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Managed Trading Account

Managed Trading Accounts have emerged as a compelling option for investors seeking a more hands-off approach to trading.

The distinctive features, of the Managed Accounts suitable for different traders, and the pros and cons associated with managed forex accounts.

Features of the Managed Trading Account

Professional Management: The standout feature of a Managed Trading Account is that it is overseen by a professional trader or a team of experienced fund managers. These professionals make trading decisions on behalf of the account holder.

Diversification: Managed accounts often aim for portfolio diversification, spreading investments across various asset classes, such as forex, stocks, commodities, and more. This diversification seeks to reduce risk and enhance overall portfolio stability.

Risk Management: Professional fund managers implement sophisticated risk management strategies to protect the invested capital. This includes setting stop-loss levels, position sizing, and monitoring market conditions for potential risks.

Transparency: Reputable managed account providers offer transparency through regular reporting. Account holders can often access detailed reports showcasing the performance, trades executed, and the overall health of their investment.

Accessibility: Managed Trading Accounts are designed to be accessible for investors with varying levels of experience. This accessibility allows both novice and experienced investors to benefit from professional trading expertise.

Open a Managed Trading Account with our recommended Brokers

Choosing the correct broker for trading is critical to your trading journey, there are many factors you should take into consideration specifically for ECN trading before settling with the broker you may be trading with or when switching to a new choice broker which is best suited to your needs and factors which are important to you personally.

Get the list of the best Managed Trading Account Brokers to trade Forex, Stocks, Indices, and Commodities – Instant ECN Execution With ECN Brokers

Broker

Regulators

Max. Leverage

Spreads

Trading Acc.

Instruments

Connect

FP Markets 

ASIC, CySEC

Up to 1:500*

From 0.0 pips

Broker Type:
STP | ECN | DMA 2 Accounts

Forex, Indices,
Commodities, 
Metals, Energies,
Shares, ETFs Crypto, Bonds

Eightcap

ASIC, VFSC

 Up to 1:500 

From 0.0 pips

Broker Type:
STP | ECN
 2 Accounts

Forex, Indices,
Commodities, 
Shares, Crypto

IC Markets

AFSL, ASIC, CySEC, FSA

Up to 1:500

From 0 pips

Broker Type:
ECN
6 Accounts

Forex, Indices,
Commodities, 
Metals, Energies,
Shares, Crypto

Axi 


ASIC, FCA, DFSA, FSC

Up to 1:500

From 0 - 0.4 pips

Broker Type:
STP | ECN
 3 Accounts

Forex, Indices,
Commodities, 
Metals, Energies,
Shares, Crypto

InstaForex

BVI FSC

Up to 1:1000

From 0 pips

Broker Type:
MM | Binary
 6 Accounts

Forex, Indices,
Commodities,
Metals, Energies, Shares, Crypto

NordFX

VFSC

Up to 1:1000

Floating spread from 0.9 pips

Broker Type:
STP | ECN
4 Accounts

Forex, Indices,
Commodities, 
Shares, Crypto

FXOpen 

ASIC, FCA

Up to 1:500*

Floating spread from 0 pips

Broker Type:
STP | ECN
 6 Accounts

Forex, Indices,
Commodities, 

Metals, Energies,

Shares, Crypto

Vantagemarkets

CIMA, ASIC, FCA

Up to 1:500*

From 0.4 pips

Broker Type:
STP | ECN
4 Accounts

Forex, Indices,
Commodities, 

Metals, Energies,

Shares, Crypto

RoboForex

FSC

Up to 1:2000

From 0.0 pips

Broker Type:
MM | STP | ECN
5 Accounts

Forex, Indices,
Commodities, 
Metals, Energies,
ETFs, Shares, Crypto

Fxview

CySEC, FSCA  and FSC

Up to 1:500

From 0.0 pips

Broker Type:
Raw | Zero | Premium
3 Accounts

Forex, Indices,
Commodities, 
Metals, Energies,
Shares, Crypto

FBS

CySEC, FSC, FSCA, ASIC

Up to 1:3000 

From 1 pip

Broker Type:
STP | ECN
 6 Accounts

Forex, Indices,
Commodities, 
Metals, Energies,
Shares, Crypto

Blackbull
Markets

FMA, FSA

Up to 1:500

From 0.0 pips

Broker Type:
STP | ECN

6 Accounts

Forex, Indices,
Commodities, 
Metals, Energies,
Shares, Crypto

  Review  


Blueberry Markets

ASIC, SCB

Up to 1:500

From 0.0 pips

Broker Type:
ECN | MM
2 Accounts 

Forex, Indices,
Commodities,
Shares, Crypto

  Review  


VALUTRADES

FCA, VFSC
CIMA, ASIC

Up to 1:500

From 0.0 pips

Broker Type:
ECN | MM
4 Accounts 

Forex, Indices,
Commodities,
Shares, Crypto

  Review  


FXGT

SFSA, FSCA, CySec*

Up to 1:500

From 0.0 pips

Broker Type:
STP | ECN

6 Accounts

Forex, Indices,
Commodities,
Shares, Crypto

  Review  


SVGFSA, FSC, FSA

Up to 1:500

From 0.0 pips

Broker Type:

STP | ECN 

3 Accounts

Forex, Indices,
Commodities,
Shares, Crypto

Exness

FCA, CySEC, FSA, CBCS, FSC, FSCA

Up to 1:3000

From 0.4 pip

Broker Type:
STP | ECN
 6 Accounts

Forex, Indices,
Commodities, 
Metals, Energies,
Shares, Crypto

  Review  


FINMA 

Up to 1:100

From 0.1 pip

Broker Type:
STP | ECN
 7 Accounts

Forex, Indices,
Commodities, 
Metals, Energies,
Shares, Crypto

What assets Can I trade on a Managed Trading Account?

