A Comparison of the Top Managed Forex Accounts

New to forex currency trading and want to make a tidy profit? Or maybe you simply don’t have the time (or the energy) required to sit in front of screens all day, watch charts and make trades. Either way, you’re looking to get stuck in and open an online forex trading account, but don’t want to do the hard work yourself.

I know, it’s a hard life – but someone’s gotta do it. And when you don’t want to do it but you still want the financial perks that come from forex trading, using a managed forex account is a solid option.

Hiring what is essentially a money manager to take care of your investments and trading for you is a good idea if you’re new to trading, naturally irresponsible or impulsive with your gambling, or just don’t have the time to do it yourself.

In this article, we’re going to take a look at the in’s and out’s of a managed forex account, and we’re also going to analyse the top forex brokers with managed accounts so that you get to make a better choice regarding where to put your cash.

What Is a Managed Forex Account?

Let’s say I want to get into forex trading but don’t have the required knowledge. I’m overwhelmed by all the information being thrown at me. I could go it alone but I’d probably lose all my money.

And my wife’s money.

And, you know, her mom’s money.

Alternatively, I could hand my cash over to Jimmy, who works for a managed forex account. Jimmy is a pro forex trader (money manager) who’s managed plenty of other investors’ cash and reaped huge profits for them in the past. Jimmy is awesome and his firm takes your money and uses it to trade forex using the trading strategies of his choice.

Included in a managed forex account is the forex broker (see below for our top forex managed brokers), the money manager (otherwise known as the trader) and you, the investor.

The firm will take a cut of the profits, Jimmy the forex trader will take a cut of the profits – and you’ll take a cut of the profits. Maybe Jimmy will take 33% commission, while you’ll take 33%, too.

That said, there are different types of managed fx accounts that will each split the money differently. They also have different ways of working.

Types of Managed Forex Accounts

There are a few different types of managed fx accounts and it’s important you get acquainted with them before choosing a broker. For example, some are higher risk than others.

PAMM

PAMM stands for percentage allocation management module. It’s a type of pooled money forex trading where you allocate your money in proportion to the money manager of your choosing.

It’s different to the other types of managed forex accounts because you can allot various percentages to a variety of trading systems. In short, you get to diversify your capital, which means you’ve got more flexibility to cover your losses while hedging your bets.

MAM

MAM stands for multi-account manager. The trader (Jimmy) uses a single terminal to manage numerous trading accounts. The investor gets more control over his or her money in this advanced type of managed forex account and you can also modify your trades according to your own preferences. You also get to set your own parameters.

LAMM

LAMM stands for lot allocation management. You choose the amount of lots you want traded, while any profits are determined by the numerous lots invested in the market.

It’s kinda like the PAMM account except that it reduces risk better and suits bigger accounts. If you’ve got more trading capital, the LAMM account is a good shout. That said, they’re only really used if your higher trading capital means percentage allocation has lost its significance.

What Is a Strategy Manager?

When you sign up to a forex broker with a managed account, you get to pick a strategy manager to work with.

Forex money management is important, and a strategy manager is a forex trader like Jimmy who’s also known as a money manager. He looks after your investment and makes trades on your behalf according to his own style and strategies.

As said, it’s up to you to pick your strategy manager, which is why it’s a smart idea to at least have some rudimentary knowledge of how forex works. This will help you pick a suitable trader and this is an important point to make because every investors situation is unique. You need a strategy manager who understands what you need.

The Top Forex Brokers With Managed Accounts

HotForex

HotForex is one of the top managed fx accounts for a variety of reasons. It doesn’t really matter what type of trader you are because they cover 7 different types with 7 different types of accounts, and you get access to a 1-1 consultation if you decide to pay more for the VIP account.

Even without the VIP account, there’s a lot that will interest traders here. And despite still being fairly new on the scene, HotForex has already grown to be one of the most reputable managed brokers on the planet, with more than 350,000 satisfied investors on their books.

Each account is fully customisable to suit your exact needs, the spreads are competitive and tight (which is just what you need), and promotional offers include $1k monthly performance bonuses for the best traders. If you get good at this, HotForex will reward you. Nice.

And if you want an experienced pro to take care of your forex money management, HotForex gives you access to PAMM accounts that are looked after by 300 managers, all of whom have been rigorously vetted.

Standout features:

  • 24/5 live chat available, along with email support and multilingual phone calls
  • Bigger accounts get access to more bonuses and features, including personalised services
  • Access to real-time performance data
  • Funds can be withdrawn anytime

Any cons?

  • It’s not got as much depth as some competitors if you want to branch out from just forex trading

Read my full hotforex review

FXTM

FXTM is a locked and loaded, fully-featured managed broker aimed at any kind of trader. Spreads offered start out from just 0.1 pips (only available on specific accounts) and you can either work from a dealer desk or an ECN execution.

If you’ve already got a broker, FXTM will offer $4 to you for each lot traded. That’s not bad and there’s plenty of other perks on offer too, including a referral program whereby you receive $25 for each trader you add.

