Best Managed Forex Accounts of 2023

Since 2011, we’ve traded with and reviewed over 200 brokers worldwide. To find the best forex managed account brokers for you, we’ve dedicated over 50 hours per broker, exploring more than 250 factors across 9 key areas. We’ve then compared them to identify the top performers in various categories. With decades of combined experience, our team of trading experts provides reliable and trusted opinions.

By: Jitan SolankiReviewed By: FX Empire Editorial Board
Updated: Sep 13, 2023
Advertising DisclosureListings that appear on this page and/or on this website are of products / companies / services from which this website may receive compensation. This may impact how, where and which products / companies / services we review and write about. This page may not include all available products, all companies or all services.
While we adhere to strict editorial integrity, this page may refer to products from our partners. Here's how we make money.

A managed forex account is a type of account that allows a trader or money manager to trade on a client’s behalf for a fee. It provides investors with the opportunity to grow their capital and allows traders to build another revenue stream from performance or management fees.

Professional products that allow for managed accounts include MAM (multi-account manager) or PAMM (percentage allocation management module) accounts, while a more basic version would be a copy trading account.

In my own experience of managing investor funds, choosing a well-established, regulated broker for a managed forex account is the most important step. The broker also needs to provide the right technology and products to manage investors’ capital safely and be highly reputable for investors to trust the process.

Our team of experts has researched and analyzed the best forex brokers who offer managed accounts for those who want to manage investor capital or simply follow a successful trader through copy trading. I have outlined the findings below and shared my own experience in managing accounts.

List of Top Managed Forex Accounts

Best brokers for US traders

Best brokers for international traders

How did FX Empire choose the best managed forex accounts?

  • We ensured each broker provides access to MAM and PAMM account technology for professional money managers to trade investor capital.
  • We also identified brokers that provide access to copy trading and social trading platforms for those who prefer to copy other successful traders.
  • We checked the broker has a high level of regulation and safety which is key for investors trusting a trader to trade their capital.
  • We opened live accounts to check the service quality and customer support available to fund managers and investors.
  • We identified the brokers that provide the best type of trade allocation method among their investors such as percentage and lot allocation.
  • We reviewed the live spread for forex and other markets to try and identify the brokers that also provide the lowest fees for trading.

Our team of experts has identified each broker’s strengths and weaknesses using FX Empire’s comprehensive methodology. Here’s how we test.

Best Overall

Start Trading
This material on this website is intended for illustrative purposes and general information only. It does not constitute financial advice nor does it take into account your investment objectives, financial situation or particular needs. Commission, interest, platform fees, dividends, variation margin and other fees and charges may apply to financial products or services available from FP Markets. The information in this website has been prepared without taking into account your personal objectives, financial situation or needs. You should consider the information in light of your objectives, financial situation and needs before making any decision about whether to acquire or dispose of any financial product. Contracts for Difference (CFDs) are derivatives and can be risky; When trading CFDs you do not own or have any rights to the CFDs underlying assets. FP Markets recommends that you seek independent advice from an appropriately qualified person before deciding to invest in or dispose of a derivative. A Product Disclosure Statement for each of the financial products available from FP Markets can be obtained either from this website or on request from our offices and should be considered before entering into transactions with us. First Prudential Markets Pty Ltd (ABN 16 112 600 281, AFS Licence No. 286354). FP Markets is a group of companies which include, First Prudential Markets Ltd (registration number HE 372179), a company authorised and regulated by the Cyprus Securities and Exchange Commission (CySEC License number 371/18, Registered Address: Griva Digeni, 109, Aigeo Court, 2nd floor, 3101, Limassol, Cyprus. FP Markets does not accept applications from U.S, Japan or New Zealand residents or residents from any other country or jurisdiction where such distribution or use would be contrary to those local laws or regulations.
  • Min Deposit
  • Tradable Instruments
  • Fees

Founded in 2005, FP Markets is regulated by well-known regulators ASIC and CySEC, but has one unregulated entity, as well. The broker is considered to be the best overall provider for forex managed accounts as they offer a wide range of solutions for professional money managers who want to trade investor capital, as well as solutions for those interested in social trading who want to copy other successful traders.

