BEST MANAGED FOREX ACCOUNTS:
LEARN 2 TRADE FOREX MAM SERVICE EXPLAINED

First and foremost – allow us to explain how our team of in-house traders approach the forex market. In a nutshell, our traders have decades’ worth of experience between them – meaning that they have a firm grasp of advanced technical analysis.

As such, our team will deploy a variety of core technical indicators throughout the trading day to scan and research specific forex pairs. This includes everything from the RSI, Moving Averages, and Bollinger Bands to the Aroon Oscillator, MACD, and On-Balance-Volume.

In terms of strategy – our traders largely focus on day trading positions – meaning that we look to enter and exit the market within a few hours. In other cases, if we see a slightly longer-term trend in the making, we might elect to execute a swing trading strategy.

Our team of in-house traders are also well-versed in scalping strategies. This will come into action when we identity that a pair is stuck in a consolidation period – subsequently allowing us to enter low-risk positions for as long as the trend remains in place.

Crucially, our traders will always have an entry and exit strategy in place in the form of risk management. This means setting clear goals on each position by deploying stop-loss and take-profit orders.

The process of investing in the Learn 2 Trade MAM account is very straightforward.

For a detailed walkthrough – please scroll up to the section above on ‘Registering to the MAM (Multi Account Manager)’.

In order to benefit from our MAM service via AvaTrade, the minimum investment required is $5,000. This is actually very reasonable when you consider that the industry average is in excess of $10,000.

It is important to note that your capital is secure at AvaTrade. Crucially, this top-rated brokerage site is regulated in six jurisdictions and authorized to operate in more than 100 countries. As such, AvaTrade is required to follow a number of core rules surrounding client protection, anti-money laundering, and segregated bank accounts. –

We at Learn 2 Trade have decided to implement a profit-share system on our forex MAM service. This is crucial, as it ensures that our team of traders are motivated not only to make as much money as possible – but to do so in a risk-averse way.

We have opted for a 70/30 profit share system – meaning that 70% of gains are retained by you and the remaining 30% is charged as a commission by Learn 2 Trade.

For example:

• Let’s suppose that you invest $5,000 into the Learn 2 Trade MAM service
• At the end of month 1 – our traders generate returns of 5%
• On capital of $5,000 – that translates into a month-end profit of $250
• Of this figure, you would retain $175, while Learn 2 Trade would make a commission of $75
• As such, your month-end balance would stand at $5,175

It is also important to note that like all forex MAM services – we also charge a 2% annual maintenance fee. This is based on the amount of capital invested into the service.

Mam stands for ‘Multi-Account Manager’. As the name suggests, a Mam account assists you in managing multiple accounts to trade and invest, all using one single platform.

Mam stands for ‘Multi-Account Manager’. As the name suggests, a Mam account assists you in managing multiple accounts to trade and invest, all using one single platform.

An acronym for ‘Lot Allocation Management Module’, it’s essentially an antecedent of Pamm (discussed below) due to the fact that it doesn’t operate based on the size of each and every investor’s account.

Each time the manger purchases a standard lot of currency, all client accounts expand by a standard lot. They are usually considered to be most suitable for investors who trade with a large amount of capital.

In a scenario where the investor has a much bigger portfolio than the manager in question, this might not work so well. Whereas when the manager and the client have the same size investment, the system is very beneficial.

Standing for ‘Percent Allocation Management Module’, this managed forex account differs from the other two we’ve mentioned. This is because with Pamms you are able to dedicate a percentage of your capital so that you are able to copy trades from the main account.

As an investor using this kind of managed account, you are able to use multiple accounts to assign different percentages to each trading system, thus diversifying your capital.

Money managers love this system thanks to the vast amount of options available. The investment conditions are considered to be flexible because traders can preset the trading time period, commission amount, and rollover time to their liking.

Investors also like the Pamm option because there is a huge range of professional managers available. Pamm gives you a bit more control over your investments too, because you can monitor your trades live. You’re also able to nominate or switch up the traders on your chosen list of investors, as well as set up permitted drawdown levels.

When traders are looking for investment opportunities they usually take into account the risk involved. One of the reasons managed forex accounts are so popular is because inherent risk and investment are considered low, with great returns.

Here are some of the best bits about investing via a managed forex account:

As we touched on, managed forex accounts are really flexible for investors. It doesn’t matter whether or not the market is bullish or bearish. Managed forex accounts usually find a way to make a profit in the end.

The main reason most people decide to invest money in forex is to generate a profit. As such, with the right investment, you can make a great return.

Nevertheless, it’s important to be super vigilant before you commit to any investment. This is why managed forex accounts are considered such a great profit-making opportunity.

The most reputable platforms offer clients variable results, meaning you are able to confirm the results of a trader. One very important thing to remember though is to always make sure the platform is legitimately stating its returns.

It’s not usually advisable to begin to trade forex if you are completely new to the scene. After all, you wouldn’t want to risk that inexperience costing you a large portion of your investment fund in a highly volatile market.

One of the best things about a managed forex account is that without any previous experience, you are able to trade currencies. At the same time, you can take full advantage of the skill and experience of an experienced forex trader.

The fact that managed forex accounts are such a passive way of investing is not only attractive to new forex traders, but also to people who don’t have the time to manage their own trading endeavours.

Trading forex demands a lot of time and dedication. As such, the beauty of managed accounts is that you can be safe in the knowledge that even when you are busy getting on with life – your trading account is being managed by an expert in that field.

