Managed accounts are one of the compelling methods for generating passive income. In recent years, the world’s top funds management companies heavily invested in state-of-the-art technology to offer clients additional revenue resources. This piece will list the top 07 managed forex accounts. It will also cover the associated management fees, how it works and how to open a managed forex account.
Top 7 Managed Forex Accounts in 2022 (July Research)
1. Forex92 (RECOMENDED)
Forex92 is one of the best providers of managed forex accounts. The company offers the flexibility of choosing your prefered brokerage firm and provides customers with a choice between three distinct account options, including Personal, Business, and Enterprise accounts.
A minimum of $1000 deposit is required to open a Personal Account, while the company charges a performance fee of 30% on your profits. Clients must deposit a minimum investment of $25,000 to sign up for a business account and $100,000 for the enterprise account. The performance fee for these accounts will be 25% and 20%, respectively. While clients can expect a monthly ROI of up to 25% in the personal account, it stays around 30% and 35% in the business and enterprise accounts.
Thanks to expert trading professionals at Forex92, the company seems persistent with its financial objectives. Although some clients might find offered returns relatively high to maintain for an extended period, the company’s verified past performance indicates that it stays up with its promises. The best part is that you don’t have to pay any charges unless you start making profits. Clients can confirm the firm’s performance record on MyFXBook.
The company doesn’t require clients to sign cumbersome and time-consuming contracts with it. You are free to withdraw all of your earnings or the entire equity at any moment, and you are not required to provide Forex92 with advance notice. Notably, your deposits and withdrawals are processed by your selected brokers, and the company doesn’t have any role in it. The company’s sole responsibility is to conduct trading activities following your instructions.
Pros and Cons
Pros
- Forex92 provides the flexibility of choosing your preferred broker.
- The company offers an ROI of up to 30% per month.
- Getting started with the company is a seamless process and doesn’t take more than a couple of minutes.
- The company works with regulated brokers only. Hence, it offers a better sense of security.
- It accepts clients from the United States.
Cons
- Forex92 asks for relatively high minimum deposits, i-e, $10,000.
- It offers slow customer support.
2) eToro
Based in Israel, eToro is one of the leading social trading platforms founded in 2008. The company provides retail trading services to all parts of the world. Aside from CFDs on commodities, FX, indices, and stocks, the company offers managed forex accounts across various asset classes.
EToro’s CopyPortfolio feature makes the company stand out from the crowd. Using this feature, clients can stake their investments in portfolios created by the company’s in-house investment managers. On the other hand, the CopyTrader features allow you to hire the services of individual forex experts and start copying their profitable trades.
eToro’s most significant advantage is the availability of managed forex accounts well suited to your investment needs. The company allows you to filter your search using parameters such as risk, return, and drawdown possibilities.
Once your parameters are met, it will generate a list of potential forex traders who will take over as your money manager. Click the Copy button to start replicating their transactions and allowing them to manage your money for you.
Signing up with eToro is as simple as filling in your details on the registration page and funding your account with some money. After getting done with registration and deposits, you are all set to start replicating trades right away.
The company doesn’t charge any management fees from the customers. Instead, clients only need to pay the spread on underlying tradable assets. While the minimum deposit required to use the CopyPortfolio feature is $5000, clients can start way lower with the CopyTrader service.
Pros and Cons
Pros
- eToro holds regulations from top-tier regulators, including FCA, ASIC, and CySEC.
- It has low deposit requirements for using CopyTrader
- The company doesn’t charge account management fees.
- Clients can open managed forex accounts for forex, cryptos, equities, and more.
Cons:
- The minimum investment required for CopyPortfolio is $5,000, which can be too expensive for small traders.
- eToro offers limited customer support.
3) Duckascopy
Dukascopy is a multi-functional firm based in Switzerland. Besides operating as a bank, it offers funds management services. The company is among the pioneers offering the PAMM (Percent Allocation Management Module) accounts. Dukascopy customers can allow traders to handle their accounts using the (LPOA – Limited Power of Attorney) contracts.
