Top Managed Forex Accounts for 2023

We found 11 online brokers that are appropriate for Trading Managed Forex Accounts.

Best Managed Forex Accounts Guide

Updated March 28, 2023

Managed Forex Accounts

Managed Forex accounts are currency investment plans that are managed by financial professionals in banks, financial institutions, and other institutions. They can be traded online or over the telephone with an experienced broker. These accounts have a variety of benefits but also come with a few disadvantages. One of these disadvantages is that the rates tend to be very low for these Forex managed accounts. Many people do not know that they can get better rates via a Forex account.

A Forex account that is managed is where a currency manager manages the trades and investments on the behalf of their clients. They manage the clients' accounts by looking for Forex trading opportunities, setting the risk level, implementing their strategies, or taking advice from the client on how they want to trade. Once a trader executes successful trades with the broker, they will get a small fee from the account manager or bank that allows them to get a percentage of the profit.

Managed Forex Account Risk Management

The risk level of managed Forex accounts is usually very high. This is because the manager is investing a lot of money. One is less likely, however, to suffer a large loss than they would be if they were trading alone.

It is not uncommon for the account manager to suffer a loss during the first year of Forex trading, but they usually learn from their mistakes and start to increase the amount they invest each month.

Deep knowledge about Forex is important to successfully trade in currency pairs. The best managed Forex accounts at the hands of professionals usually yield more returns compared to more casual traders.

A managed account is an account that is managed by market professionals on behalf of a trader.

It is not like a regular account in which a trader has to make all decisions when buying and selling assets at their discretion.

Managed accounts are comparatively expensive. Higher fees and costs are levied with professionally managed accounts. Managed Forex accounts have higher minimum deposit requirements in most cases.

What Is Forex?

Forex is the acronym for foreign exchange. Many address it just as FX. It is a global marketplace for trading. It is open 24-hour a day for five days a week. It is not traded over the weekend. It is the largest financial market globally, and the daily average turnover is over $6 trillion. It is decentralised.

It means no single government, agency, or authority has complete control over it. It has the most liquidity compared to other financial markets and is volatile as the prices of most currencies fluctuate throughout the day. The factors that make the market volatile include the political condition of a country, public sentiments and breaking news related to finance and economics.

What Are Managed Forex Accounts?

Managed accounts are an exciting investment option for people who are ready to take on the risk involved in getting higher returns from more risky trading for example leveraged foreign currency trading.

They are for people who are ready to take real risks and wish for professionals to do the initial work of selection and trading. There are several different types of managed accounts available and choosing the best one for you depends on your circumstances. One of the most common types is a trading account.

This is the most simple and basic account, where you trade in 'real' money using an online transaction. You could choose from many different Forex brokerages offering this type of account, and it is fast and easy to set up.

You don't have to know a lot about the Forex market to start, but to be successful you need to use the tools provided by the broker to help you find and trade the right pairs of currencies.

Managed Forex Account Explained

It is an investment opportunity for high-risk attitude investors to earn potential returns from the leveraged trading and with the help of professionals to do all the trading.

In simple terms, it is like putting money in a Forex managed account and asking a professional to trade on his behalf. Investors opting for managed accounts usually look for large gains alongside severe losses that may occur.

The asset class offered in the account is different from that of stocks or bonds. It is not like the traditional securities that deliver returns like dividends. The return here is in value. Investments are either made by speculators or hedge risk in the market.

With managed Forex accounts you can start with lower returns, or just let your capital grow as you see fit. The key to making large profits in the Forex market is to understand that Forex profits are not just coming from direct sales of individual trades but the spread between two currencies. You make the profits when you spot a profitable trade, then you cover your spread, allowing you to sell your option at the difference to make a profit.

Some investors have used their funds to buy several different Forex pairs, allowing them to diversify their portfolios. However, some traders like to concentrate on only a few select currencies, so they have less chance of losing money. There are many investors out there who make a living trading only one or two particular pairs.

Whatever your chosen area of expertise, there are several opportunities available to you in the form of managed accounts, both online and off. If you want to invest in a specific pair or several, you need to be aware that you will need to learn how to trade that currency.

Managed Forex Account Key Highlights

Understanding Managed Forex Accounts

Understanding managed Forex accounts is important for investors who are just starting with Forex. This type of account allows Forex traders to make trades without risking their own money. When looking for a managed funds provider, it's important to understand how you can track your funds through the account.

Most brokers have integrated directly with hedge fund managers to provide real-time information about current positions, transactions, and performance. Track how your money is doing with managed Forex accounts to see if you're getting the best returns and to control the risks.

Many investors start an account with just one specific type of investment. Some go for safe stocks while others get into risky options like commodity and bond funds. A managed Forex accounts service will let you invest in many different types of accounts. The best providers will let you track all of your investments so you can choose the ones that will give you the best return.

For a managed Forex accounts service to be of high quality, it must be visited by a lot of people used to managing currency. The more people who use the service, the better it is because more options are offered, and the account manager's skill level can be improved. Some brokers have managers that only handle accounts close to their lifetimes so it's important to find a broker with people who have access to their accounts during important times such as when expiration occurs.

The Safety Of Managed Forex Accounts

When you trade in the market, one of the issues that you will need to consider is the safety of your trades. This can be achieved through the use of managed Forex accounts. These are the best way of ensuring that your trades are safe and secure. Here is a look at how these types of accounts work.

When a trader opens a managed account, they will have the opportunity to trade in many different currencies. Traders then make decisions about which currencies to trade-in. The benefits here are that there is no interaction between the trader and the platform. There is also no risk to the trader in that their trades are not affected if another platform loses its money.

For a managed account to be opened by a trader there are certain requirements needed. The trader needs to be independent and able to make their own decisions on which currencies to trade-in. It also needs to be of a minimum amount. Once you have opened an account, you are not tied to it. You can change currencies whenever you like and when you wish. The platforms still hold the majority of the account balance.

Why Are Managed Forex Accounts Required?

The requirement depends on the involvement a trader wants to undertake in the market.

If traders prefer the advice from finance professionals and allow them to action and advise managed forex accounts are perfect.

If complete control is required with personal involvement, managed Forex accounts should not be considered.

Managed Forex Accounts Features

The priority feature of managed Forex accounts are consistent profitability and low maximum levels of drawdowns.

Let's understand the maximum drawdown level with an example. Suppose a trader starts his account with a fund of $10K.

The fund first increases to $20K and thereafter decreases to $9K. Next, it increases to $21K and again comes down to $6K. Later, again an increase is seen to $22K.

The equity high net worth here is $22K; the low is $6K. The maximum drawdown is as such:

($22K - $6K) / $22K = 72%

The calculation is considered a high maximum drawdown. The example above illustrates a risky investment.

In short, less risk is reflected with lower maximum drawdown.

Traders need to know the type of return on investment they are expecting. Moreover, which model of managed Forex account is suitable for them.

Below are the account models:


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