The foreign exchange, or Forex, market is one of the largest and most liquid financial markets in the world. Each day over 3 trillion dollars is exchanged and this volume is growing. As the individual investor finds the US stock markets less than ideal for consistent returns, interest in Forex will continue to rise. Also, it is considerably harder for a group to manipulate this market due to its size and liquidity.

The Forex market is where it's at for the individual investor. This is also evident when looking at key word searches in Google as searches on Forex related content is up around 50% from the previous year. How can the average investor earn consistent returns trading this market without losing it all? There are many methodologies out there but essentially there are three camps:

• Learn the ins and outs of trading Forex and become a trader.

• Purchase a trading "robot" that executes trades for you.

• Let someone else trade for you.

Becoming a Trader

Learning Forex is deceivingly simple as the number of symbols is tiny compared to the stock market. This method requires a lot of time and still there are no guarantees that consistent returns are achievable based on the trading system you use. At the very least there will be a considerable time gap between first learning about Forex and earning a return on investment.

Trading Robots

Trading robots or "expert advisors" are programs that use technical data to determine when, what and how much to trade. There is no trader present in this scenario, only the program that is making the decisions. The primary limitation of this software is the lack of fundamental data consideration and can be disastrous to your investment capital.

Professional Traders

Letting an experienced trader handle your trading for you is a safe and effective method for managing your capital, as long as the trader is reputable and has a proven track record of success. The best method to acquire this is through transparent trading history preferably from an unbiased third-party. There are three primary ways to let a trader control your account.

• Open a managed account with the trader.

• Open a brokerage account which allows you to auto-trade recommendations from a list of available traders and systems.

• Subscribe to trading signals from the trader to execute in your account.

Managed Accounts

Managed accounts work by opening an account and signing a power of attorney to allow the trader to execute trades in your account. The trader takes a certain percentage of your returns and usually charges a maintenance fee based on your account balance. While you do have access to your account it may be difficult to stop trading or remove funds based on your agreement with the trader. Also, most managed accounts require large deposits sometimes in excess of $100,000.

Auto Trading

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