What is a forex managed account?

First and foremost, a simple explanation of what a forex managed account actually is. As you can guess, a forex managed account type is one which is managed by another trader, a professional trader, also known as a fund manager.

How much do forex account managers charge?

Forex account managers do charge high fees: often between 20% and 30% of a trade's earnings. Managed forex accounts are an investment opportunity for those who want the potential of returns from leveraged forex trading, are willing to take serious risks, and want to have professionals do the work of selection and trading.

How does a managed trading account work?

For an investor to have a managed trading account, they must first open a trading account at a reputable brokerage firm of their choice. Then allocate the necessary amount of funds for a managed account. The money manager has limited access to the account and operates on a trade only basis.

What are the best features of forex managed funds?

One of the best features of forex managed funds is that you only deposit your funds with the broker. The fund manager should never ask you to send them funds to a bank account – if they do, beware! This is because the PAMM/LAMM/MAM systems operate via a letter of power of attorney.