Ultimate Guide to Choose Top Forex Managed Account Service in 2021

What are forex managed accounts

Let's face it; Forex trading can be confusing at times, especially if you are a novice in the industry. If you are just starting in Forex trading, the best option is to go with a forex managed account. Forex managed accounts are trading accounts managed by a broker on behalf of a client.

A money manager or broker handles the investment and trading side of the client's account on their behalf or under the client's instructions. This type of account is different from your standard forex trading account and usually requires a slightly higher minimum deposit.

With a managed forex account, you don't have to worry about the intricacies of forex trading as you can trust your trader to do the heavy lifting on your behalf. This allows you to participate in the forex market without actively taking part in the actual trading. You fund your trading account, and the money managers, with their market experience and expertise, will develop a profitable trading strategy.

How a forex does manage account work?

You might be wondering how forex managed accounts work. Here's a simple way to understand how the whole process goes:

Imagine you are investing in a mutual fund. You pool your money in a portfolio of assets such as stocks and bonds. Then you seek a professional fund manager who then performs the Herculean task of picking the right stocks for your portfolio. The fund manager is responsible for mitigating risks and ensuring you have a diverse portfolio.

They also actively manage your money, taking care of the downside, including risks,and selecting the best stocks from a wide array of options.

Forex trading managed accounts work in pretty much the same way as mutual funds, only that they deal with currencies instead of stocks or bonds. For beginner forex traders who don't have much experience, they would instead place their faith in an expert in the forex trading world.

A money manager who trades on your behalf is tasked with taking care of the market logistics. But this does not mean you lose control of your account. The forex account remains under your complete control, with the money manager only able to trade in it.

Your money manager cannot make a deposit or withdraw funds from your forex trading account. Withdrawals and deposits are solely on you. It iscrucial to keep in mind that the forex market's volatile nature can sometimes lead you to lose money. There's no guarantee that you will make a profit in a managed account. All managed accounts have a disclaimer revealing that you can lose money.

How are managed forex accounts different from standard accounts?

Managed forex accounts are different from standard accounts in the sense that the forex account is operated by a market professional who buys and sells forex pairs on behalf of a client.

However, these accounts come with higher costs because account managers usually charge extra trading fees. The fees vary depending on the type of account and your broker.

You need first to fund your account with a balance to start trading. As we've highlighted before, you will have full control of your account while the money manager will have limited access.

Traders and account managers are required to sign a legally-binding document called Limited Power of Attorney (LPOA) to ensure high levels of safety and transparency.

Only the account holder can review the balance, make a deposit or withdraw, or monitor other trading activities associated with their account. As the account holder, you can terminate the LPOA agreement upon which trading cannot take place.

Taking the route of a managed forex account brings peace of mind while trusting the professionals to return a profit for you. While it is not always that you will turn a profit, you can make the best decision as a beginner in forex trading by choosing a managed forex trading account.


Understanding the types of managed forex account 

There are different types of managed forex trading accounts that you can choose from when starting your forex trading journey. However, it would help if you remembered that all accounts carry a risk level where you could afford to lose money. Often because of various instabilities and market forces that are usually volatile. The different types of managed forex trading accounts include the following:

Individual account

These types of accounts are the most basic model. In an individual managed forex account, decisions are made based on the client's request. The minimum deposit of opening an individually managed account is usually higher compared to other types of trading accounts.

·         Requires a higher minimum deposit ( Defined by Managed Account Service Provider)

·         Money manager executes your orders

·         Trading is based on an individual's risk tolerance

·         Separated from multiple accounts

Pooled accounts

When many investors open a single account, it is referred to as a pooled account. Pooled accounts operate similarly to how mutual funds work. Individual investors who pool their funds may have different risk tolerance levels, trading strategies, and currency portfolios.

·         A single master investor manages the account

·         Requires a minimum deposit  (e.g $2000) or less for some accounts

PAMM accounts

Percentage Allocation Management Module (PAMM) accounts are similar to pooled accounts but are automated and allow copy trading. The trader/manager gets an extra source of income in addition to his real trading account. The investors get professional experience from market professionals who are trusted by many to make a profit. The amounts allocated are determined by percentage, with the client who contributed the highest amount receiving the largest share of gains or losses. In forex managed accounts PAMM, the investor's first and most important task is to choose a manager and evaluate them by their experience, rating, the amount in their portfolio, and other useful credentials. The manager can accept or reject a client at their discretion.

