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Best Forex Managed Accounts 2020

FX Empire Editorial Board
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At FX Empire, we stick to strict standards of a review process. Learn about our review process. FX Empire may receive compensation. Here’s how we make money.

A managed forex account is where a money manager handles the investments and trading of the client’s account on their behalf. They manage the client’s account by seeking trading opportunities, adjusting the risk, implementing their own strategies, or even taking input from the client on what they would like to trade on and how.

The world’s most popular FX platforms, the MT4 and the MT5 both feature the possibility of having a money manager manage accounts through them. This is often called a MAMM account.

The brokers below represent the Best Forex Managed Accounts brokers.

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BrokerRatingOfficial SiteRegulationsMin DepositMax LeverageTrading PlatformsFoundation YearPublicly TradedTrading Desk TypeCurrenciesCommoditiesIndicesStocksCryptoCommission on tradesFixed spreadsoffers promotionsOfficial Site
FXTM
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90% of retail CFD accounts lose money

CySEC, FCA, FSC

$10

1:30

MT4, MT5

2011

No dealing desk

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90% of retail CFD accounts lose money

CMC Markets
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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.

ASIC, FCA

$0

1:500

CMC Web Platform

1989

Dealing Desk, Market Maker

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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.

ActiveTrades
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"All financial products traded on margin carry a high degree of risk to your capital. They are not suited to all investors, please ensure that you fully understand the risks involved, and seek independent advice if necessary. ActivTrades Corp is authorised and regulated by The Securities Commission of the Bahamas. ActivTrades Corp is an international business company registered in the Commonwealth of the Bahamas, registration number 199667 B. ActivTrades Corp is a subsidiary of ActivTrades PLC, authorised and regulated by the Financial Conduct Authority, registration number 434413. ActivTrades PLC is a company registered in England & Wales, registration number 05367727."

FCA, SCB

$500

1:400

ActivTrader

2001

ECN, Market Maker, No dealing desk

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"All financial products traded on margin carry a high degree of risk to your capital. They are not suited to all investors, please ensure that you fully understand the risks involved, and seek independent advice if necessary. ActivTrades Corp is authorised and regulated by The Securities Commission of the Bahamas. ActivTrades Corp is an international business company registered in the Commonwealth of the Bahamas, registration number 199667 B. ActivTrades Corp is a subsidiary of ActivTrades PLC, authorised and regulated by the Financial Conduct Authority, registration number 434413. ActivTrades PLC is a company registered in England & Wales, registration number 05367727."

First Prudential Markets Pty Ltd
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Your capital is at risk

ASIC, CySEC

$100

1:500

IRESS, MT4, MT5, webtrader

2005

No dealing desk

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Your capital is at risk

Pacific Financial Derivatives Limited
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Your Capital is at Risk

FMA

$0

1:300

MT4

1999

No dealing desk

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Your Capital is at Risk

Pro Tip: Most of these brokers offer free demo accounts so you can test the brokers and their platforms with virtual money. Give it a try with some play money before using your own cash.

Here’s a list of The Best Forex Managed Accounts brokers.


Note: Not all Forex brokers accept US clients. For your convenience, we specified those that accept US Forex traders as clients.

FXTM

Regulated By:CySEC, FCA, FSC

Foundation Year:2011

Headquarters:FXTM Tower, 35 Lamprou Konstantara, Kato Polemidia, 4156, Limassol, Cyprus

Min Deposit:$10

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90% of retail CFD accounts lose money

FXTM is also known as ForexTime, and commenced operations in 2011 from its de facto headquarters in Limassol, Cyprus. Since then, FXTM has achieved rapid global expansion, driven primarily by its desire to serve specific local markets with strong FX demand.

The MT4 and MT5 are the platforms provided by FXTM. These platforms, however, come in various versions built for the web, for desktops and for mobile devices. The FXTM MT5 is an improvement on the MT4 and can be downloaded from the MyFXTM members’ area.