The assets you can trade in a trading account can vary depending on the specific broker and the financial markets they offer access to.
However, you typically have access to a broad range of financial instruments across various asset classes.
Here are some common assets that you can trade in a trading account:

See also  PAMM Trading Accounts

Forex CFDs (Currency Pairs):

Overview: Forex CFDs involve trading currency pairs in the foreign exchange market.
How it Works: Traders speculate on the exchange rate between two currencies. The value of one currency is quoted against the other.
Popular Pairs: Examples include EUR/USD (Euro/US Dollar), GBP/JPY (British Pound/Japanese Yen), and USD/JPY (US Dollar/Japanese Yen).
Liquidity: Forex CFDs are highly liquid, allowing for seamless entry and exit from positions.

Shares CFDs (Stocks):

Overview: Shares CFDs enable traders to speculate on the price movements of individual stocks without owning the underlying shares.
How it Works: Traders can go long (buy) or short (sell) on the price of a particular stock.
Diversification: Offers the opportunity to diversify a trading portfolio by accessing various companies and sectors.
Dividends: Depending on the broker, traders may or may not receive dividends on CFD positions.

Metals CFDs (Precious Metals):

Overview: Metals CFDs involve trading contracts based on the prices of precious metals.
Popular Metals: Gold and silver are the most common, but other metals like platinum and palladium can also be traded.
Hedging and Safe-Haven: Precious metals are often considered safe-haven assets and are used for hedging against inflation or economic uncertainties.

Commodities CFDs:

Overview: Commodities CFDs represent contracts for difference on various physical commodities.
Types: Can include energy commodities (oil, natural gas), agricultural commodities (corn, wheat), and others (copper, sugar).
Supply and Demand Dynamics: Prices are influenced by global supply and demand dynamics, geopolitical events, and weather conditions.

Indices CFDs:

Overview: Indices CFDs allow traders to speculate on the price movements of stock market indices.
Popular Indices: Examples include the S&P 500, Dow Jones Industrial Average, FTSE 100, and DAX.
Market Exposure: Provides exposure to the overall performance of a basket of stocks within a particular market.

Crypto CFDs (Cryptocurrencies):

Overview: Crypto CFDs involve trading contracts based on the price movements of cryptocurrencies.
Popular Cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), and others.
Leverage and Volatility: Crypto CFDs often come with high volatility, and traders can use leverage to amplify both gains and losses.

ETF CFDs (Exchange-Traded Funds):

Overview: ETF CFDs represent contracts based on the price movements of exchange-traded funds.
Diversification: Traders can gain exposure to a diversified portfolio of assets through a single ETF CFD.
Sector and Theme Specific: ETFs can focus on specific sectors (technology, healthcare) or investment themes (green energy, cybersecurity).

See also  Micro Forex Trading Account

Important Considerations for CFD Trading:

Leverage: CFDs often allow traders to use leverage, which can magnify both profits and losses.

Costs: Traders may incur spreads, overnight financing fees, and other costs associated with CFD trading.

Risk Management: Due to the leverage and volatility involved, effective risk management strategies are crucial for CFD traders.

Before engaging in CFD trading, it’s essential for traders to understand the specific features, risks, and costs associated with each asset class and to choose a reputable broker that offers transparent and fair trading conditions.

Additionally, staying informed about market developments and conducting thorough analyses is key to successful CFD trading

Who is a Managed Trading Account Suited for?

Managed Trading Accounts are well-suited for several categories of investors, including:

Busy Professionals: Individuals with demanding schedules or those who lack the time to actively manage their investments can benefit from a Managed Trading Account, as it requires minimal day-to-day involvement.

Novice Investors: Beginners who are new to the intricacies of trading may find managed accounts appealing, as they can leverage the expertise of seasoned professionals without having to master the complexities of the financial markets.

Risk-Averse Investors: Investors who prioritize risk management and want their portfolios to be overseen by professionals with a track record of sound risk mitigation strategies.

Professional Expertise: The primary advantage of a Managed Trading Account is the access to professional traders or fund managers who bring their expertise to the table. This can potentially lead to more informed investment decisions.

Diversification: Managed accounts often focus on diversifying portfolios across different assets, providing a more balanced and risk-adjusted approach to investing.

Time-Saving: Investors with limited time or those who prefer a hands-off approach benefit from the time-saving aspect of a Managed Trading Account, as they delegate the day-to-day decision-making to professionals.