Key Features:
  • Offers MAM account technology via FP Markets Money Manager Program
  • Copy trading available with FP Markets Copy Trading
  • Money Manager Program available on MT4. Copy trading available on MT4 and MT5
  • MAM account allocation method includes lot allocation. PAMM account allocation includes profit and loss allocation
  • Set your own performance fees on MAM accounts
  • Unlimited number of investor accounts
  • Minimum investment for PAMM account: 20,000 USD

Professional money managers are offered MAM and PAMM technology to manage investors’ accounts. The portfolio manager controls the master account with investor accounts known as sub-accounts. With FP Markets you can have an unlimited number of investor accounts.

I've explored a range of trade allocation methods for portfolio managers and found them quite varied and effective. This includes per cent risk allocation and lot allocation. In my hands-on experience, another noteworthy feature is the ability of money managers to trade via an ECN (Electronic Communications Network). This network brings the advantage of deep liquidity and much tighter spreads, which I've observed to be greatly beneficial.

I also found that FP Markets provides another route for managing capital and that is through copy trading via the MT4, MT5 and cTrader platforms. You can choose to be a provider (a money manager) or a copier. For copiers, FP Markets presents a rating page that displays the performance of various traders, enabling you to select a provider to follow. Their trades will then be automatically traded on your own account.

Whether choosing the FP Markets Money Manager Program or the social trading service for providers and copiers there are tons of features available for all types of traders.

  • Some entities are CySEC and ASIC regulated.
  • MAM and PAMM technology with unlimited sub-accounts.
  • Multiple trade allocation methods are offered.
  • Social trading is available for those wanting to copy top traders.
  • Low fees and fast ECN trade execution.
  • Limited research content.

Best for Fees

Start Trading
Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
  • Min Deposit
  • Tradable Instruments
  • Fees

IC Markets was founded in 2007 and is authorized and regulated by CySEC, ASIC, SCB and the FSA of Seychelles. You can trade on more than 1,700 financial instruments covering a wide range of asset classes on low-spread, raw-pricing trading accounts with access to some great copy trading services.

Key Features:

  • Offers copy trading solutions IC Social, ZuluTrade, Myfxbook
  • Trade from MT4 with results shown on IC Social Trading App powered by Pelican Trading
  • Trades mirrored automatically onto followers’ accounts using proportional by equity allocation, master size or fixed size methods
  • Unlimited number of investor accounts
  • Charge your own performance fee up to 50% or monthly subscription fee for your signals
  • Minimum investment for IC Social: 200 USD

From exploring IC Markets managed account offering, I found that the broker offers a great range of trading tools for money managers. This includes access to multiple trading platforms such as MT4, MT5 and cTrader. These platforms allow for copy and signal trading to manage client accounts. You can also link your MetaTrader platform to ZuluTrade and Myfxbook for another copy trading solution.

However, I was particularly impressed by IC Markets’ newest feature – the IC Social trading app, which is powered by FCA-regulated firm Pelican Trading. When using the app myself, I appreciated how simple it is to navigate and see detailed performance statistics of different traders.

On top of copying other traders, you can also communicate with them socially on their ‘feed.’ When it first launched many years ago, it was primarily used by trading educators to train their students and interact with them, but has since grown to rival other copy trading apps.

I was surprised you can set your own performance fees too, which is rare for a copy trading app. It’s an excellent feature to have as it brings together some of the benefits of professional MAM accounts and copy trading.

Another reason IC Markets is a top choice for managed accounts via its IC Social copy trading is the fact you can access low-spread, low-commission raw pricing trading accounts.

During the course of our live fee test, I found the spread for EUR/USD during the London and New York session averaged 0.6 pips, which is much better than the industry average of 1.0 pips on a commission-free account. This will help to produce more positive returns and attract more followers.

  • MT4, MT5, cTrader.
  • ZuluTrade, IC Social for copy trading.
  • Raw spread trading accounts, low fees.
  • No PAMM account.

Best for MAM/PAMM Accounts

Start Trading
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84.69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
  • Min Deposit
  • Tradable Instruments
  • Fees

Founded in 2006, FxPro is regulated by top-tier authorities such as FCA and CySEC authorities. The broker provides money managers with access to MAM (multi-account manager) and PAMM (percentage allocation management module) accounts. These accounts provide the technology which allows portfolio managers to trade investor capital using just one master account.

Key Features:

  • Offers MAM account technology via FxPro Multi Account Manager
  • MAM accounts available to trade via MT4
  • MAM account allocation method includes lot, percentage, equal risk, proportional by balance, proportional by equity, and equity percent allocation
  • Set your own performance fees on MAM accounts
  • Unlimited number of investor accounts
  • Minimum investment for MAM account: 1,000 USD

From researching FxPro’s managed account offering, I was particularly impressed by the number of trade asset allocation methods offered for the MAM account. These include percentage, lot, equal risk, balance, equity, and equity percent. Having the ability to customize how orders are transmitted to your investor accounts is a superb feature.