Pros Cons
  • Highly regulated by leading regulators FCA and CySEC
  • Access to both MT4 and MT5
  • An amazing selection of analysis and news
  • A solid educational offering
  • Both ECN and standard accounts available
  • Not the lowest spreads on the standard account

CMC Markets

Regulated By:ASIC, FCA

Foundation Year:1989

Headquarters:133 Houndsditch, London

Min Deposit:$0

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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.

CMC Markets is a multi-asset class spread betting and CFD broker with over 30 years of experience, regulated by the UK’s Financial Conduct Authority (FCA) and thus offering segregated funds and a high level of security and safety. The CMC Group is a publicly-traded company on the London Stock Exchange.

The broker offers 3 different trading accounts: spread betting, CFD and Corporate accounts. Each account offers users to trade on more than 9,000+ trading instruments covering Indices, Forex, Cryptocurrencies, Commodities, Shares and Treasuries with spread betting offering commission-free trading and CFD and Corporate accounts offering commission-based trading on Shares only.

Pros: Cons:
  • FCA UK regulated and publicly traded company on the London Stock Exchange.
  • 9,000+ trading instruments covering multiple asset classes.
  • Feature-rich proprietary Next Generation trading platform.
  • News and analysis from in-house market analysts.
  • Steep learning curve for beginning traders using the Next Generation advanced trading platform.

ActivTrades

Regulated By:FCA, SCB

Foundation Year:2001

Headquarters:1 Thomas More Square London E1W 1YN United Kingdom

Min Deposit:$500

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"All financial products traded on margin carry a high degree of risk to your capital. They are not suited to all investors, please ensure that you fully understand the risks involved, and seek independent advice if necessary. ActivTrades Corp is authorised and regulated by The Securities Commission of the Bahamas. ActivTrades Corp is an international business company registered in the Commonwealth of the Bahamas, registration number 199667 B. ActivTrades Corp is a subsidiary of ActivTrades PLC, authorised and regulated by the Financial Conduct Authority, registration number 434413. ActivTrades PLC is a company registered in England & Wales, registration number 05367727."

ActivTrades was founded in 2001 and was recognised by the Sunday Times Fast Track 100 as the 90th fastest growing company in the UK for 2017. The company is regulated by the UK Financial Conduct Authority (FCA), as well as the Securities Commission of the Bahamas and offers CFD and Spread Betting trading accounts with direct execution (non-dealing desk).

Pros: Cons:
  • FCA regulated.
  • Segregated client funds and additional insurance protections.
  • 500+ tradable assets across Forex, Indices, Shares, Commodities, ETFs and Cryptocurrencies.
  • Free advanced trading tools such as Smart Pattern, Smart Order and Smart Forecast.
  • One-to-one platform training
  • Not accessible for US clients.
  • Limited market analysis and research tools.

FP Markets

Regulated By:ASIC, CySEC

Foundation Year:2005

Headquarters:Level 5, Exchange House 10 Bridge St Sydney NSW 2000, Australia

Min Deposit:$100

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Your capital is at risk

This brokerage offers a massive range of tradable assets through Forex, CFD, and share trading accounts. FP Markets supports the MT4, MT5, and IRESS platforms and offers leverage up to 500:1. You can trade 45 currency pairs with competitive spread or commission pricing.

FP Markets was founded in 2005 and is headquartered in Sydney, Australia. It is regulated by the ASIC in Australia. Demo accounts are available. While it is suitable for beginners, education resources are limited. 

Pros: Cons:
  • 10,000+ tradable assets
  • Choose between 3 trading platforms
  • Competitive spread pricing on raw account
  • High spreads on the standard account
  • A range of possible additional fees
  • AU $200 minimum opening balance

Pacific Financial Derivatives

Regulated By:FMA

Foundation Year:1999

Headquarters:Level 8, 12-26 Swanson Street, Auckland Central, Auckland 1010

Min Deposit:$0

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Your Capital is at Risk

Pacific Financial Derivatives Ltd (PFD) is a global online broker that operates from Auckland in New Zealand. The broker was established in 1999 by an experienced Japanese investor who has a similar business in his native country. The brokerage offers Forex, indices and commodities for trading on its platforms. With many years experience in the business, PFD has become a globally established brand.

