At InvestinGoal, we adhere to strict standards to ensure an unbiased review process. We conduct our reviews by examining each broker’s offering and performance across 4 key categories. A final rating is produced for each forex broker based on a total of 187 data points. Learn more about our review process and methodology.
In order to compile this ranking with the best managed forex accounts, we took many factors into consideration. These include:
- The managed account type
- The trading platforms available
- The service quality for fund managers
- The service quality for investors.
- Spreads on forex and on other markets
- The flexibility of the allocation parameters
Table of contents
|Brokers||Managed account types||Platforms|
|Pepperstone||MAM, PAMM||MT4, MT5|
|FP Markets||MAM, PAMM||MT4|
|Dukascopy||MAM, PAMM, LAMM||MT4|
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
Between 74-89% of retail investor accounts lose money when trading CFDs.
You should consider whether you can afford to take the high risk of losing your money
Top 10 brokers with managed forex accounts: 2022 review
With a string foundation gathered, let’s take a look at the top 10 brokers we have found offering managed forex accounts:
- With Pepperstone, the fund manager can manage over 100 sub-accounts.
- Pepperstone allows you to open both MAM and PAMM accounts.
- Pepperstone’s technology allows for low latency on managed accounts.
- Fund managers can manage Pepperstone accounts via MT4 or MT5, and use trading robots at will.
- The minimum order size for managed accounts is 1 micro lot.
- With AvaTrade the fund manager can manage an unlimited number of accounts.
- As a platform, AvaTrade allows the use of MT4 on its MAM accounts.
- AvaTrade allows you to manage allocation by equity, lots, percentage and balance.
- The minimum trade order in forex for sub-accounts is 1 micro lot.
- AvaTrade makes a MAM demo account available.
3. FP Markets
- FP Markets offers a great service for EAs in its ECN MAM and PAMM managed accounts.
- Every FP Markets MAM/PAMM account is available with MT4.
- Traders can choose between three allocation methods on FP Markets: by lot, percentage, and by balance.
- An unlimited number of sub-accounts can be managed with FP Markets.
- The managed accounts offered by FxPro are among the most flexible.
- FxPro allows you to customize trading commissions, mark-ups and performance fees.
- FxPro’s MAM accounts provide traders with the ability to decide the allocation methods available: per lot, percentage, risk-based, and proportional.
- FxPro allows traders to earn rebates on MAM accounts.
- Tickmill offers a managed MAM account.
- Tickmill’s MAM account usage interface works on MetaTrader 4.
- The fund manager can manage an unlimited number of sub-accounts on Tickmill.
- Two allocation methods can be chosen in Tickmill’s MAM account: by balance and by equity.
- Fund managers can choose to trade with EAs as well.
- To open a Tickmill MAM account you must deposit at least $5000.
- Roboforex offers advanced and flexible MAM services on MT4, where money managers and investors can set their own risk parameters.
- The MAM accounts offered by Roboforex allow for dynamic and automatic adjustment of the allocation systems.
- Roboforex offers a copy trading system integrated into managed accounts.
- HotForex offers a PAMM account with which you can manage multiple sub accounts.
- On the HotForex website you can publicly view the statistics of each fund manager.
- The minimum deposit to open a PAMM account with HotForex is $250.
- The minimum trade size for PAMM accounts at HotForex is 0.01 lots.
- HotForex dynamically handles the allocation type chosen based on the equity of the managed accounts.
- PAMM accounts can be opened with FBS, but only under IFSC regulation.
- In managed accounts it is possible to receive real time market news from FBS.
- You can open an FBS PAMM account from only $1.
- FBS offers multiple allocation methods, and orders can be opened as low as 0.01 lots.
- Dukascopy offers two PAMM accounts.
- With the LP LAMM account, it is Dukascopy who acts personally to make the money work for you.
- With the Standard PAMM account there is a fund manager acting through Dukascopy.
- Dukascopy offers MAM, PAMM, LAMM managed accounts.
- The minimum deposit to access a Dukascopy managed account is $1000.
- You can manage an unlimited number of sub-accounts.
- With Dukascopy, you can open forex positions starting from 1 micro lot.
- GrandCapital offers a RAMM managed account to its traders.
