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Are you an investor but have no time to make your own forex trades? Would you like to trade forex, but you’re afraid you do not have the right skills? Are you a fund manager looking for an experienced broker to manage your trades? If your answer to any of these questions is yes, then this article is meant for you.
There are hordes of forex managed accounts in the market today, and in as much as some of them are legitimate, some of them are just expertly disguised scammers. For this reason, you need to perform extensive research before you can settle on any one manager. This research can be daunting but worry not. In this article, we will cover how managed accounts work, their features and extensively explore the top 10 managed accounts worldwide.
Top 10 Managed Forex Accounts
1. TechBerry
TechBerry offers multiple plans to subscribers for generating impressive gains on their funds. The packages differ in terms of loss reimbursement, access to a personal manager, service fee, and minimum deposit. It is possible to test out the service via the free trial for as low as $5000.
The social trading platform uses a neural network to formulate a trading strategy that has the potential to generate 11.2% each month while maintaining the drawdown. Your funds are kept safe as TechBerry supports more than 50 regulated brokers, which come under solid check and balance by multiple authorities.
Subscribers can witness the trading performance, which is tracked on the website. The plan configuration can help you calculate your gains beforehand. A simple $10000 can generate over 80% within a short period of one year. This is much higher than the performance offered by big banks and hedge funds.
| Success rate | 96% |
| Customer support | Live chat, email, phone, personal manager |
| Payment types | Credit Cards, Wire Transfer, PayPal, Bitcoin |
| Minimum investment required | $5,000 |
| Managed account type | PAMM, Automated social trading account |
2. eToro
eToro is the most popular platform for copy trading globally. The platform offers managed accounts for CFDs on forex, indices, and commodities. They also have managed accounts on stocks and cryptocurrencies. One of their key features, CopyPortfolio, allows their clients to invest in portfolios prepared by their team of expert traders. They also have a CopyTrader feature through which you can find a trader on the platform to manage your account.
eToro does not charge management fees to their clients. Their fees are captured in their spreads. The minimum investment for the CopyPortfolio account is $5,000, which is relatively high. For the CopyTrader account type, this minimum investment is much lower.
| Success rate | Depends on your trading manager |
| Customer support | Live chat, email, eToro OpenBook, and open ticket |
| Forex signal per day | N/A |
| Payment types | Credit cards, wire transfer, Paypal, Skrill, and Neteller |
| Minimum investment required | $5,000 |
| Managed account type | PAMM-Copy portfolio |
3. FXTM
FXTM or ForexTime Limited is a worldwide forex managed accounts broker headquartered in Cyprus. They offer MetaTrader-based trading platforms, which include MetaTrader4 and MetaTrader5. Their trading accounts include Standard, Cent, Stocks CFD, Stocks, ECN, ECN Zero, and Pro accounts. They accept minimum deposits of $10 for Cent account, $100 for Standard and Stocks CFD, $200 for ECN Zero, $500 for Stocks and ECN, and $25,000 for their Pro account. Deposits are free, but withdrawals are charged depending on the method one chooses.
Additionally, FXTM is regulated by various bodies, including the Cyprus Securities and Exchange Commission (CySEC), Financial Sector Conduct Authority (FSCA) of South Africa, and the UK’s FCA. The available trading instruments are stocks, metals, CFD stocks, indices, commodities, and stock baskets. Deposits can be made through credit cards, Skrill, Neteller, Bank Wire Transfer, Fasapay, among others. They can be contacted via email, phone, or live chat.
| Success rate | Depends on your account manager |
| Customer support | Email, phone, and live chat |
| Forex signals per day | N/A |
| Payment types | Credit cards, Skrill, Fasapay, Netteler, and bank wire transfer |
| Minimum investment required | $10 |
| Managed account type | PAMM |
4. Learn2Trade
Learn2Trade is a UK-based forex signal service provider. They offer exclusive signals through a Telegram channel, providing three to five verified daily signals. Learn2Trade operates a MAM model, and it’s arguably the best in the world. All major financial markets, for example, crypto and forex, are catered for by their service.
Investments are made through their partner, AvaTrade, which is universally regulated and allows a minimum investment of $5,000. They charge 30% on profits, and investors are promised an average estimate of 30%-40% profits per month. The company is also a popular forex and cryptocurrency training platform. Learn2Trade is a safe and transparent company, with a fair revenue share capped at 70/30.
| Success rate | 82% |
| Customer support | Email and live chat |
| Forex signal per day | 3-5 |
| Payment types | Credit cards, wire transfer, Skrill, and Neteller. |
| Minimum investment required | $5,000 |
| Managed account type | MAM |
5. Forex92
Forex92 is a managed accounts service provider that operates the PAMM model and offers its clients three account types to choose from. The first is a personal account, which requires an initial investment of at least $1,000 while charging a 30% monthly fee on profits. The second type is a business account whose minimum investment is $25,000, with a 25% monthly charge on profits. They also offer an Enterprise account whose profits are charged at 20% each month. The minimum investment for this plan is $100,000.
In return, the good folks at Forex92 promise a 25% monthly yield from the personal account, 30% from the business account, and 35% from the Enterprise.
| Success rate | N/A |
| Customer support | Email, phone, live chat |
| Payment types | Credit cards, Skrill, Netteler, Paypal, eWire |
| Minimum investment required | $1,000 |
| Managed forex account type | PAMM |
6. Dukascopy
Dukascopy is a Swiss bank that doubles as a forex broker. It offers three types of PAMM managed accounts services. The first is an LP PAMM account whose minimum deposit is $1,000 and is managed by a broker. The second is a standard PAMM account that is run by a money manager. The third is a combination of MAM, PAMM, and LAMM models. In it, you can trade a minimum of one micro lot in a sub-account, and it allows you to manage infinite sub-accounts.
On top of that, their clients enjoy dedicated customer support that is accessible around the clock. This support can be accessed via e-mail, live chat, or on the phone.
Dukascopy is most famed for its binary options offering, which promises yields of 70 to 90%. Their payment methods are flexible, as they accept debit and credit cards, bank transfers, Skrill, Bitcoin, Ethereum, and Neteller.
| Success rate | Depends on your trading manager |
| Customer support | Phone, email, and live chat |
| Forex signals per day | N/A |
| Payment types | Credit cards, bank transfer, Skrill, Bitcoin, and Neteller |
| Minimum investment required | $1,000 |
| Managed account type | PAMM, LAMM, MAMM |
7. VantageFX PAMM
VantageFX is based in Sydney, Australia, and is considered the best PAMM service provider. It offers its clients trading services in CFDs on forex, cryptocurrencies, indices, commodities, and shares. There are three main accounts at VantageFX, namely STP, Raw ECN, and Pro ECN. The minimum initial deposits are $200 for STP, $500 for Raw ECN, and $20,000 for Pro ECN account. These deposits are free. The accepted funding methods include Skrill, Neteller, UnionPay, Visa, MasterCard, cryptocurrency (Bitcoin), Fasapay, and Bitwallet.
What’s more, it is a trusted forex-managed accounts service provider that’s highly regulated in various locations. Some of the regulators are the Australian Securities and Investments Commission (ASIC) and the UK’s Financial Conduct Authority (FCA). VantageFX’s customer service can be contacted via live chat, phone call, and email.
| Success rate | Depends on your account manager |
| Customer support | Live chat, phone, and email |
| Forex signals per day | N/A |
| Payment types | Skrill, Neteller, credit cards, UnionPay, Bitcoin, Fasapay, Bitwallet, and wire transfer |
| Minimum investment required | $200 |
| Managed account type | PAMM, MAM |
8. CentreForex
CentreForex is a PAMM managed account and signal provider. Their business model is such that they have to make profits out of their clients’ accounts so as to earn their keep. To open an account with them would require a minimum investment of $3,000. On a daily basis, they provide anywhere between 4 and 8 signals. Their customers can contact them via email, Facebook, Skype, or Telegram in case of any queries.
| Success rate | 58% |
| Customer support | Email, Facebook, Skype, and Telegram |
| Forex signals per day | 4-8 |
| Payment types | PayPal, Neteller, Skrill, and bank transfer |
| Minimum investment required | $3,000 |
| Managed account type | PAMM |
9. FP Markets
FP Markets is an Australian broker that offers MAM and PAMM account types. They trade in Forex, shares, commodities, metals, and indices. Their trading platforms are MetaTrader and Iress. Their minimum deposit is $100 and with no deposit charges. FP Markets also caters to internal bank charges for international deposits. The investors’ funds are held by Australian banks that are AA-rated, and the accounts are segregated from the funds of the company.
