| Updated: January 15, 2025In foreign exchange trading, managing risk and maximizing returns can be a daunting task, especially for novice traders. This is where Managed Account Forex Brokers come in – offering a unique solution for individuals who want to participate in the forex market without actively trading themselves. With a managed account, a professional trader or investment manager takes care of all the trading decisions, allowing account holders to focus on other aspects of their lives.
Below you can find a list with Forex brokers that offer managed account:
Top 7 Forex Brokers with managed forex accounts
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Fusion Markets
- Australia regulated broker
- MT4, MT5, TradingView, Ctrader
- Leverage up to 500
-
Axi
- Raw spreads start from 0.0 pips
- Offers order execution faster than standard ECN model
- Axi Select Funded Trader Program offers funding up to $1 million
Trading Instruments- Forex
- Stocks
- IPOs
- Indices
- Commodities
- Cryptocurrencies
-
Pepperstone
- Australia & CySEC regulated broker
- MT4/MT5, TradingView, Ctrader, Iress
- EUR/USD spread from 0.0 pips
Trading Instruments- Forex
- Indices
- Commodities
- Cryptocurrencies
- Share CFDs
- ETFs
-
FP Markets
- Australia & CySEC regulated broker
- MT4/MT5, TradingView, Ctrader, Iress
- EUR/USD spread from 0.0 pips
Trading Instruments- Forex CFDs
- Shares CFDs
- Metals CFDs
- Commodities CFDs
- Indices CFDs
- Crypto CFDs
- ETF CFDs
-
Tickmill
- Classic and Raw accounts available to suit various trading needs and requirements.
- Popular trading platforms, such as MT4 and MT5.
- Regulated by reputable authorities: ASIC and CySEC.
-
IG
- Offers different account types, including DMA (Direct Market Access) one
- Offers turbo warrants on forex pairs, commodities, indices, and equities
- Supports popular platforms like MT4 and TradingView as well as ProRealTime, L2, and more
Trading Instruments- CFDs on Indices
- Shares
- Crypto
- Futures
- Commodities
- Options
- Interest Rates
- Sectors
- Bonds
- Knock-out trading
-
Vantage FX
- Broker offering some of the lowest spreads from 0.0 pips
- Operating in multiple markets under licenses from tier-1 regulators
- Provides a range of account types with great trading conditions
Trading Instruments- Forex
- Indices
- Commodities
- Shares CFD
- ETFs
- Bonds
Brokers Compared by Spread
| Brand | Commission per lot | |
|---|---|---|
| Fusion Markets | 0.93 avg (Classic) | $0 Classic Account, $4.50 round turn on Zero Account |
| Axi | 1.2 | $0 on Standard Account; $7 round trip on Pro Account |
| Pepperstone | 1.00 (min) | $0 (Standard Account), $7 round-turn (Razor Account) |
| FP Markets | 1.1 | $0 Standard Account; $6 round turn on Pro Account |
| Tickmill | 0.1 | $0 on Classic Account; $3 per side on Raw Account |
| IG | 0.86 av.spread | $0 |
| Vantage FX | 0.2 | $3 per side on Raw; $1.50 per side on Pro |
FX Brokers Deposit Method Comparison
| Brand | Minimum deposit | |
|---|---|---|
| Fusion Markets |  |
$0 |
| Axi |  |
$0 |
| Pepperstone | |
$0 |
| FP Markets | |
$50 (AU$100) |
| Tickmill | |
$100 |
| IG | |
$0 |
| Vantage FX | |
$50 |
Brokers by Regulator
| Brand | Maximum leverage | |
|---|---|---|
| Fusion Markets | |
1:30 (1:500 for forex and metals via VFSC) |
| Axi | |
1:30 |
| Pepperstone | |
1:30 |
| FP Markets | |
1:30 |
| Tickmill | |
1:30 |
| IG | |
1:30 |
| Vantage FX | |
1:30 |
Forex Brokers Platform Availability
| Brand | FX pairs to trade | |
|---|---|---|
| Fusion Markets | |
80+ |
| Axi | |
80 |
| Pepperstone | |
90+ |
| FP Markets | |
70+ |
| Tickmill | |
62 |
| IG | |
80+ |
| Vantage FX | |
60+ |
Comprehensive Comparison of the best managed forex accounts
| Brand | Min. Deposit | Trading Platforms | Spread | Regulation | Trustpilot |
|---|---|---|---|---|---|
 |
$0 |
|
0.93 avg (Classic) |
|
|
 |
$0 |
|
1.2 |
|
|
 |
$0 |
|
1.00 (min) |
|
|
 |
$50 (AU$100) |
|
1.1 |
|
|
 |
$100 |
|
0.1 |
|
|
 |
$0 |
|
0.86 av.spread |
|
|
 |
$50 |
|
0.2 |
|
This page will delve into the world of Managed Account Forex Brokers, explaining how they work, the different types of managed accounts available, the fees charged by brokers, and the advantages and disadvantages of using such services. By the end of this page, readers will possess a thorough understanding of Managed Account Forex Brokers, empowering them to make informed and effective investment decisions.
