Having a joint forex account
Generally every bank offers two kinds of accounts on the basis of number of beneficiary holders:
- Individual account - it means that there is only one beneficiary person who can manage the funds of the account,
- Joint account - where in two or more individuals can be the beneficiary account holders and can have power over transactions made from that account.
There is always strength in unity. Things did together and jointly have had much better options and advantages than that which were done singly. FOREX also understands this and hence gives an opportunity to open a FOREX account jointly. So, depending upon the number of account holders, investors can open individual as well as joint account. Having a joint forex account is also no different from other joint accounts. It has its own advantages, disadvantages and catches.
Opening a Joint account:
Opening a joint forex account is quite simple. It is provided by almost all the firms dealing in forex accounts. It requires that an agreement be made between the parties involved on regarding opening the account and its operation. Depending on the convenience, it can be decided if you require the signatures of all the account holders for a transaction or whether any one will suffice.
Opening a joint forex account has many advantages. First of all, the responsibility gets shared among the account holders. This helps is lessening the risk and burden of losses if things does not go well. Secondly, transaction decisions can be made even when another partner is not present. Suppose, there is a very ripe transaction for the taking, in case it is a joint account, immediately the transaction can be made. This advantage will not be possible in case of a single account holder, who is unaware of the transaction. Thirdly, having a joint forex account is beneficial while taking loans, because it helps one partner to cover on the risk of the other partner in case things don't work out as well as planned. Lastly, it is possible to limit the control a partner wields in a joint account.
Every aspect has its good and bad features and having a joint forex account is no different. If your partner is not that trustworthy, he can move away with all the funds in the account.
Also, if you have a joint account with your spouse or business partner and things are not going well in the relationship, the there is every possibility that you might face problems while using the joint account or making decisions regarding your deals or transactions through the joint account.
Secondarily, if the partner is not smart enough to make advantageous decisions while making deals you might end up making a loss on your forex account. One more scenario could be when you do not want to make a particular deal and your partner wants to go the other way round, you may end up making a mess out of it. Be wise; think twice before opening a joint forex account.