As in any other business losses are likely to occur if the managed forex accounts are not properly managed. The first cause of losses in the forex trade is the personal greed that drives you to over trading. If the trade deals made do not yield the charges imposed on each trade drains your equity and all the gains achieved before. The reduction in equity could be gradual and unnoticed till it reaches very low levels. So caution should be practiced every time.

In the many foreign exchange programs the investor or the manager may manage the present funds poorly by risking too high percentage of equity at the same time. Despite that the returns being higher in high risk deal care should be taken on deciding the amount of money to out at stake. This could be referred to as poor money management and if this is done by the portfolio manager you should fire him on the spot.

Losses can also occur due to the usage of poor or outdated forex trading system which has been long passed by time. This why web based systems or upgradeable client based systems are better. The system should analyze the trade for you and give interpretable reports. Also lack of knowledge can be costly to you

In the online forex trading platform; there other factors which can lead to losses as the security of the system being compromised by hackers or viruses. This would lead to the malfunctioning and wrong analysis of the true situation in the market.