But enough of that, let’s get to the nitty gritty: Founded in 2011, FXTM won Best FX Broker 2016 and has also won awards for its customer service. There’s plenty of trading options available, huge swathes of market data, as well as a pile of educational material to help you level up.

And if you’re not a super active forex trader, FXTM has got you covered with strategy managers and PAMM accounts. Spreads are tight and competitive, CFD trading is available on 11 stock indices, 8 commodities and 59 currency pairs, while a floating leverage methodology determines the margin requirements most of the time.

Here are some more key features and points of FXTM:

  • 5 market research analysts are on hand to help you improve your game with webinars, eBooks, videos and more
  • FXTM’s chief analyst has been featured on the likes of Reuters and Bloomberg
  • Transaction costs are relatively low
  • Equity CFD trading is available with the Shares Account
  • The ECN zero account has the lowest deposit requirement – all you need is $200 to get started

Any cons?

  • Opening an ECN account means you’ll probably have your position closed out more frequently that if you opened a dealer desk account
  • Still fairly new

Read my Full FXTM Review

AvaTrade

AvaTrade is one of the most trusted managed forex brokers around with a product palette that covers everything from indices to bonds; stocks to digital currencies. And, of course, forex currency trading and options.

You’ve got a choice between floating or fixed spreads, with a leverage of as much as 400:1. That’s a better deal than you’ll get with most other brokers, while a bundle of educational resources and market analysis further marks AvaTrade out as one of the top choices.

There are bonuses galore upon signup, as well as a mammoth referral bonus of $400 each time you refer a buddy who then goes onto register an account.

And where reputability is concerned, few names are as recognisable in the game as AvaTrade, which has global footprints all over the world – from Tokyo to Milan.

But what we really like are the sheer number of trading platforms on offer so that you don’t have to access the markets from one single platform.

Here are some more standout features and points:

  • AvaTrade covers floating and fixed spreads – very few other brokers cover both
  • Commodities, fixed income and equities are covered alongside forex
  • Bitcoin trading available
  • Automated trading available
  • Live market analysis ensures you won’t be left ruing a bad call too often

Any cons?

  • Transaction costs are steep, so any trader who signs up will have to deal with that

Read my full Avatrade Review

RoboForex

RoboForex is home to more than 30 experienced managers. They’re a forex trading broker that gives you access to commodities, indices, currencies and more.

Minimum deposit is just $1, while a free demo helps to ease you into the platform before you take the full plunge.

RoboForex isn’t our absolute top choice for a few reasons. The spreads aren’t the best with their minimum spread for EUR/USD 1.3 pips. Other brokers offer spreads at just 0.70 pips. Moreover, RoboForex isn’t FCA regulated.

On the flip side, there’s still a lot to like here for forex traders looking for a managed broker. Client funds are segregated, it’s regulated by CySEC and there are more than 32 currency pairs and almost 40 various instruments to trade. That isn’t too bad, but agricultural and energies aren’t among the commodities – which is a massive shame.

Here are some more key features and points:

  • Both MT4 and MT5 MetaTrader platforms are offered
  • Minimum trades start out from 0.01 Lot
  • Hugely dedicated and multilingual client support
  • Any cons?
  • Cryptocurrencies can’t be traded
  • High spreads

Are Managed Forex Accounts Right For You?

Some individuals prefer to go it alone and execute their own forex currency trades. They’ve taken the time to build up their forex trading knowledge base and they’ve also got time on their hands.

If, however, you want the profits but don’t have the time or the knowledge just yet, using a managed forex account is a good option. Managed forex accounts means your trades are in the highly capable hands of professional traders/money managers who manage your money and trades for you.

On the other hand, you might already have a good understanding of the forex markets but would rather a professional trader managed your funds for you because you know you’re still pretty limited.

What Do The Best Managed Forex Accounts Have In Common?

Choosing a managed forex account isn’t easy as there are a few top-notch options available to you. Sometimes, it’s the small differences that will help you choose, such as the differences in the spreads, or the promo bonuses.

That said, there are certain things to look out for so that you know you’re choosing a top managed forex account. The best accounts are home to a number of qualified, professional and experienced traders, and they’ll give you access to a number of educational materials and market analysis.

They also have reputability and trust on their side, they’re all regulated in some form or another, and their customer service is exemplary. Moreover, they are free from any type of broker or trader manipulation.

On a more technical level, the best managed forex accounts offer you plenty of freedom and flexibility for controlling your money and they make it easy for you to walk away should you decide to.

Final Thoughts on Managed Forex Accounts

Hopefully you’re now ready to go ahead an open an online forex trading account.

When picking a managed forex account, make sure to do your research first. Look for verified accounts and go for one that suits the amount of money you’re willing to invest, as well as your appetite for risk. It’s also a smart idea to research any traders you’ll be working with to learn more about their profitability.

If you sign up to a broker and feel it’s not for you – don’t worry. You can pull out whenever you want and move onto another.