Managed accounts are a classical approach to MAM and PAMM scheme.
Unlike installing funds to the trading manager over MT4 platform, managed accounts transfer the control of the client’s trading account.
To enter into the managed accounts scheme, the two parties (i.e. the trading manager and the client) must enter into a mutual agreement.
- They need to sign a contract that outlines the investment amounts to be financed, the period of investment, and the risks involved.
- To provide the trading manager with the access to the client’s account, they have to sign a limited power of attorney (POA).
Once agreements are in force, trading managers will receive the controls to trade on behalf of the client.
Benefits with TP Global FX Managed Accounts:
- Customized investment strategies for each individual investor
- Trading manager does not have the control to client’s capital, and may not deposit and withdraw funds
- No negative balances. Based on the pre-defined agreement, the managed account has permitted maximum drawdown.