Best Managed Forex Accounts for 2021
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.
Are you looking to get started in forex trading through a managed account? Maybe you are seeking more information on how managed accounts operate, or you are a fund manager looking for a broker to help with managing your accounts. In any case, If the answer is yes, then you are in exactly the right place.
Here we will take a detailed look at not only how a managed forex account works, but also the different types that are available, and the top online forex brokers you can choose from for trading through a managed account. Let’s get started, and let’s see what are the best managed forex accounts.
Table of contents
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.
Top 10 Best Brokers with Managed Forex Accounts
With a string foundation gathered, let’s take a look at the top 10 brokers we have found offering managed forex accounts:
IC Markets
IC Markets are the first top broker for managed accounts to make the list. They are a very well-known and trusted Australian ECN broker who are a strong force in the industry for many traders. When it comes to managed forex accounts, they offer a PAMM and MAM account.
With this broker and the account types, you will have the ability to control the allocation parameters in real time. This makes them as flexible as possible. Focusing on the sub-accounts, they will also have a minimum trade size of 1 micro lot which is 0.01 standard lots. With IC Markets you can expect a very fast execution speed locking in the best prices, and with an extremely competitive spread starting from their RAW spreads at 0 pips. All trading is done here through the MT4 trading platform, and the use of EAs through this platform is also allowed.
Pepperstone
Another great Australian broker and trusted name to make the list as a top broker for managed accounts is Pepperstone. They also offer both MAM, and PAMM account types with an excellent degree of flexibility.
This flexibility allows for control of up to 100 sub-accounts with the broker. Great if you are a busy fund manager. You will also experience excellent trading conditions here with individual control of each sub-account functioning with little or no latency whatsoever. This makes the broker perfect for quickly executing trades.
Trading at Pepperstone takes place through the trusted MT4 and MT5 trading platforms where the minimum trade again on a sub-account is 1 micro lot. Both scalping, and the use of EAs are also permitted through this broker.
FxPro
FxPro is the next broker on our listing of top managed forex account brokers. They are of course one of the best-known brokers in the industry and they provide access to a MAM account which is a very flexible choice for many account managers.
The flexibility here comes in the fact that you can set your own trading commission as an account manager, and also apply your own fees, and additional markups where required based on your investor. You can also be rewarded with rebates based on trading volumes. This kind of flexibility can work to benefit both managers and investors.
FxPro also works to provide for a range of allocation methods which you can choose. These include by lot, percentage, equal risk, equity percentage, or proportional equity/balance allocation. They are an all-round very open and popular broker choice. They also allow for the use of EAs on accounts.
AvaTrade
AvaTrade also offers some account options if you need a managed forex account. The Irish-based broker has a global reputation among traders, and they offer a MAM account which allows you the freedom to manage an unlimited number of sub-accounts. Again, with AvaTrade you also have multiple options when it comes to allocation method. This can be based on equity, lots, percentage, and balance of the accounts managed.
The minimum trade size available at the broker for each sub-account again is 1 micro lot and you can trade with MT4. AvaTrade will also give you access to a great demo account to try out the service, and you will have full access to every type of order which you usually would with the broker. This means stop losses, limit losses, trailing stops, and more order features will all lbe available.
FP Markets
The next Australian broker entry on our list is FP Markets. They are an ECN/STP broker who have been around in the industry for many years since 2005. Here you can take advantage of their award-winning service and open a MAM or PAMM account with each type of FP Markets account available and EAs also permitted throughout. This gives you a great degree of choice as either a trader or investor with this broker.
Here you will find trading available through MT4 and 3 different allocation methods that you can use. These are, by lot, by percentage, or by balance. The broker also allows you to manage an unlimited number of sub-accounts, and there is no limit to the amount of money that can be managed within these accounts.
Roboforex
Roboforex is the next broker to feature on our listing. They are another top broker who has gained a great deal of popularity in recent years and they make a RAMM service available. This RAMM service is an excellent choice for a degree of independence since both money managers and investors can set risk parameters on these accounts.
With Roboforex, trading is done through the MT4 trading platform and a copy-trading service is also made available within the RAMM account service. This is a feature which is both very unique, and may be desirable to some traders. Another point worth noting with this one is that if you change equity through a deposit or withdrawal, then the broker will automatically adjust your relevant parameters to match the new amount. This should make the process very easy for all involved.
HotForex
Our next top broker choice for a managed forex account is HotForex. They are another reliable and well-reputed international broker where you can manage multiple sub-accounts through a PAMM account. Their transparency on these accounts is also a great feature with the fund manager statistics being publicly available from the broker.
You will find a minimum deposit on this type of HotForex PAMM account is $250 and a minimum trade size of 0.01 standard lots, or 1 micro lot again is applied here. Overall, the broker is an excellent and very popular choice for all involved. This is thanks not only to their transparency, but also their very flexible service. Again, with this broker, they will make automatic parameter adjustments based on equity changes. This both saves time and keeps your funds very accessible.
FBS
FBS is another top broker around the world and they too offer options when it comes to a managed forex account. This account comes in the form of the FBS PAMM account. The account is flexible in that it allows you the freedom to both monitor and manage multiple sub-accounts in real time, and simultaneously. You will also be updated with news in real time.
This account type with FBS is available under the broker entity which is registered under the IFSC and you can choose from a range of great account type options to trade under. One of the things that makes this broker so popular is its accessibility. You can open an account and start trading here from just $1 with the cent account. It is the perfect solution for new traders.
Dukascopy
Next up if you are looking for a managed forex account is Dukascopy. They are a top broker also offering a range of additional banking services. Here you can access 2 types of PAMM account to choose from.
The LP PAMM account allows you the chance to leave your funds to the broker, and they will manage them and make them profitable. The minimum deposit here is $1,000. With the Standard PAMM account also offered where you can leave your money to a money manager. A third choice is also available for an account which combines MAM, PAMM, and LAMM features and provides for a minimum trade of 1 micro lot in sub-accounts where you can manage an unlimited number of accounts.
These features together with the flexibility, and the fact you can try out a demo account first, make Dukascopy a very popular choice among both traders and managers.
Thinkmarkets
Last but not least on our list of brokers providing managed forex accounts, is ThinkMarkets. They offer an excellent PAMM account which provides you with the excellent trading conditions that the broker is known for.
This account type choice with ThinkMarkets means there is no commission from the broker side. You will also have a wide range of assets to choose from when it comes to trading here. These include not only forex, but also indices, commodities, and cryptos. Added to these great features and range of markets is the fact that you can always monitor the performance of fund managers via the leaderboard which is available. This can help you in choosing the best fund manager to meet your trading needs.
Forex Account 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:
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/or the fund manager can vary.
About the Author
