Forex Trading Account Management
Forex is catching the eyeballs of all traders due to its high-profit probability. However, not all traders have the knowledge or time to start trading in currencies. Hence, they seek forex account management services.
In this blog, we will discuss the best platform for forex trading account management and the pros and cons of such accounts. It will help you determine whether such services are worth your money.
Introduction to Forex Managed Account
A Forex-managed account is a trading account type for beginners or traders with a lack of market knowledge and significant capital. Under this, a professional person handles the account and places trades on the trader’s behalf.
Many investors or traders want to grow their capital but lack skills. Such investors seek a forex trading account manager who is well-versed in the currency market.
A managed trading account allows investors to earn profit without dedicating hours to trading. Meanwhile, the manager earns money by charging a fee or commission for the services.
5 Best Forex Account Managers
Many individuals and institutions provide forex account management services. However, using this method, you allow a third person to trade your hard-earned money.
Also, the possibility of losing money is there.
So, selecting a reputable platform is a must for an investor. In order to help you, here is a list of the best-managed accounts:
Etoro:
Etoro is a popular forex broker platform that offers managed portfolio account facilities to its clients. With this broker’s smart portfolio feature, traders can manage their accounts without paying any fees.
The broker offers clients a range of 65 smart portfolio options. Professional research analysts with years of experience in the market create these portfolios. Thus, traders can visit the website and select the best portfolio accordingly.
A quick glance
They make trading decisions, execute transactions, and manage the account according to agreed-upon methods and risk parameters to make you money. It lets you trade forex without much knowledge or time.
Forex account management might be genuine, but research is essential. Reliable managers offer experience and higher profits, but there are risks. Research, check credentials, understand fees, and avoid unrealistic claims. Only use regulated entities and treat it like any other investment. Transparency is crucial. If something feels wrong, leave.
Experts manage your investment funds in the forex market, utilising their experience and tactics to execute transactions, monitor market conditions, and make judgements about buying and selling currency pairings. Essentially, they serve as a professional trader for your account.
The “best” money management in forex is a personalized approach built on these core principles:
Risk Management is Paramount: Never risk more than a small, pre-determined percentage of your trading capital on any single trade (e.g., 1-2%).
Position Sizing: Calculate your position size based on your risk tolerance and stop-loss level, not on potential profit.
Stop-Loss Orders: Always use stop-loss orders to automatically limit potential losses.
Consistent Journaling: Track your trades, analyze your wins and losses, and learn from your mistakes.
Emotional Control: Avoid impulsive decisions driven by fear or greed.
Continuous Learning: The market is always changing, so ongoing education and adaptation are essential. There’s no one-size-fits-all solution, find what works for you and stick to it.
Yes, you can have someone manage your FX account. This is known as managed forex accounts or forex account management. Professional traders or firms conduct your trading activity on your behalf, attempting to produce profits. However, it’s vital to thoroughly study and choose a trustworthy and regulated account manager due to the risks involved. Be sure to comprehend the costs, trading techniques, and performance history before entrusting your assets.
Avatrade:
Ava Trader’s PAMM accounts are also popular among traders. The percentage allocation management module, or PAMM accounts, allows investors to allocate their funds to PAMM managers and enjoy a good profit.
Ava Trade is a reputed broker with years of experience in providing forex trading services. The platform offers two types of accounts: Multi account manager and PAMM accounts. So, if you are looking for managed account options, you can give Avatrader a try.
IG:
IG is amongst the most reputable platforms for trading in different financial assets. IG’s smart portfolio allows traders to diversify their capital to a range of assets.
The broker provides low-cost managed account services with a commission starting from 0.50%. In addition, the broker claims to have transparent fee and commission structures with no hidden costs. The platform offers three smart portfolios: Wealthify, Monefarm, and Nutmeg. Traders can visit the website and learn about these three account options and their managed cost, fund cost, and transaction cost.
FXTM:
FXTM offers a range of investment strategies for the management of forex accounts. Traders can choose the best strategy managers based on risk, capital, return expectations, trading portfolio diversification requirements, and holding time frame.
The site allows users to read about account management strategies and analyze past performance. The customer reviews, and track record is also good for the broker platform.
FX Pro:
FX Pro’s managed accounts with high returns are quite popular among investors. Investors just need to visit the website and register to access PAMM accounts.
Regarding transparency, FX Pro is a well-regulated platform with years of experience in the market. It offers a range of trading-related services. You can also choose this platform if you want to become a Forex account manager.
Pros of Forex account management services
The managed accounts facility has become increasingly popular among traders due to its amazing benefits. Let us have a look at the major advantages of opening a forex-managed account:
Professional Trading:
Many people compare trading with gambling and are not wrong. If a person trades without any knowledge, then he or she is no less than a gambler.
Trading is a professional career that requires a professional approach. With a managed account, an expert or a professional trades with your money. These managers have great market knowledge. They use effective trading strategies, proper risk and money management tactics, and the right leverage ratio for placing a trade. So, with such professionals, the gains are maximum, and the losses are minimal.
Diversification:
One key reason investors or traders choose managed accounts is portfolio diversification. The best way to trade in the financial market is to spread your capital across different products.
Fund managers generally follow a diversification plan to spread the capital into different products. It includes forex, commodities, cryptocurrencies, stocks, indices, ETFs, bonds, and secured investments.
Passive investors do not have the time or knowledge to diversify their portfolios. Thus, they can seek the help of fund managers and maximize the utilization of investors’ capital.
Time-Efficient:
Trading is a side hustle or an alternative way of making money for many people. Thus, not every trader can dedicate hours to watching charts and identifying opportunities.
Hence, a forex-managed account is a great option for traders with capital but lack knowledge or time. It will save traders or investors a lot of time.
High-Profit Probability:
With managed accounts, a professional handle your money. Such people have years of experience and monitor the market around the clock.
In addition, every time you make a profit, your manager will get a commission. So, with an account manager, the probability of earning a good profit is high.
Cons of Forex account management services
The trading-managed accounts also have some limitations. So, if you are thinking of subscribing to such facilities, here are some negative sides you need to know:
Risky
When you are trading in forex or any other financial market, there are chances of loss. So, no fund manager can guarantee you a profit.
The fact is that fund managers have no emotions attached to money, so they can make highly risky trade decisions. In such cases, investors can lose a significant amount.
Dependence
Your return on investment highly depends on the skills of your forex account manager. So traders need to be very careful when selecting a fund manager, as one mistake may result in big losses.
In addition, the fund manager makes all the trading decisions. So, investors have limited control over their capital through this method.
Scams
Fraudulent activities and currency trading scams have become quite common in the forex market. Many scammers conduct fraudulent activities in the name of forex-managed accounts.
Identifying such scammers is difficult for a new trader. So, while dealing with forex-managed accounts, traders need to be careful when spotting such fraudsters.
Expensive
Managed forex accounts may not be suitable for small traders. Some traders even struggle to fulfill the capital requirement; in such cases, paying for a fund manager is another cause of worry.
In addition, the commission or fees of the fund manager are around 20% to 30% of the profit. It means that if you are making $100, then you need to pay $20 to the manager.
Bottom Line
Forex trading is a professional career that requires proper knowledge to start and stay profitable. It is the biggest financial market with many currency pairs, strategies, analysis methods, tools, and indicators.
Identifying the right opportunity at the right time requires impeccable market knowledge and significant time. Thus, a forex account management service is a great way for busy and novice traders to trade in currencies.
However, such facilities also have some limitations. So, conduct proper research and read terms and policies, legal requirements, reviews, and previous client records. Also, start with a small amount in the beginning and give preference to a reputable platform.
