Top Managed Forex Accounts for 2021

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

Best Managed Forex Accounts Guide

Updated April 21, 2021

Managed Forex Accounts

Deep knowledge about Forex is important to successfully trade in currency pairs. Well managed Forex accounts managed by professionals usually give more return compared to more casual traders.

A managed Forex 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 own discretion.

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

Why Are Managed Forex Accounts Required?

The requirement depends on the involvement a trader wants to undertake in the Forex 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 to be considered.

When Managed Forex Accounts Are Required

If a trader is busy and has less time to concentrate on Forex trading, a professional is able to trade on his or her behalf.

Managed accounts are good for inexperienced traders who would prefer a professional to navigate the uncertainties of the Forex markets due to high volatility.

Trading in Forex requires a healthy psychological personality and many traders lack it.

In such circumstances taking the help of a Forex professional becomes a necessity.

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 $10,000.

The fund first increases to $20,000 and thereafter decreases to $9,000. Next, it increases to $21,000 and again comes down to $6,000. Later, again an increase is seen to $22,000.

Here, equity high net value is $22,000 and low is $6,000. The maximum drawdown is as such:

($22,000 - $6,000) / $22,000 = 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: