Is forex account management legal?

filippo ucchino Filippo Ucchino calendar Last Updated: February 2022 timer 4 min read

So, you have decided to look for a managed forex account?

Whatever the reason, the very first place you will want to look is our list of the best managed forex accounts available. Whether it is pamm account forex brokers you are looking for or another type of managed account, we can help.

With that in mind, you may be wondering, is forex account management legal? That is exactly what we will answer here through our guide that will also outline the key steps in getting started.

Here is a closer look.

Table of contents

Is forex account management legal?

The simple answer here is yes, forex account management is legal and legitimate. There are some countries with strict regulation on these kinds of activities, and some brokers who do not offer managed forex accounts, but still, the actions are legal.

How to choose a broker for managed account

Here is a closer look at exactly how to choose the best broker you can if you are interested in a managed account type.

Look for a regulated and safe broker

Above all, you will want to make sure you choose a regulated broker who can be trusted to provide a safe trading environment. There are many to choose from that have excellent top-tier regulation from CySEC, the FCA, ASIC, and others.

You can check our selection of the best managed forex account choice to help you along.

Find your fund manager

Once you have selected and registered with a top broker providing managed accounts, it will be time to choose a fund manager.

There are many elements to check when choosing your fund manager. These include their experience level, past performance, and risk appetite as well as their reputation with other traders. If all of these things are to your satisfaction, then you can sign up with one of the fund managers.

Perhaps you are interested in becoming a fund manager yourself. If that is the case, you should read our guide on how to become a forex account manager for more information.

Check the minimum deposit requirement

Among the first things you should check when signing up with a broker, is their minimum deposit. Each broker will have its own minimum requirement which in general matches that amount required to open a managed account. You should check this is within your range.

With that said, some fund managers may require higher minimum deposits which is also something to check and consider.

Diversify your investment

Diversifying is key in all forms of investment, including forex trading. In this respect when it comes to managed accounts, you can also diversify by trading through multiple fund managers.

This is a good step if you have a significant amount to trade and want to balance your risk by choosing different fund managers who perhaps also have varying risk attitudes.

What is forex account management?

A Managed account allows a single professional trader to manage the funds of several investors and trade on their behalf. In this process, an investor will invest with a fund manager to trade for them. The fund manager operates through a particular broker. For more information, you can read our guide on how do forex managed accounts work?

Is a forex managed account right for you?

This will be completely your decision, though using a managed account means you can rely on the skill and strategy of professional and experienced traders. This can be a great choice if you are new to trading or don’t have the time to dedicate to trading as all of this can be the responsibility of a fund manager trading on your behalf.

Issues you might have by investing in a fund manager

Of course, it may not be all plain sailing with a fund manager. Regardless of their past record, there is always the possibility of a loss.

Another point you may miss out on is the ability to experience and trade the market yourself as you hand over control to a manager. This may not be suitable if you are a very independent trader.

Overall though, these are challenges that can typically be overcome in the long run as you see the results of trading through a good fund manager.

About the Author

Filippo Ucchino

Co-Founder - CEO - Broker Expert
Filippo is the co-founder and CEO of He has 15 years of experience in the financial sector and forex in particular. He started his career as a forex trader in 2005 and then became interested in the whole fintech and crypto sector.
Over this time, he has developed an almost scientific approach to the analysis of brokers, their services, and offerings. In addition, he is an expert in Compliance and Security Policies for consumers protection in this sector.
With InvestinGoal, Filippo’s goal is to bring as much clarity as possible to help users navigate the world of online trading, forex, and cryptocurrencies.

Leave a Reply

Your email address will not be published.

Keeping you better informed

Find and Compare the Best
Online Brokers for You

Trading CFDs, FX, and cryptocurrencies involves a high degree of risk. All providers have a percentage of retail investor accounts that lose money when trading CFDs with their company. You should consider whether you can afford to take the high risk of losing your money and whether you understand how CFDs, FX, and cryptocurrencies work. Cryptocurrencies can widely fluctuate in prices and are not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework. Your capital is at risk. The present page is intended for teaching purposes only. It shall not be intended as operational advice for investments, nor as an invitation to public savings raising. Any real or simulated result shall represent no warranty as to possible future performances. The speculative activity in forex market, as well as in other markets, implies considerable economic risks; anyone who carries out speculative activity does it on its own responsibility.
ADVERTISER DISCLOSURE: InvestinGoal is completely free to use for all. Though we may receive a commission from brokers we feature, this does not impact the results of our reviews or rankings which are conducted with complete independence and objectivity, following our own impartial methodology. Help us continue to provide the best free broker reviews by opening your account with our links. Please read our Advertiser Disclosure to learn more.
Copyright © 2022 – All rights reserved. / Privacy and Cookie Policy / Basic Terms of Use / Risk Warning / Sitemap