When you open a managed forex trading account, an account manager (or a team of traders) will buy and sell currencies using your money along with the money of other investors. They have discretionary control over the funds, which means they decide what to do without consulting you first.

In a managed forex account, the account holder deposits money and allows the account manager the authority to trade on their behalf. A good understanding of how the forex market operates and the dynamics involved is very helpful in trying to identify a suitable account manager, even though the general objective of having an account manager is to prevent the owner from getting involved in trading-related decisions.