Individual traders often open forex accounts and trade based on their own knowledge of trading. Many people find this to be infamously difficult. That’s where managed forex accounts come into action.
What is a managed forex account?
A managed forex account is one in which an experienced trader manages the trading account of the customer. It involves depositing funds into a forex account and professionally trade those funds in the forex markets.
Using the services of a professional manager is a way to save the extra time and eventual loss that comes with rookie traders in this market. A seasoned trader can be trusted to give the desired results.
Best Forex Brokers with Managed Forex Accounts
If you want to save your money, you should create a managed forex account with an experienced forex trader and search after a single account executive or team you believe is suitable for handling your account.
All of the brokers mentioned below allow forex account management in Pakistan. However, research is recommended if you’d like to receive a good return from trading.
1. IC Markets
IC Markets is an Australian-based online broker CFDs, Forex and other leveraged products. IC Markets concentrates on CFDs Forex, stock prices, metals, securities, and stock markets in European and Asian countries.
2. Pepperstone
Pepperstone is a trusted forex broker that is licensed by the highest level FCA and ASIC. Forex and stock trading charges are reasonable, and customer service is excellent, giving correct response well in time. On the other hand, Pepperstone allows you to trade foreign currency, CFDs, and bitcoin.
3. FxPro
FxPro’s price is not striking out, and it is a trusted broker that provides platform choices, numerous processing methods and can efficiently handle big orders for experts.
4. AvaTrade
AvaTrade has many payment methods. It also provides a wide range of resources like education, trading blog, and daily market analysis. All of these are free of cost for the customers. On the other hand, the target market is restricted to forex, different CFDs (for shares, indices, metals, etc.), and digital currencies.
5. FP Markets
FP Markets is the second Aussie broker on the list. It is an ECN/STP broker with a long history in the business, going back to 2005. You may use their prize platform to establish a MAM or PAMM account, as well as any FP Trading account.
6. Roboforex
RoboForex, launched in New Zealand in 2009, is also one of the world’s best and the most famous online brokers. According to the positive response from many online sites, it is clear that now a trader who is familiar with RoboForex usually likes it over the competitors.
7. HotForex
HotForex is the best forex account management broker in Pakistan. It is a winner FX and commodity broker that offers investing accommodations to both individual and institutional customers. HotForex generates income primarily from discounts and exchanges on specific trading bond funds and fees on that brokerage account.
8. FBS
FBS is a global broker having existence in over 150 countries. FBS arranges lectures and big events to deliver the most significant user experience possible, giving its customers technical manuals, slashing trading tools, as well as the most recent forex trading techniques.
9. Dukascopy
Dukascopy broker is a French online broker that offers trading and investment banking through mobile and internet platforms. With nearly 300 employees, it is headquartered in Geneva, Switzerland, and also covers Asian countries.
10. ThinkMarkets
ThinkMarkets is a famous online broker that offers traders a wide variety of markets such as forex, CFDs on stocks, bitcoins, metals, index, and futures. It facilitates both investors and fund managers to collaborate through a program called Money Managers.
How managed forex accounts work?
A managed forex account, as opposed to a standard forex trading account in which you make all trading choices and actively buy and sell currency pairs, comprises a trading account in which a trader or money manager trades on your behalf.
This account has greater costs and fees than a conventional forex trading account and, in most circumstances, a greater minimum deposit.
In a forex managed account, a money manager interacts with market operations like regular trading accounts. Nonetheless, you retain complete control over the account, and the account manager only has access to trading it.
Characteristics of Manage Forex Account
The minimum investment needed: Generally, the minimum deposit required for such an account (for clients) is the same as the regular trader’s initial deposit.
Don’t have a trader’s psychological make-up: Some persons might not have the psychological fitness that is most suited for trading. Holding onto a lost position, for example, might wipe out your entire trading account if you can’t recognize when you’re incorrect. Another example might be a tendency to overtrade because you enjoy trading. Excessive trading can have a financial, physical, and psychic impact. Rather than trading on your own, you could choose a reputable account manager who trades on your behalf.
Diversify your investments: Investment managers are experienced traders who diversify their holdings. As a result, you will be able to put your eggs in different baskets. Secondly, you can opt for more than one account manager as well.
How to open a managed forex account?
It is more complex than you would imagine opening a managed FX account in Pakistan. That’s why we’ve provided a complete list of the processes that you must follow. In simple words, you have to choose a broker that allows managed accounts, followed by choosing the right account manager. Let’s dig a little deeper.
- When you continue the process of creating an account, you should first analyze your investment strategy. You should understand which one to search for depending upon your risk appetite. Then review their track history and net risk level. A further aspect to consider is your aims. If you’d like to generate more money in a shorter period, a high reward managed account may be the best solution for you.
- Spend much time communicating and looking for a suitable forex broker. There are several solutions available, but not all of them are suitable for you. To choose the ideal forex brokers, do detailed research, seek around, and engage.
- After you’ve narrowed down your collection of forex brokers, look through features of their managed account programs; essential to understand all of it, including the maximum drawdown, leverage, service fees, etc. This also is essential for getting a well-managed forex account.
- Fill in the form of your chosen broker. After signing up, verify your account with your identity documents.
- After you’ve done the procedure, you’re able to choose a forex account manager to handle your account. You must read and sign the relevant forms and agreements.
- So next phase is to deposit money in your account using any of your preferred payment methods.
- Now, wait for the funds to be transmitted. It is a very straightforward procedure. In a few days, you have a managed forex account and start trading.
Pros
- A managed forex account provides an opportunity for both managers and investors to utilize resources of each other.
- You do not need trading skills as expert forex managers will do this for you.
- You get the option to transfer your money any time.
- Selecting one or even more services and managed account funds might be an excellent strategy to diversify your portfolio.
Cons
- You will not be able to change the fund manager’s trading choices.
- Minimum deposits for a managed account typically begin at a high value, whereas deposits for personally managed accounts begin very low. This may dissuade some traders from using a managed account.
Final Thoughts
Remember that once you open a managed account, account managers will usually have minimum time and deposit requirements, as well as penalties for early fund withdrawal. This minimum deposit for these accounts can also be significantly greater than those required for regular forex accounts.