There is often a misconception that in order to trade forex successfully, traders must possess high-level skills in technical analysis.
However, through the use of a managed forex account, investors can sit back and allow an experienced currency trader to do the hard work for them.
In this guide, we compare the best forex managed accounts in the market today for fees, minimum deposits, past performance, withdrawal terms, and more.
The Best Forex Managed Accounts in 2023 List
Our market research found that the best forex managed account providers in 2023 are those listed below:
- Alpari – Managed Forex Account Offering PAMMs
Top Forex Managed Accounts Reviewed
When compiling our list of the best forex managed account providers, we explore a range of important factors surrounding previous trading performance, fees, and withdrawal terms.
This is in addition to the reputation of the provider, supported pairs, and customer service.
Read on to make an informed decision on the best forex managed account in the market today.
Alpari – Managed Forex Account Offering PAMMs
Those in the market for the best forex managed account might also consider Alpari. This forex broker offers percentage allocation management module accounts – or simply a PAMM. For those unaware, PAMM accounts utilize a split capital allocation model.
For example, 70% of the forex trader’s capital might be self-funded, while the balance is provided by investors. At Alpari, investors will have a variety of forex traders to choose from. In fact, the platform is home to more than 1,800+ individual forex traders that have signed up for the PAMM program.
An informed decision can be made when selecting a PAMM account by exploring the historical performance of the trader. As is the case with most managed forex accounts that utilize a PAMM structure, both profits and losses are split between the trader and investors. At Alpari, there is also a profit-sharing commission of 20% to take into account.
This is, however, only on the proviso that the trader has a profitable month.
| Service | Forex PAMM accounts |
| Fees | 20% profit-sharing agreement |
| Withdrawals | Redemption period depends on the chosen PAMM |
| Minimum investment | Set by the PAMM forex account manager |
| Minimum withdrawal | Not stated |
What we like
Best Forex Managed Accounts Compared
For a comparison of the best forex manage account providers discussed above, refer to the comparison table below:
| Forex Brokers | Service | Fees | Withdrawals | Min Investment | Min Withdrawal |
| Alpari | Forex PAMM accounts | 20% profit-sharing agreement | Redemption period depends on the chosen PAMM | Set by the PAMM manager | Not stated |
What is a Managed Forex Account?
Managed forex accounts enable investors to automate the trading process. This means that investors are not required to personally research or analyze forex trends or place any orders. On the contrary, the forex trading process is managed on behalf of investors.
Traditionally, managed forex trading accounts were offered in the form of a PAMM or MAM (Multi-Account Manager). Both account types offer a way for investors to allocate funds to an experienced trader that will subsequently enter buy and sell positions with their own capital. The investor would then have direct exposure to any profits (or losses) made by the trader.
However, both PAMMs and MAMs have slowly but surely been fazed out by forex brokers. Instead, the shift appears to be moving in the favor of copy trading platforms. Copy trading follows the same concept as managed forex accounts. The key difference is that trades are copied via a brokerage account at a proportionate level.
From the perspective of the investor, this means lower investment requirements, more flexibility, and virtually no restrictions on withdrawals. Furthermore, unlike conventional forex managed accounts, Copy Trading alternatives oftentimes do not charge commission-sharing fees.
Benefits of Using a Forex Managed Account
The best managed accounts for forex - whether that's in the form of PAMMs, MAMs, or Copy Trading, offer a full host of benefits that might appeal to both newbies and experienced traders.
This includes:
No Experience Needed
Perhaps the clearest benefit that the best forex managed account providers offer is that investors can begin trading currencies online for speculative purposes without needing to have any prior experience.
Contrary to what many so-called forex gurus say, this marketplace is more than complex.
The only way to make consistent profits is to have an understanding of how to read forex charts, which in itself requires advanced knowledge of technical and economic indicators. Becoming comfortable using forex indicators can take several years to achieve.
This is why managed forex accounts are increasingly popular with complete beginners. Behind the scenes, the chosen trader will perform technical analysis and subsequently enter buy and sell positions accordingly.
In turn, the investor will gain exposure to any positions entered and thus - have a stake in any profits made.
Passive Trading Experience
As noted above, the best forex managed accounts enable beginners to trade currencies in a completely passive nature. After all, once the investment is made, the chosen trader will take care of all research and order-placing processes.
With that said, managed forex accounts are not only suitable for beginners. On the contrary, those that have experience in trading currencies but little time to do so might find this passive investment model of interest.
Trade Around the Clock
There is only so many hours of the day that forex traders can dedicate to their craft. This is also the case when investing in a managed forex account, which is facilitated by a human trader.
However, bearing in mind that the best forex managed accounts offer small investment minimums, it is possible to trade around the clock by diversifying across several traders from multiple time zones.
This ensures that the investment funds are constantly being put to work.
Personal Trading Capital
There is often a misconception that managed forex accounts represent reckless trading principles. This is because there is a misunderstanding that traders only utilize capital allocated from investors.
However, this sentiment could not be further from the truth. The reason for this is that traders offering their forex managed account services will actually be entering positions with their own investment capital.
The managed forex account side of things is simply an extra revenue source for the trader, for instance, in terms of commission-sharing agreements.
What do You Need to Get a Managed Forex Account?
Historically, the best forex managed accounts in the market were offered in the form of PAMMs and MAMs.
Both account types typically required a larger upfront investment in addition to unfavorable commission-sharing agreements and drawn-out withdrawal restrictions.
However, as the industry has since made a sizable transition to Copy Trading services, access to this marketplace is now open to traders of all budgets.
And, getting started rarely takes more than a few minutes. It's now just a case of opening an account, making a deposit with a debit/credit card or bank wire, choosing a trader to copy, and deciding on an investment sum.
Conclusion
Traditional managed forex accounts used to come in the shape of PAMMs and MAMs, alongside high minimum investment requirements and unfavorable profit-sharing terms.
Fast forward to 2023 and it is now possible to trade forex passively with a small amount of capital.