As a trader, it is vital to acquire some knowledge about the forex market. If you are a beginner, you need to use sources, facts, and your intelligence to deal with everything in the forex market. Some forex brokers have a great source of information and courses for beginners but are they enough? No! Even with the best broker and great educational tool by your side, it could still take an extended amount of time to study, understand, and form a strategy for trading. Hence, you need forex managed accounts. A forex managed account allows you to employ market professionals to trade your invested money on your behalf. Let’s learn more about the account.
Pros & Cons of Forex Managed Accounts
Like everything, forex managed accounts have their fair share of pros and cons. If you don’t have enough idea and expertise over forex trades and need professionals to be involved in the trade, a managed account will be a good idea to opt for you. However, if you want full control and involvement over your account and forex operations, a managed account might not be suitable for you.
The Pros
Handles Important Forex Operations for You
If you don’t have the time, experience, or disposition for forex trading, having a managed account will save you from paying attention every time. People who are busy and don’t have time typically don’t want to involve in forex trading for the amount of time and commitment they need to give. Thus managed account is a great way of involving in the forex market without losing your other important duties.
You Have Complete Control Over Funds
Even though the account manager handles your trade only, you are in charge of funds as an investor and trader. The broker or the manager only gets access where you allow them to. This way, you can ensure your money is safe, and no unlawful activity can take place.
Let’s Professionals Help You Out with Trading
New in Forex? Need an expert to help you with Forex trading. No worries! Those who have experience in trading the forex market know the uncertainty and volatility the market might face. If you don’t have knowledge about forex at all, you are not likely to understand those things, and hence things might get a tad bit difficult for you. Therefore, employing a professional will help you gain insight into how the market works while you benefit from it.
The Cons
You Want to Handle Your Account Solely
If you have trading experience and don’t want others to meddle with the finances as well as the trading disposition, you are better off not having a managed forex account.
Having Not Enough Capital to Start
The minimum deposit of a managed account starts from $2,000. So, if you can’t afford that or you don’t have that much amount as risk capital, then it’s probably not safe for you to invest or trade.
Managed Accounts Can Be Subjected to Fraudulence
With accounts like this where you give brokers and managers access, there is a big chance of fraudulency if you are not cautious enough. Bad brokers can also damage your trades if you fail to make calculated decisions while choosing a broker. That’s why weighing the pros and cons of brokers you are considering is mandatory. Always deal with the well-reputed brokers to minimize the chance of risk.
3 Best Brokers for Managed Accounts
We know the risk of choosing a bad broker. That’s why we are here to help you get the best forex brokers that offer the best managed accounts.
Alpari International
Alpari International is based in Mauritius and is one of the affluentials and most trustworthy brokers. It has two decades of experience and is regulated by CySEC and the Belize International Financial Service Commission. Both of these are needed to prove that a broker is legal and can be relied upon. The broker offers a long list of PAMM accounts with both the conservative and aggressive account managers to handle your trades.
HotForex
HotForex is also Mauritius based and is overseen by CySEC, The FCA, The FSCA, and Dubai Financial Services Authority. HotForx offers a PAMM account and customizing tools like filtering strategies, currency ranking, maximum drawdown, etc., to manage and control your account’s performance. With HotForex, there is no shortage of managers as they have 300 vetted managers to help you out. Not only that, the broker provides full transparency on the manager’s past performance and positions, their win-loss ratio, etc., to help you choose the best.
ForexTime
ForexTime, aka FXTM, is headquartered in Cyprus with offices in the UK, South Africa, and Mauritius. It has already garnered awards like Best FX Broker 2016 from European CEO Awards and Top Customer Service Provider 2016 from Saudi Money Expo. FXTM provides PAMM accounts, Strategy managers, and Expert Advisors for traders and investors.
Conclusion
There are pros and cons to managed accounts; it’s up to you if you want to use it or not. I have laid out the advantages and disadvantages for your convenience and have also provided some of the best brokers where you can open a managed account. I would still suggest you look more into these brokers and gain knowledge.
