Best Managed Forex Accounts: Learn 2 Trade Forex MAM Service Explained

Best Managed Forex Accounts: Learn 2 Trade Forex MAM Service Explained

If you’re interested in trading currencies but worried about the amount of work it might entail – then a managed forex account might be just what you are looking for.

Otherwise referred to as a MAM account,  this enables you to immerse yourself in the buying and selling of currency pairs, without having to personally execute the trades yourself.

This is where the knowledgeable trader comes in. That is to say, they will manage the investments so that you don’t have to.

On this page, we delve into what managed forex accounts are and more specifically – how the Learn 2 Trade MAM service can help you take your trading endeavors to the next level!

 

Table of Content

     

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    Registering to the MAM (Multi Account Manager)

    ⚠️ Minimum deposit to Join MAM is $5,000.00

    Step 1:

    • Registering an account using this link: https://www.avatrade.com/visit/avatrade-mam
    • This is a separate account required if you already have one with Avatrade to join the MAM.
    • Fill in your details and add the partner code: 110448
    • Choose: Metatrader 4
    • Currency: USD

    Step 2:

    • Upload your ID and utility bill + Proof of attorney form filled in.
    • On the left you will see a tab to upload documents in the dashboard on Avatrade.

    Step 3:

    • Please inform support@learn2.trade that the above has been completed with your Metatrader 4 account number and your username on account i.e email address and your full name only when your Avatrade account is FULLY VERIFIED!

     

    Learn 2 Trade MAM Explained

    We at Learn 2 Trade are proud to announce that we now have a fully-fledged MAM service in operation. Put simply, this allows you to take full advantage of our team of in-house forex traders in a 100% passive nature.

    That is to say, by electing to inject capital into the Learn 2 Trade MAM service via AvaTrade – you can actively day trade forex without needing to lift a finger. Instead, any gains that we make will be indirectly reflected in your account. 

    In the sections below we cover the ins and outs of how our forex MAM accounts work so that you can decide whether or not the service meets your financial goals.

    How we Trade

    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.

    How to Open a MAM Account

    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)’.

    Minimum MAM Investment Amount

    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.  –

    Fees and Profit Share Agreement

    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.

    What is a Managed Forex Account?

    Managed forex accounts enable you to invest funds through a skilled forex trader. This trader will not only provide you with access to the multi-trillion dollar market, but will also place trades for you. This is not only going to save you a lot of legwork, not to mention research and planning – but will also save you a lot of time and stress.

    If you are a beginner to forex trading then this is all the more reason to choose a managed forex account. Learning the financial markets can take years to perfect, what with all of the technical analysis, stats and detailed price charts to make sense of.

    A managed forex account accelerates you into the world of forex trading without you having to do much at all. You don’t need to worry about placing trades or timing the market – all you have to do is deposit the minimum investment value as stipulated by your broker. Now all you have to worry about is deciding which trader to choose to do your bidding for you.

    The trader will, of course, require a cut. After all, it’s their hard work and skill-set that is helping you acquire those gains. The percentage will vary from trader to trader, and we’ve found that generally speaking, it will be between 10% and 50%.

    When it comes to forex trading, or as a matter of fact any trading – there are no guarantees. Nothing is risk-free. You might find a skilled trader with decades of experience who charges a high commission fee. With that said, paying 40% instead of 10% for a slightly less experienced trader won’t guarantee you more gains.

    The worldwide web is spilling over with broker platforms offering managed forex accounts, and so you will notice that most of them promise great results. Whilst we realise that it’s important to be confident in what they’re ‘selling’ so to speak, the fact of the matter is that there is seldom any evidence from these platforms to back it up.

    It’s just not how trading works, and no one has a crystal ball. Look for skill, reputation and results by all means. But, take promises of overnight success with a pinch of salt for the sake of your wallet.

    How do Managed Forex Accounts Operate?

    The precise investment process varies from site to site. But, generally speaking, the steps to set up an account are similar.

    Essentially you:

    • Invest a specific volume of money in a trader
    • That trader is going to buy and sell assets for you.
    • If the trader doesn’t make a profit for you, they don’t take a fee.
    • When the trader makes a profit for you, this is when the prearranged percentage will be taken.

    There are two ways for you to begin with a managed forex account. One option is to open a managed account via a brokerage firm, another option is via a third party.

    Managed Forex Account Via an Online Broker

    In some cases, forex brokers provide you with access to managed accounts. This will usually be focused on a copy trading agreement. A copy trading agreement is a somewhat genius feature which allows you to select a trader whose work you admire. You will then copy their portfolio like for like.

    So, any buy or sell orders this trader executes will be mirrored in your portfolio (in proportion to your investment). With this in mind – when you’re on the lookout for a managed forex account, one of the most transparent and adaptable options has to be a copy trade.

    Platforms such as eToro enable you to look at every single metric of each individual copy investor’s portfolio. From this, you are going to have a good idea of what kind of assets the investor focuses on as well as the monthly return on investment, and general investment style.

    All you are required to do in order to begin is open an account with the broker of your choosing. Once your account has been confirmed you need to deposit some funds, do some homework, and decide which investor/s you would like to copy like for like. The whole process is passive from this point onwards.

    The Specialist Managed Account

     Some people aren’t interested in copying the work of another trader. In this case, there’s always a specialist managed forex account. To go down this route, you need to sign up with an online brokerage firm which offers specialized managed forex accounts. You will need to deposit at least the minimum amount expected for you to invest.

    Whilst some broker platforms enable you to choose your own trader based on your personal investment goals, in most cases, the broker will just select the trader which they think is most suitable to your needs.

