Forex managed accounts offer investors an opportunity to participate in the Forex market without directly engaging in trading themselves. With a managed account, investors can allocate their funds to professional Forex traders who make trading decisions on their behalf. This type of investment is suitable for individuals who want to benefit from the potential profits of Forex trading but lack the time, expertise, or desire to trade on their own.
According to the Traders Union experts, in Forex managed accounts in Malaysia, investors typically open an account with a reputable managed account provider or a Forex brokerage firm that offers managed account services. They then entrust their funds to professional traders or trading firms who have a proven track record in Forex trading. These professional traders are responsible for executing trades and managing the investment portfolio according to predefined strategies and risk management principles.
What are Forex managed accounts?
As stated by the TU experts, Forex managed accounts are investment accounts in which an investor allocates their funds to professional Forex traders who make trading decisions on their behalf. The investor opens an account with a managed account provider or a Forex brokerage firm that offers managed account services and entrusts their capital to experienced traders.
The purpose of a Forex managed account is to allow investors to participate in the Forex market and potentially profit from currency trading without needing to trade themselves. The managed account provider or trader takes responsibility for executing trades, managing the investment portfolio, and aiming to generate consistent profits for the investor.
Types of Forex investment accounts
There are several types of Forex investment accounts available to investors. Three common types listed by Traders Union include:
- Forex copy trading. Forex copy trading allows investors to automatically copy the trades of experienced and successful Forex traders. Investors can connect their trading accounts to a platform or service that enables them to select and follow the trades of professional traders. The trades executed by the professional traders are replicated in the investors’ accounts in real-time, proportionally to their allocated funds. This type of account is suitable for investors who want to benefit from the expertise of others without actively engaging in trading themselves.
- PAMM/MAM accounts. PAMM (Percentage Allocation Management Module) and MAM (Multi-Account Manager) accounts are designed for professional Forex money managers who trade on behalf of multiple clients. In a PAMM/MAM account, the money manager can allocate trades across multiple sub-accounts based on pre-determined allocation methods. This allows the money manager to execute trades in a master account, and the trades are proportionally distributed to the sub-accounts. PAMM/MAM accounts are commonly used by fund managers, Forex brokers, and investment firms to manage client funds.
- Advisory Services. Advisory services involve receiving trading recommendations, market analysis, and insights from professional Forex analysts or trading firms. Investors subscribe to these services and receive guidance on potential trading opportunities, entry and exit points, and market trends. The investors make their own trading decisions based on the advice and recommendations provided. Advisory services are suitable for investors who want to stay involved in the trading process but seek expert insights to assist in their decision-making.
Best managed Forex accounts in Malaysia 2023
Here is a list of top managed Forex accounts by the TU analysts.
1. RoboForex CopyFx
RoboForex CopyFx is a popular copy trading platform offered by RoboForex, a well-known Forex broker. It allows traders to automatically replicate the trades of experienced traders in their own trading accounts. RoboForex CopyFx enables investors to automatically copy the trades of selected signal providers. Signal providers are experienced traders who have a track record of successful trading. Investors can browse through the list of signal providers, review their performance statistics, and choose the ones they want to copy.
2. FxPro PAMM account
FxPro PAMM is an investment service offered by FxPro, a well-known Forex broker. PAMM accounts allow investors to allocate their funds to be managed by professional traders, known as Money Managers, who trade on their behalf.
3. IC Markets PAMM
IC Markets PAMM allows investors to choose from a pool of skilled and experienced Money Managers. Investors can review the performance history, trading strategies, risk management techniques, and other relevant information of different Money Managers. This enables investors to select the money managers that align with their investment goals and risk appetite.
Each type of managed accounts offers different levels of control, involvement, and potential returns. Conducting thorough research, evaluating the performance track record, and considering the reputation and credibility of the service provider are crucial steps before opening any Forex investment account. On the Traders Union website you will find more about Forex managed accounts — their types, brokers, potential profits, and more.