In this, the Investor provides a trading account which gets handled by a professional Asset Manager who trades on behalf of a client. Investors give control of the capital to the Asset Manager and pay fees typically structured as performance-based (usually a split of profits). This setup provides retail investors access to expert-level trading strategies and tight risk controls in the high-leverage forex market.
Investors create a Trading Account with a Broker and deposits capital into the account. And then grants the Asset Manager the limited power of attorney to execute trades on his behalf.
Investors can monitor performance through broker dashboards and typically access transparent reporting. Managers implement risk tools such as stop-losses, defined position sizes, and portfolio diversification. If the manager achieves profit, they receive their agreed fee, while investors retain the remainder. If losses occur, neither party earns fees, though investors bear the account drawdown which has been agreed in the terms and conditions, if any.
Managed forex accounts offer a blend of convenience and access to expertise. It’s ideal for investors who want trading exposure without active involvement, while still retaining visibility into performance.
Forex managed accounts appeal to investors who want exposure to the forex market without the pressure of daily trading. While returns are never guaranteed, this setup offers several structural benefits:
Managed accounts give investors access to seasoned traders who use structured strategies, risk controls, and years of experience. These managers often rely on tested systems and real-time market data, making them more capable of navigating volatility than novice retail traders.