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 is also known as a Percentage Allocation Management Module Account.  It is a software solution which allow traders and investors to attach their segregated trading account to a specific money manager or asset manager such as Forex Lens. At Forex Lens, we offer a PAMM Solutions through ATC Brokers.  Click here to learn more about How PAMM Accounts Work.

The Difference Between a MAM Account and a PAMM Account (Video)

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 $3,000 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 Forex Program:

  • Deposits between $3,000 – $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 Forex Program:

  • 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 Forex Program:

  • $10,000 minimum, 25% performance fee.

Raptor FX Managed Account:

  • Coming Soon in 2020

How Can I Exit The Forex Managed Account?

You will be able to find the option to exit your managed account in the broker’s back office. However, if you cannot find this option, simply speak to a representative at the broker you have your account with, and they will be happy to assist you with the process. We also recommend speaking to us directly first so we can tell you the optimal time to withdraw your funds.

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.

Who Can Withdraw Funds From My Managed Forex Account?

As per all our trusted brokers’ internal withdrawal policies, all trading funds can only be withdrawn by the account holder, who initially funded the account.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

How to Deposit Funds into my Managed Account?

Scandinavian Capital Markets (SCM) Brokers

You can deposit via one of the following methods: Bank Wire

SCANDINAVIAN CAPITAL MARKETS SCM AB Kistagången 16 5tr 164 40 Kista, Stockholm, Sweden

United States Dollars (USD)
Bank Name: Swedbank
Bank Address: Karlbergsvägen 12, 113 27 Stockholm, Sweden
SWIFT: SWEDSESS
IBAN/Account Number: SE6980000832791370297432
Beneficiary Name: Scandinavian Capital Markets SCM AB
Beneficiary Address: Kistagången 16, 5tr, 164 40 Kista, Stockholm, Sweden

Euro (EUR)
Bank Name: Swedbank
Bank Address: Karlbergsvägen 12, 113 27 Stockholm, Sweden
SWIFT: SWEDSESS
IBAN/Account Number: SE2980000832793376719484
Beneficiary Name: Scandinavian Capital Markets SCM AB
Beneficiary Address: Kistagången 16, 5tr, 164 40 Kista, Stockholm, Sweden

British Pounds (GBP)
Bank Name: Swissquote Bank Ltd
Bank Address: Chemin de la Cretaux 33, Case Postale 319, CH-1196 Gland, Switzerland
SWIFT: SWQBCHZZXXX
IBAN/Account Number: CH3708781000108389500
Beneficiary Name: Scandinavian Capital Markets SCM AB
Beneficiary Address: Kistagången 16, 5tr, 164 40 Kista, Stockholm, Sweden

ATC Brokers

You can deposit via one of the following methods: Bank Wire & UnionPay

FX Choice

You can deposit via any of the following methods: Wire Transfer, Skrill, Perfect Money, ePayments, Bitcoin, Bitcoin Cash, Litecoin, Ethereum, UPayCard, XRP, VLoad, and Tether.

Blackwell Global

You can deposit via one of the following methods: Neteller, Skrill, Bitcoin, Visa and Mastercard, and Bank Transfer.

Are the Brokers for our Forex Managed Accounts Regulated?

Is Scandinavian Capital Markets (SCM) a Regulated Broker?

Scandinavian Capital Markets is registered Financial Institution with the Swedish Financial Supervisory Authority. The Finansinspektionen Registration Number is 556863-5972.

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). The Licence Number is IFSC/60/191/TS/17. The Registration Number is 105 968.

QUICK SUMMARY

  • Minimum Deposit: 3,000 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.