As we’ve mentioned, there is naturally a bit more risk involved with forex trading on a DIY basis. Trading via a managed forex account gives you access to such a diverse range of not only assets – but knowledge and trading strategies. Crucially, you don’t need to be a forex expert to invest.

If you have a bigger investment account, then the risks taken by the trader is likely to be much lower. An example of this would be if you begin your managed forex account with a firm using a 20% dropdown limit. Even this might be too much to handle. With that said, stick with managed forex account providers that offer ‘balance protection’.

There is a common misconception amongst investors that managed forex trading accounts compromise the security and safety of their accounts. The reason people believe this is that the money manager who is trading the account will also have access to those details.

The truth is, you have full control over your account. The money manager is only permitted to use your personal account in order to retrieve funds for the purpose of trading. To be clear, your money manager is not allowed to withdraw funds from your account either.

You have the authority and control to close your account and withdraw your investments if you are unhappy. But, the general idea with a managed forex account is to consider it a long-term investment opportunity.

So although most providers enable you to quickly withdraw your money whenever you like – if you can, try to stick with it.

Forex is often considered to be immune to manipulation, unlike futures and stock markets which use centralized operation mechanisms. Forex, on the other hand, has a market described as decentralised, with no single price.

Investors worldwide use managed forex accounts in large due to the highly liquid nature of the market – on top of not having to personally place buy or sell orders.

With managed forex accounts, you are able to withdraw your own investments as and when you see fit. Unlike business investments or property leasing – you don’t need to wait until the best offer comes in and then sell your shares or property in order to see a profit.

If all this talk of managed forex accounts is making you want to get stuck in as soon as possible -then we have listed our highest rated platforms of 2021 below.

Where there are no guarantees, there is a risk. So in this respect, by investing via a managed forex account and being reliant on an experienced trader to do your bidding, this doesn’t mean you are guaranteed a great week, month or year in the market.

Having an experienced trader behind you still puts you in good stead to get the best results whatever the situation. And the best thing you can do is be realistic with what the risks are, like with any trading strategy.

For instance, because you can copy a trade for $200, that means that if you wanted to you could invest $2k and bag yourself a supergroup of 10 seasoned traders.

It’s a good way to not put all of your eggs in one basket. You’re not going to feel the effects of one bad trading session as much as you would with just that one trader to copy.

Just by performing a simple internet search, you will see that there are absolutely heaps of managed forex accounts to choose from.

Here are some considerations for you to bear in mind when you are searching for the perfect forex account platform for you.

The first thing you need to do is think about what kind of managed forex account you want to open. If remaining in control whilst building on the diversity of your investment portfolio is what you want – then we recommend a platform like eToro.

On the opposite side of the coin, if you want a fully automated process from start to finish – then FX Mac could be the platform for you. You don’t have to vet the traders yourself. Instead, they do that for you and take care of everything from that point on.

It’s important to be able to check that the information provided to you is correct when it comes to stated returns. If a trader says they made returns amounting to 3 or 4 figures, it doesn’t necessarily mean that it is true.

It is for this reason that we recommend choosing platforms which enable you to personally verify any of the results provided by your chosen trader.

We recommend trying out a free demo account, or at least a trial so that you can get a feel for the platform. Most importantly, you should always choose a platform which is fully licenced and regulated. It’s the only way to gain that trust.

As you can see, there is a lot of variation when it comes to minimum investment requirements from managed forex account providers. Platforms like FX Pig will allow for you to start from as little as $500, whereas Word Markets minimum fee is much higher standing at $5,000.

For example, if you wish to start off small, we recommend choosing a provider with a smaller minimum investment to keep your budget in check.

Put some thought into how you would like to pay for your investment before you get carried away when choosing a provider for your managed forex account.

The majority of forex account platforms enable you to use commonly used payment methods such as Mastercard and Visa. This means your money should be transferred almost immediately.

eToro is well known for having a wide variety of payment methods available for users and even supports e-wallets like Skrill, Neteller and Paypal. E-wallets often allow much faster deposits and withdrawals than traditional methods.

Apart from platforms like eToro, you will have to pay commission fees when investing via managed forex accounts. The commission fee percentage differs by quite a wide margin. These revenue shares can be anywhere between 10% and as much as 50%.

They say you get what you pay for, so you will usually notice that the most experienced traders tend to come with a higher commission rate.

But don’t let the fear of commission rates lead you to choose the cheapest trader. After all, some things in life are worth a higher fee. That’s why hotels are rated by stars, and the best ones cost the most.

You must check the all-important terms and conditions of a managed forex account platform before any sort of commitment.

You need to be looking at withdrawal stipulations and really understand what is expected of you. You might see that that a particular forex account provider has a ‘minimum redemption period’. This means that you can’t touch your own investment until the stipulated time period has passed.

Try to give these providers a wide berth. Crucially, there could come a time in your life when you need your investment funds with immediate effect and this redemption period could really screw things up for you.

All in all, it has to be said that managed forex accounts are great for a range of investors. This is especially the case if wish to trade the busy forex markets in a passive way.

By allowing an experienced forex trader to buy and sell on your behalf, you are essentially gaining access to a huge financial arena without having to spend hours researching and studying charts.

It’s worth bearing in mind that just because your trader of choice is somewhat of an expert, it doesn’t mean you are guaranteed any big gains. But it does give you a much better chance of being successful.

It’s absolutely imperative that you make sure you research your chosen managed forex account provider. This includes making sure they have the relevant licences and are fully regulated by the appropriate bodies.

You can get started with the Learn 2 Trade forex MAM right now by clicking on the link below!