What are Managed Forex Accounts? – Understanding, and More

managed forex accounts

What are Managed Forex Accounts?

Managed forex accounts are where a professional trader/money manager works the trading on the clients’ behalf. The store is made up of a personalized portfolio owned by a single investor. The portfolio and account handle accordingly to the investors’ needs.

Remember, not all forex brokers create equal, so carefully consider your needs and broker features before opening an account. Also, if you wish to have someone else achieve your forex trading account, be sure they have good training and substructure at their disposal as well as a reputable track record as a dealer.

Keep in mind that when you open a managed account, account managers will usually have minimum time and credit requirements and sometimes charge penalties for initial fund withdrawal.  The least deposits for these accounts can also be much higher than for a standard forex account.

Understanding Managed Forex Accounts

Safety and Costs of Managed Forex Accounts

  1. Foreign exchange markets commonly use by sophisticated traders, who take advantage of an ability to handle large amounts of borrowed money to amplify their gains.
  2. Forex markets have more liquidity and a faster-paced trading action than the stock market offers. Because it is the most active market globally, transaction costs are lower, making it a popular forum for those who enjoy the thrill of speculation.
  3. At the same time, forex markets can be dangerous for inexperienced traders who may not have a sophisticated understanding of the effects of high leverage on their revenues.
  4. And who does not have a good insight into how different news events like economic releases or central bank monetary policy decisions affect currency prices.
  5. Those who are not specialists in foreign currencies but still want exposure to the market. And another asset class may reflect a managed Forex account.
  6. Using a managed account, they can take benefit of the expertise of an experienced and proven Forex trader.
  7. The disadvantage to this method is that the best managers typically charge high-performance fees of between 20% and 30% of a trade’s earnings.
  8. When determining a managed Forex account, it is wise to consult your prospective account manager’s Calmar Ratio.
  9. Which compares the average annual multiple rates of return of their trading fund to the maximum drawdown over the period.
  10. Measurement of this ratio is typically over three years. The higher the Calmar Ratio, the improved the manager’s risk-adjusted reappearance will be. Conversely, the lower the ratio, the inferior their risk-adjusted reappearance results are.

Features of a Great Managed Forex Accounts

A countless managed forex trading account will show reliable overall profitability and a low maximum drawdown level. The top drawdown level indicates the full loss of capital experienced in the trading account from its peak over the account’s history.

1. The Maximum Drawdown Formula

2. Other Features of Managed Forex Accounts

The kind of managed account model to be used:

The Best Brokers with Managed Forex Accounts

To keep your money safe, choose a recognized forex broker to open a managed forex account. And look for an individual account manager or group you feel qualifies to trade your account.

The brokers registered below all permit managed accounts, though doing your research makes sense if you want to get a good return from their manager’s activities.



Alpari International


Suppose you want to contribute and make money in the forex market. But you don’t want to trade yourself. Then a managed forex account could be a perfect fit.

Keep in mind that you can be charged anywhere from 15% to 40% (or more) of your profits in addition to significantly higher minimum deposit requirements. You may also have to pay brokerage house and additional manager fees, contingent on the account specifics.

On the other hand, if you lack adequate risk capital for a managed account or prefer to skill your own money. You may be better off trading in a regular forex trading account, especially if you already have a viable trading strategy.

In addition to privacy, trading in a normal forex account gives you much more flexibility. And has significantly lower costs than a managed forex account.

Also Read: What is Financial Freedom? – Formula, Types, Works, and More

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