The bank makes it clear that they do not promote, represent, or participate in the activities of the professional traders who sell their services through the PAMM system. On the other hand, the firm offers its customized PAMM system, accessible through the Dukascopy Wealth Management team, which functions in the same capacity as an account manager.
The company doesn’t charge account management fees associated with a PAMM account held with Dukascopy LP. However, certain trades will incur volume commissions in addition to overnight fees, and these charges are payable. The company sets the baseline volume commission on FX at $5 for every 1 million US dollars traded.
Clients can get started with Duckascopy funds management services for only $1000. Despite offering a wide range of services, the bank’s reputation has suffered somewhat as a result of the fact that it facilitates trading in binary options. Many regulatory authorities prohibit this type of trading worldwide because it is essentially a form of gambling.
Pros and Cons
Pros:
- Duckascopy asks for a minimum investment of one thousand Swiss francs only to get started.
- It holds regulations in Switzerland.
- It doesn’t charge management or performance fees from its clients.
Cons:
- Its performance hasn’t been exceptional over the past few years.
- It suggests clients hold their investment for more than one year, which can be intimidating for some clients.
4) FxMAC
FxMAC is also a renowned funds management company headquartered in St. Vincent and the Grenadines, a jurisdiction with no regulatory oversight. While the company also have a regional office in the UK, it accepts clients from all parts of the world, including the United States.
FxMAC is one of the few funds management companies that remains entirely transparent about what it does. The company shares its MyFXBook verified performance so that investors may do a comprehensive and trustworthy analysis of the different investment options available. Further, the company claims to have been working with regulated brokers only.
FxMAC offers four different options under the name Investment Programs: Prosperity, Barclay’s bank institutional, Banking Plus, and Retail Investor Plus. Clients can pick the one they find more suitable to their trading needs.
While clients need a minimum investment of 200,000 for the prosperity program, the firm allows you to sign up for Barclay’s bank institutional program for only $30,000. Banking plus and Retail investor plus need you to deposit a minimum of $100,000 investment. The firm offers an average monthly return of up to 10.35%, 12.92%, 4.31%, and 9.29% on Prosperity, Barclay’s banking, banking plus and retail investor programs, respectively. The company applies a flat rate of 20% performance fees on all managed forex accounts.
Pros and Cons
Pros:
- FxMAC collaborates with regulated brokers only.
- The company’s MyFXBook performance has been validated for its accuracy.
Cons:
- It has high minimum investment criteria and charges a high-performance fee
- It is based in an unregulated offshore country.
5) VantageFX
VantageFX is a forex and CFD broker based in Australia. The company has been delivering premium funds management services in collaboration with third-party vendors since 2009. Having been regulated by the Australian Securities and Investment Commission, VantageFX is a low-risk broker for investment purposes.
Vantage customers will get exclusive access to a large network of professional traders and lucrative trading strategies via third-party social trading platforms like ZuluTrade, DupliTrade, and MyFXBook AutoTrade.
The best way to reduce your trading risk is to adopt the tactics of several successful professional traders. Vantage’s managed forex accounts enable clients to replicate profitable trades of the brightest forex traders based on your selection. Notably, the MT4 trading account held with Vantage receives all the data in real-time. MT4 and MT5 trading are supported, with a maximum leverage of 1:500 and a minimum deposit of $200. The company employs fast trade execution policy on Raw & Pro EXN accounts accompanying ultra-low spreads.
The company allows clients to make deposits and withdrawals at any time using the Vantage FX PAMM Account, which is available on the MT4 and MT5 platforms. Also, you won’t have to worry about the rounding problems resulting from the lot allocation method, and you’ll still be able to use the equity allocation strategy.
Pros and Cons
Pros
- VantageFX is a multi-regulated firm known for its premium retail and social trading experience.
- The company supports trading on both MT4 and MT5 accounts.
- Being an STP broker, the firm employs an instant trade execution policy.
- It offers multiple account types.
Cons
- VantageFX doesn’t accept clients from the United States.
- Clients might not be able to use the leverage of more than 1:30, especially in jurisdictions with tight regulatory oversight.