Pros Cons
  • Broker is regulated by the FMA in New Zealand.
  • Well-established broker with over 15 years experience.
  • Low trading fees and charges.
  • The provided demo account expires after 15 days.
  • The education suite provided is obviously inadequate.
  • There are no bonuses, promotions or incentives to encourage the trader.

What is a forex managed accounts?

A managed forex account is where a professional trader/money manager manages the trading on the clients’ behalf. The account is made up of a personalized portfolio owned by a single investor. The portfolio and account is handled accordingly to the investors needs.

An investor may advise the money manager on strategies and signals to look for while trading on his behalf. An investor may do this to take themselves out of the equation and trade without the psychology and emotions that come with wins and losses. On the other hand, some clients simply choose to let the brokerage/money manager trade the account based on their own systems and strategies.

Forex managed accounts can be compared to traditional investment accounts of equities and bonds, in the way that an investment manager handles the trading logistics. In no instance can a money manager withdraw or add funds to the account, they are granted trade only access to the account, and the investor has full control over their account. Money managers charge a fee or commission for managed accounts, so it is important to research a variety of options, as their prices can vary greatly.

How does a managed forex account work?

For an investor to have a managed trading account, they must first open a trading account at a reputable brokerage firm of their choice. Then allocate the necessary amount of funds for a managed account. The money manager has limited access to the account and operates on a trade only basis. The investor remains in full control of the account and its deposits and withdrawal processes.

Now, if a money manager does not have any control over the investors money, how can they conduct trades? Well, upon setting up a managed account, both the investor and money manager must sign a document called a Limited Power of Attorney Agreement (LPOA). This is an agreement for both parties, allowing the trader to trade on an investors account on their behalf, without needing to transfer the investors funds to the traders account. This agreement provides a high level of security, control, and transparency that’s comfortable for the investor.

With the signing of this agreement, the managed account gets placed in what’s called a “master block”, and as stated before, the investor continues to have full control of their account. They can check the balance, deposit or withdraw funds, monitor trade activity, and even revoke the LPOA agreement at any time if they are not happy with the money manager. One thing they can not do is conduct their own trading on the account, unless they revoke the LPOA agreement.

Regarding the money managers aspect of managed forex accounts. They may trade for many investors all from a single master account using PAMM, LAMM, or MAM software and technology. These technical procedures are integrated into most reputable brokerages and various online trading platforms, making it possible for traders to manage investor accounts.

Account Types

Investing through a managed account has been around for a long time. In fact, it’s been around for as long as investing. With that in mind, there have generally been 3 types of managed forex accounts that prevail- Individual, Pooled, and more recently; varieties of PAMM accounts.

Individual Account

This type of account is the most simple and standard type of account when you think of a managed account. The account managed is a segregated account where the money manager makes all the trades on your behalf. The traders’ decisions are based solely on your instruction or desire, he/she is trading for you and only you.

Their decisions will be based on your risk level and whether you provide any specific strategy or guidance. Since there are no additional traders’ funds involved in this account, the minimum deposit may be quite high- exceeding $10,000. For this reason, and the fact the manager is trading this account individually for you, you will want to ensure a professional and competent money manager is chosen. A great deal of research and client testimonials will be beneficial when going this route.

Pooled Account

This type of account is very similar too mutual funds, in where many investors pool their money together in a separate account and share the profits after fees and expenses. With pooled accounts, there are often a variety of pools to choose from. Each may be offering different risk levels, minimum deposits, investment strategies, currencies traded, and fees and expenses. These types of accounts are managed for a variety of investors, requiring you to choose or be advised on which pool suits your needs.

Unlike individual accounts, the manager is trading for numerous investor desires. To help determine an account for you, each fund will have years of past performance for review. A main benefit of pooled accounts is the lower minimum deposit required to enter, being as low as $2000. Although, there are often minimum participation requirements upon entering a pool fund. These are all factors you need to consider before diving in.