Managed Forex Trading Accounts Explained
Managed forex trading accounts are a type of investment vehicle where a professional trader or investment manager is responsible for making all the trading decisions on behalf of the account holder. This can be an attractive option for individuals who lack the time, expertise, or desire to actively trade the forex market themselves.
The process typically begins with the account holder depositing funds into their managed account, which is then used to trade the forex market. The professional trader or investment manager will use their expertise and experience to make informed trading decisions, to generate returns for the account holder.
Managed accounts can be tailored to suit individual investment goals and risk tolerance, and account holders can typically access their account information and track their performance online. One of the key benefits of managed accounts is that they can provide access to a range of trading strategies and expertise that may not be available to individual traders. Additionally, managed accounts can help to reduce the emotional aspect of trading, as the professional trader or investment manager is responsible for making all the trading decisions.
The way managed accounts work can vary depending on the broker and the type of account. Some brokers may offer a discretionary managed account, where the professional trader or investment manager has complete control over the trading decisions. Others may offer a non-discretionary managed account, where the account holder has more control over the trading decisions. In some cases, managed accounts may be pooled with other accounts, allowing the professional trader or investment manager to manage a larger pool of funds. Regardless of the type of account, the goal of a managed account is to provide a hassle-free way for individuals to participate in the forex market and potentially generate returns.
Common Types of Managed Accounts – MAM and PAMM Trading Models
There are several types of managed accounts available, but two of the most common are the Multi-Account Manager (MAM) and Percentage Allocation Management Module (PAMM) trading models.
- MAM account allows a professional trader or investment manager to manage multiple accounts from a single interface, making it easier to allocate trades and manage risk. This type of account is often used by brokers who offer managed accounts to a large number of clients.
- PAMM account, on the other hand, allows a professional trader or investment manager to manage a pool of funds from multiple account holders, with each account holder’s returns based on their proportion of the total pool. This type of account is often used by brokers who offer managed accounts to individual traders.
Both MAM and PAMM accounts have their advantages and disadvantages. MAM accounts can provide more flexibility and control for the professional trader or investment manager but may require a higher minimum deposit. PAMM accounts, on the other hand, can provide a more streamlined and efficient way of managing multiple accounts but may have stricter rules and regulations. Ultimately, the choice between a MAM and PAMM account will depend on the individual’s investment goals and risk tolerance.
What are the Fees Charged by Brokers Offering Managed Accounts?
Brokers who offer managed accounts typically charge a range of fees, including management fees, performance fees, and administrative fees. Management fees are usually charged as a percentage of the account balance and can range from 1-5% per annum. Performance fees, on the other hand, are typically charged as a percentage of the returns generated by the managed account and can range from 10-30% of the profits. Administrative fees may also be charged to cover the costs of maintaining the managed account, such as account maintenance fees and transaction fees.
The fees charged by brokers can vary widely, depending on the type of account, the broker’s reputation, and the level of service provided. Some brokers may also offer tiered fee structures, where the fees decrease as the account balance increases. It’s essential for account holders to carefully review the fee structure before opening a managed account, to ensure they understand all the costs involved. Additionally, account holders should also consider the potential impact of fees on their returns, and whether the fees are justified by the performance of the managed account.
Advantages and Disadvantages of Managed Forex Trading Accounts
Managed forex trading accounts offer a range of benefits, but also have some drawbacks. It’s essential to carefully consider these advantages and disadvantages before deciding whether a managed account is right for you.
Advantages
- Potential for Higher Returns: Managed accounts can provide access to a range of trading strategies and expertise that may not be available to individual traders, potentially leading to higher returns.
- Reduced Risk: By leveraging the expertise and experience of a professional trader or investment manager, managed accounts can help to reduce risk, as the professional trader or investment manager is responsible for making all the trading decisions.
