Low minimum managed forex accounts are few and far between and is one of the things that prevent investors like yourself from investing into a fund.
There are many that require a minimum of $5,000 and $10,000 to open an account, and this is just too much money for many people, so they don’t invest.
However, I have come across this managed forex account with a low minimum of $500 to start up. A great amount for investors to start with. It means that investors can see how the account is performing, and then decide whether to deposit further funds for increased profits.
The issue here is that performance fees are higher for lower investment amounts.
See the table below.
- 35% from $500
- 30% from $1,000
- 25% from $2,000
- 20% from $5,000
- 15% from $10,000
I say it’s an issue but it’s not really because many forex managed account providers charge a standard 35% performance fee for all starting amounts. Some charge 50% and some charge 25%.
15% for a $10,000 startup amount is like gold dust. I have never seen this before, apart from this same trader a few years ago.
If you are looking for a low minimum managed account to test the waters with, this account could be the one that you are searching for. A low minimum of $1,000 and 30% performance fee is a great starting point for example.
I find it hard to understand why forex managed account providers don’t offer funds that that have a low minimum starting amounts. To me it is a perfectly logical way forward. Admittedly, to start with, it is a lot of work for very little profit for the company, but they would have a lot more investors signing up.
The company would then prove to the investor that they can generate profits way higher that traditional ways of investment, and this would give the investor the confidence to increase their trading funds.
I have seen some signs that this is the way forex fund management is going. Once upon a time, investors needed at least $100,000 dollars to start an account. That has come down to $5,000 to $10,000 over the years.
These days, with the amount of providers around, competition is a lot higher and this is great news for future clients and low minimum forex managed accounts are now becoming more common.