What Is A Forex Managed Account?

A Forex Managed Account is where a professional trader, account manager, or money manager manages the trading on the clients’ behalf through a MAM or PAMM solution. Forex Managed Accounts can be compared to traditional investment accounts in stock trading where the investment manager handles the trading analysis, risk management, portfolio management, and other trading logistics.

What Is A MAM Account?

A MAM Account in Forex Trading, also known as a Multi-Account Manager Account, is a solution that allow forex traders and investors to become part of a “pool” of sub accounts traded through a “Master Account“.   The total trading capital in the master account is equivalent to the total of all the sub accounts, and profits are distributed according to the contributions to the master account. This is all calculated by the broker each month.

What Is A PAMM Account?

A PAMM Account in Forex Trading, also known as a Percentage Allocation Management Module Account, is a software solution that allow traders and investors to attach their segregated trading account to a specific money manager or asset manager such as Forex Lens. Forex Lens offers a PAMM Solutions through ATC Brokers.

Click here to learn more about How PAMM Accounts Work. 

If you prefer to use a PAMM Account model, please select ATC Brokers in the sign up form.

What Are The Advantages Of Using Forex Managed Accounts?

  1. No Commitments or Recurring Subscriptions.
  2. No Performance Fees Unless Profits Are Made.
  3. Performance Fees Are Calculated On A High Water Mark Structure.
  4. Only Trading Solution Where No Experience Is Required.

What Is High Water Mark?

High Water Mark is the highest peak in value that the Forex Managed Account has reached. The high water mark ensures the money manager does not get paid a performance fee for poor performance. For example, if the money manager goes on a losing streak over a period of time, he must get the trading account above the high water mark before eligible to receive a performance fee. 

Example: Let’s say you invested with our Dragon FX Managed Account that charges a 25% performance fee, assuming you placed $10,000 into the fund, and during your first month with us, we hit our monthly average of 18% return. Your original investment is worth $11,800. You will pay a 25% fee on this $1,800 gain and your high water mark will be $11,800. You will then only pay 25% of gain above this high water mark. 

Click Here to read more about How High Water Mark Works 

What Is The Minimum Deposit To Participate In Our Forex Managed Accounts?

The minimum deposit for our Forex Managed Account is $1,000 USD or your local currency equivalent.  You’ll enjoy a preferred rate for higher deposits at $5,000, $10,000, $25,000, $40,000 and $100,000.

What Are The Performance Fees?

Dragon FX Managed Account:

  • Deposits between $1,000 – $5,000 will have a 35% performance fee.
  • Deposits between $5,001 – $10,000 will have a 30% performance fee.
  • Deposits between $10,001 – $25,000 will have a 25% performance fee.
  • Deposits between $25,001 – $40,000 will have a 20% performance fee.
  • Deposits between $40,001 – $100,000 will have a 15% performance fee.
  • Deposits over $100,001 will have a 10% performance fee.

Viper FX Managed Account:

  • Deposits between $1,000 – $5000 will have a 40% performance fee.
  • Deposits between $5001 – $10,000 will have a 30% performance fee.
  • Deposits over $10,001 will have a 25% performance fee. 

Turtle FX Managed Account:

  • Deposits between $5000 – $10,000 will have a 30% performance fee.
  • Deposits over $10,001 will have a 25% performance fee.

Raptor FX Managed Account:

  • Coming Soon

When Can I Withdraw My Funds From My Forex Managed Account?

There are absolutely no restrictions when it comes to withdrawing. This is one of the many benefits of trading with us. You can withdraw at any time for any reason at all. This is your money and you have full control over it (other than trading access). One rule of thumb is never withdraw when there are running trades, especially during a drawdown period. If would be best to speak with us first to coordinate a good time to pull funds.

We do advise that the trading strategies used in our managed accounts are meant to be medium to long term. It would be to your benefit that you allow your account to compound for higher returns and increase your monthly gains. The optimal time to withdraw would be when we make your initial investment back, so you enjoy a risk free ride.

How Can I Exit The Forex Managed Account?

For FX Choice: Log into your back office and click into the sub account you wish to exit. You will then have the option to “Remove from MAM” as shown in the image below.

For ATC Brokers: Simply remove your sub-account from the Master Account the ATC Brokers Back Office.

For Blackwell Global: Speak to a live agent to disconnect your sub-account.

Who Can Withdraw My Funds?

As per all our brokers’ internal withdrawal policies, trading funds can only be withdrawn by you, the account holder who initially funded the account. In other words, third party withdrawals are prohibited.

How Can I Fund My Account / Deposit Funds?

ATC Brokers: You can deposit via one of the following methods:

FX Choice: You can deposit via any of the following methods:

Blackwell Global: You can deposit via one of the following methods:

Are the Forex Brokers for our Managed Forex Accounts Regulated?

Is ATC Brokers a Regulated Broker?

ATC Brokers is authorized and regulated by the Cayman Islands Monetary Authority (CIMA). The registration number is 1448274.

Is Blackwell Global a Regulated Broker?

Blackwell Global is authorized and regulated in the British Virgin Islands, registered as a BVI Business Company. The company number is 159794.

Is FX Choice a Regulated Broker?

FX Choice Limited is authorized and regulated by the International Financial Services Commission (IFSC). Licence number: IFSC/60/191/TS/17. The registration number is 105,968.

QUICK SUMMARY

  • Minimum Deposit: 1,000 USD or your local currency equivalent
  • Monthly Performance Fees based on deposit size and on a high water mark policy
  • Client enjoys full control and transparency over their account.
  • The account is fully segregated and held in the client’s sole access and ownership.
  • All accounts held with regulated brokers.
  • Clients can withdraw funds or remove from the program at any time.

Be aware that forex trading and trading in any market including crypto has the potential of financial loss as well as gains. Do not trade with money that you can not afford to let go of. It is possible to lose all of your money when trading as there are many factors which are not in your control or ours. Some forex brokers may hold you responsible for trading capital that exceeds your balance and goes over margin. Be aware that this responsibility is YOURS. Forex Lens does not take any responsibility for any losses that you may incur as a result of our services, forex signals, crypto signals, managed accounts or any other market signals that we may provide from time to time. Forex Lens is to be used as an educational tool to help you see how professional day traders and swing traders operate from a day to day and week to week basis. By signing up as a subscriber you agree that Forex Lens is not providing financial advice but rather providing an educational outlook on the markets. We do not take any responsibility for gains or losses in your account as a result of our signals and/or services or any forex related products on any of our websites including this one.