There is a way to say good-bye to all ponzi scams which rule the HYIP community - it
is to invest only in legal and regulated companies. Unfortunately most of these
opportunities are too far from the returns offered from the HYIPs - most mutual
funds barely exceed ROI 10% - 15% per year.
Today the new hopes of the investors are oriented to the hottest thing recently - the Managed Accounts. In this article we'll introduce them shortly to the interested readers.
What is a managed account
"An investment account that is owned by an individual investor and looked after by a hired professional money manager." (quote from Investopedia). Usually we talk about FOREX, Stocks or Options managed accounts. It is the same like hiring forex/stocks brocker to work for you, however most brokers will need at least $100k and more to agree to work only for you. With the managed accounts you have the advantage to hire them with smaller amounts - but of course the broker won't work only for you.
Can you get scammed?
No, if you really open a managed account. What does that mean? When creating the
account you should have it with a reputable money broker - this has nothing to do
with the "reputable HYIPs". We talk about companies with buildings, registrations
and staff - companies which can be found in the newspapers. Your trader can be part
of such a company or can be independent - but the account is created at the broker's
and is on your name. You will need to sign LPOA (Limited Power of Attorney)
document which enables the trader to access your trading account to conduct
trading activity only. They will have no access to your account for
any other purpose. So the trader can never withdraw the funds. They can only trade
Can you loose money?
Absolutely yes. The Forex or Stocks trading is a risky business. Your trader could loose your money so you should be careful when choosing them. Do not just look on the last 3-4 months performance, try to obtain at least one year historical data and verify it with the company-broker. Remember that previous results do not guarantee further performance.
What ROI can you expect?
You can only guess this based on the trading history of the choose trader. Most managed accounts will barely exceed 50% per year, however there are good ones making 5% - 10% per month. This is probably the range which you should be looking for, because making higher figures means your trader loves to risk your money too much.
What is the minimum investment?
Most managed accounts require at least $5,000 minimal investment. Sometimes it
is possible to negotiate even a lower minimum. Much better than to invest these in
How to find managed accounts?
There are several promising ones discussed in the money making forums.
There are good perspectives in
Check the forex and stocks forums, contact traders and search
by Vladimir, Tony Clifton