    Some platforms use AI (Artificial Intelligence) and ‘machine learning’, which automatically recognises and learns patterns in massive sets of data. In other words, machine learning is an algorithm. So rather than a human trader, your investments will be carried out by Algo Trading Bot.

    Managed Forex Account: Example

    By this point, you should have a good grasp of how managed forex accounts function, so now it’s time to look at how profits and losses usually work within this type of account.

    The examples we’ve used below are based on theoretic figures. But, they are still representative of how the investment procedure goes when trading using a managed forex account in the real world.

    1. Let’s say you invest $20,000 on a specialist managed forex account platform
    2. Now that platform allocates to you an experienced trader who uses swing trading in his trading strategy. Your commission fee on any gains is 15%
    3. By the end of the first month, the trader makes gains of 20%. Out of your $20,000 investment this equates to a profit of $4,000 ($20,000 x 20% = $4,000).
    4. Then out of this, the trader takes his previously agreed 15% commission, which amounts to $600 ($4,000 x 15%= $600)
    5. Your end of month profit in this scenario amounts to $3,400. As such, your portfolio is now worth $23,400.

    Now, let’s say that month two didn’t go quite as well as month one. Again this is all hypothetical.

    1. By the close of the month two, let’s say the trader makes a loss of 15%.
    2. Due to the fact that your portfolio was worth $23,400 by the end of month one, this means you have a loss of $3,510.
    3. Because the trader made a loss this month, they do not get any commission.
    4. Your portfolio in this scenario is now worth $19,890.

    As with anything, there is always ups and downs, and you can clearly see from this example that it can change from month to month. So whilst on one hand, it is good because there is no applicable commission fee on a less successful run. On the other hand, this does mean that your investment will go down in value.

    Types of Managed Forex Accounts

    There is a good handful of managed forex accounts offered by online brokers. Although the systems Mam, Pamm and Lamm all sound virtually the same, there are certainly noticeable differences between these trading systems.

    Prior to opening a managed forex account, it’s always advisable to do some research first. The most important things to note are the specific differences between each trading system, and to make sure it is going to be suitable for you personally..

    After all, what works for one investor, might not work for another. Bearing that in mind, we are going to help you to differentiate between the 3 money managing systems and explain a little bit about each.

    Mam

    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.

    This managed forex account is thought to be suitable for investors who can tolerate risk. The reason being, managers are able to appoint higher leverage to particular sub-accounts.

    Lamm

    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.

    Pamm

    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.

    Managed Forex Accounts: The Positives

    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:

    Flexibility

    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.

    Generate Profits

    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.

    For as little as $5k you could make gains of up to 20% every month. If you want even more returns you can always invest some more money. Some investors report making returns as high as 65% – 100% of your initial investment.

    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.

    Passive Investing for any Skill Level

    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. 

    No Time to Trade? No Problem

    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.

    Variety

    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.

    The best brokers and traders will have risk control guidelines to be followed and will likely use drop-down limits. Generally speaking, you should expect a risk of no more than 2-3% on your overall investments on one trade.

    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’.

    Control

    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.

    Difficult to Manipulate

    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.

    Forex Liquidity

    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.

    The Best Managed Forex Accounts of 2021

    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.

    Managed Forex Account: The Risks

    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.

    Market commentators note that one of the best ways to lower the risks involved is to diversify your investments. A great way to do this is to copy a handful of copy traders on the eToro platform.

    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.

    Deciding on a Managed Forex Account

    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.

    Managed Account Types

    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.

    Verifiable Returns

    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.

    Min Investment Required

    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.

    Payment Types

    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.

    Revenue Share Percentage

    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.

    Withdrawal T&Cs

    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.

    To Conclude

    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!

     

    AvaTrade - Trade with confidence and benefit

    Our Rating

    • Our Award-winning AvaTradeGO app
    • 24/7 cryptocurrency trading
    • Multi-lingual live customer service
    • Regulation across 6 jurisdictions

     

    FAQs

    What is the Learn 2 Trade forex MAM?

    Put simply, the Learn 2 Trade MAM account allows you to trade forex in a passive manner. This is because you will be indirectly investing in our team of traders - so any profits that we make are reflected in your own account. As such, you can sit back and actively trade forex without needing to do any of the hard work!

    How much is Learn 2 Trade MAM service years?

    We are very upfront when it comes to fees. Firstly, we charge an industry-standard annual maintenance fee of 2% - which is based on the amount of capital you have invested in the MAM. Secondly, to ensure that our in-house traders are motivated to maximize financial gains - we also operate a profit split system. This works out at 70/30 - meaning that 70% of profits are retained by you.

    What is the minimum MAM investment?

    To get started with the Learn 2 Trade MAM service, you will need to meet a minimum investment of $5,000. This is much less than the standard minimum of $10,000.

    What forex pairs does the Learn 2 Trade MAM target?

    Our team of in-house traders are super-flexible when it comes to tradable markets. In most cases, we focus on major pairs like EUR/USD and GBP/USD. With that said, we also keep a close eye on emerging currencies - especially when it comes to major fundamental news developments.

    Which broker is the Learn 2 Trade MAM registered with?

    The Learn 2 Trade MAM account is available through trusted forex broker AvaTrade. This top-rated platform offers dozens of forex markets, does not charge any commission, and is regulated by in jurisdictions.

     

    Author : Samantha Forlow

    Samantha Forlow

    Samantha is a UK-based researcher and writer that specializes in all-things finance. This covers everything from traditional equity and fund investments, to forex and CFD trading. Samantha has been writing financial-based content for several years and has a variety of publications in the online domain. Crucially, she is able to explain complex financial subjects in a newbie-friendly manner.