Best Managed Forex Accounts
Managed forex accounts are run by experienced traders who offer their forex trading services in return for a monthly fee (either a set figure or a percentage of the profit obtained in the account).
There are several ways that managed forex accounts can be run. One way is for all the investors to deposit money into the trader's account. The trader records what % share the client has and pays profits accordingly. This method is knows as investing in a PAMM account. PAMM stands for Percentage Allocation Management Module which is the software that is able to keep track of and manage all aspects related to multiple investors having funds in the main trader's account.
The other method is for the client to open their own account, deposit their money and then authorize limited access for the trader to enable them to make trades on your behalf. The trades themselves can be automated by linking the client account to the trader's account so that all trades made on the trader’s account are duplicated on the client's account.
Of the 2 methods above, the PAMM system is more common amongst forex brokers. Quite a few brokers offer PAMM accounts that are tracked for their performance and can be sorted by various statistics to form a ranking that potential investors can choose from.
Here is a list of links of the brokers that offer PAMM ranking tables.
Advantages of managed forex accounts
There are several advantages investing in a managed forex account. The main one is time and expertise. You don't have to have either of these because you can simply leave it up to the account manager. For investors who are looking for an alternative to other popular investments like stocks, mutual funds and property, forex managed accounts are a good place to diversify into.
Another advantage that is often the main appeal of forex managed accounts is the potential for higher returns than other forms of investment. A high performing forex managed account can return several percent per month, some even close to 10% or even more. Of course this all depends on the level of risk you want to take, but as a general guide there certainly is more growth to be had in forex managed accounts.
Managed forex account articles
There are many factors to consider before you invest your money into a managed forex account. Unfortunately, due to the nature of the Internet being largely anonymous, many forex managed accounts are nothing more than trading bots and scripts run by people whó aren't even traders. You need to be well aware that there are probably more unreliable accounts than reliable ones, and please be very careful about where and how much you invest.
To assist you with more information on managed accounts, I have written a series of articles that discuss the most important topics in greater detail.