Forex Brokers Offering Managed Accounts

Percentage Allocation Management Module (PAMM) is best understood as a managed account that allows its owner to a designated "money manager" from a broker where their strategies are automatically copied onto the account holder's platform.

In other words, investors basically trust their money to these expert traders and let them trade on their behalf. The trade execution is purely up to the money manager who would make the trading decisions, based on a broader parameter requested by the investor. The result will be presented once it's available and the investor will then have to accept any profits or losses gained from the trade.

Continue Reading at PAMM Vs Copy Trading: What are the Differences?

In order to prevent yourself from getting scammed, you must know their characteristics, as follows:

• A PAMM account manager who is a scam artist would lie to their customers and offer them unachievable levels of profit.
• A PAMM account manager who is a scam artist will make false promises of trading with minimum to no risk of losing.
• Not regulated.
• A significant number of forex brokers that are on blacklists are fond of boasting their top managers in questionable rating polls (fake ratings).

Continue Reading at How Forex PAMM Scams Work

The advantages and disadvantages of PAMM are:

The Advantages

• There's no need to be an expert to open a PAMM account. This can definitely save some time and effort depending on the goal that the trader's trying to achieve.
• Opening a PAMM account can be an easy way to enter the forex market without actually engaging directly.
• Since the money managers are usually experts, the chance of success is higher. Hence, PAMM can offer a passive income especially for beginners or busy traders.
• PAMM is highly transparent since the trader can choose who to work with and which asset to invest in. This also increases the safety of the trade because both the brokers and money managers need to be compliant.

The Disadvantages

• There's a risk that the trade might not work out and the trader needs to take the consequence regardless of the result.
• The more expert the money manager is, the higher the fees and commission. Even so, there's still no guarantee that the trade will be successful.
• Traders have zero control over the trade once it's executed. The trader must fully trust the money manager to do all the work and bring generate some money back.

Continue Reading at PAMM Vs Copy Trading: What are the Differences?

There are several signs to watch for when evaluating the legitimacy of a managed account:

• Groups that guarantee profits on all trades.
• Limited or no online presence and information about the group.
• Lack of transparency or reporting to regulatory authorities.
• A short history of the group without legitimate reviews or news coverage.

Continue Reading at Managed Accounts In Forex Trading