As with most broker MAM accounts, I found that money managers can also set their own spread markup and performance fees, and earn rebates from active trading. Managers are not limited by strategy and can also use algorithmic trading strategies through Expert Advisors (EAs) which are unique to the MT4 and MT5 trading platforms. This means you could automate the trading of client capital.

In fact, FxPro is considered to be one of the go-to brokers for algorithmic and high-frequency traders as they operate a non-dealing desk model, sending your trades straight to the market without any dealer intervention. I find this to be a great option to get the best pricing and execution which will help to build more profit for your clients.

  • Access MAM and PAMM account technology.
  • Large range of trade asset allocation methods.
  • Access cTrader Copy for copy trading services.
  • Low fee, high transparency, FCA regulated no dealing desk broker.
  • Inactivity fee.

Best for Trading Tools

Start Trading
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd. You should consider whether you understand how CFDs, or any other of our products work, and whether you can afford to take the high risk of losing your money.
  • Min Deposit
  • Tradable Instruments
  • Fees

Founded in 2014, Tickmill is regulated by the FCA, CySEC, FSA of Malaysia, and FSA of Seychelles, thus providing a high level of safety and security. An important factor in choosing the best forex managed account provider is ensuring you have the right tools to navigate the market and client accounts.

Key Features:

  • Offers MAM account technology via Tickmill Multi Account Manager
  • Copy trading available through Myfxbook and Pelican Trading
  • MAM accounts and copy trading available via MT4
  • MAM accounts include 2 allocation methods: proportional by balance, proportional by equity
  • Set your own performance fees on MAM account
  • Unlimited number of investor accounts
  • Minimum investment for MAM account: 5,000 USD

In my exploration of Tickmill, I discovered that money managers can utilise the power of the MetaTrader 4 Multi Account Manager (MAM) platform. It allows money managers to place one bulk order from the master account, which can be distributed across an unlimited number of sub-accounts.

The Tickmill Multi Account Manager platform allows for two trade allocation methods: proportional by balance or proportional by equity. Managers can trade from sizes as low as 0.01 lots, with market, stop and limit orders available across all sub-account.

Other tools that money managers may find useful include the AutoChartist plugin for MT4, which provides actionable and real-time trading ideas. From personal experience, I particularly enjoy this plugin as it helps to speed up the research process and identification of technical analysis events across many markets and timeframes.

Tickmill also provides access to Signal Centre for those who prefer to select the trades they copy, an option that also serves as a great source for idea generation.

  • MAM technology with unlimited sub-accounts.
  • Multiple trade allocation methods for money managers.
  • Low fees, multiple platforms and accounts available.
  • Regulated by FCA, CySEC and others.
  • Customer support is only available during office hours.

Best MT4


Start Trading
82% of retail CFD accounts lose money
  • Min Deposit
  • Tradable Instruments
  • Fees

Founded in 2022, FXTM is regulated by the FCA, CySEC, FSCA and FSC. It provides access to an easy-to-use copy trading service under its FXTM Invest product (not available in all jurisdictions). This service allows clients to copy the trades of other successful traders without requiring any technical knowledge and also enables clients to become strategy managers themselves.

Key Features:

  • Offers FXTM Invest copy trading program for strategy managers
  • Trade from MT4 with results posted on Strategy Managers Rankings page
  • Trades mirrored automatically onto followers’ accounts
  • Unlimited number of investor accounts
  • Receive up to 30% portion of followers’ profits
  • Minimum investment for FXTM Invest account: 1,000 USD/EUR/GBP

What I found particularly useful from our live test, is that users can view the strategy manager rankings table to see the best-performing traders. This offers the ability to thoroughly research the best manager to follow by analysing the total return, risk level, number of followers, and the amount of capital being traded.

When a strategy manager places a trade, it will be automatically copied onto your own account. Strategy managers are FXTM traders who operate on the broker’s Advantage trading account. This account type is available for users opening an account under the Mauritius-based entity, which offers zero spreads on major currency pairs.

FXTM traders can also become strategy managers and earn a share of their followers' profits, up to 30%. Additionally, there is a range of extra tools for strategy managers trading from the MetaTrader 4 and MetaTrader 5 trading platforms, such as a package of extra indicators (pip value calculator, pivot levels, etc).