- MT4, MT5 and a proprietary platform are all available at GrandCapital
- The minimum deposit for a GrandCapital RAMM account is $50
- The spread of GrandCapital starts at 0.4 pips with a $5 commission per lot traded.
What is a Forex Managed Account?
First and foremost, a simple explanation of what a forex managed account actually is. As you can guess, a forex managed account type is one which is managed by another trader, a professional trader, also known as a fund manager.
This person is managing the account and trades in that account on behalf of other clients, and there is typically commission paid by clients to these fund managers to take care of the running of these types of accounts which could be separate from any fees charged by the forex brokers, who typically host these accounts.
How does a Forex Managed Account work?
A fund manager will typically have a large number of accounts to manage at any one time. They usually do not manage these accounts separately but instead within the system they can see all of the accounts as a whole which are under management through their dashboard facilitated by the broker.
This will typically allow them to set allocation methods, or criteria for each of the sub-accounts they are controlling. This allocation can determine how the risks and earnings as well as other strategy points are managed within each of the sub-accounts.
With that said, the ability to do this, and how it is done, depends on a number of factors related to the overall broker that the fund manager has chosen. There are also often multiple types of managed accounts available from each broker.
Different types of Forex Managed accounts
The first type of managed account we will look at is a LAMM (Lot Allocation Management Module) Account type. A LAMM account trader managing the accounts can apply different leverage on sub-accounts depending on their needs and that of their clients. This account type then provides a good degree of flexibility to investors in terms of managing risk through these types of accounts.
PAMM Accounts (Percent Allocation Management Module) are very common when it comes to talking about a managed forex account. Here, earnings and losses are typically equally distributed among the different sub-accounts regardless of the amount of money invested in the account with the trader. The same percentage profit or loss is applied to all accounts. These types of accounts are typically very transparent in that you can view every action taken by the account manager in most cases.
Moving to RAMM (Risk Asset Management Model) and here you will find all of the same great features as you would have through a PAMM account but with improved features for helping manage risk on both ends as an investor and money manager. Using a RAMM account, you can also trade independently of the money manager and decide the portion of your balance to allocate to be managed.
Finally, a MAM (Multi-Account Manager) account is a mix between a LAMM and a PAMM account. This account type comes with the same flexibility you would find in a LAMM account but administered in the same way as a PAMM account.
Forex Managed accounts – Things to consider
There are plenty of things to consider, however these are the most relevant when you are deciding which forex managed account you should choose either as an investor or account manager.
The broker itself. Every broker has its own offer, but the first thing you should look for is a safe and well-regulated broker. This is the same as when you are just choosing any forex broker for trading, you always want to ensure they are well-regulated.
Minimum investment needed. Usually the minimum deposit needed for a Forex Managed Account (for investors), matches the standard broker minimum deposit. Trading is risky, never invest sums that you cannot afford to risk, and ensure that this minimum deposit is within your comfortable trading limit.
Choose your fund manager wisely. Every fund manager has their own strategy, trading style, risk profile, and more. You should do your research to make sure that the fund manager you choose is one which fits with your own needs.
Diversify your investments . Fund managers are professional traders and will of course diversify their investments. But some brokers allow you to invest with more than one fund manager. In this way you have the opportunity to wisely diversify your investments even further.
Allocation methods. The more allocation method a broker offers through its forex managed accounts, the better the fund manager will be able to manage your money. This kind of flexibility with multiple options can only work in your favor as an investor.
Copy Trading VS Managed Accounts
You may wonder what the difference is between copy trading, and trading through a managed account. Well there are some key differences. Some of these key differences are that, through a managed account, your money is managed and invested by a professional who will keep a percentage of profits in return.
With copy trading, you are simply managing all of your own funds in copying the trades of another trader who also has their own funds and account which they are actively risking.
Managed Forex Accounts – Pros and Cons
As with any kind of trading, managed forex account trading has its own individual pros and cons for you to consider. Here are a few from each side to help you make the best selection for yourself:
- A managed forex account allows passive investing from your end, with everything done by the fund manager in most cases.
- This also means you don’t have to have any trading knowledge since the professionals will trade for you.
- You can have the flexibility to withdraw your funds at any moment.
- Choosing one or more account managers and managed account investments can be a great way to diversify your investments.
- You won’t have control over the investment decisions that are made by the fund manager.
- Fees charged by the broker, and/or the fund manager can vary.
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