·         The minimum deposit can be as low as $100

·         A fully automated distribution method ensures transparency

·         Investors can take advantage of complex trading strategies with low capital

LAMM Accounts

In Lot Allocation Management Module (LAMM) accounts, the investor determines the number of lots traded in the forex market. The profits or losses are then based on the multiples of lots invested in the forex market. LAMM is a simple iteration of PAMM accounts whose main aim is to minimize the risk of trading. It is usually preferred for larger accounts with higher trading capital.

·         Funds are not transferred to the trader's account

·         Allows easier risk management as the investor has the power to manage funds allocated to the LAMM account

·         The trader can choose their compensation in the form of a percentage of the profit or a fixed amount.

MAM Accounts

MAM accounts (Multi-Account Manager), just as the name suggests, are a type of account where a trader/money manager manages several trading accounts from a single dashboard in real-time. MAM consists of individual trader accounts and investor accounts altogether in a single pool of managed funds.

There's only one master trader who directs the buying, selling of currency pairs, and interpretation of signals. Once the master trader executes a trade, it will reflect simultaneously on other associated MAM accounts.

Individual investors can modify their trades to align with their personal preferences and trading strategies. Once profits are made, the master trader is entitled to a share of the profits as a percentage.

If you are looking for an advanced managed account, you might want to consider signing up for a MAM account. It combines the PAMM account and LAMM account performance features while giving investors the option to control the direction of their trades.

·         No restriction on deposit amount or number of trading accounts

·         Can choose between Full, Mini and Micro lot accounts for optimum allocation advantage

·         Various allocation types including percentage, lot, balance, and equity

·         All normal and unique order types are accepted

Which one is best for you?

With professionally managed forex accounts, you get to enjoy maximum safety, transparency, and control. But first, you must choose a reputable broker and open up a trading account. The type of trading account that you choose will ultimately depend on your goals and preferences. While you may choose any models depending on your taste and needs, many Forex experts agree that individually managed accounts might be more suitable for investors.

Why should a trader use a Managed account service?

There are many advantages to using a managed account service, one being that it gives you peace of mind that a professional will help turn a profit for you in most cases. However, the whole idea of letting another person manage your capital may not sit pretty with most people. But there are solid reasons why you should choose to invest in a managed account service. If you do your research well and open a managed account with a reputable and trustworthy brokerage, you will enjoy great transparency, security, and regulatory control.

Professional trading:

If you'd rather have a market professional trade on your behalf, a managed account is your best bet for expert help. Managed trading accounts are run by experienced traders who are experts with years of experience, knowledge, and skills. These professional traders understand the intricacies of the market. If you've ever traded before, you realize how volatile currency pairs can become. Some people prefer to let others take risks on their behalf without suffering the market's directional uncertainty. It is important to know your limitations regarding trading if you don't have the psychological mechanism to cope with losses. That's why employing a market professional to take care of your trading account is the best decision.

More time for other things:

Success in forex requires full-time dedication and sacrifices to observe price movements and make trading decisions. Traders who have full-time careers may lack spare time to engage fully in trading. For this reason, managed accounts provide the best avenue for busy people to continue with their daily jobs while at the same time participate in forex trading.

Learning and Earning:

 Managed trading provides you with the opportunity to learn from the very best professional traders in the forex industry. You can easily track their decisions and trading patterns to understand how the whole process operates. If you are just getting started, it is a perfect opportunity to learn key trading strategies you can apply independently. At the same time, you stand a chance to make profits and earn extra income for successful trades.

Disciplined Process:

Forex trading requires a high level of financial and emotional discipline. A managed account's trading process follows a plan and trading timetable with a clear goal in mind. If you are not a disciplined trader, you might want to use a managed forex account.

Emotion free trading :

Emotion in trading can be costly and lead you to lose money. There's no emotional attachment to trading with a forex managed account, and all decisions made are realistic and according to the market trends.

Consistent profit:

Managed forex trading accounts provide a smart passive source of income with consistent profit. You only need to invest your starting capital and let the expert trade on your behalf. It is a high-risk kind of business yet very lucrative. 

Increased transparency and control over your account:

Another advantage of a managed forex account is that you can see exactly what is happening with your account at all times. You even can revoke the power of attorney if you are not happy with the way your account is being run and how funds are being traded. You can opt-out whenever you want as no lock-in period binds you.

Expert Experience:

 if you are guided by a forex expert with years of experience under his belt, you stand a better chance of keeping your losses at a minimum while reaping great returns. These experts will hone their years of experience and extensive knowledge and skills to profit you.

Most people who have a growing interest in forex do not have the time to invest and learn.Opting for a managed account is the best option available to them and will help them generate passive income on the side.