- Increased Convenience: Managed accounts can provide increased convenience, as account holders do not need to actively trade the forex market themselves, allowing them to focus on other aspects of their lives.
- Diversification: Managed accounts can provide a way to diversify your investment portfolio, by investing in a range of assets and markets, potentially reducing risk and increasing returns.
- Access to Professional Expertise: Managed accounts can provide access to professional traders and investment managers who have the expertise and experience to navigate the complex and volatile forex market.
- Regular Portfolio Rebalancing: Managed accounts can provide regular portfolio rebalancing, ensuring that the account remains aligned with the account holder’s investment goals and risk tolerance.
- Tax Efficiency: Managed accounts can provide tax efficiency, as the professional trader or investment manager can make trading decisions with tax implications in mind.
Disadvantages
- Lack of Control: One of the main disadvantages of managed accounts is the lack of control, as account holders have limited input into the trading decisions, which can be a concern for some investors.
- High Fees: Managed accounts can be expensive, with high fees and charges eating into the returns, which can be a significant drawback for some investors.
- Risk of Poor Trading Decisions: There is a risk that the professional trader or investment manager may make poor trading decisions, which can result in losses for the account holder.
- Limited Transparency: Some managed accounts may have limited transparency, making it difficult for account holders to understand the trading decisions and strategies being used.
- Conflict of Interest: There may be a conflict of interest between the professional trader or investment manager and the account holder, as the professional trader or investment manager may be incentivized to take risks to generate higher returns, rather than prioritizing the account holder’s investment goals.
- Minimum Investment Requirements: Managed accounts often have minimum investment requirements, which can be a barrier for some investors who do not have the necessary funds to invest.
- Lock-Up Periods: Some managed accounts may have lock-up periods, which can restrict the account holder’s ability to withdraw their funds, which can be a concern for some investors.
Overall, managed forex trading accounts can be a good option for investors who want to participate in the forex market without actively trading themselves, but it’s essential to carefully consider the advantages and disadvantages before making a decision. It’s also important to do your research and choose a reputable and experienced professional trader or investment manager to manage your account.
FAQs
What is a Managed Forex Trading Account?
A Managed Forex Trading Account is a type of investment vehicle where a professional trader or investment manager is responsible for making all the trading decisions on behalf of the account holder.
How do I choose a managed account forex broker?
When choosing a managed account forex broker, it’s essential to consider factors such as the broker’s reputation, experience, and fee structure. You should also review the broker’s performance track record and read reviews from other clients.
What are the risks associated with managed forex trading accounts?
The risks associated with managed forex trading accounts include the potential for losses, the lack of control, and the risk of the professional trader or investment manager making poor trading decisions.
Can I withdraw my funds from a managed account at any time?
Yes, most managed account forex brokers allow account holders to withdraw their funds at any time, although there may be some restrictions or penalties for early withdrawal.
How do I monitor the performance of my managed account?
Most managed account forex brokers provide online access to account information, allowing account holders to monitor their performance and track their returns in real-time.
Conclusion
In conclusion, managed account forex brokers offer a unique solution for individuals who want to participate in the forex market without actively trading themselves. By understanding how managed accounts work, the different types of managed accounts available, the fees charged by brokers, and the advantages and disadvantages of using such services, account holders can make informed decisions about their investment options. While managed accounts can provide a range of benefits, including the potential for higher returns and reduced risk, they also have some disadvantages, such as the lack of control and high fees. Ultimately, whether a managed account is right for an individual will depend on their investment goals, risk tolerance, and personal circumstances.
Why You Should Trust RationalFX
When it comes to making informed decisions about forex brokers, it’s essential to rely on trustworthy sources. RationalFX, a company with over 17 years of experience since its founding in 2005, has established itself as a credible authority in the industry. With an impressive collection of over 2500 reviews on Trustpilot, boasting a score of 4.2, it’s clear that Rational FX has built a reputation for providing reliable and unbiased information.
What sets Rational FX apart is its rigorous evaluation process, which considers over 30 different criteria when selecting forex brokers. This comprehensive approach ensures that every aspect of a broker’s service is taken in consideration, including regulation, forex spreads, trading platforms, deposit methods, and reputation. With its wealth of experience, transparent review process, and outstanding customer feedback, Rational FX is a trusted source for anyone seeking reliable information on forex brokers. You can reach us via e-mail at [email protected] or contact us through our social media accounts here: Facebook, YouTube, or leave a feedback here.