FP Markets accepts deposits via credit and debit cards, bank transfer, Neteller, Skrill, and Fasapay, among others. The company has an Australian Financial Service License (AFSL), and it’s regulated by ASIC. They have multilingual customer support that operates 24/7 and can be reached through email, phone, or live chat.
| Success rate | Depends on your account manager |
| Customer support | Email, phone, live chat, Facebook, and Twitter |
| Forex signals per day | N/A |
| Payment types | Credit cards, bank transfer, Neteller, Skrill, and Fasapay |
| Minimum investment required | $100 |
| Managed account type | MAM and PAMM |
10. Pepperstone MAM
Pepperstone MAM is a highly rated Australian forex-managed MAM account service provider. Apart from MAM, they also offer PAMM accounts. Pepperstone has no set minimum deposit. This means that clients can deposit any amount that they wish. However, the recommended minimum deposit is AUD 200. Additionally, they also don’t charge deposit fees. Deposits can be made via Paypal, VISA, Skrill, Neteller, and MasterCard.
Pepperstone is a safe forex broker regulated by the UK’s FCA, Australian ASIC, and Germany’s BaFin. The available markets include forex, shares, exchange-traded fund (ETFs), and commodities. For inquiries, you can reach Pepperstone customer support via live chat, phone, or email. They are available 24 hours a day, Monday through Friday.
| Success rate | Depends on your account manager |
| Customer support | Live chat, phone, email |
| Forex signals per day | N/A |
| Payment types | PayPal, credit cards, Skrill, and Neteller |
| Minimum investment required | N/A |
| Managed account type | MAM |
Our website does not give financial advice and this guide should be used for the sole aim of financial education. It is important to conduct your own research and analysis before making any decisions on your investments to avoid the risk of losing capital.
Table of Contents
What is a managed account?
A managed account is one that involves an expert trader running the accounts of other traders. This expert is called an account manager. Usually, they will have full autonomy to execute trades on behalf of their clients. These managers take a cut of the profits they obtain on top of the brokerage and other trading fees charged to their clients.
Managed forex accounts features
Forex account managers are not intended to take the role of your broker. In truth, the majority of these managers will advise you to fund your account through a registered broker. This safeguards your cash because unregulated brokers are not regulated by any governmental entity.
The majority of managed accounts function with the help of a power of attorney letter. This grants them permission to trade on your behalf. They are not, however, permitted to remove or change your funds in any manner. These accounts also provide you some control, such as the ability to end the arrangement at any time or restrict the amount of risk your manager may take.
How does a managed forex account work?
Usually, an account manager will have several clients whose accounts they manage. It would be tedious and impractical to manage each of these accounts separately. Instead, they manage these accounts as a single block and choose how to allocate profits, losses, risk, and such criteria according to each client’s investment. Depending on the broker who hosts them, account managers can choose several techniques to do these allocations. This gives rise to different types of managed accounts.
What are the types of managed accounts?
LAMM (Lot Allocation Management Module)
In the Lot Allocation Management Module, the amount of profit an individual investor earns is dependent on their lot size. In this model, the investor chooses the number of lots they would wish to invest with their account manager. The manager can then apply different leverages to the individual accounts according to their owner’s preferences. This way, the investors have the flexibility to manage their risk as they deem fit.
RAMM (Risk Asset Management Model)
The Risk Asset Management Model is a recent development in the managed accounts space. It was born out of an amalgamation of the PAMM and LAMM models, picking the best of both worlds and adding a few features on top. In this model, you can manage your risk by allocating a portion of your account balance to the manager while you remain with the rest to trade as you please personally.
PAMM accounts (Percent Allocation Management Module)
In the percentage allocation management module, a manager assigns a percentage to each individual investor, which is dependent on the size of their investment relative to the total. Usually, this model requires the manager to be personally invested in the trades and to keep all their trading activities transparent. This is to ensure that their interests are aligned with those of their clients. Any yields from the trades are divided among investors depending on their allocated percentage.
MAM (Multi-Account Manager)
MAM account enables the fund manager to duplicate a similar trade across multiple accounts with one command. Actions taken on the main account are duplicated throughout all the clients’ accounts. This is essential for fund managers as they can execute several trades for multiple clients simultaneously. This facilitates easy management of risks from one master account.
Which one is best for you?
PAMM account is arguably the best as the trade distributions on clients’ accounts are percentage-based. It enables clients to hold accounts of different sizes. When the fund manager makes a trade, it is reflected on each investor’s account with respect to their percentage. Therefore, losses and profits gained are fairly shared among the investors depending on the percentage of their investment.
Pooled or standard managed forex account?