  • FXTM Invest provides copy trading service.
  • Become a strategy manager and earn a share of follower profits.
  • Become a copier and copy the trades of other traders – no technical skills required.
  • MT4 and MT5 available with additional indicators for MT4.
  • FXTM Invest is not available under FCA or CySEC-regulated entities.

Best for Copy Trading

Start Trading
71% of retail investor accounts lose money when trading CFDs with this provider
  • Min Deposit
  • Tradable Instruments
  • Fees

Founded in 2006, AvaTrade is regulated in six jurisdictions around the world. It offers a great range of copy trading platforms that make it easy for money managers to share trades and signals and earn from their followers. The platform also appeals to traders interested in copying the trades of other traders.

Key Features:

  • Offers MAM account technology via AvaTrade Partner
  • Copy trading available through AvaSocial, DupliTrade and ZuluTrade
  • MAM accounts and copy trading available via MT4
  • MAM accounts include 4 allocation methods: balance, lot, percentage and equity
  • Set your own performance fees on MAM account
  • Unlimited number of investor accounts
  • Minimum investment for MAM account: 5,000 USD

The platforms available for copy trading via AvaTrade include:

  • AvaSocial. The AvaSocial trading app is offered in partnership with FCA-regulated Pelican Trading and is available on the Apple and Google Play Store. AvaSocial allows traders and followers to interact with each other and to automatically copy trades.
  • DupliTrade. This user-friendly trading platform allows you to automatically copy the trades of other traders directly into your AvaTrade account, providing advanced performance statistics.
  • ZuluTrade. An auto-trading platform that connects with AvaTrade and MetaTrader 4 through an API, allowing users to follow and copy other traders with a range of performance statistics available.

From testing of these platforms, I found AvaSocial to be the easiest to start with due to its app-based nature, enabling users to copy other successful traders in just a few clicks. However, DupliTrade offers a much more detailed analysis of a trader’s performance, which accounts for its higher minimum deposit requirement ($2,000). If you already trade on MT4, then ZuluTrade is a great option for you, as it simply plugs into the platform and requires a minimum deposit of only $/€/£200.

Each of these copy trading platforms enables you to follow other successful traders, become a strategy provider and attract followers. They also allow for the provision or performance of copy trading services across multiple asset classes, including forex, stocks, indices, commodities, and cryptocurrencies.

For professional money managers, AvaTrade also offers the MT4 Multi Account Management account. This means those authorised to manage client funds can trade multiple sub-accounts from just one master account.

The AvaTrade MT4 MAM account accommodates any trading style, with the capability to manage sub-groups for different trading strategies and multiple trade allocation methods, which includes percentage, balance, lot and equity.

  • Copy trading platforms include AvaSocial, DupliTrade, and ZuluTrade.
  • Access to advanced performance statistics for each provider.
  • Provide or perform copy trading service on multiple asset classes.
  • Access to MT4 MAM account.
  • High inactivity fee.

Best for US Traders

Start Trading
81% of retail CFD investors lose money
  • Min Deposit
  • Tradable Instruments
  • Fees

Founded in 2007, eToro operates the world’s largest social trading platform, boasting over 20 million users, and is a member of FINRA and SIPC. It stands as a compelling option for US traders to replicate the performance of successful cryptocurrency traders.

Key Features:

  • Offers eToro copy trading platform to become an eToro Popular Investor
  • Trade from eToro’s proprietary, web-based platform
  • Trades mirrored automatically onto followers’ accounts
  • Unlimited number of investor accounts
  • Get paid annual payment of 1.5% of assets under copy, paid monthly
  • Minimum investment for FXTM Invest account: 1,000 USD

During our live test of the eToro platform, I found it remarkably intuitive to use and navigate. You can either choose to follow other successful traders or establish your own strong performance, thereby attracting other traders to follow you — akin to a money manager operating a managed account. In my opinion, eToro provides a great way to analyse an individual’s performance to improve your own trading or to find the right person to copy.

As eToro CopyTrader is only available for cryptocurrency trading, the broker provides access to the eToro Money crypto wallet to store your coins safely. I also found that US traders can choose to invest in eToro’s Smart Portfolios, a premium portfolio-managed product.

