Best Managed Forex Account In 2023
It can be challenging and very risky to find the best and most reliable managed forex account.
Many people are interested in profiting from the forex market but lack the time necessary to practice trading themselves. Others struggle to deal with the emotional toll trading plays. Therefore, managed accounts are popular among time-strapped traders and newcomers who haven’t quite grasped how to trade consistently.
The beauty of using a managed forex account service is that someone else does the trading for you. However, you still need to find a reliable forex account manager who has your best interests in mind or at least has their interests aligned with yours.
Finding a trustworthy managed forex account can be tricky. The finance industry, including the forex sector, attracts scammers and con artists looking to rip off naïve investors. Many scammers are drawn to managed forex accounts and employ all kinds of tricks to deceive investors. Common tricks are fake reviews & testimonials, manipulated statistics and colluding with unregulated brokers for a share of losses.
- Managed forex accounts are a type of investment vehicle that allows individual investors to have their funds managed by a professional money manager.
- One of the main benefits of managed forex accounts is that they allow investors to access the foreign exchange market without having to go through the learning curve of becoming a skilled trader.
- Managed forex accounts typically require a minimum investment, and once that investment is made, the money manager takes over and makes all of the trades on behalf of the investor.
- Another benefit of managed forex accounts is that they can provide investors with higher returns than traditional investments.
Therefore, it’s really important to find a reliable managed forex account that makes consistent profits. If you’re active in any forex trading forums or forex communities in other social networks like LinkedIn, Facebook or Instagram, you’ve likely received some spam trying to promote forex managed accounts.
This page reviews some of the most popular managed forex trading account services and guides you on the best practices you need to know when choosing a person or company to manage your forex account.
Recommended Forex Managed Trading Accounts:
- Managed Forex Hub
Top-Rated Managed Forex Trading Accounts
We’re prepared a managed forex account list to help begin your search for the best forex account manager. We’ve selected these providers for their proven track record, long-term credibility, and, most importantly, earning money for their clients.
FxMAC is one of the most transparent providers of managed forex accounts. The company offers four programs, each with unique strategies and objectives. All programs follow an intraday trading strategy to minimise drawdown to investors and always apply take-profits and stop-losses to positions.
The programs offered by FxMAC vary in technique and risk to reward ratios. All strategies are offered with a double risk option. All strategies are verified by well-known independent trading analytics tools Myfxbook or FxStat, for investors to verify the authenticity of the performance.
Since 2012, FxMAC has been pursuing the goal of giving retail and institutional investors easy access to forex asset management services. FxMAC’s headquarters are in Saint Vincent and the Grenadines. The company holds personal meetings at their commercial office in central London.
Forex Rank’s lead analyst Mark Prosz has personally used FxMAC and considers them one of the best managed forex trading accounts.
- Deposit: US$3,000 to US$15,000 (depending on strategy and risk setting)
- Supported platform: MetaTrader 4
- Supported brokers: IC Markets, FXChoice, Fusion Markets, Vantage FX and LMFX
- Average monthly profits: 19% to 37.86% (depending on strategy)
- Drawdown: 50.88% (Bespoke Program High Aggressive program)
- Performance fee: 30% to 35% (depending on deposit size)
- Management fee: No
#2 Managed Forex Hub
Over time, their investment approach can help generate excellent risk-adjusted returns, decreasing the investment commitment amount and timeframe significantly for investors vs traditional investments. All strategies are independently verified by Myfxbook.
Managed Forex Hub has different programs, from low-risk conservative strategies to more aggressive ones. They favour algorithmic trading over discretionary trading, but their FX Marketplace is a meeting ground for global traders and investors to come together.
#3 Learn 2 Trade
Learn 2 Trade aims to equip traders and investors with the facts and details required to become a successful forex trader. Besides offering managed forex accounts, the company offers a forex signals service if you want to perform discretionary trading yourself rather than committing to a managed account.
Learn 2 Trade uses technical analysis trading strategies, using the most accurate forex indicators, such as the RSI, Moving Averages, and Bollinger Bands to the Aroon Oscillator, MACD, and On-Balance-Volume. Strategies focus on day trading positions and may enter swing trades to capture larger price movements on rare occasions.