Pros of a managed forex trading account

·         Allows you the freedom to use your time in other activities

·         You have complete control of your account

·         You don't need to have the technical knowledge of the market

·         You enjoy safety, security, and transparency for the financial transactions

·         Creates a passive source of income

Cons of a managed forex trading account

·         Typically require higher deposit minimums than a standard account

·         The account owner has limited access to his funds

·         Early withdrawals attract penalties

How to Choose Best Forex Managed Accounts

There are numerous things to keep in mind when choosing the best forex traders managed accounts. It would be best if you did your homework on the brokerage that you want to trade-in and themoney manager's qualifications who will handle your funds.

Your due diligence ensures you trust a proven money manager. A reputable brokerage is the first and most crucial step. The forex industry is known to have fraudulent traders who are out to scam you out of your money. So extra precautions will save you from losses as well as ensure safe and secure trading. Below are some things to consider when choosing the most trusted forex managed accounts.

Consider the risk level of the money manager

If you are trading with an individual account, your risk tolerance level should align with the money manager. It is essential to look at the trading style and History of the money manager you want and determine whether you are comfortable with his risk level. While you can advise your manager on how to trade, it is still important to evaluate the level of risk you are willing to take from your preferred manager. This can make all the difference between turning a profit and making considerable losses. When it comes to trading with pooled accounts, consider the trading method used and the level of risk you are comfortable with.

Consider the fees, expenses, and minimum deposit requirements.

Different types of trading accounts have different minimum deposit requirements, some higher than others because of the associated risks. Also, many brokerages will charge performance fees to your account. The fees can vary greatly depending on the type of account and the said account's risk level. Typically, the fees can range anywhere from 10%-35% and, in some cases, even higher. The rates are reached according to a principle known as the "High Water Mark."Keeping in mind the different fees and charges is vital to prevent unnecessary costs associated with your trading account.


The performance history of a company should show good results with consistent profits. This proves that you can invest without worry.

Past Records

A verified history elevates your trust level from a service provider while giving you the confidence to invest further. Check that the past records are verifiable and up to date. It is recommended to look at History going back to 3-5 years. While past success may not indicate future results, it shows you a critical aspect of the service provider's reputation. Every reputable company should have a published history of at least a few years, proving their History and experience.

Customer support

Ideally, you want 24/7 customer support, phone, and online.

·         Terms of service/modes of operation

Are you able to meet the terms of service and modes of operation? The forex managed service that you choose should have favorable terms and conditions.

·         Opt-in periods

You don't want a company that has a lock-in period from which you cannot leave. You don't need to have your money held up for any fixed period. It would help if you had the ability to opt-out at any time you want.

Related :  Top Forex Fund Management Company: Why Do You Need One?

Who Should Use a Managed Forex Account Service?

A managed forex account is not suitable for everyone, and setting up a trading account will depend on your personal preference or trading needs. If you are wondering whether you should open a managed forex trading account, here are a few reasons why it might be the right decision for you. You should open a managed forex trading account if you are:

(a)  Lack of Trading Skills and experience (A Beginner)

If you are a beginner without much confidence or trading skills to make a profit in the markets, a managed forex account is your best bet at success. Managed forex accounts help you generate profits over a short period of time without experiencing costly losses in the learning process.

(b)  Busy with other jobs and can't watch the market

Trading in foreign currency requires you to pay attention and dedicate a lot of time to watch the market. Unfortunately, not many people have spare time to invest in forex as they may be busy with other jobs. For this reason, using a managed account service is a good idea. It saves you time to do other things while generating consistent profits over time. 

(c)  If you cannot control your emotion in trading

If you are an emotional trader, you may want to seek the help of a managed account service to avoid making trading mistakes that may cost you money.

(d)  Want passive income from trading

Trading in forex has a lot of benefits, including generating passive income regularly. Prospective traders may want to join trading to add to their income or make passive income full-time. The choice is yours. However, there's no guarantee that you will always make a profit or not lose money. It's all about risk and reward if you want to win in this game.

(e)  Prefer to let someone do the trading

Not everyone wants to do the trading themselves. Some would rather have someone trade on their behalf and share a small portion of their profits. A managed forex service eliminates the technical aspects of trading, giving you the simple option of letting someone trade on your behalf.

You are better off leaving a professional trader to manage your positions if you have any of the limitations explained above. Luckily, you can count on a reliable forex managed account service provides to execute your trades.

Who should not use a forex managed account?