Smart Portfolios enable investors to explore various themes, such as artificial intelligence, drone technology, and cybersecurity stocks, among others. Each Smart Portfolio comprises an assortment of stocks or markets relevant to the theme, yet investors need only invest in one product, with eToro automatically rebalancing the portfolio on their behalf — an excellent option for those seeking a more passive investment approach.

  • World’s largest social trading and copy trading platform.
  • Invest in Smart Portfolios to diversify into different themes.
  • Access CopyTrader for cryptocurrencies.
  • Trade on real stocks and cryptos.
  • CopyTrader is only available on cryptos for US clients.

How to choose the best managed forex account?

Below are some of the key points to consider when choosing the best managed account provider.

Why is it important to choose a regulated broker?

As a money manager trading client capital, the safety and security of the broker you use is just as important as your performance. As an investor following a managed account provider, you will also want to know that your capital is safe and secure.

A regulated broker means that the company needs to adhere to strict regulatory standards that cover the safety of funds, transparency of execution, handling of client deposits, etc. If a regulated broker fails to adhere to the rules then they will lose their operating license or be fined.

When choosing the best managed account provider we prioritized brokers that have entities regulated in tier-1 and tier-2 jurisdictions. The three tiers of regulation incorporated in our broker reviews include:

  • Tier-1 regulators are those in well-established financial jurisdictions which offer the highest level of protection. Examples include the UK Financial Conduct Authority (FCA) and the Australian Securities and Investments Commission (ASIC).
  • Tier-2 regulators are those in well-established economies but offer a lower level of investor protection. Examples include the Dubai Financial Services Authority (DFSA) and the Financial Markets Authority (FMA) of New Zealand.
  • Tier-3 regulators are those that typically operate in offshore locations such as the Securities Commission of the Bahamas (SCB) and the International Financial Services Commission (IFSC) of Belize.

Nowadays, there are also some entities that are not regulated at all, such as those based in St. Vincent and the Grenadines. As managed accounts involved handling other people’s money or someone else trading your capital, it’s best to stick with those that are trading with tier 1 and tier 2 regulators.

Tier 1 regulators offer the highest of protections because it is now a regulatory requirement for brokers to offer additional risk management measures, such as negative balance protection and the segregation of client funds from company funds.

From personal experience, I would advise you to avoid unregulated brokers, as this means there’s no recourse if they take your funds or provide bad trade execution. When in doubt of a broker’s regulation, you can view the online register of the regulator to verify its license, giving you peace of mind.

What fees should you be aware of when choosing a broker?

There are a variety of fees to take into consideration when using managed accounts. A money manager will typically set their own fee. Usually, this will be a performance fee and possibly a management fee.

You should always check that the performance fee is only charged above the high watermark. This means a fee can only be charged when the account is at its highest profit level. The MetaTrader MAM and PAMM technology allow for this to be automatically done.

If you are following a money manager or trader through a copy trading platform, it is important to check if there are any monthly fees to follow the strategy. Some traders may charge people to follow their trades.

However, most – but not all – copy trading platforms will offer copy trading for free. It’s worthwhile checking the terms and conditions to be sure.

There are other broker-related fees to take into consideration as well. These are fees related to the opening, closing, and holding of a trade, such as:

  • Spreads. This is the difference between the buy price and the sell price. Money managers will want to ensure this is as low as possible to get the best returns.
  • Commission. Some brokers will charge a fee to open and close a trade. Some brokers will offer commission-free trading accounts or commission-based trading accounts but with lower spreads.
  • Swaps. This is a fee for any leveraged trades to be held overnight. Usually, it is based on the interest rates of the currencies being traded and a broker markup.

Investors will want to make sure the money manager hasn’t increased the spreads, commissions, or swaps charged to clients and marked up what the broker charges (rare but can happen and is available to money managers).

Also, if you are copying the trades of another trader, make sure they are based on real results which will take spreads, commissions, and swaps into consideration. In the early days of social trading, I found that many traders would show demo account performance without commissions, but once these were factored in, it turned a profitable track record into a losing one.

Some brokers may also charge an account maintenance fee. While this is rare, many will choose to charge a fee if there is no activity over a certain period of time, so it is worthwhile checking with the broker if they do.

What is the best type of forex brokerage account for managed accounts?

For brokers that offer managed accounts, it is worthwhile checking the different types of accounts associated with them and the execution model. Brokers will usually offer different account types, which have different fees, minimum deposits, etc.

