Forex Managed Account Brokers – Top Choices for Managers and Investors

What is managed account in Forex? How can investors take advantage of a Forex managed account to profit from the markets with the help of seasoned and professional traders? Are Forex brokers offering managed accounts that are safe and regulated? Understanding the concept of managed Forex trading is very important for those who do not wish to trade the market themselves.

In this guide, we answer several key questions, such as whether you should open a managed Forex account, if you should register as a manager/trader or investor, and how to choose the best Forex brokers for managed accounts. We also provide detailed information on the best Forex trading platform managed accounts and some key strategies to ensure maximum profitability for account managers and investors.

Best Forex Brokers for Forex Managed Account

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Min. Deposit: $200 Max. Leverage: 1:400 Trading Platforms:
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Min. Deposit: $50 Max. Leverage: 1:2000 Trading Platforms:
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What Is Managed Account in Forex?

Managed Account in Forex

As the name implies, a Forex managed account is an account management service that allows investors to use the services of accomplished/professional traders by paying a performance fee. These master traders, also known as account managers, trade the markets on their investors’ behalf, essentially allowing such investors to participate in the markets without actually trading themselves. These services aim to bridge the gap between traders and investors, especially when we consider the limitations faced by traders and investors in terms of market access, position sizing, trading risks, consistent profitability, and more.

It is relatively easy to comprehend since these types of services have been around in the financial market for decades. A broker develops a managed trading platform where professional or seasoned traders can open an account to offer their trading services to prospective investors. These traders must undergo a strict evaluation procedure, where the broker evaluates and ranks the trader’s performance by analyzing several different metrics.

These metrics include the choice of assets, risk management, profit potential, risk of ruin, trade duration, and trading strategy, among many other parameters. Investors are then offered the option to choose their preferred manager by comparing their performance metrics. They can choose a single manager to invest in or distribute funds among different managers to create a diversified portfolio.

Managed Forex trading services are usually provided by an FX and CFD broker. However, numerous third-party services offer managed services through a partnership with leading brokerages. Forex brokers offering managed accounts, traders, and investors are given access to the broker’s account management software, which takes care of all aspects of such services through the broker’s dashboard interface. However, in the case of third-party services, traders/managers and investors may be required to install special add-ons to their trading platforms while managing other account-related functions through an online web-based dashboard supported by the third-party managed Forex trading service.

Types of Forex Managed Account Options

There are different types of managed Forex trading services in the market, with each company adopting a unique model that suits its operational policies. To that extent, Forex brokers offering managed accounts may offer any one of the following options or opt to provide a combination of different models to deliver a hybrid service.


The Percentage Allocation Management Module (PAMM) is the most popular managed account model offered by the best Forex brokers for managed account. A PAMM broker allows an account manager to create a fund for trading purposes, which is then made accessible to investors through the broker’s PAMM platform. Investors must sign up for an investment account to access these funds, after which they can assign a certain percentage of their money to a PAMM manager’s fund of their choice. Investors can freely allocate any percentage of their money to a manager’s fund and choose multiple managers for a diversified risk portfolio.

The money invested by an investor into a manager’s fund is pooled together with money from other investors and the manager’s capital. The manager then uses the entire fund to trade the markets, and the profits and losses from the trading activities are reflected directly in the fund equity. Profits and losses allocated to each investor are split according to the percentage allocation of their investment to the general fund. At the same time, the manager is compensated through a performance fee for their trading services.


A Multi Account Management (MAM) model differs slightly from a PAMM model. Here, traders manage investors’ accounts through the MAM platform instead of creating a global fund for trading. Here too, investors have the freedom to allocate different portions of their money to different fund managers, while managers have the freedom to trade the markets their way. However, since funds are not all pooled into a single account, the profits and losses are reflected in each investor’s account. The performance fee is paid to the manager as per a fixed percentage of profits determined at the time of MAM signup, with reference to the manager’s terms and conditions.


