Managed accounts: useful information for opening
This high-yielding form of investment is more and more popular among my readers. However, I would like to share some more information with you so that even more people can take advantage from the opportunities offered by a managed account. The accounts are the same in all cases, yet the users are divided into two groups. The reasons for the disappointment may be different. It is possible that some of the users did not have all the information prior to theinvestment, or they had excessive expectations for them.
First of all, I would like to draw your attention that it is not recommended for short-term investments, due to the initial fixed costs. The minimum recommended time frame is a year, but you certainly can withdraw your investment at any time, but if you do this in a few months after opening the account, you are likely to get less than what was deposited. The reasons for this are the fixed costs.
What are the costs?
First and foremost, the transfer cost. You can use a variety of methods to deposit money to the different the accounts. This can be a transfer from a local or a foreign currency account, credit card, Skrill and many other e-wallets. I do not undertake to give an accurate list of all costs now, but I share a few thoughts.
Experience has shown that the use of bank transfers involves the lowest cost, but this takes the longest. Do not think this is a long time, just the money will not be credited to the account within a day, but within 3-5 business days. The cost of transfer depends on many factors. Clearly, if we initiate a transfer in the currency of the target account, no conversion costs will be charged. Otherwise, there might be some. Transfer costs may vary per bank, so I do not list these. Since not all domestic banks have a direct connection to the destination bank, sometimes we have to cover intermediate bank costs in addition to the initial costs, if a third bank must be included in the transfer. This should be clarified with your bank in advance in each case. My account is at Raiffeisen bank, because there is no monthly account maintenance fee and it has a direct connection to the Sparkasse Bank. So, in case of a $ 2,000 transfer, 3tgbrokers books $ 2,000, if we ask the bank to deduct the transfer cost from our account balances, that is 0.2%, at least EUR 5.6 (ie. EUR 5.6 in case $ 2,000).
In case of Skril, the transfer cost is 2.5% + EUR 0.3.
In case of a credit card transaction, the fee is 3.5% + EUR 0.3, if a conversion is needed, it is not sure that the exchange rate is favourable.
These costs can be expected in case of withdrawals as well. Also, if we take money from our bank account, it also has its costs and transaction fees.
3tgbrokers does not deduct anything from the amount received for itself saját részére semmit sembut it deducts the opening fee described in the POA, depending on the type of the account. For example, it is 2% in case of 5gulden. The Perfecto accounts have no such fees. In case of RHO, Total Trade accounts, 5% of the deposit will be deducted from the first withdrawal.
In addition, some accounts have a monthly fee, which is USD 8-10.
There’s one more cost, the fee payable on the basis of the monthly result. This is 50% in case of 5gulden, Perfecto, RHO accounts, 40% in case of FX21.
If you calculate with all these charges, you can easily notice that it is not worth depositing money for a few months. But, I think, this is true for any other investments. In fact, it is not worth putting money on a current account, unless we devote some money on security, because the costs and transaction fees definitely reduce our deposit. In addition, compared for example to an insurance linked investment, the advantage of the managed account is clear with regard to yield, predictability and accessibility as well.