Generally, account types with the highest minimum deposit will offer the most amount of services and the lowest fees. However, it’s crucial to research what is most suitable for your needs. Platforms that provide managed account or copy trading services may also provide different terms.

For example, the minimum deposit for the DupliTrade copy trading platform is $2,000. However, for brokers using MetaTrader, the minimum deposit is based on the broker, which could be as low as $50. A money manager will most likely have a much higher minimum investment though.

It is important to thoroughly research your options and speak to the broker directly for any questions.

Another factor to consider is the broker’s execution model. As a managed account will be taking the same trade across many sub-accounts, there needs to be fast execution direct to the market with very little broker intervention.

A broker’s execution model is likely to be one of the following:

  • Market maker dealing desk accounts. With this account type, your broker takes the other side of the trade. Some brokers will be transparent in the fact they do this but many would not be. If they do, it’s likely they will offer accounts with a fixed spread and try to profit from a lower market spread and what they offer you.
  • No dealing desk accounts. With these types of accounts, your orders are automatically matched with those of other traders in the market using algorithms. There are different types of no-dealing desk accounts:
    • STP accounts. A straight through processing execution model means that client trades are routed directly to the broker’s liquidity provider.
    • ECN accounts. An electronic communications network execution model means that client trades are matched up to the prices from a variety of liquidity sources (banks, hedge funds, etc) in an anonymous network.
    • DMA accounts. A direct market access execution model means that client trades are being traded directly with other interbank market participants.
  • Demo accounts. These are accounts which allow you to trade in a risk-free, virtual environment. It’s a great way to test the products and services of a broker.

How to determine the best leverage for your managed account?

A trading account with a forex broker is likely to be a margin-based trading account that utilizes leverage. This allows traders to trade larger position sizes using a small deposit by borrowing funds from the broker.

As you borrow funds from the broker to control a larger position size, there is an overnight financing fee to borrow the capital. This is known as the swap fee. The principles are the same as a mortgage, in which you borrow capital and pay interest on the loan.

By leveraging positions, it will amplify both winning and losing trades. For example, if a broker offered 30:1 leverage to trade currencies, this means you can open a currency position worth $30,000 but will only need $1,000 of cash in the account to do so.

The launch of MiFID II regulations in 2018 forced many tier 1 brokers to restrict leverage to retail traders to make it safer. Brokers regulated by the FCA, CySEC, and ASIC have a regulatory requirement to cap forex trading at 30:1 leverage.

While some brokers may offer 1000:1 leverage, these are most likely to be unregulated offshore providers, as there are zero to very few regulatory protections for retail traders.

When using a managed account, it’s important to take into consideration whether the investor can access the same account type as you (the money manager). Or, if you are copying someone else’s trades, it’s wise to check you can open the same type of leveraged account, otherwise, you may miss out on a lot of trades and end up with completely different returns.

Which trading platform is best for managed accounts?

The most professionally managed account platforms are offered by MetaTrader’s MAM and PAMM technology. MAM (multi-account manager) accounts simply provide the technology to have one master account with many sub-accounts. Any trades taken on the master account are then also taken on the sub-accounts.

Depending on the broker, they will offer different types of trade asset allocation methods. One of the most common is percentage allocation, which is offered by PAMM (percentage allocation module management) account technology.

While trade allocations can be distributed across all sub-accounts by the percentage of funds held by all investors, other allocation methods include allocating trades by lot but this is only used if every investor has the same account balance. These are known as LAMM accounts (lot allocation management module).

MAM accounts typically involve the investor having to sign a Limited Trading Authorisation (LTA) form to give permission for a money manager to take a trade on their account (but things such as deposits and withdrawals are excluded).

Another type of managed account product is copy trading. Some brokers will also use MetaTrader for this, while others have built their own proprietary copy trading platforms allowing clients to become strategy providers and earn a share of follower profits, or simply be a follower and copy the trades of other clients.

Having used both MAM accounts and copy trading, I have found that using a copy trading platform is the easiest way to get started and doesn’t require money managers to be licensed or regulated. It’s also easier for clients to get started with, as on most platforms, it is just the click of a button to get started with.

A MAM account is more of a professional solution, but in some regions, will require the money manager to have a license and authorization to manage capital.

What to avoid when choosing a managed account?

When choosing a managed account, ensuring the broker has the right technology to support the trading of client money is important. As money managers, it is essential to know that any trade you take on a master account will be executed seamlessly on all of the sub-accounts.

