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12. Offering Account Management

This is probably the most commonly attempted business model to monetize signals channels – it’s also the hardest one to make work.

There are two types of account management. The first type is when the client sends funds to the provider directly, although it’s incredibly difficult to make this work for the provider because the level of trust needs to be very high. It is often linked to scams which makes it hard for genuine account managers to stand out. 

Here’s an example of an account manager’s channel info:

Example of an account manager’s Telegram channel info

The second type of account management is when the client funds their own account and provides the access details on a trading platform like MT4/5 (but not withdrawal permissions) to the account manager.

The account manager takes a fee, normally by way of a share of profits. The manager’s trading signals channel is the way they showcase their ability and build up the credibility required for someone to part with their money or account details. 

One of the problems we see with this model is that it’s hard to develop the level of credibility required for someone to trust them and allow them to manage their money. We tend to see very low ERR rates on these channels.

Here’s an example of very low ERR in an account manager’s Telegram channel. The engagement is approximately 1%, with 12 views from 1,045 subscribers;

Example of very low ERR in an account manager’s trading signals Telegram channel.

Another problem is that the fees are normally a percentage of the profits made. Every trader has bad runs where they lose. If this happens, then the model delivers zero revenue.

The pros of account management:

  • Because the fee is a function of account size, account managers do not need a lot of accounts to earn a good living (assuming they are profitable).
  • There is no upfront fee to pay for the client.
  • It is the ultimate time saving option for a client that wants to be involved in the forex markets but doesn’t want to spend the time trading for themselves.

The cons of account management:

  • It can be very challenging trying to convince someone to part with their money or provide their account details. The level of trust needs to be exceptionally high. 
  • In most developed jurisdictions, the provider needs to be regulated to provide account management. 
  • The fee structure normally requires the account manager to be profitable.