Any new Forex trader or trader of any financial instrument is often worried about several things. They have several concerns, and their main goal is to learn as much as possible in the shortest time period and not lose money. New traders often do one of the two things, they either learn about the art of trading from ground zero, or they hire someone who can trade on their behalf or, at the least, provide them with their expert opinion.
Now the question is, is the second option viable for everyone? Can someone else trade Forex on your behalf?
What is forex account management?
Forex account management represents a trading process where the money manager (trader) manages the trading on the clients’ behalf. Usually, money managers are granted only access to the account while the investors have full control over their account. The account managers usually take around 20% of the profits as a commission for their work.
Yes, most certainly! You can hire a professional to trade Forex in your place. The best part is, there are several brilliant Forex traders in the market. They can easily help you out with your needs. This allows you to capitalize on expert knowledge that you do not possess. Most newbie Forex traders prefer this technique because it allows them to avert risk to a great level. This also reduces their chances of going into debt which is a possibility in every trading market. Another great advantage of hiring an expert is that you can follow their actions and learn while managing your account.
Pay someone to trade forex for me
Can I Get Someone to Trade Forex for Me?
Yes, you can pay other traders to trade forex for you in the following ways:
- Invest in Forex-Managed Account PAMM account where successful traders trade instead of you.
- Invest in a mirror trading platform where you can follow traders from several trading experts.
- Invest a large amount of money in a hedge fund or trading prop company where professionals trade for you.
What is PAMM in forex? The PAMM or Percentage Allocation Management Module is a trading platform that simultaneously administrates an unlimited quantity of managed accounts where investors and traders use the same broker.
The best PAMM account forex brokers are:
1) Alpari PAMM Account Service
2) Instaforex PAMM Account service
3) Dukascopy PAMM Account Service
4) Hotforex PAMM account
Getting a Forex-Managed Account
A Forex managed account is one that professional brokers or Forex traders manage. This account will be in your name but managed by someone else. You can easily find a reliable and professional broker online. By hiring a money manager or an expert trader, you can save a lot of time that you would have otherwise invested in studying the market or doing the research. This is a great way of making extra money for those who treat trading as their side hustle.
Once you have hired a professional trader, most of your work is done. They will most likely ask you basic questions like how much money you are willing to invest and the degrees of risk you are willing to take. Once this is sorted, your expert will manage your account by looking out for trading opportunities. Your hired expert will apply her/his knowledge and make transactions under your name.
If you are still confused about how it would be like to have a managed Forex account, you can equate it with the investment equities account. Managers also handle these accounts.
Before you hire a professional Forex trader, you and the money manager (trader in this case) come into a signed contract. This document or signed agreement has all the terms and conditions of this professional relationship. This contract declares that someone else will be trading with your money and under your name on your behalf. Once this contract is signed, it is the responsibility of the Forex expert to take it forward. If all goes well, you will get the desired profits even without working technical knowledge of this field.
This is a great way of creating a new source of income without putting in too much effort. You only need to make sure that you are hiring a trusted and reliable expert. We all know that there is nothing in this world, especially in trading, that is absolutely positive or negative. Similarly, hiring a professional to trade in place also has its share of advantages and disadvantages. Let’s discuss them.
Mirror trading or Copy Paste Trading
Copy and paste trading represents the use of mirror trading technology to copy the real-time forex trades (forex signals) of other live traders. Forex Trading Copy and Paste methods involve practice when some trader creates a trade at the same time in your trading platform trade will be executed. Using a mirror trading platform, basically, you are copying the trades of more experienced traders.
Hotforex Copy is a social network platform where traders can copy signals. Visit HF Copy
Advantages of Hiring an Expert Forex Trader
This is how a professional trader benefits you:
1. Less research is required
The Forex market sees the maximum number of transactions in a day. It is highly volatile and operates 24 hours a day for five days a week. In addition to that, it requires extensive research work. The only way you can make some profit is through thorough research work, and this requires a lot of time and effort. By hiring an expert, you can save yourself from all this trouble and invest your time in other productive activities. In addition to this, this research work involves reading a lot of charts. If you are not comfortable with that, your research work will ultimately lead you nowhere. Thus, it is better to hire an expert in this case.
2. No time spent on studying
The only way you can make a profit by trading Forex is by educating yourself continuously. The reason behind this that currencies are directly linked to their respective economies. While stocks are affected by a single entity’s performance, currencies are affected by the entire country’s performance. Traders need to conduct a mix of technical and fundamental analysis. You need to constantly look at the news and read statements and reports released by the countries’ financial institutions. Even a slight change in the monetary policy can change the whole game. Professional Forex traders have access to a larger database, and they are aware of which news or report to follow. This will not only save your time but also keep you from chasing unproductive events.
Disadvantages of Hiring an Expert Forex Trader
This is what you should be cautious about while hiring a professional trader:
1. Additional Cost
If you are hiring someone, you need to pay them for their services! This is one of the biggest disadvantages of getting a professional Forex trader. You often pay their commission and, depending on their level of expertise; it can be pretty high.
2. Not Everyone is Reliable
Asking someone to trade on your behalf would mean that you are extending a part of your identity to them and give them access to your trading account and money. Doing this is only possible when the other person is reliable. While there are many reliable and good Forex traders, there are several con artists as well. Therefore, you need to be certain of someone’s credibility before handing them your investment and account.
We have seen what it would be like to hire someone else to trade on your behalf. Based on what you prefer, you can choose a professional trader. There is, however, the third option as well. You can trade yourself as well! This, too, has some advantages and disadvantages. Let’s discuss them now.
Pros of Trading by Yourself
First of all, we would not recommend this to anyone who has no prior trading knowledge. If you do have some experience and you would like to handle your account on your own now, these are the pros of it:
1. No more commissions
By trading yourself, you can eliminate the biggest downside of hiring someone else: commission. The services of professional traders are not cheap. You are liable to pay them irrespective of whether you are making profits or losses. These commissions can take away a substantial chunk of your earnings. When you trade yourself, you don’t have to pay anyone else. Whatever you make remains yours.
2. No more trust issues
As we mentioned earlier, there are several expert traders in the market, each with a different strategy. You need to employ a trial and test method to find a trader that suits your needs and matches your trading style. This can take a while. You also have to run a background check to ensure that the trader you have selected has all the certifications. You must make sure that someone reliable is taking care of your investment. When you are trading yourself, all these additional steps can be avoided, and you can begin trading as soon as you want.
Cons of Trading by Yourself
These are some of the challenges you might face while trading by yourself:
1. You need to upgrade your technical skills
Forex trading requires a lot of research work. If you wish to further your earnings, you have to read several charts and reports. All these are fairly technical in nature. The research work is not only time-consuming but demands a certain degree of technical knowledge as well. If you do not have it and plan to start from scratch, it could be a messy and long process.
2. You have to learn a lot
Forex traders constantly add to their existing knowledge. At the same time, expert traders are well-aware of the basics; they only need to process any new information. Such is not the case with newbies. You can build your knowledge base from level zero, which could take months or perhaps years. Without this knowledge base, you cannot hope to grow your bank balance via Forex trading.
The simple answer to the question ‘can I ask or hire someone else to trade Forex for me?’ is ‘yes.’ By hiring an expert Forex trader, you can trade without any worry or stress. There will be someone else who will do all the market research or look at data charts instead of you.
While hiring a professional is a great idea, make sure that you are with the right trader. Never give access to your money and account to anyone who is not reliable.