How to Invest in Forex Without Trading In the UK

What are Forex Managed Accounts?

Managed accounts services are excellent for passive investing with the leading Forex brokers of 2023. Essentially, a managed Forex account is a type of currency trading account that a professional trader or money management team will use to make trades on your behalf. Such accounts charge a fee for this service, but that fee is often quite negligible and can definitely be worth it.

A managed Forex account can take the burden of day trading off the plate of passive investors and less active traders as such accounts provide access to different markets and assets beyond stocks and bonds. Nevertheless, any trading account should be considered high risk as the objective is usually to better optimize investment capital and take advantage of more frequent opportunities to make money in the markets. This is where utilizing the benefit of a more experienced trader or trading team to work on your behalf can pay off.

Because there is a large amount of online free and paid information about learning how to trade and do it yourself, most traders do not consider workable alternatives. They also frequently fail to assess the degree of difficulty and time commitment required to learn how to trade themselves. By using a managed Forex account investors can continue to receive revenue from their company while their money is working for them generating extra income. Think of it like owning a boat. How many ex-boat owners can you find that will recommend it as a good idea? Maybe renting a boat would work fine.

Types of Forex Investment Accounts

The main types of managed forex accounts that are offered by brokers include Forex copy trading, PAMM accounts, MAM accounts, advisory services, managed portfolios, and some other rarer types of accounts. It is worth noting that some of these “types” of managed accounts are technically not managed accounts at all, but are very closely related, as they utilize the expertise of more experienced market participants.

Forex Copy Trading

Copy trading is a form of investment where traders or investors automatically copy the trades made by another trader, also known as a signal provider. The copying process is done through a trading platform that allows traders to monitor the performance of the signal provider and copy their trades in real-time mode.

This type of trading is often used by novice traders who lack experience or knowledge in the financial markets but want to participate in trading activities. By copying successful traders, they can potentially achieve similar returns without having to do extensive research or analysis.

Copy trading managed accounts is a form of copy trading where investors allow a professional money manager to manage their trading accounts on their behalf. In this case, investors transfer their funds to a managed account, which is then managed by a professional trader or an investment firm who is responsible for making trading decisions and executing trades.

A professional money manager is usually experienced in the financial markets and uses their expertise to make informed decisions. The idea behind this is that by delegating the responsibility to a professional, investors can benefit from the expertise of the money manager and potentially achieve better returns than if they were to manage the account themselves.

PAMM/MAM Accounts

PAMM (Percentage Allocation Management Module) is a type of an investment service offered by some brokers that allows multiple investors to pool their funds together and have them managed by a professional trader or money manager.

Under a PAMM account, the professional trader or money manager trades on behalf of the investors and allocates the profits and losses based on the percentage of the investment each investor has contributed to the account. The broker typically charges a management fee and/or performance fee for their services.

Investors in a PAMM account do not need to have trading experience, as the trading decisions are made by the professional trader or money manager. However, investors must carefully evaluate the performance and track record of the money manager, as the performance of the PAMM account will be directly impacted by the trader's abilities and decisions.

Advisory services

Advisory services can be a part of a managed Forex account, but such services are very different from simply having an account. With a basic managed Forex account, you can briefly consult with your money manager and leave the entirety of trading to them. With advisory services, you’ll be able to meet with a financial advisor. That financial advisor will provide holistic portfolio recommendations to help you build your wealth. Such advisors will offer consultations that detail strategies, best practices, and market recommendations. When you open a managed account, you might be able to receive advisory services for free.

Managed Portfolio

A managed portfolio is an investment portfolio that a professional Forex trader or financial expert will make investments through on behalf of a client. Managed portfolios are pretty much synonymous with managed accounts, though it is worth noting that managed portfolios tend to include a diverse range of investments that go beyond just forex trading. Typically, a client will pay a financial advisor a flat fee or monthly fee to manage their account and make trading choices, though this fee will be based on the size of the portfolio itself.

Generally, a 1% to 2% annual fee applies.The manager will usually take a portfolio allocation approach with a focus on more traditional assets, such as stocks, bonds, ETFs, and mutual funds.

Other Services

Managed Forex accounts can include individual accounts, which are solo accounts based on an individual client’s financial goals and requests. Such accounts typically require a minimum deposit of around $10,000 to get started. Pooled accounts are also quite popular among newbie investors. Pooled accounts deal with a number of different investors in one single account. A client can open an account that is managed by one investor, who oversees the trading decisions of the entire account. Usually, the minimum deposit for such an account is a lot lower at about $1,000 to $2,000 to get started.

How much can I earn?

Your profit depends on many factors, such as the type of account, the skill of the manager, and possible management fees. A successful manager can earn 30-50% per month. However, Forex investing and trading is a risky way to earn money and any investment account cannot guarantee a return.

What are typical minimum investments?

The minimum investment amount is usually between $100 and $500. But there are websites where you can start with as little as $10.

What are the best managed accounts for beginners?

The best ways to earn for beginners are copy trading and PAMM accounts. Experts in Traders Union will explain to you their advantages for those who have just started investing.

Advantages of copy trading

Advantages of PAMM accounts