Pooled and regular accounts are two types of managed accounts. Each investor has their own account with their manager in the latter case. As a result, their minimum initial investment is usually rather large. Pooled accounts, on the other hand, include a group of investors pooling their money and having it traded by a single manager. With a significantly lesser initial commitment, investors can create pooled managed accounts.
Things to consider before investing
When you create a forex-managed account, you agree to give another trader full access to your account and complete management over your cash. As a result, selecting an account manager is not a decision to be made lightly. You should examine the following considerations before deciding on your manager:
LPOA
Your manager should give you a Limited Power of Attorney (LPOA) document before you start an FX-managed account. This is effectively a contract between you and the management, giving the manager the authority to trade your funds. This contract should be reviewed carefully to verify that the manager is not permitted to move, withdraw, or mishandle your cash in any manner. Since it is a legal document, you should consult your lawyer before signing the LPOA.
Profit-sharing system
Another determining factor is the way a manager shares trading gains among their clients. A good practice would be to wait for their initial investment to yield at least a 100% gain before distributing it among investors. A manager who embraces this policy ensures that their clients are guaranteed to recover their initial investment, plus any profits less their management fees and other brokerage costs.
Broker strategy
There are different types of forex traders, from aggressive risk-takers to risk-averse investors, which boils down to personal preferences. Which kind of trader are you? Do you prefer to take big risks in the hope of big rewards, or would you rather take moderate risks? Once you figure this out, you should look for a manager that best matches your trading style.
As a matter of fact, you should request a copy of their trading history to better understand their methods. Additionally, this will enable you to gauge whether the potential manager’s strategies have been successful in the past.
The reputation of the provider
It is good practice to go for a manager that has been in the industry for a while. This is because such a manager will have years of experience under their belt, which is always useful in the forex market. Besides, the longer they have in business, the easier it is to find several reviews of their services from their past clients.
How to get started with a forex managed account
Investors who wish to trade using a forex-managed account must first identify their desired broker that offers this service. For example, anyone who wants to trade under Learn2Trade, which is generally the best in the industry, will have to follow the following steps:
- Create an account with their partner broker, AvaTrade. Choose the MetaTrader4 trading platform and USD currency denominations for easier transactions.
- Upload your ID for identity and address verifications. Then complete a limited power of attorney form (LPOA).
- Finally, email Learn2Trade your account number and your username. You will then be set up with a MAM system to get started.
Why should you use managed account services?
You should use a managed forex account because it will help you save time. If you are a busy person, you will have a professional trader looking for possible setups and trading for you. Using a managed account will also enable you to earn passive income. After investing, you will be able to earn without necessarily trading by yourself. If you are a beginner, you should use this service to minimize the level of losses that come with inexperience. A seasoned trader trading for you is much more likely to produce profitable returns.
When managed forex accounts are the most required?
These accounts are highly needed when people want to invest in forex but have little knowledge about the trade. These accounts will enable them to still trade but under professional traders to minimize losses and maximize revenue. They are also most required when investors have no time to focus on trading. This way, fund managers will help carry out the trades on behalf of the clients.
Managed forex accounts: the positives
They are safe. You will be required to fund your account with a regulated broker. This way, you will not have to send the money directly to the fund manager. Managed forex accounts operate under LPOA, which authorizes the fund manager to trade on your behalf, but they cannot withdraw or move your money.
You also still have control over when to invest and when to pull out. Some PAMM systems will even allow you to put a stop-loss order.
Managed forex accounts will save you time. Forex requires a lot of time dedication. A professional fund manager will invest their time in trading for you. This will free up time for you to do other activities.
Additionally, you don’t need to be knowledgeable in forex for you to trade since professionals will trade for you. You can also withdraw your money at any time.
Managed forex accounts: the negatives
The charges paid to the broker and the professional fund manager can be cumulatively high. This is dependent on whether you’re charged a percentage of the profits or a flat fee.
You also don’t have control over the types of trades placed by the manager. This means you’re jeopardizing your account and funds while relying on their ability to make successful trades. Forex is highly risky, and you could experience heartbreaking losses.
Moreover, if you use unregulated managed forex account service providers, you can easily fall victim to scammers and lose your funds.
Managed forex accounts verdict
Managed forex accounts are instrumental in attaining profitable trades, especially for busy or inexperienced clients. Therefore, investors should do thorough research before settling on any one broker. They should also look for a reputable and highly regulated service provider. As an investor, you want to go for brokers that suit your trading needs and wisely choose your fund manager. Ensure they have various allocation methods for the proper management of your funds. If your broker allows investment with multiple fund managers, it would be wise to diversify your investment.
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