The Forex market presents many lucrative opportunities, but not everyone has the required knowledge or expertise to earn profits consistently from it. Then there are individuals with busy schedules who don’t have the time to monitor the trades 24/7. For this reason, managed Forex accounts have gained popularity in recent times.
While these accounts provide a wide range of advantages, you have to be careful while choosing them. The Forex trading industry is currently full of scammers trying to take advantage of unsuspecting traders. Many of them do not offer good rates, and unless you sign up with a reliable service, you won’t get the desired result. Here, we have presented the top Forex managed accounts that are trusted by customers worldwide.
Best managed Forex accounts list 2022
While there are endless options available in terms of managed Forex accounts, not all of them are trustworthy. Some of them exist only to churn your account, and you’d do well to stay away from them. Here is a list of some of the best managed account services out there, along with their specialties.
- TechBerry – Best automated forex trading platform with consistent returns
- eToro – Best risk management tools among managed account services
- Learn2Trade – Best provider of MAM managed accounts
- VantageFX PAMM – Best managed investment accounts PAMM provider
- AvaSocial – Best FCA regulated managed Forex accounts
- CentreForex – Best managed account with a low initial investment
Top 5 Forex managed accounts review
Before you choose a managed account service, you need to know what it offers. There is no one service that suits all, so it’s wise to collect the maximum amount of information possible. Here, we will go through the best 5 managed accounts for Forex so you can learn their features, as well as the advantages and disadvantages.
At TechBerry, subscribers have the option to double their savings within a period of one year. The social trading platform has been live since 2015. It calculates the trades from over 100K portfolios and then formulates a strategy using its deep learning AI. The game plan is then carried out on traders’ funds which are insured via FIDC banks. Loss reimbursement is available to provide additional peace of mind.
Subscribers can test out the platform for free with a minimum deposit of $5000 and a service fee of 50%. Live performance records are available on the website, which shows the win rate and the current executions of TechBerry. Different subscription plans are available to cater to the needs of all. Big institutions can get a personal quote depending on the size of their capital.
- Fully automated
- Transparency on live records
- AI-driven neural algorithm
- Plan configurator to calculate your profits
- Little details on the game plan
One of the best things about eToro is that you can mimic the trades or experts without incurring any extra cost. It has a vast network of investors and traders where you can connect with other people, learn new ideas, and share some of your own. You can also study the portfolios of other traders and analyze the risk scores and statistics.
To get started, you only need to invest $200. You simply need to select a user whose trades you’d like to copy and enter the amount you wish to invest. For each copied trade, you can set your own stop losses.
- No expenses for copying other traders
- User-friendly platform
- Strict regulations
- Limited chart analysis features
At Learn2Trade, you can open a MAM account by making a minimum deposit of $5000. All trades are placed through the AvaTrade broker that is regulated across 6 different jurisdictions. The traders at this organization are vastly experienced and use complex technical analysis. The trading strategies involve indicators like OBV, MACD, Aroon Oscillator, Bollinger Bands, Moving Average, and RSI.
Learn2Trade lets you keep 70% of your profits and provides an average monthly return of 5%. Apart from the 30% commission, you need to pay a 2% maintenance fee on a yearly basis. This company is very transparent when it comes to risk management and the details of the trading approach. It is based in London, with the contact details available on the official website.
- Solid revenue sharing structure
- Partnership with reputed brokerage
- Maintains transparency
- High minimal investment
4. VantageFX PAMM
With VantageFX PAMM, you get flexibility in terms of performance fees, and you can make deposits and withdrawals at your convenience. This company lets you open an unlimited number of PAMM accounts. It connects several trading platforms with a single money management system. Thanks to the web portal, you can closely monitor your trading reports.
There are multiple ways to allocate your funds on VantageFX PAMM. It supports different trading styles and lets you leverage the efficiency of expert advisors. The allocation speed is quite high at 5 milliseconds per account. You get access to over 40 currency pairs and can use the leverage of up to 500:1. By making a minimum deposit of $1000, you can unlock advanced trading tools.
- Low spreads
- No limit on the number of accounts
- Advanced trading tools
- Not ideal for novice traders
AvaSocial is suitable for both seasoned and novice traders. Those who don’t have much experience can learn the ins and outs of Forex trading while exposing themselves to the market. The company has a team of experts who provide you with valuable market insight. You can choose between top copy trading platforms like MQL5, DupliTrade, and ZuluTrade.
