DEFINITION of 'Managed Forex Accounts'
A type of forex account in which a money manager trades the account on a client's behalf for a fee. Managed forex accounts are similar to hiring an investment advisor to manage a traditional investment account of equities and bonds. Returns and fees between managed accounts can vary greatly; therefore, it is important to research your options thoroughly before assigning your account to a professional manager.
BREAKING DOWN 'Managed Forex Accounts'
Some managed forex accounts involve the trader "teaching" the manager what signals to look for and how to interpret them. It is thought that this form of managed forex takes the psychology out of managing personal wins and losses.
Another managed forex account type uses the brokerage firm's own proprietary trading systems. However, it is important to note that there is no such thing as the "holy grail" of trading systems. If a system was a perfect money maker, the seller will not want to share it. This is why big financial firms keep their "black box" trading programs under lock and key.