6) AvaTrade
Launched by AvaTrade in 2020, AvaSocial is a cutting-edge copy trading and social trading service developed with Pelican Trading, authorized by the Financial Conduct Authority (FCA).
Signing up for the AvaSocial trading platform is straightforward. Clients can instantly get started after completing the registration and KYC process and adding funds to their accounts. The minimum deposit is $100 to start copy trading services with AvaSocial.
AvaSocial raises the bar for social trading software with its innovative approach. All traders can benefit from AvaSocial, regardless of their expertise level. New traders can get a taste of the markets while they’re still learning. The company’s mobile app allows you to follow and mimic the trades of the world’s most successful traders. Clients can ask mentors or groups for help and learn effectively. With AvaSocial, you’ll never have to trade on your own again.
By following the advice of experienced traders, clients can shorten their learning curve. Further, the platform allows you to learn a clear market perspective without needing a detailed market analysis, saving time for experienced traders. That’s how the company primarily wants you to take a break from your trading terminal and trust the techniques of the traders you follow.
Pros and Cons
Pros
- It allows novice traders to learn and benefit from the successful and seasoned market participants.
- A minimal deposit of only $100 makes it pretty affordable for everyone.
- AvaSocial mobile trading app is intuitive and pleasant to navigate and explore.
Cons
- The company doesn’t clarify the duties of rookie traders and expert traders concisely.
- There is always the possibility of mimicking a trader who might not be necessarily proficient in trading.
7) Pepperstone
Pepperstone is a multi-asset broker serving the retail trading industry for over a decade. Providing a wide range of trading opportunities in forex and CFDs is the company’s
area of expertise as a global brokerage firm. However, it also supports copy trading services in collaboration with third-party platforms, including DupliTrade and MyFXBook. Headquartered in Australia, the broker offers cutting-edge trading tools and provides superior customer care around the clock.
An initial investment of $200 is required to begin working for the organization. To facilitate newbies, the company permits you to mimic trades from top forex traders that have been successful. Clients can also avoid paying account management or performance fee by creating their customized portfolio.
Pros and Cons
Pros
- Pepperstone’s managed forex accounts are a product of n FCA-regulated company.
- The company asks for low management fees.
- It accepts multiple payment methods, including debit cards, credit cards, bank transfers, e-wallets, etc.
Cons
- Pepperstone does not accept US clients.
- It does not provide guaranteed stop-loss features.
- It offers average customer support.
What is a managed forex account?
Managed forex account refers to accounts that expert fund managers manage on a client’s behalf. Successful forex trading can be challenging, especially for those new to the market or who can’t spare enough time for trading themselves. Realizing this limitation, brokers and funds management companies started offering funds management services.
Managed forex accounts allow investors to hand over control of their funds to a more experienced trader. The investor can then benefit from the more experienced trader’s trading method.
How does managed forex account work?
When you open a managed forex account, you effectively assign your manager the responsibility of finding profitable trading opportunities, determining risk parameters, implementing strategies, and requesting customer feedback.
A managed account relieves investors of much of the decision-making load, allowing them to focus on other aspects of their lives instead of the emotional rollercoaster that comes with investing.
In return, account managers receive compensation as a pre-decided share of the profit made in a managed forex account.
Types of Managed Forex Accounts
There are three different types of managed forex accounts.
1) PAMM
2) LAMM
3) MAM
PAMM is an acronym for Percentage Allocation Management Module. Percentage-based allocations of transactions on each investor account are possible with this account. Clients have the option of choosing from a variety of account sizes using this option.
LAMM stands for Lot Allocation Management Module. The identical lot size is duplicated from the trader’s account to the investors’ accounts in this system. Investors rarely go for this system because it requires both investor’s and trader’s accounts should have the exact sizes.
MAM refers to the Multi-Asset Manager Account. MAM accounts allow traders or fund managers to use various leverage amounts for each investor account.
While fund managers and investors benefit from the managed forex account setup’s security transparency and safety features, there have been multiple reports of managed account scams.
Therefore it is crucial to select the best-managed forex account providers.
Factors To Consider While Choosing Best Managed Forex Accounts
Below are some factors you may use to vet your potential fund management company before signing up.
