10 Best Managed Forex Accounts for 2023

A managed forex account is a type of forex (Foreign Exchange) trading account in which a money manager trades on a client’s behalf for a fee. This kind of account is similar to mutual funds, as an experienced manager will use their specialized knowledge to make investment decisions on behalf of the client.

The process typically begins with the client opening a forex account under their own name. Following this, they proceed to sign a Limited Power of Attorney agreement with the money manager. This agreement authorizes the manager to conduct trades on the client’s behalf, although it usually doesn’t permit the manager to withdraw funds from the account. Once these steps are completed, the money manager starts executing trades on the forex market using the client’s account. The compensation for the manager generally comes in the form of a performance fee, which is calculated based on the profits they generate.

It’s important to note that, while a managed forex account might increase the chances of making a profit compared to an inexperienced individual trading on their own, it does not remove the inherent risk. The possibility of losing money always exists.

To ensure you only trade forex via reliable forex managed accounts, we’ve compiled the list of, in our opinion, the best forex-managed accounts. To compile it, we considered numerous factors, including:

• 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

Round-up

What are the best brokers with managed forex accounts?

Below our curated list of the best forex brokers offering managed forex accounts, accompanied by comprehensive information on their characteristics, requirements and unique features.

What Is a Forex Managed Account?

First and foremost, a simple explanation of what a forex managed account actually is. As briefly explained, 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. Essentially, forex account managers are responsible for seeking out trading opportunities, adjusting trading risks, and implementing profitable forex trading strategies.

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 rather within the system, where they can see all of the accounts 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.

Who Are Forex Managed Accounts For?

Based on what we’ve already covered, you should have a general opinion on whether a forex managed account is the right fit for you. However, if you still aren’t sure, ask yourself the following questions:

Do you have time to watch the forex market? Forex markets are open for trading 24 hours a day during the week. Given how fast they can change, it would require you to monitor each market constantly. That’s not a luxury many can afford. If you don’t have time due to other responsibilities, letting an expert forex trader do the work for you might be the right choice.

How comfortable are you when trading? Although forex trading is an exciting endeavor, it’s not for everyone. If you don’t feel comfortable when trading or aren’t sure what types of trading decisions to make, it might be a better option to let an expert handle these for you.

Do you want to learn how to trade? Although a managed forex account will take responsibility for trading off your shoulders, it doesn’t mean you won’t be able to learn a thing or two. By going through your manager’s trade history, you will be able to analyze patterns and decisions they make, which you can use to learn more about forex trading.

If any of the above three scenarios apply to you, setting up a managed forex account offers an excellent opportunity to take advantage of forex markets. On the other hand, if you want full control over your trading decisions or lack enough risk capital, it might be a better idea to trade forex yourself or try copy trading instead.

Forex Managed Trading Accounts: What to Consider?

Although we have provided you with a list of our top choices for the best managed forex accounts, choosing the perfect broker with such an account requires some work on your side, too. Essentially, there are several things you should consider when deciding which managed forex account to choose, either as an investor or account manager. These include:

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 Funds Account (for investors) matches the standard broker minimum deposit. Trading on the forex market 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 to choose a fund manager that fits with your own needs.

Fees. Even the best managed accounts come with associated fees, such as management fees, performance fees (typically a percentage of monthly profits), or annual fees. Consider them all before choosing the most cost-efficient managed account.

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 methods 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 great as managed forex accounts can be, they aren’t the perfect trading solution. 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:

Pros

• 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.

Cons

• You won’t have control over the investment decisions that are made by the fund manager.
• Fees charged by the broker and the fund manager can vary.

Key Takeaways: What Is the Best Managed Forex Account?

With all their benefits, managed forex accounts offer an excellent opportunity for forex traders. Of course, they aren’t for everyone, but if you don’t have the time or the experience to trade forex comfortably, letting an expert take care of your funds does sound like a profitable option.

And what are the best managed forex accounts? Our top choice is Pepperstone, followed by AvaTrade, and FP Markets. However, the remaining brokers don’t fall far behind. The truth is that any of the above forex managed accounts will serve you well, providing you with exciting forex trading opportunities.