Before committing to a US\$5,000 minimum deposit to start using Learn 2 Trade, they let you test their strategy using a demo account.
- Deposit: US$5,000
- Supported platform: MetaTrader 4
- Supported brokers: AvaTrade
- Average monthly profits: Variable
- Drawdown: 10-40%
- Performance fee: 30%
- Management fee: 0%
Lefturn is a State-of-the-Art algorithmic trading firm based in Canada. Their team develops and deploys trading strategies to bring a scientific approach to trading while utilising a sophisticated research platform and development environment to produce, optimise, and execute trading alphas continuously.
Lefturn allows you to open an account with any forex broker using the MT4 or MT5 platform. The company also offers a 30-day risk-free trial on a demo account to test before allocating funds. They offer two different strategies with four risk tolerance options: conservative, moderate, aggressive, and very aggressive. All strategies are independently verified by FX Blue.
- Deposit: US$3,000
- Supported platform: MetaTrader 4 & MetaTrader 5
- Supported brokers: Any broker
- Average monthly profits: 2% (Steady Growth program)
- Drawdown: 22.2% (Steady Growth program)
- Performance fee: 25% to 26% (depending on deposit size)
- Management fee: No
What is a Managed Forex Trading Account?
A managed forex account, also known as a managed forex trading account, is traded by a professional forex trader or money manager on your behalf.
Essentially, you give authorization to someone else to trade your account. Therefore, you will need to sign a “limited power of attorney” that states that someone will be trading your account on your behalf. The reason it’s a limited power of attorney is that you do not permit the account manager to withdraw funds.
Your funds are held in a forex brokerage account, and the regulated broker is the custodian of your money, not the money manager.
The account still would be under your name, and only you, as the account holder, can deposit and withdraw funds to and from the account. If this is not the case, steer clear of that particular managed account service.
You will pay fees on the profits earned in your account. The fees you agree to pay should be included in your power of attorney with other permissions and restrictions. Ensure you read the whole document and feel comfortable with it.
The person managing your trading account will use a MAM or PAMM tool provided by the broker. MAM is short for “multiple account manager”, and PAMM is short for “percentage allocation management module”. The money manager trades from their own trading account, and their trades are simply replicated in yours.
Managed Forex Accounts In The USA
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
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.
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.
Managed Forex Account FAQ's
How much does it cost to have a managed forex trading account?
Usually, account management fees are taken monthly and only on profits earned in that month. Most of the time these fee withdraws are automatic through the broker.
The fee most managed forex trading accounts charge is called a “high Water Mark” / Incentive Fee, often referred to as a High Water Mark Performance Fee (others may have a different name for it). You will find that most managed accounts fees vary depending on account size, but mainly range between 20% – 40% on the amount of profit incurred.
It is important to only open a managed forex trading account with a trusted and reputable company.
Never invest more money that you can comfortably live with losing. Managed accounts are NOT a get rich quick scheme, you should expect long term growth with proper risk management put into place.
Can I lose money in a Managed Forex trading account?
Yes, you definitely can. Just like with any trading account the risk is always there. But let talk about one Scenario.
Scenario – You have very little to no Forex trading experience.
It would be a much higher risk if you traded your account on your own vs opening up a managed account. At least the managed account is professionally managed and with strict risk management in place (if you are with a decent managed account like the two above). If it came to it, your losses would also be much lower in a managed account, be it they followed their trading strategy and “max money at risk” protocol.
If you were to trade on your own and haven’t develop a solid strategy, you are most likely going to trade with emotion and this is how most trader lose money. You can learn about this here – Why do most newbies to currency trading fail?
So to sum it up, trading yourself if you are a beginner vs having a managed account?… A Managed forex trading accounts is the safer way to go.
In conclusion, managed forex accounts can be a valuable investment vehicle for individual investors looking to participate in the foreign exchange market. They offer a number of benefits, including access to professional money management, the potential for high returns, and flexibility in investment strategy. However, it is important for investors to understand the risks associated with these types of accounts and to choose a reputable and experienced money manager.