trader using a copy trading software, the trade will be completed. You are duplicating the trades of more seasoned traders when you use a mirror trading platform.
Benefits of using a professional forex trader
A professional trader will help you in the following ways:
- Less research is needed
The most transactions occur on the Forex market each day. It runs continuously for five days a week and is very turbulent. Additionally, it necessitates a lot of investigation. You can only make a little money by doing extensive research, which takes a lot of time and work. By hiring a professional, you can avoid all of this hassle and use your time more effectively. In addition, reading numerous charts is a necessary part of this research project. Your research will eventually be useless if you are not at ease with that. So, in this situation, it is preferable to contact an expert.
- Minimal studying time required
Only by constantly educating yourself will you be able to make money when trading forex. This is because each country’s economy and currency are intertwined. The performance of a single corporation affects stocks, whereas the performance of an entire nation is impacted by currencies. Trading professionals must combine technical and fundamental analysis. You must regularly read announcements and reports published by the financial institutions of the various countries. The entire game can be altered by even a small modification to the monetary policy. Professional Forex traders have access to a larger database and are aware of the news and reports that should be followed. You’ll save time and avoid wasting it on pointless pursuits if you do this.
Drawback of using a professional forex trader
When employing a professional trader, you should be wary about the following:
- Extra Charge
If you hire someone, you must compensate them for their services! One of the biggest drawbacks of hiring a professional Forex trader is this. You frequently pay the commission they receive, which can be rather high depending on their level of competence.
- Not everybody can be trusted
By asking someone to trade on your behalf, you are granting them access to your trading account and funds as well as a portion of your identity. This can only be done if the other party can be trusted. While there are many trustworthy and competent Forex traders, there are also a number of scammers. Therefore, you must investigate a person’s reputation before entrusting them with your money and account.
We have experienced what it’s like to have someone else trade for you. You can select a professional trader based on your preferences. However, there is a third choice as well. You can also trade yourself! This also has certain benefits and drawbacks. Now let’s talk about them.
Advantages of trading independently
If you do not want to rely on anyone else to trade forex for you, there are many benefits to managing your account yourself right away, including the following:
- No need to pay any fees
The largest drawback of hiring someone else is commission, which may be avoided by working for yourself. Professional traders do not offer cheap services. Whether you make a profit or a loss, you still have to pay them. These commissions may deduct a considerable portion of your income. You don’t have to pay anyone else when you trade yourself. Whatever you produce is entirely yours.
- No more concerns with trust
As we previously indicated, there are a number of knowledgeable traders there with various strategies. In order to discover a trader who meets your needs and complements your trading style, you must use a trial-and-error approach. This may require some time. Run a background check on the trader you have chosen to make sure they are fully licensed. Make sure a trustworthy person is looking after your money. When trading yourself, all of these extra processes can be bypassed, allowing you to get started trading right away.
Drawbacks of trading independently
These are some of the difficulties you could have when trading alone:
- You must improve your technical proficiency.
Research is a big part in forex trading. You must examine numerous charts and reports if you want to increase your earnings. These are all fairly technical. The study process takes a lot of time and necessitates a certain level of technical expertise. If you don’t have it and want to start from scratch, it could be complicated and time-consuming.
- You have a lot to learn.
Forex traders are continually expanding their knowledge. Expert traders, however, are aware of the fundamentals and just need to process any new information. With beginners, this is not the case. Starting at level zero, you can increase your knowledge base over the course of months or years. You cannot possibly expect to increase your bank balance through Forex trading without this information base.
- Time will be required.
It takes time to monitor important news and analyze market situations. You must put in several hours of work each day or each week to review the report, examine the charts, and develop plans and strategies.
Conclusion: can I get someone to trade for me?
Can I ask or employ someone else to trade forex for me? The straightforward answer is “yes” you can. If you want to, you can hire a professional Forex trader to manage your account or copy trading signals from a social trading platform such as eToro. Instead of you, someone else will conduct all the market research and study the data charts, then place and manage trades on your behalf. However, they might have different ideas to you and take trades that you would not. Therefore, you are giving up control of your account by entrusting someone else.
I think it is better to spend as much time as possible reading and learning as much as you can about forex trading. You can then put your knowledge to the test with a forex demo account and see what strategies work best for you. If you build some confidence and start to see some consistent results, you can then think about a live account. This way, you can learn from your own mistakes and do not have anyone else to blame if things go wrong.
Self-confessed Forex Geek spending my days researching and testing everything forex related. I have many years of experience in the forex industry having reviewed thousands of forex robots, brokers, strategies, courses and more. I share my knowledge with you for free to help you learn more about the crazy world of forex trading! Read more about me.