In my own personal experience of managing client capital, another important factor is the safety and security of the broker. Investors will want to know that they are funding an account with a top broker and that their money is safe. Therefore, make sure the broker is highly regulated by a well-established financial body.

If you are choosing a managed account provider to follow, then be sure the platform allows you to view the performance of the trader with statistics that can measure the return as well as overall risk. The longer the track record, the better.

How to avoid forex and CFD scams?

Unfortunately, there are many forex and CFD scams around. However, these can be avoided by doing thorough research beforehand. Leveraging the power of other experts and analysts through websites such as FX Empire can help you make more informed decisions.

It’s also wise to stick to regulated brokers in well-established jurisdictions that provide a high level of safety and transparency regarding your funds. There are many managed account providers that will use unregulated, offshore brokers, which provide zero or very little transparency and safety.

In the early days of managed accounts and social trading, there was a trend I witnessed that you also should be aware of. Some traders will lock off the ability to view the current open positions in the portfolio. This means they may only close winning positions to show very good results but have a lot of open losing trades. Only follow a trader or invest if open and closed trades are transparent.

Our Methodology

To select the best managed account, I have used the findings from our research team’s extensive 250 data point checklist used in our broker reviews and have also further refined the brokers according to the following factors:

  • Highly regulated brokers – essential when managing other people’s money
  • Offers MAM (multi-account manager) technology through MT4
  • Offers copy trading solutions for those looking for a simpler option to manage investor capital or copy other traders
  • High-quality customer support and service for managers and investors
  • Customized solutions such as setting performance fees, spread markups, and multiple allocation methods
  • Low trading spreads and commissions compared to the industry average

A higher amount of emphasis was placed on brokers who scored well in trust and platform and tools. This is because these are two of the most important factors for money managers when trading investor funds.

The safety, security, and trust of a broker are paramount for investors to feel safe in funding an account for you to trade. Or, if you are copying the trades of another trader you want to know that your funds are handled safely.

The broker also needs to have the right technology for trades to be executed as fast as possible but across hundreds or thousands of different accounts. Most money managers will use MAM and PAMM technology for this, which not all brokers provide.

We researched and checked for brokers that can be considered to provide the best managed account service by opening live accounts and testing the features ourselves, providing you with a great foundation to make a better choice.

Meet Our Writers

The team of forex and CFD writers and editors at FX Empire is composed of trading industry professionals and seasoned financial journalists. Our writers have been published on leading financial websites such as Investopedia and Forbes. In addition, they all have extensive trading experience.

Get to Know Our Authors

Dan Blystoneauthor

Dan Blystone began his career in the trading industry in 1998 on the floor of the Chicago Mercantile Exchange. Later Dan gained insight into the forex industry during his time as a Series 3 licenced futures and forex broker. He also traded at a couple of different prop trading firms in Chicago. Dan is well-equipped to recommend the best forex brokers due to his extensive experience and understanding of the brokerage industry.

Jitan Solankiauthor

Jitan Solanki is a professional trader, market analyst, and educator. He day trades major currency and index markets and focuses on swing trading US equities and commodities. A qualified Market Technician, Jitan also works with trader education and brokerage companies on various projects. These include market analysis, live trading events, and broker reviews. As an experienced trader and educator, Jitan brings all his qualities in action when reviewing and recommending brokers.

Plamen Stoyanovauthor

Having been a retail trader since 2013, Plamen has gained an in-depth understanding of the challenges that novice traders face today. His expertise is swing trading and day trading with a heavy emphasis on psychological and fundamental analysis. Plamen’s favourite trading instruments include FX majors and gold. He earned a Bachelor's degree in Economics and International Relations. Plamen's broad experience has equipped him with the expertise to recommend the best forex brokers.

Vladimir Zernovauthor

In more than 15 years of trading in the financial markets, Vladimir dealt with a wide range of brokers and financial instruments. His career as a day-trader at a proprietary trading firm goes back to 2007. Later, Vladimir turned to longer time frames and became an independent trader and analyst managing his own portfolio. Using his experience, he helps traders find the best broker in his reviews.