After registering on AvaSocial, you can explore the ranking of the best trading signal providers. You can also study their history and analyze their ability to manage risks. It is possible to set your own risk parameters to have a greater degree of control over your trades. When you achieve a winning streak with AvaSocial, you can get some unique rewards.
- Large selection of pairs
- Tie-ups with top social trading platforms
- Regulated in multiple nations
- VPS not available
With CentreForex, you can benefit from popular Forex trading schemes like trend reversal, trend following, and breakout. Every trade placed through this service is accompanied by a stop loss to protect the customer’s funds. Each user has full control over their accounts and the managers cannot touch your money since it stays on a different account.
There are multiple account types at CentreForex, and each of them has their own unique functionalities. The company only charges a commission when you make a profit, and the performance fees are quite competitive. There is a group of experts that analyze and oversee your trades and customer support is available on a 24*5 basis.
- Effective trading schemes
- Verified proof of live performance
- High-end technical support
- Lack of user reviews
What is a managed Forex account?
Managed accounts are ideal for those who wish to leave the complicated trading operations to experts. You have to pay a fixed fee in return for the important decisions being taken in your stead. As the customer, you have complete control over your account, and only you decide what happens with the money. You can monitor all the trading activities, and if you are not happy with the outcomes, you have the freedom to cancel any time.
How do managed Forex accounts work?
Brokerages offer managed Forex account services to their customers, where each distinct account serves as a sub-account for the master account. It is via this master account that the experts carry out their operations. You can compare it to bond or equity investment, where the vital decisions are taken by a third person. Reputed brokers require you to enter a formal agreement where you permit a third person to trade on your behalf.
Types of Forex managed trading accounts
There are various categories of managed accounts that a Forex trader must know about. Since each investor has their preferences, it is crucial to know what each offers. Below are the various types of managed accounts you can find in the Forex market.
This type of account lets you allot a portion of your account balance to mimic the trades conducted on a master account. What sets it apart from other managed Forex trading accounts is that it leaves space for diversification. You can emulate multiple investor accounts and allot unique portions to each trading system. It is the more flexible option since you can protect yourself against losses suffered for a particular account.
Here, you select the number of lots and make losses or gains in proportion to your investment. This is suitable for traders who wish to invest large amounts of capital. Individuals using more capital always need more liquidity. When the account balance is high, you might face some trouble with order filling. In such cases, it is not appropriate to dedicate a portion of your account for trading.
In this type of account, you use a unique terminal to administer several accounts. All the trader accounts are placed in a pool, and you need to select some trading parameters. The manager executes orders on the master account, and these are mirrored on each MAM account. Usually, you need to pay a performance fee based on the gains you receive.
What are the benefits of using Forex managed trading accounts?
The various advantages of investing in managed trading accounts are listed below.
The absence of the emotional impact
It is very common for traders to succumb to emotions. The Forex market can be highly unpredictable at times, and making decisions can be stressful, especially if you are a beginner. Even when you are on a winning streak, you might place some high-risk trades that end up draining your account. With expert traders taking care of the complex operations, you don’t have to worry about the emotional factor.
When you sign up with a managed Forex account service, you have the opportunity to leverage the expertise of a professional. These account managers have several years of experience under their belts. They are familiar with different market conditions and have practiced their trading strategies for a long time.
Every investor wishes to make steady gains from their investments. Nevertheless, this is hard to attain if you are not familiar with the market fundamentals and the factors that influence the price of currency pairs.
When you invest money into Forex trading without any prior knowledge, you take a lot of risks. By opting for a managed account, you can get consistent gains each month by making a small investment. These accounts generate on an average 10-20% gain each month, and you don’t need to spend any time educating yourself.
Trading in currencies is a high-risk affair, and novice traders can suffer heavy losses if they make trading decisions without the help of experts. The best thing about managed accounts is that it allows you to eliminate the risk by signing up with a reliable brokerage firm.
You can safely invest money even if you have never traded in Forex before. However, this does not mean you ought to blindly rely on the account manager. From time to time, you need to monitor the account to make sure things are going as expected.