1) Do some research:
When choosing the best funds management company, factors like expected ROI, risk tolerance level, and availability of funds need to be considered. The past performance of your fund’s management company is not an exception either. Therefore, you must research before proceeding with a funds management company and make an informed investment decision.
2) Financial objective:
If you’re seeking to invest for an extended period, you’ll need to figure out your goal before deciding which funds management company is most suited to your needs.
A financial objective serves as the motivation to invest. For instance, you might wish to save for a mortgage payment on a home, retirement or university fees. After all, your investment decision should complement your financial objectives.
3) Risk analysis
The risk profile of your prospected funds management company is just as crucial as the investor’s risk tolerance level when making investment decisions. For instance, the fund’s management company’s investment portfolio carries a higher risk level and might not suit your risk appetite. Typically, risk-seeking investors prefer signing up for managed forex accounts with companies offering higher returns.
4) Cost-to-Value Ratio.
Charges and commissions you need to pay to managed forex account providers determine the expense ratio. Always look for the associated cost that comes along with managed forex accounts. Managed forex accounts offered by a company with relatively a low fee structure might or might not be as fruitful as you anticipate.
Advantages of Managed Forex Accounts
Managed forex account has a range of advantages. Let’s go through a few of them.
1) A reliable source of passive income
The foreign currency market remains active all day, five days a week. While the majority of novice traders do not have enough time or the expertise to take advantage of every opportunity that the foreign exchange market may present. Hiring a professional to trade on your behalf is one of the best methods to earn a passive income.
Your fund managers will likely devote all of their time to locating the most advantageous configurations and expanding your account round the clock. Additionally, it is an excellent method to learn about the inner workings of the foreign exchange market and how various investment accounts work.
2) Control over your account
You have complete control over your account. For instance, if you wish to inject or draw cash out of your accounts, only you have the authority to do so. That’s one of the many reasons these accounts serve as the best options for generating passive income.
Notably, the PAMM accounts enable traders to choose a stop loss level. If your account falls below a specific amount, this command will inform your fund management company to stop replicating the trader’s trades onto your account immediately. This is extremely important because it is terrific when you win, but what do you do when you start losing? Hence, it would help if you could safeguard your financial resources.
3) Safety of your funds
The best funds management company will need you to open and fund your account with a well-regulated broker. This is significant since unregulated brokers are not subject to any regulatory scrutiny, and you should do everything in your power to keep your money safe.
One of the most beneficial aspects of managed forex accounts is that you only deposit money with your selected broker. If the fund’s management company asks you to transfer money to their bank account, this is a red flag, and you should proceed with caution.
Remember, all PAMM, LAMM, and MAM systems function through LPOA (Limited Power of Attorney). In this scenario, you allow fund managers to trade your account on your behalf; nevertheless, they will not be able to take money from your account or move your funds.
How To Signup For a Managed Forex Account?
Let’s quickly show you how to signup with one of the best managed forex accounts. We’ll be using forex92 for illustration.
Step1: Open a live trading account
First, you need to open a funded trading account with a broker of your choice. Forex92 doesn’t ask you to sign up with their preferred brokers, unlike other funds management companies. However, it should be the regulated one.
Step2: Complete the KYC
All brokers need their clients to complete the KYC process before they can add funds to their accounts. You can use a copy of your ID card, passport or driving license to verify your identity. Please note that your broker might ask for additional documents, such as a copy of a utility bill or bank statement, to confirm your address.
Step3: Make a deposit
The minimum deposit to open a managed forex account with forex92 is $10,000. However, you can always deposit more for greater returns.
Step4: Share your credentials
Once done with deposits, share your MT4 login details with the company using the online contact form or via email. The company starts placing trades on your behalf soon after receiving your login details.
Step5: Sit back, relax and watch your account growing
You can now relax and perform your other commitments since the company will be managing your account in the best possible manner.
Bottom 
line
Starting an investment journey can seem frightening, but in-depth research and having a clear idea of what you’re looking for in the best-managed forex account provider might make things a little easier. Moreover, you’ll have a better chance of making money if you have made an informed decision.