A managed forex account is where a money manager manages, or trades, your funds for you. There is a variety of different accounts and platforms that provide the ability to do this with some charging a performance fee and some earning a share of the trading revenue from the broker.
There is a variety of different types of managed accounts that brokers may offer. This could include MAM (multi account manager), PAMM (percentage allocation management module), and LAMM (lot allocation management module). A copy trading account is also a type of managed account in which trades are directly copied onto your account. The main difference is that MAM accounts are usually from professionals who can charge a performance fee, whereas copy trading is more social trading from the retail community.
A managed forex account works by a trader, money manager or portfolio manager deciding they will trade investor capital. The investor opens a trading account with the broker the trader is using, signs an LTA (limited trading authorisation) document and then deposits funds with the broker. The trader will then trade from a master account with their trades being allocated to all the investor sub-accounts.
With a forex managed account service, all the trading is done by the money manager or team of money managers. It is passive for the investor who does no trading at all. Active trading means that the investor themselves is actively trading the market and making their own decisions.
A MAM or PAMM account can be opened relatively easy. The money manager will typically have a preferred broker with whom they trade with. The investor just needs to open an account with this broker and sign an LTA (limited trading authorisation) document. The account will now be linked to the money manager's master account.
A MAM account is simply an account that provides the technology to manage multiple investor accounts from just one master account. Whether it is safe or not depends on the broker the account is opened with. It’s best to stick with well-established, regulated brokers.
A MAM account can be created by opening an account with a broker and then filling out an LTA (limited trading authorisation) document. This will then be linked to the money manager’s account which will allow them to trade multiple sub-accounts of their investors.
The main difference is that managed account providers are usually setup from professional traders or firms who are authorised to trade other people’s funds taking a performance fee they set themselves. Copy trading typically involves following other retail traders who will either share the spread/commission revenue from the broker or may charge a monthly fee to follow the signals.
With copy trading and managed accounts, someone else is performing the trading activity. In copy trading, the traders' trades are copied onto your own account, whereas in a managed account, the trader is actively trading your funds through limited trading authorisation.
Having a forex managed account is legal but there are many scams out there. Stick with a service that is regulated by a top-tier financial institution, ideally a tier 1 regulator like the FCA or ASIC, so your capital is well protected. Offshore entities have lower regulatory protections.
Beginner investors can use a forex managed account to build up their knowledge about the markets. However, as with any form of investing, there will be wins and losses. Having the right mindset and trust in the managed account provider is important.
You can open a managed forex account with a broker that provides the technology to do so. They may also provide options for managed account providers to follow, or you may want to set up your own managed account service. Investors will need to sign a limited trading authorisation document to give permission for the managed account provider to trade their funds.
Some brokers may offer introductions to managed account providers and rank them so you can choose the most suitable provider for your goals. You can also search the internet but make sure they are operating with a highly regulated broker to protect your funds.
Traders can now become fund managers by trading with a broker that provides access to MAM (multi account manager) technology. You can name and brand your fund, set up a corporate identity and charge a performance fee. In some cases, brokers may require you to have the proper authorisation to manage funds.
This depends on the managed account provider. Most managed account providers will have a minimum amount that can be invested as they would prefer to work with those with higher levels of capital.
A managed account provider will typically charge a performance fee above the high watermark level and possibly a management fee. The cost of trading such as spreads/commissions is already taken from the broker when a trade is placed.
This depends on your geographical location and how often you pull out funds and whether any profit is seen as income or capital gain. Typically, it is taxed as capital gain but it is always best to check with an accountant.

About the Author

Jitan Solanki is a professional trader, market analyst, and educator. He day trades major currency and index markets and focuses on swing trading US equities and commodities. A qualified Market Technician, Jitan also works with trader education and brokerage companies on various projects. These include market analysis, live trading events, and broker reviews. As an experienced trader and educator, Jitan brings all his qualities in action when reviewing and recommending brokers.

Why you can trust FX Empire

At FXEmpire, we strive to provide unbiased, thorough and accurate broker reviews by industry experts to help our users make smarter financial decisions.

Read more

Why you can trust FX Empire

FXEmpire was founded in 2011, making us one of the first forex broker review sites. You can trust FXEmpire because of our thorough and unbiased review process. With over a decade of experience, we have a team of industry experts who conduct rigorous tests to ensure our reviews are accurate and unbiased. Our reviews are designed to bring clarity and confidence to the process of choosing a broker, and are based on objective criteria and measurable data. Our editorial team is composed of trading industry professionals and seasoned financial journalists, who ensure that our reviews are accurate and unbiased. Additionally, our review system is based on 9 core categories and over 250 distinct variables, which ensures that all aspects of a broker are considered before giving a final rating. So, you can trust FXEmpire to provide you with honest and informative reviews that will help you make an informed decision on which broker will best enable you to reach your financial goals.