Editor’s Verdict
Overview
Review
Headquarters | United Kingdom |
|---|---|
Year Established | 2009 |
Trading Platform(s) | MetaTrader 4 |
On a routine check of this brokerage in February 2018 we found the company to be closed and the website to be unavailable. As there are inherent risks of using a money manager for Forex trading, we encourage traders to consider alternate options such as social trading platforms or autotraders that may be more reliable.
Between understanding technical market fluctuations and determining how politics will affect the currency market to figuring out how to manage leverage and when to enter and exit for maximal profits, the Forex markets can be extremely confusing, and there can be just as much potential for loss as there is for gain. For this reason alone, many potential traders prefer to employ the services of an account manager, rather than taking the risk into their own hands. Other potential traders find that they simply don’t have time to monitor the markets and to place the trades at the optimal time, and that it would be much simpler to have an expert who can trade on their behalf. It is precisely this service that Forex Managed provides to traders worldwide.
Unlike other managed account providers that play on a universal desire for money to lure clients with unproven promises of results, Forex Managed offers promising results that speak for themselves. The company offers external audits of its services by Gregory Scott International, a Chicago-based audit firm, as well as clear explanations of how the accounts are managed.
How Forex Managed Works
We discovered during this Forex Managed review that the company uses the multi-account-manager (MAM) service via MetaTrader 4 to manage multiple accounts simultaneously, so that each client’s trade is executed or closed exactly on schedule. Forex Managed uses only regulated non-dealing desk brokers or ECN brokers to provide clients with reliable Forex trading services.
For their flagship managed account, Premium FX clients are required to deposit a minimum of $10,000 into their Forex account, and to sign a limited power of attorney (LPOA) which gives their specific money manager the right to manage their account on the client’s behalf. Each Forex Managed client receives his or her own money manager so that trading patterns should be consistent and that the client can rest assured they will be under a single professional’s care.
Forex Managed profits by taking a 35% commission on all winnings. In other words, clients pay for services only if their account turns a profit on any given month.
All Forex Managed clients will have access to view their own accounts via the MT4 platform so that they can keep track of the 50-100 trades that are placed in an average month. This can be especially beneficial to those who want to watch the work of an expert so that they can better learn about how the markets work. If the client wishes to stop their services at any given time, they need only to revoke their limited power of attorney and the Forex account will return to their complete control, so that they can continue trading independently or withdraw their funds. When the LPOA is in effect clients of Forex Managed will not be able to trade on their own accounts. This may sound slightly restrictive, but it can also be a tremendous benefit for novice traders who may otherwise wipe out their accounts accidentally.
Account Types
In addition to their flagship Premium FX managed account, which can be opened with $10,000, Forex Managed also offers three other account types to meet the needs of traders with different strategic preferences. Each of these other account types has the same 35% commission, but requires a minimum deposit of $25,000.
Premium FX account holders will have their funds placed with Vida Markets, a Forex brokerage regulated in New Zealand by the FMA. All other accounts are held with One Financial Markets, a Forex broker regulated by the UK’s FSA.
Forex Managed’s other account options include:
McLaren Managed Account – this type of account relies upon swing trading principles and day trading strategies to locate tangible profits in the Forex market.
Precision Managed Account – this managed Forex account type is ideal for clients who are risk-averse and are looking for the most calculated entries and take profits in the market.
Vega Managed Account – traders interested in combining a mix of strategies will appreciate the diverse strategies used in this Forex Managed account.
All of the account types listed above are also subject to the strict audit requirements that Forex Managed submits to.
Results
Forex Managed lists their monthly result directly on their website, to provide the utmost in transparency for clients and potential clients. A quick look at the charts will show that the gross rate of return fluctuates between 0.51% and 12.95%, which may sound like a wide fluctuation, but is actually a healthy change due to the volatile nature of the market. We were both surprised and impressed to see that there were no months since the company’s inception in 2009 in which there was a negative outcome. It should be noted, however, that the results listed do not take into account the management fee.
Conclusions
Throughout this Forex Managed review we were impressed by the breadth of information provided by the company as well as the team’s noted accessibility via email and chat, though it should be noted that chat is not available 24/7. The company also has a phone number for its Canadian office, which can be reached during Canadian business hours.
Opening an account with Forex Managed definitely seems like a useful option for those looking to profit from the Forex market but who aren’t familiar enough with the markets or who don’t have time to trade on their own. While all traders would ideally like to pocket all of their profits, it stands to reason that a professional account manager will profit more than a novice or even intermediate trader, and that Forex Managed clients should still see considerable profits over time, even after the commissions are taken. Clients of Forex Managed can close their accounts at any time (though it takes about 1 day to undo the LPOA), and there is no minimum time required to remain a client. This lack of commitment also made us feel comfortable with the service. Overall, Forex Managed offers excellent results, a responsive team and professional services that are definitely worth exploring.
