Best Managed Forex Account In 2023

Finding a managed forex account manager in the USA can be difficult. Many forex money managers prefer to avoid the complicated netting and first-in-first-out rules that US-based brokers must follow. The idea of cooperating with offshore brokers accepting American customers is controversial due to the risk.

List of Forex managed accounts for Americans

• Lefturn
• FxMAC
• Forex92

Managed Forex Trading Account Fees

There should never be an upfront cost to opening a managed forex trading account. Forex account management fees are usually taken monthly and only on profits earned in that month; this is called a performance fee.

Most of the time, this fee is withdrawn automatically from your trading account by the broker. In some cases, an account manager might ask you to pay an invoice at the end of the month instead of automatically deducting it from your trading account.

You will notice that most managed account fees vary, mostly depending on your account size. The larger your investment, the lower fees you could pay. Generally, the performance fees are in the range of 20% and 40%.

Managed forex trading accounts typically use the high watermark methodology to calculate performance fees. The high watermark essentially means that you only pay a fee on the growth of the account, not just profit.

For example, you could earn $1,000 in January, lose $500 in February, and earn $501 in March. The high watermark is a net profit of $1,001, and so you only pay a performance fee for the $1 earned in March because the high watermark was only raised by one dollar.

The Risks of Managed Forex Accounts

Yes, you definitely can lose money even if your trading account is managed by a professional. Just like any other type of investing, there is always a risk. There is no such thing as a risk-free investment, and anyone promoting such is lying.

You should keep in mind that if the person trading on your forex account loses money, they are not responsible. After all, you agreed to take the risk, and you’ll keep the majority of the profits.

Always remember never to invest more money than you can afford to lose. Managed accounts are not a get rich quick scheme. You should hope for long term growth with proper risk management put into practice.

A reliable forex account manager should be trading with stop-losses on positions and allow you to set an equity stop-loss on the account, meaning you can determine the maximum money risked.

Advantages of a Managed Forex Account

Managed forex account programs can be very beneficial for investors who understand the fundamentals of investing and trading but lack the time, discipline or psychological strength needed to profit from trading forex.

Many forex money managers suggest that you don’t need any experience to invest in managed accounts; that’s wrong. While you don’t need to know how to trade per se, you need to understand investing and risk management fundamentals.

If you’re not a competent trader, there would be more risk if you traded an account yourself rather than delegating to a managed account service with professional traders. A managed account should be properly managed and follow strict risk management procedures.

If you were to trade on your own and haven’t developed a solid strategy, you would most likely trade with emotion, which is how most traders lose money. There are many reasons why new forex traders fail, and you avoid them by cooperating with a reliable managed forex account program.

The general advantages to investing in a managed Forex account:

Professional management: Managed Forex accounts offer the expertise of a professional money manager who is trained in trading forex.

Diversification: Managed Forex accounts allow you to diversify your investment portfolio, as the money manager is typically trading a range of currency pairs.

Passive income: With a managed Forex account, you can earn passive income from your investment without the need to actively trade yourself.

High Return Forex Managed Accounts

It can be tempting to seek a forex managed account program promoting high returns. It’s entirely possible to double your money every month by trading forex.

The highest returns achieved from the managed forex accounts list were from FxMAC’s Bespoke Program High Aggressive program. Average monthly profits are 37.86%, but the maximum drawdown was 50.88%, highlighting that high rewards go hand in hand with higher risk.

There are numerous examples of turning $100 into $1000 and becoming a forex millionaire, but that doesn’t happen to everyone.

Minimum Investment Requirements For Managed Forex Accounts

Most forex account managers set a minimum investment requirement in the region of US$5,000. For many investors, that’s quite a high requirement. The reason money managers set the investment barrier so high is that they can only earn so much by managing a small account, making it commercially unviable to trade a US$500 trading account.

It’s difficult, but not impossible, to grow a small trading account over time, but the work involved wouldn’t compensate the money manager for some time.

If you’re looking for a managed forex account with a $500 minimum investment, you might find few options. Anyone looking to invest just a few hundred dollars into a forex strategy might find copy trading a viable solution.

In our research, we found the forex account manager with the lowest investment barrier was Forex92, which had a minimum requirement of US$1,000. Unfortunately, we didn’t find them a suitable recommendation due to their volatile trading strategy.