The Ugly Truth About Forex Managed Accounts
If you are reading this blog from the beginning you may remember that it had a strong focus on managed trading accounts and especially forex. I invested quite a lot of time and energy to research, review and follow the performance of various managed accounts.
Now, about an year later from the start of this blog and after about 2-3 years of watching the forex managed accounts business I can tell you it’s a lost cause. Many of these services seem very promising in the beginning so you can easily start to believe that they can make you wealthy in 5-10 years. Then after 1-2 years at best each of them crashes and goes nowhere (if it have had a positive performance at all). How is that possible? There is simple explanation – we are able to find a lot of promising ones because only they are advertised. For each managed account that has good performance in the first 1-2 years there are 100 who have failed yet from the beginning but you never hear about them. So you are finding mostly services who have had the luck to start positively. The stats prove that it has been only luck – because all of them crash after a short period of profits.
Here is a quick update on the accounts that have been reviewed here:
GalleonFX lost more than 70% this year and stopped trading. My loss alone is about 60% and those who were unlucky to invest at the last December may have lost 80%.
FXCM didn’t perform better and also removed all their managed account services from their site.
FXFareast have hidden the performance from their site but you can find independent comments showing that they started to stink yet at the end of 2007.
Best Trading Systems disappeared many months ago without a track. I have not heard from anyone what has happened with the trading.
DEV was doing so-so until June this year. I don’t know what’s the status after June.
Capital Blu have also hidden their data, but a quick research shows a mention of 85% drawdown.
Milbay Finance is showing performance only till Aptil this year and then nothing. I don’t see big losses so far, but who knows what has happened in the last 5 months.
If you want to know how much Devrim and BTRFX suck, just read the comments on the review.
FX Master disappeared without track.
FX Street was closed more than 6 months ago due to bad results.
Do you want more? I don’t. I officially declare no longer interested in managed forex accounts. Forex trading does not add value to the world anyway.