PAMM, LAMM, & MAMM Accounts

These types of accounts use sophisticated technology to distribute profits, losses, and fees based on percentages of funds each investor has involved in the master account used for trading. These account methods are relatively new in comparison with the other two listed here, and offer the satisfaction of dealing directly with the broker of your choice in a secure and transparent way.

It’s similar to the mirror and copy trading features some brokers offer, because of the automation and technicality. Although, it still has more similarities to a managed account. All these types of accounts are basically pool accounts, in the sense that numerous investors pool their money together and reap the profits or losses of the money manager.

What should you look for in a managed forex account?

There are numerous things to consider when opening a managed forex account and you must always be careful when selecting a money manager. You need to use due diligence ensuring the money manager is reputable and trustworthy. The forex industry is known to have some notable scammers in the past, so extra precautions must be made to guarantee safe and secure management.

Not only do you need to take precaution when choosing your money manager, but also in the type of account that’s suitable for your needs. Below are some things to look for when choosing a managed forex account.

  • The risk level of an account or manager is something to consider. When trading with an individual account, you want to choose a money manager who’s trading style and history is at the level of risk you’re comfortable with. You can advise your money manager on how to trade, but by choosing one that trades with your level of risk already can make all the difference. As well, with trading accounts, you want to choose a pool with your appropriate risk level and trading method.
  • Another important factor are the fees, expenses, and minimum deposits involved with a trading account. Many firms will charge performance fees to your account. These fees can vary greatly based on the account type, and risk level of such an account. These rates can range from anywhere between 10%-35% and some cases even higher. These rates are in accordance to a principle called the “High Water Mark”. This protocol is applied to your account if at the end of each month your net balance is higher than a certain percentage. If this is the case, your account will be deducted the performance fee which is a certain percentage. Some brokerages may also charge an account management fee on top of the other fees for following a specific formula. Also in some cases, there can be a fee for the termination of account in the event of transferring all funds.
  • An important factor when choosing a reputable managed forex account is the availability of past performance history. Past performance may not be an indicative factor of future results, but at least the history shows experience of the forex account. There should be published history of at least a few years for a reputable brokerage managed account.

How to open a managed forex account?

Opening a managed forex account is more complicated than you might think. That is why we’ve created a detailed list pertaining to the necessary steps involved. Discover the intricate process in great detail below;

  1. Before you make the necessary steps to opening an account, you must first determine your risk tolerance. You need to know this so you know who to look for in a money manager, you can view their track record and overall risk score. Another point that goes along with this are your goals. If you want to make higher profits in a short amount of time, high risk managed account might be the option for you.
  2. Spend time networking and searching for the right forex trader. There are lots of options out there, but not everyone is right for you. Use your due diligence and research, reach out, and network to find the best possible forex brokerage.
  3. Once you have narrowed down your list of forex traders, you need to go over each contract. Make sure you feel comfortable with everything and understand the max drawdowns, liability coverage, fees and expenses, and so on. Your due diligence is key in obtaining a successfully managed forex account.
  4. Again, ensure everything is up to spec with the trader your interested in. View past performance reports, client testimonials, reviews, and anything you can dig up on the internet.
  5. Once you have completed the steps above you are ready to select a forex trader to manage your account. You’ll need to complete and sign the necessary documents, and contracts including the signing of a Limited Power of Attorney Agreement (LPOA).
  6. The next step is to receive your account number and transfer funds into the account. The account number is tied to your name, information, and your segregated trading account. Once everything is in order you can go ahead and transfer the funds, knowing you’re with a trusted and secure forex trader by following the steps above.
  7. Finally, you wait for the money to be transferred, and it’s complete. It really is a simple process. You can have a managed forex account up and running within a few days. Now, you can analyze your account and even learn from the trades that are being made.

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Trade With A Regulated Broker

  • Your capital is at risk