According to the Barclay Group, as of the 2^nd quarter 2005, it is estimated that over $125 billion is under management by futures and FX trading advisors worldwide. There has been dramatic jump in investor participation recently, since 2001 investments in this arena have risen fourfold. Currently, there are three primary categories that make up managed futures and managed FX investments that are available to the public.

Individually Managed Futures Accounts permit investors to open a private trading account in his or her name with a Futures Clearing Merchant (FCM). The investor authorizes a professional trading advisor to direct trading in this account based on the trading strategy presented in the advisors disclosure document. This type of participation allows investors the most transparency and liquidity. Because an individual account is opened in the investors’ name, activity can be monitored daily if necessary and trading authorization can be revoked at anytime. Most advisors have minimum required investments before they will trade an individual account on their behalf, these minimums range from as little as $25,000 to as much as $10 million for some advisors.

Private Investment Pools are investment trusts, syndicates, or similar forms of enterprise operated for the purpose of trading commodity futures or option contracts. Typically thought of as an enterprise engaged in the business of investing the collective or “pooled” funds of multiple participants in trading commodity futures or options, where participants share in profits and losses on a pro rata basis. It is common for many pools to have certain restrictions that limit the number of investors that can be involved in the pool or the financial suitability of the individual investors. Additionally, these pools may be restricted from advertising to the public, consequently, obtaining information about their availability may be difficult. These pools usually allow for admission-redemption on a monthly or quarterly basis. Most pools have minimum investments ranging from $25,000 to $250,000.

Public Funds and Pools provide a means for small investors to participate in the commodity markets. These funds are usually setup as public funds and are often marketed like mutual funds, there are some differences. It's not uncommon for commodity funds to have upfront fees or “loads” for startup and administrative fees. Like individual managed accounts and private pools, the advisor also participates in profit sharing in the form of his incentive fee.

Within these groups there is a wide variety of choices among available managed programs. Programs can be selected by style, strategy and market focus. When selecting a managed futures account that is right for you, investors should first develop a set of requirements that meet their individual investment needs, then search, screen and select the programs that will meet their objectives.

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