Certain brokerage companies assure you a fixed level of profit based on the amount of money you put in. Of course, you need to pay a portion of the profit as commission. As a trader, you have a steady source of information, and this helps when you have to make some crucial long-term choices. Also, you can make a withdrawal from your account whenever you wish due to the high liquidity.
Both the investors and traders can benefit from the transparency provided by a managed Forex account. It is a secure enough way to invest, and you can see every minute detail of the trading operations and results. Additionally, you can get enhanced gains from the money you’ve invested.
Control over deposit
One of the most important advantages of this service is that you decide the amount of money you’re going to invest, and you have the option of starting and stopping the operation at your convenience. Of course, most brokerages require you to invest a minimum amount initially.
You are the owner of the account, and only the entry and exit are handled by the expert. They don’t have permission to transfer money. If, for some reason, you wish to exit all your open positions, you can do so at any time.
Access to different strategies
Strategy is one of the most vital aspects of Forex trading. As a novice investor, you may not be aware of the most effective strategies for the current market scenario. With managed accounts, you get access to the top trading schemes. The experts backtest and forward test these strategies before using them in the live market.
Managed accounts might not be for you if…
You should avoid signing up for managed accounts in the following situations.
You want to have full control over your funds
Some traders are not comfortable with delegating their trading operations to a third party. This is especially true if you are a seasoned trader with many years of experience behind you. Of course, in such a situation, you wouldn’t feel comfortable not knowing the trading logic followed by the account manager. There are times when you might feel their decisions do not align with your trading style. Thus, such traders should not opt for managed accounts.
You lack enough risk capital
For FX managed funds, you need a large amount of risk capital. Some brokerages require you to invest six-figure amounts, and this is not ideal for some novice traders. Some of them wish to risk only small amounts in the beginning in order to get an idea about how the market works. When you invest a large amount, you don’t need high monthly gains to grow your account. For a $50k account with monthly charges of $500, you only need a little more than a 1% gain every month.
In the beginning, you might find it difficult to distinguish between reliable and fraud brokers. A few of them run frauds involving pooled accounts where they generate false statements for your accounts. Although the service might promise high returns, you wouldn’t know where your funds are actually stored. Therefore, it is unwise to enter an agreement with a brokerage unless you have a substantial amount of risk capital.
Your goal is to make a quick cash
Not all Forex traders are in it for the long term. There are various short-term strategies available in the market, and they allow you to take advantage of the small price differentials by placing multiple trades on a daily basis. If your primary objective is to make quick money, you should avoid managed accounts at all costs.
This kind of service is more suitable for those following long-term market trends. You can’t get rich overnight by investing in a managed account. The profit will build up at a steady rate over several months.
You don’t know the details of the trading operations
There are some account managers who require you to sign up with a particular broker. More often than not, these managers earn a portion of the fee you pay for each deal. As such, the manager might place some unnecessary trades just to earn more. However, these trades might not always bring your profits.
In case you sign up with such a management firm, you need to know the frequency and volume of trades for each month. When a firm has such restrictions, you cannot choose a broker who might be offering some extra rewards. While your account manager might be an expert, your gains might get reduced due to the rules of the broker.
How many Forex accounts can you have?
This varies from service to service. Some companies will let you use as many managed accounts as you need, while others have restrictions on the number of accounts you can use simultaneously. Ideally, you should opt for one that lets you use several at once. This way, you can diversify your risk.
How to get started with a managed Forex account?
Firstly, you must decide how much risk you are comfortable with. This is important while looking for an account manager, so you can compare it with their service history and risk score. You also need to consider your profit objectives. Choosing a high-risk service would be more beneficial if you wish to earn a lot of money in a short time span.
It is wise to invest some time looking for the right option. You need to research several brokers to find the one that suits you most. After that, you ought to study the details of the contract to know about the commissions, coverage, maximum drawdown, and monthly returns.
Go through customer reviews and find out how other traders feel about the service. You need to complete the necessary paperwork to get an account number. After that, you can start transferring money into your account.
Forex managed accounts summary
If you don’t have adequate trading knowledge and wish to earn profits through currency trading, you should sign up for managed account services. Emotional trading without a decent strategy can lead to disastrous consequences, which is why it is better to leave the complex decision-making to experts.
After going through the different services mentioned above, you should have a clear idea of what to expect. Hopefully, this will help you diversify your portfolio and earn steady profits.