Opening a managed forex trading account may seem like an attractive option for most people because of the freedom it affords. Having someone trade on your behalf and take the hard decisions brings with it a lot of convenience too. But the truth is, setting up a managed account is not for everyone. Here are a few reasons why forex managed accounts may not be suitable for you:

Lack Risk Capital 

just like any investment, you need enough capital to start trading successfully with a managed account. As we have already mentioned, managed accounts require higher costs to open and operate than a standard account. Think of the high minimum deposit requirements, performance fees, and other charges which pile up to increase the overall costs. For example, the minimum deposit for a pooled account is $2000, while an individually-managed account starts with a deposit of at least $10000. These high capital requirements could prevent some traders from opting for a managed account service. 

Have enough time to develop your trading strategy

if you can pull off your trading strategy with great returns, there would be no need to opt for a managed account.

If the process of setting up a managed account puts you off- some people are unwilling to go through the process of opening a managed forex account. The method of picking a competent money manager, researching the performance history, and signing an LPOA agreement can all seem overwhelming. Usually, this is a time-consuming process and may involve a considerable amount of paperwork.

Prefer self-trading 

some people want to take the driver's seat when it comes to trading decisions and may insist on retaining full control of their account. In such a case, a forex managed account may not be suitable for you. While many investors may still have the power to instruct their money managers on how to trade, they typically have limited control over their trading activities.

Remember that you may still lose money with a managed account depending on several factors such as the money manager's experience, the risk level, market volatility, and other conditions. It is vital to conduct enough research on account managers you want to pick, evaluating their performance history and track record to avoid losses.

It is crucial to read forex managed accounts reviews online to have background information on the best performing forex managed accounts. You should also choose a reputable brokerage company within the trading industry.


Why Traderscap Managed Forex Service?


Few managed forex service providers can meet and exceed your expectations in the forex market. That's why you should only consider the best-managed forex trading accounts if you will stand any chance at success. Here are some benefits you will enjoy once you open a managed forex service.

·         No Upfront Payment :

·         Use your Preferred broker :

·         Verified Result 

·         Consistent profit  :

·         Opt-out any time


How Can a Trader Join with our service?

There are two mains ways traders can join with our service:

·         With their preferred brokers

·         With our recommended brokers.

Our managed forex account service allows you to choose your preferred broker or choose from our thoroughly vetted brokers. It is essential to research different brokers and evaluate performance history to make sure your funds are in safe hands.

Joining Traderscap is as easy as these four simple steps:

a.            Open a trading account with your preferred broker or our recommended broker 

b.            Fund your account 

c.            Send us mt4/ trade only access

d.            Start trading 


Countries We Accept in our Managed Account Service 


Traderscap is a global managed account service provider accepting investors from all around the world. Currently, we have investors in the following countries: USA, UK, Australia, UAE, South Africa, Canada, Seychelles, and Singapore.


  Frequently Asked Questions


 (a)  Is trading managed accounts worth it?

Trading managed accounts provides you with freedom, transparency, and security while allowing you to make extra passive income on the side. While there's the possibility of financial loss, you can make consistent profits with the right service provider.

(b)  Can I pay someone to trade forex for me?

Yes, you can pay someone to trade forex for you. With a managed account service, you can choose a broker of your choice to trade on your behalf.

(c)  What is the minimum amount to invest in your managed account service?

The minimum amount you can invest in our managed account service is $20K. We offer the best performing low deposit managed forex accounts in the industry. 

(d)  What is Forex account management?

Forex account management refers to the process of managing and trading on behalf of a client at a charge of performance fee for the service.

(e)  What is the low minimum in your managed account service?

The managed forex accounts low minimum is 25K USD or equivalent for an individually managed account. However, some brokers may allow you to start with 10K USD.

(f)   Can I join your service with Low Minimum? 

You cannot join our individual managed account with a low minimum. However, you may participate with our MAM account with even the lowest possible. 


The Bottom Line

We offer reliable forex managed accounts that you can count on to turn a profit for you. Besides, we only work with reputed and regulated brokers. If you are an absolute beginner who is not confident in your trading skills or simply lack time to trade for yourself, you may want to consider managed forex accounts to achieve your financial dream.

We provide you with a reliable platform for you to trade in forex, including having the top 10 forex managed accounts. Managed forex accounts with good results are not easy to find. That's why we do the hard lifting on your behalf.

Choose from a wide array of account types, including managed forex accounts for savvy investors who like to trade themselves. You can find managed forex accounts $100 minimum or managed forex account with $1000 minimum depending on your budget or trading needs






Risk Disclaimer: Trading in forex, CFD, indices and commodities involves the possibility of financial loss. It may not be suitable for all investors. Only trade with money you can afford to lose. As a leveraged product losses may exceed initial deposits and loss exposure. Before deciding to trade Forex or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite. The content on this website is subject to change at any time without notice, and must not be construed as personal advice.
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