The Lot Allocation Management Module (LAMM) is similar to the PAMM model. Still, instead of a percentage of the money allocated to a manager’s fund, investors have the option to assign a fixed number of lots to each manager. Here, the profits and losses also reflect the lots allocated to the fund manager. The performance fee is also determined by the manager’s terms and conditions of service. LAMM renders more control to the investor over how much money is traded in the market, but it may be counterintuitive to the manager’s overall trading strategy and money management principles.


The Risk Allocation Management Module (RAMM) is also similar to PAMM, where investors are given the option to assign money to a trader’s fund through risk management. Investors can choose to assign a specific amount/percentage of their entire investment capital that they are willing to risk while allocating funds to a particular manager. It can be 5%, 10%, or any similar risks the investor is willing to risk. Therefore, the RAMM limits the risk of massive losses for investors while allowing them to diversify their risk by allocating their funds to other managers. Here, the performance fee is also determined by the manager’s terms of service.

Social Trading Networks

Social trading is a new concept based on an evolution of the PAMM and MAM accounts. Instead of assigning or allocating money to a manager’s fund, traders are allowed to ‘peek’ at the trades of other professional traders to essentially ‘copy’ their trades. The idea behind copy-trading social networks is very simple. It offers an open book policy, where copy-traders can replicate the trading activities of a successful master trader in exchange for a fixed performance fee or a share of the profits.

Such a concept has recently found immense popularity, with several Forex brokers offering managed accounts now shifting their focus to copy-trade social trading systems. Traders and investors also find this concept quite convenient since modern interfaces make it easy for new traders to copy trades from other successful traders.

Hedge Funds, Mutual Funds and Similar Investment Programs

Another type of managed account includes hedge funds and mutual funds, which are popular conventional investment options that are still the preferred choice for larger investors. Of course, the entry barrier to these options is quite high, but we can’t ignore their relevance in the financial markets. These funds are perhaps some of the most traditional options that have been around for decades but continue to be a popular choice in modern times.

Numerous smaller funds operate in the FX and CFD industry, offering their services to investors at a very low entry point. However, these firms’ regulatory and safety aspects are still in question, and you should exercise extreme caution while dealing with such companies.

Costs Involved in a Forex Managed Account

The costs of managed Forex trading are slightly higher than those of conventional trading services. Aside from the trading costs, such as spreads and commissions, brokers may add a small markup to the trading costs as a premium for managed account services and for developing the platforms. Account managers will have to account for these increased costs while planning the trades so that the returns align with the performance levels they seek. While the best Forex trading platform managed accounts try to keep the trading costs competitive, investors also have to pay a performance fee for subscribing to a manager and allocating money to the trader’s fund.

The performance fee can either be a fixed amount or a percentage share of the profits. However, almost all Forex managed accounts do not pay out any performance fee to the manager for losing trades. Therefore, as an investor, the main costs include spreads, commissions, and performance fees, while for traders, the costs include marked-up spreads, commissions, and SWAPs.

Pros and Cons of Managed Forex Trading Services

Below are some of the pros and cons of Forex managed accounts, from the point of view of an investor and an account manager.

Pros and Cons for Account Managers and Traders

  • Increased market exposure due to additional funds.
  • Increased revenue through performance fees and profit sharing.
  • Improved reputation among investors and within the trading community.
  • Full freedom over trading style and strategy.

  • No control, freedom, or say over the choice of investors.
  • Reduced equity if investors withdraw their investment without warning.

Pros and Cons for Investors

  • No experience is needed to trade the markets.
  • All trading activities are performed by professional traders, thereby increasing the chances for profits.
  • No restrictions on the choice of managers and master traders.
  • Different allocation models help diversify risk and choose multiple master trader accounts.

  • Profits and losses are at the mercy of the manager.
  • No input on trading strategy or risk appetite of the manager.

Which One Should You Pick?

