As the world has become more connected, financial markets have become more accessible. From forex, stocks, crypto, to commodities, you can trade easily from your home. Of all these, forex trading is one market that is leading the race, with transactions worth over  $6 trillions occurring each day. The market’s potential has attracted a lot of attention ever since it came into formation. And with technology on its peak, we can see it happening at a larger pace. While forex trading can be profitable, it also requires knowledge and experience to navigate the market successfully. Moreover,  not everyone has the skills or time to trade the forex market. This is where managed accounts come in. In this article, we will see how you can make use of managed accounts in forex to get an edge in the market. 

What are managed accounts in forex trading?

A managed account is a type of investment account in which a professional trader manages the investments on behalf of the account owner. Managed accounts in forex trading are becoming more popular due to their simplicity and the expertise of the professional traders managing the accounts. With a managed account, the account owner does not need to have any knowledge or experience in forex trading.

Who can choose forex managed accounts?

Imagine you are a busy professional who wants to invest in forex but does not have the time or expertise to manage your investments actively. Managed accounts provide an easy solution to this problem.Anyone who is looking for a passive investment approach can choose forex managed accounts. Whether you are an experienced trader looking to diversify your portfolio or a beginner who wants to trade in forex without having to spend time analysing the market, managed accounts are a great option.

Types of forex managed accounts?

There are different types of managed accounts in the market, depending on the trader’s needs. The most popular types of managed accounts are MAM (Multi-Account Manager) and PAMM (Percentage Allocation Management Module). In a MAM account, the professional trader can trade on behalf of multiple accounts with different allocations. In a PAMM account, the professional trader can allocate trades to multiple accounts with different investment amounts.

When it comes to how forex managed accounts work, the account owner provides a limited power of attorney to the professional trader to manage the investments. The professional trader trades on behalf of the account owner, and the profits and losses are distributed according to the pre-agreed allocation ratio.


However, when selecting managed accounts, there are a few things that you should consider. First, research the professional trader’s experience, reputation, and trading style. Do not choose a manager without any research. Second, consider the fees associated with the managed account. Make sure it’s affordable and worth the services being offered. 

Takeaways 

Managed accounts in forex trading are a great investment option for those who do not have the knowledge or expertise to manage their forex investments actively. They provide the benefit of professional traders managing the investments on behalf of the account owner. However, it is essential to do proper research before selecting a managed account to ensure that the investor is working with a reputable professional trader and understands the fees associated with the account.