GalleonFX Review: Managed Forex Acccounts – 10k Minimum, Automated Trading

Most good managed forex account require minimum investment of $25,000, $100,000 or even $250,000. There are just a few good ones which accept $10,000 or less and most of them deserve deeper look even because of this fact alone.

GalleonFX is one of these services accepting investors with $5,000. They use automated trading system, which is constantly being worked on and improved.

Here are the technical details:

• Euro 2:1 leverage
• 2 Forex brockerages available
• Minimum investment: $10,000. There was a limited time offer of $5,000 which I used to fund my account. Such might or might not be available again in the future.
• 25% fees on the performane results
• The average backtesting performance exceeds 100% per year

The Real Performance

The backtesting results are very impressive, but unfortunately the real performance is far behind them. The trading was doing fairly well since May 2007 when 2 flat and 2 negative month ruined most of the profits.

Still the result for 2007 is positive. In September the trading turned back to good and even these who entered the service in the worst moment (like me!) are now close to break even.

Considering how bad July and August were for many forex traders, I think GalleonFX managed OK with the situation.

The Future

If GalleonFX can continue with results like in the first half of 2007 (and like they start now in September), the yearly average ROI will be between 50% – 100%. Even a conservative estimate of 50% yearly can make you quite wealthy in ten – fifteen years even if you withdraw half of your profits.

Like with any forex investment don’t forget there is significant risk of losses. While losing it all is only theoretical, a drawdown of 50% is not impossible.

To Invest Or Not?

The decision is entirely yours, just consider the comments in the previous section. Only your “risk capital” should go into forex based investments. Risk capital means money that you can afford to lose, i.e. they are not the momey for your mortgage, rent or education.

On the other hand, the risk capital is usually the one which brings the best returns, so if you have it, why waiting? Click here to join GalleonFX and make profits.

P.S. In the Picks section you will find some managed accounts which seem to be (and maybe are) more lcrative. The reason I have chosen Galleon here is that I am using them since an year and have real long term experience with them.