Choosing the best Forex trading platform managed accounts can be difficult since different brokers have different platform options that include proprietary and third-party managed account interfaces. Third-party interfaces such as MetaTrader and cTrader support PAMM modules, but newer social network trading systems require the use of proprietary apps that are usually developed by a broker entirely in-house. It all boils down to a personal choice.

If you are a trader looking to raise investments or an investor looking for a fund manager who can manage your money, then a PAMM/MAM option is the most suitable option. On the other hand, if you want to copy trades from successful traders and retain control over your money, then a copy-trading social network is the better choice. Therefore, choosing a platform can greatly impact your trading and investment prospects. If you are in the market for a Forex managed account, always ensure that you choose one of our recommended brokers that offers a good platform for managed Forex trading.

Manager or Investor Account?

Manager or investor account decision

Once you open a managed Forex account, your priority is to decide whether you want to register a manager account or an investment account. A manager account is reserved for those who can display proof of professional trading activities, are certified to offer financial services, and have achieved consistent profitability over a long time.

The broker tests the prowess of a trader by evaluating trading performance for a fixed duration before granting access to the broker’s master trade/fund manager program. However, you don’t have to follow any such procedures to become an investor. All you have to do is register for an account, verify your identity, and deposit funds. You can start choosing your preferred account manager and assign money to these funds as soon as your account is funded. However, ensure that you sign up for a Forex managed account at one of our recommended brokerages, as they are tried and tested for their reliability, safety, and trust.

Is Choosing a Managed Account Worth It?

Forex managed accounts may not be everyone’s cup of tea. Opening a manager/master trader account is very stressful since managing investors’ funds is an added responsibility. On the other hand, opening an investment account may help mitigate some of the risks. Still, the onus lies on investors to be proactive in their choice of traders and managing a profitable portfolio. Nevertheless, look no further than our highly recommended brokers if you are in the market for the best Forex trading platform managed accounts.

These brokers allow you to open a managed Forex account for trading and investing, offer excellent managed Forex trading tools, and provide great education on what is managed account in Forex. Ultimately, it is up to you to decide whether you have the risk appetite for trading the market yourself or wish to have other seasoned traders trade the markets on your behalf.


No, all such services have a high degree of risk since nothing is guaranteed in the volatile FX market. Even the most successful trader can have a losing streak that can induce massive losses and drawdown in a managed fund. Allocating funds to a professional trader only serves to help inexperienced traders and new investors avoid trading the market themselves, all the while counting on the chances of earning profits through the knowledge of a professional trader.
Social trading networks are the latest invention in the world of finance. These networks aim to create a community of open book trading, where traders can view the trades, positions, and position sizing of every other trader in the network. Of course, there can be limitations to the actual access to a trader’s trading strategy, but paying a small performance fee may allow traders to view others’ trade ideas. A broker usually develops a social trading network from the ground up and mostly uses proprietary technologies that give them an edge over competitors. Of course, third-party service providers work with mainstream brokers to unify the trading network across multiple platforms.
These services are offered at a premium over the regular FX brokerage services and may include a markup on the spreads and commissions. Additionally, investors must pay a performance fee to the manager/master trader to use their services. However, most brokers only mandate such a fee for profitable trades, while losing trades don’t contribute to a manager’s earnings. However, the live profits/losses are reflected in the investors’ account equity, where they can substantially impact their invested capital.
The legality and regulatory aspects of these services are determined by the regulatory authority in charge of licensing and supervising brokerage activities. Additionally, FX trading and its allied products must be legal in your country of residence. Nevertheless, there aren’t any major concerns over the legality of such products, but we should mention that no single regulatory authority supervises the concept of managed accounts.
Third-party platforms like MetaTrader and cTrader have extensive PAMM/MAM capabilities. Independent service providers also provide add-on plugins that allow social trading through these platforms but are usually paid services. Proprietary platforms are also not uncommon, which means that there are many different options in the market. Browse our broker reviews to find out which broker offers the best-managed account services and the platform options they offer.

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