Summary: Forex Trading Account Managers 

Forex trading account managers handle trading on behalf of clients, aiming to generate profits without requiring the client’s active involvement. While potentially beneficial, risks include lack of regulation, high fees (20%-30% of profits), and no client consultation on trades. Trusted prop firms like Maven Trading often prohibit the use of account managers. 

Key Points: 

• What They Are: Professionals who trade Forex on your behalf. 
• Pros: Hands-off trading for potential profit. 
• Cons: Lack of regulation, high fees and reduced profits, and limited control over trade decisions. 
• Prop Firms: Legitimate firms like Maven Trading require traders to manage their accounts independently. 

Whether you’re new to trading Forex or have plenty of experience, it only makes sense to consider all your options. The goal of trading is getting paid, and there are definitely ways to do better analysis, find great opportunities, and come through on the winning end more often. 

We won’t knock you for looking for an edge in Forex trading. Every good trader does it. But it’s also crucial to understand what you can and can’t do in Forex trading, both in general and when prop trading specifically. 

So, let’s take a look at a Forex trading service that often promises, or at least implies, that it will give you a big edge in trading: Forex trading account managers. 

What are Forex Trading Account Managers?

Whether you hear them called managed Forex accounts or Forex account managers, the basic idea is the same. Forex trading account managers are pros who you pay to handle trading for you. The idea is that they use their deep market knowledge and experience to trade with your money, bringing better results than a trader could expect on their own. 

Investopedia points out that managed accounts are often used by people who aren’t quite traders. They have the money, they like the market, and they (hopefully) understand the risks — but they don’t want to do the actual trading themselves.  

Whether the time commitment scares them off or they just don’t want to learn the market and follow it closely, they’re happy to put their money into a managed account for Forex and let a professional trader handle the actual trading. 

Forex account managers themselves are ideally experienced pros who know how to work in the Forex market and deliver results to their clients. And don’t get us wrong, some of them live up to those expectations. But some don’t. 

The truth is that Forex account managers aren’t always regulated or monitored. They may not need to go through a licensing process or prove to a government agency or professional group that they have experience and can do a consistently good job with their clients’ money. 

In other words, there isn’t much gatekeeping around Forex trading account managers. In many situations, anyone can claim to be one and it can be hard to find a qualified one.  

At the same time, there really are some pros out there — people who know the market and how to make good trades. Those pros offer their services to people who want a taste of the Forex action without making trades themselves. 

Pros and Cons of Forex Trading Account Managers

If you can find a qualified and experienced Forex account manager, the idea seems pretty good, right? Give an expert your money, let them trade and manage the risk, and reap the benefits. 

The truth is that there are pros and cons to Forex account managers.  

Pros of Forex Trading Account Managers

The major upside is that, if you put in the money and sign off on an account manager using it, it’s possible to earn a profit without having to actively work in the Forex market. 

It’s a singular pro. But when things go well, it’s a pretty powerful one, too. 

Cons of Forex Trading Account Managers

We already covered a big possible downside: These managers often aren’t regulated and it can be difficult to find a qualified one. That means it takes time and effort to find a Forex trading account manager you can really trust. That’s time and effort that could go into learning the market yourself and building a trading strategy where you’re in control. 

Another major con is the price tag attached to Forex account managers. These pros don’t make trades for clients out of the goodness of their hearts (and we shouldn’t expect them to — it’s a business, after all).  

Investopedia points out that Forex trading account managers tend to earn 20%-30% of any profits made for themselves. The good news is that most managers don’t take a fee simply for managing your account. The bad news is that any winning trades will lose a lot of juice because of the fees. The losses, of course, will still be all yours to deal with. 

Here’s another downside to keep in mind. Forex account managers generally don’t consult clients about their trades. All traders need to act fast to act on opportunities, and getting the go-ahead from their clients would eat up their working hours, delay, action and lead to falling behind on timing trades. 

Those are all good reasons for managers to have discretionary power over trades. But, when a Forex trading account manager doesn’t have a fiduciary duty to act in your best interest, trust will always be an issue. They’re not the ones losing money out of their own pockets if their strategies get too aggressive or they make a series of bad trades. 

Here’s one more con that’s on a more practical level than most of the other pros and cons we’ve pointed out so far. Legit prop firms, including Maven Trading, don’t generally allow their traders to use Forex trading account managers. 

Prop trading through proven firms has plenty of benefits, like reducing financial risk by limiting losses to the fixed and pre-purchased cost of an account, as opposed to the full debt incurred by losing trades. Low spreads, instant execution, and many other benefits come along with a Maven Trading account. 

But at Maven Trading, like other legit prop firms, we are looking for skilled traders who know the market and want to focus on trading. Our business model (a model that paid out $1 million to our traders in 2023 alone) doesn’t have room for third-party relationships and outside account managers. It’s not just us, either — you’ll be hard-pressed to find any legit prop firm that lets its traders work with outside managers. 

Make Your Path with Maven Trading

Maven Trading is here to give traders a chance to earn real profits with successful trades without putting their own capital on the line with each and every trade. Pick your challenge and get started today!