Forex Account Management became a lot more popular in the 2020s. This is a type of Forex Fund Management wherein the fund of an investor -- who may be an individual or an entity -- is traded in their own account, which is known also as a Managed Forex Account. This type of fund management earlier was more popular in form of pooled funds in an account of a Forex Fund Manager or a Hedge fund based on Forex trading or a Super Managed Fund (a type of Forex fund firm which pools the investments of its members). Although pooled investment firms are still quite popular, independent Forex Account Management has become the first choice of well informed forex traders who either doesn't have time to trade or who are willing to diversify some of their funds under management of other forex traders. Even pooled investment firms diversify their investment by handing over their firm's forex accounts to various Forex Account/Fund Managers. Here are top 4 hubs of Forex Account or Fund Managers:
Having been founded in 2010, it completed 12 years in the field of Forex Account or Fund Management. Experience matters in every field.
In the journey of 12 years, it has managed and is managing its pooled funds, individuals' accounts and many corporate accounts. Having managed multi-millions dollars, its management has a firm trading psychology which is not impacted by big or small funds or source of funds.
As mentioned in About section, the KC hires traders from all over the world; so it's not just a partnership of few traders, rather it is a manager of Forex Account Managers, Fund Managers and traders. The four other hubs which I am gonna mention below are also a few of many sources from where the KC hires traders.
It doesn't accept any investment or account size less than $1000.
Forex Factory (FF)
The FF is a social community of Forex traders, which primarily focuses on Forex news and articles. Moreover, it provides social forums to members. It has a Forex Trading Statement publishing system knows a Trade Explorer on which traders publish their statement. You can view their trading stats to assess their trading performance.
Being a global forex social community, it has various types of traders from all over the world.
It has a robust system to prevent spammer, so you will have more chances to find genuine trader.
Traders use the FF for Forex news, so you can assume that they use news/fundamental/economic analysis in their trading.
It's free to register and get in touch with traders on the Trade Explorer Leaderboard and hire one to trade on your behalf based on mutual agreement.
Since this is a news site and social community, it doesn't impose any specific risk management requirements on traders to publish their trading statement. So, there are many beginners with tiny accounts and short term profits on its Trade Explorer.
Since this is not a fund management company, it doesn't take responsibility if you make loss following any trader on the Trade Explorer Leaderboard.
Since this is not a Trade Copy facilitator, it doesn't give you any system to directly copy trades from the Traders' Leaderboard. You have to communicate with the trader and do your own mutual arrangement.
Every day, many new brokers start up in a some tiny island or simply on the internet with little or no regulation. Experienced traders are seldom interested in such brokers. So, these brokers themselves run a second wing as Trade Copy Facilitator or Fund Manager to attract the clients, for which they publish amazing results on the FF which actually is a result of price manipulation or unrealistic price. FF Trade Explorer doesn't filter out such results. Anyone with a MetaTrader broker account & investor password can publish results on the FF even if the broker is not regulated and the result is fabricated/generated by price manipulation done by the broker itself.
The FF makes money from its ads. So, it needs more visitors who could engage with its content. So, it doesn't care about quality of analysts or traders, which is why it has become a hub of unsuccessful self proclaimed analysts despite having a few good traders and analysts.
Because of a large no. of novice traders on the Leaderboard, many of the top traders who appeared a few months ago disappeared now, and the many of them who are appearing now will disappear after a few weeks because of losses. It's rare to find a consistently profitable trader; so it takes a lot of patience and a lot of communication with a huge number of traders to find out one rare consistently profitable trader.
Forex Peace Army (FPA)
The FPA is one of the most popular social communities of Forex traders. It aims to help traders avoid scam brokers. It has an excellent review system for brokers, which eliminates fake or spam reviews and ratings. Moreover, it has a Strategies section where Forex traders, EA sellers, etc. publish their statements.
Since it has a review & rating system, you can choose a good trader not only based on his trading result, but also based on clients' feedback which help understand customer service and genuineness of performance.
It has only one publishing system which is based on fetching whole history of an account using an investor password.
The traders in this community can be slightly better than those of the FF because they need at least a $500 real account and their company/organization's website in order to publish their results.
Unlike the FF, the FPA succeeds to figure out if there are fake profitable results generated by price manipulation done by brokers. For example, it had once unpublished and removed all statements of all accounts of ACY Securities (formerly known as SynergyFX).
Most traders, including the ones in Managed Forex Account and Signal sections are using EAs. Almost all EAs fail after some weeks/days; nobody made any significant money in the world with an EA yet in my 12 years of professional career.
Like FF, the FPA also doesn't make any money from Traders, Account managers or EA sellers; neither does it take any responsibility of your loss with any of the EA or Forex Account Manager / Fund Manager.
Although it lately figures out the fake statements generated by price manipulation done by brokers, it takes many weeks. There is no automatic system that can prevent their statement publishing.
The MFB got popular mainly as a Forex trading statement publishing platform, which later brought auto trading strategies and systems.
It doesn't publish accounts with Martingale strategies. However, GRID strategies or/and systems are published.
It doesn't publish accounts with more than 50% drawdown. So, you can assume that you will not lose more than 50% with any system or/and strategy.
Although there are many demo trading and EA/Robot back-testing results, there are some good results as well which are based on manual trading on live accounts.
Unlike the FF and the FPA, the MFB makes money on trades as the brokers share revenue with the MFB; so it tries its best to showcase good trading systems or/and strategies.
Most of the systems or/and strategies are using Robot/EAs; and hence they are doomed to fail any time soon.
Many published results are based on Demo Account trading.
Many published results or trading performances are based on back-testing of EAs/Robot, AKA hypothetical performance; so they will not perform similarly in live account real-time trading. On the bottom of the System page of the MFB, the MFB itself clearly explains it in these words: HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.
Just like the FF, the MFB can also not filter out fake results fabricated or generated by price manipulation done by brokers.
The MFB uses a lot of complex terms in statistics like Absolute gain as well as Gain, Sharpe Ratio, Standard Deviation, Z-Score (probability), etc., which may be appreciated by a financial expert; but the same terms confuse common investors, including even those institutional investors who have a million dollars in their Super Funds and/or Forex Hedge Funds. Most of my investors find these terms in Forex not only unnecessary but also inaccurate. For example, if a trader closes a trade of 0.99 lots by partially closing in the form of three different positions of 0.33 lots at three different price TP/SL levels; the MFB will count them as three different trades which will make Average Win/Loss, AHPR and many other statistical figures of the MFB incorrect. Nowadays, many traders enter a trade in split positions at so many different levels. Similarly may traders enter a trade as a single position, but closed it at three or four split positions at different TP levels. That's why most statistics of the MFB are inaccurate.
Analysis of Forex trading performance of a trader is as difficult as analysis of the market, which is why many investor fails even though they hire best Forex Account Managers / Fund Managers according to their analysis. What makes the KC stand out is its risk management. For example, if you lose some money with one trader's strategy, the management of KC takes liability to recover it by using its another trader's strategy without any fees; whereas losses are not recovered for free anywhere else, neither in any company that enlists and facilitates PAMM mangers nor in any trader's hub or community. The KC doesn't depend only just on these few hubs of traders; it explores more than hundreds of such hubs and communities; moreover, it stays in touch with its partner brokers to hire the best traders or/and account managers behind the best performing accounts. The representatives of KC demonstrate the total risk and profitability in very simple terms because a common investor just needs to know two things, max risk and return on investment.