Risk Management: Professional management typically includes robust risk management strategies, helping to safeguard the invested capital from significant losses.

Transparency: Reputable managed account providers offer regular updates and reports, providing transparency into the performance and activities of the account.

Management Fees: Managed accounts often come with management fees, which can eat into the overall returns. Investors need to consider these costs when evaluating the potential benefits.

Limited Control: Investors relinquish control over day-to-day trading decisions, which may be a drawback for those who prefer a hands-on approach or want to be actively involved in their investment strategies.

Market Risks: While professional managers aim to mitigate risks, they cannot eliminate them entirely. Market fluctuations and unforeseen events can still impact the performance of a Managed Trading Account.

Quality of Managers: The success of a managed account heavily depends on the skill and integrity of the fund manager. If the manager lacks experience or engages in unethical practices, it can negatively affect the investor’s capital.

Recommended Brokers for Managed Trading Account

Take the guesswork out of choosing a Forex broker by selecting one of our recommended options. I have thoroughly vetted each broker to ensure they meet the highest standards of security, reliability, and user experience.
Don’t miss out on the opportunity to trade with confidence and success.
Choose one of our recommended Forex brokers today!

FXOpen

Since: 2005

Offices:

UK, Australia, Cyprus, Nevis 

  FXOpen

Minimum Deposit:$15
Account currency:GBP, USD, EUR
Leverage:Up to 1:500
Accounts:Micro, STP, ECN, Crypto, Demo
Instruments Offered:Forex, Indices, Commodities, Metals, Energies, Shares, Cryptocurrencies
Trading Platform: MT4,   MT5*, TickTrader*  Free Forex VPS Hosting
Regulation:ASIC, FCA
SpreadsMicro: Floating Spread
STP: Tight Spreads
ECN: Raw Spreads
Crypto: Tight Spreads
Visit BrokerBroker Review

InstaForex

Since: 2007

Offices:

 British Virgin Isles

InstaForex

Minimum Deposit:From $1
Account currency:EUR, USD
Leverage:From 1:1 up to 1:1000
Accounts:Demo, Insta.Standard, Insta.Eurica, Cent.Standard, Cent.Eurica, PAMM
Instruments Offered:
Forex, Indices, Futures, Options, Commodities, Metals, Energies, Shares, Cryptocurrencies
Trading Platform:МТ4, МТ5, InstaTrader, WebTrader, Multiterminal, Mobile Trading, VPS hosting
Regulation:BVI FSC 
Spreads:0 pips: Insta.Eurica and Cent.Eurica;
3–7 pips: Insta.Standard and Cent.Standard
Visit BrokerBroker Review

EightCap

Since: 2009

Offices:

Australia, Vanuatu

EIGHTCAP

Minimum Deposit:$100
Account currency:AUD, USD, GBP, NZD, SGD, EUR
Leverage:1:30 for Australian clients
1:500 for Non-AU clients
Accounts:Standard Account, Raw Account
Instruments Offered:
Forex, Indices, Commodities, Metals, Energies, Shares, Cryptocurrencies
Trading Platform:MT4, MT5, Mobile, VPS hosting
Regulation:ASIC, VFSC
Spreads:From 0.0 pips
Visit BrokerBroker Review

IC Markets

Since: 2007

Offices:

Australia, Cyprus, Seychelles

IC MARKETS

Minimum Deposit:200 US dollars
Account currency:USD, AUD, GBP, CHF, JPY, NZD, SGD, CAD, HKD, BTC
Leverage:From 1:1 to 1:500
Accounts:Demo, Raw Spread, cTrader, Standard, Islamic, PAMM
Instruments Offered:Forex, Indices, Commodities, Metals, Energies, Shares, Bonds Cryptocurrencies
Trading Platform:cTrader, MT4, MT5, WebTrader, VPS hosting
Regulation:AFSL, ASIC, CySEC, FSA
SpreadsFrom 0
Visit BrokerBroker Review

RoboForex

Since: 2009

Offices:

Belize

RoboForex

Minimum Deposit:$10
Account currency:USD, EUR, and GOLD
Leverage:1:2000 
Accounts:ECN, Pro, Prime, ProCent, R Stocks Trader
Instruments Offered:Forex, Indices, Commodities, Metals, Energies, Shares, Cryptocurrencies, Futures
Trading Platform:MT4, MT5, WebTrader, Free VPS-Server, R StocksTrader
Regulation:FSC 
Spreads:From 0.0 pips
Visit BrokerBroker Review

Conclusion

A Managed Trading Account represents a viable option for investors seeking a professionally managed and diversified approach to their portfolios. While it offers convenience and access to expert trading strategies, investors must carefully consider the associated fees and potential limitations on control.

Choosing a reputable and transparent managed account provider is crucial for a positive investment experience. Ultimately, the decision to opt for a Managed Trading Account should align with the investor’s financial goals, risk tolerance, and preference for involvement in the decision-making process.

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Cory has been a professional trader since 2005, and holds a Chartered Market Technician (CMT) designation. He has been widely published, writing for Technical Analysis of Stock & Commodities magazine, Investopedia, Forbes, Benzinga, and others.