PAMM Forex Brokers 2017.
PAMM forex brokers of this list shall attract investors, who are interested in earning in the forex market, but due to some circumstances they cannot do it in person; also it is intended for traders who are not certain of their trading skills yet but are willing to gain profits as soon as possible. PAMM (Percentage Allocation Management Module) is a trading account operated by a manager, not a trader. The manager can help funds grow, but is not allowed to withdraw profits. PAMM forex brokers or dealing desks offering such service liaise an investor with manager and broker for the purpose of easy and safe co-operation. The list we present here comprises companies dealing with PAMM investments. Whether your target is finding an expert trader or you want to manage the entrusted capital, check this list, as it may help you make the optimal choice. Read our article "What is PAMM Account in Forex?" to avoid unwanted complications and to minimize the trading risks.
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Pamm forex brokers list
PAMM – Percent allocation management module.
PAMM is Percent allocation management module for forex traders. There are PAMM manager and PAMM investor in this proccess.
PAMM manager is fund manager. He trades with his own live account. If he can double his account equity than investors can double their accounts too.
PAMM investor is person who invest money. If fund manager increase his account equity and investor will increase too.
Here we can see another example with one fund manager and 2 investors :
Let we see another example with description :
Let we see one example where we have fund manager and 3 investors. Afther few months we have this situation :
Investor 1 invested $34.500.
Investor 2 invested $20.000.
Investor 3 invested $5500.
On this picture investor had $10.000 and he made profit $10.000. Now he has $20.000 from his trading and plus he earned money as fund manager from commission. From investor 1 he earned $9315 , from investor 2 he earned $5400 and from investor 3 he earned $1485. Now he has $36.200 ( $10.000 his deposit, $10.000 from trading, rest from commission).
Conclusion : If fund manager increase equity of his account and investors will increase too.
Top forex brokers which offers PAMM – PAMM brokers list :
Instaforex is the biggest forex broker in Asia and one of the biggest brokers in the world. There are a lot of good traders and fund managers so this broker offers excellent way to make profit. Instaforex PAMM traders and Instaforex PAMM investors you can become in couple minutes and only you need to register live account.
Hotforex is forex broker with several prizes till now. Good customer suport and fast deposit and withdraw option are very important characteristics of this broker. Fund managers will not get penalty for withdrawals. Hotforex offers zero fees on deposits too.
Fxopen offers one of the first PAMM systems on the internet. On this website you can read everything about PAMM system and you can choose a lot of good fund managers. Of course try to pick longtime traders if you are PAMM investor. If you are scalping trader and you want to become PAMM fund manager fxopen offers mt4 ECN accounts.
This forex broker offers a lot of deposit options, nice platform and easy steps and descriptions for future PAMM investors and PAMM traders.
This forex broker has not a lot of users as brokers above in this list but customer support and whole system are perfect. You can read a lot of reviews about all PAMM traders and all PAMM trading processes are automated.
Alpari offers excellent platform and you can become fund manager or investor in couple minutes as we can see on image above. When you create account you will get very easy user navigation platform. this user platform has only Alpari Russia website (of course all communication and navigation is on several languages and on english too).
Fund manager you can become with $500 investment and afther 3 months you can get the first investors. Each fund manager will offer to you fee value. Manager Remuneration or PAMM trader commission is fee that you need to pay from your profit to manager.
How to choose PAMM fund manager ?
Forex market attracts its clients because it seems to be an easy market to get a portion of $5.3 trillion daily deals with high returns and big volume as well as market’s volatility. But, as you guess from the “it seems” part, getting money in this market is not a safest bet for many traders. If it were just a place to collect your invested returns, it probably would be there. A large portion of that money comes from quick thinkers, and it goes to smart thinkers. To get the best of the Forex market, you will need to learn as much as possible about the market, its basics of the technical aspect of it. However, to get a grip over it, you’ll need to have a good fundament in financials. If you don’t, then find somebody who does. If you don’t have a financial background, you might want to think about PAMM investing.
PAMM investing is having your money entrusted to a manager who can safely deal with it as if it’s their own. And in a way, it is theirs to operate on the basis of profit/loss. With PAMM investing there is software that distributes the profits and losses automatically.
Here are some tips on how to wisely choose your PAMM manager.
One of the first things to consider is the manager’s experience. It’s the same thing with hiring any sort of help you want to get somebody who has experience. For this sort of help, you want to check the period an account managed by that certain fund manager. You want to see an account that has been around for at least three or four years. Only then you should check out the rest of the accounts results. The consistency in performance is what gives away a trader with experience.
After the experienced is checked and passed, you want to see how it went with live trades. If you see that your broker isn’t offering valuable information, you can ask your fund manager to show those results, for example, on myfxbook. You will there see what’s the drawdown like, as it give you a hint about the size of the risk. If you see high risk in drawdown, we suggest you avoid those. When that’s passed, you can check how consistent your fund manager is with a certain result. The consistency is better than having big profits with the lack of consistency, as that shows more luck and less strategy.
Next thing to check is the capability of the fund manager to recover. Recovery factor represents the quickness the trader can recover from suffering drawdown. Obviously, what you want form you manager is to have a great recovery factor, as it represents their reliability.
The recovery passed, check how much investors have their accounts managed by your fund manager. That’s another safe thing upon which you can know if your fund manager is reliable. If several investors trust that particular fund manager, that’s a good reference. If there is a chance, you’ll want to see how good your fund manager is with all those clients.
Total equity is something to check out also for choosing your fund manager. The safest bet is to find somebody who trades at accounts of medium sizes. The reason for that is when a fund manager has a lot of capital to operate with; they might deal with risky trades. You never know what they would do with the amount of funds you have. Therefore, try to find somebody who deals with the similar account you have.
How you pay your fund manager?
Since a fund manager is basically a trader, but who trades with your money, he can only get a portion of the return you two get. Fund managers who are successful trader, you can expect that they would ask larger remuneration. However, if your fund manager does have a proven track, don’t bother to negotiate too much about his or her commission.
But, you can always make sure to make a good deal and discuss all the terms with the broker before investing your capital.
Bet On The Performance of Money Managers with a PAMM Account.
A percentage allocation management module, also known as percentage allocation money management or "PAMM," is the mini-version of a mutual fund for forex trading. It offers a simple pick-and-choose option for investors, enabling them to select money managers who trade forex using clients' money to generate profits for a predetermined commission. (For more, see: Investopedia explains – How PAMM accounts work)
Forex PAMM account brokerage firms play an important role as they act as intermediaries between investors and money managers. They also provide the required technology, trading platforms, and related infrastructure such as capital allocation, trade facilitation, reporting tools, and money manager performance tracking dashboards.
There are two features to forex PAMM accounts that should be taken into careful consideration before selecting a forex broker for a PAMM account:
1) Forex is a 24/7 market and brokers may be operating from beyond the geographical boundaries and purview of your local regulators.
2) Through PAMM accounts, investors basically bet on the performance of money managers. Brokers offering PAMM accounts (and their investor clients) must ensure that such money managers are eligible and qualified individuals with a clean track record.
Here is a list of forex brokers offering PAMM accounts to both investors and money managers. The list is not exhaustive and includes international forex PAMM account brokers, as there are only a limited number of brokers offering these services to US residents:
Alpari PAMM : Alpari Limited is registered in the West Indies and their forex business is regulated in the US by the National Futures Association. Alpari claims to be the pioneer of PAMM account services. The company has a presence in 40 countries, including Russia, the UK, and Nigeria. In 2013, it had $155 billion in trading revenues, more than 650,000 global investors, and the largest number of money managers on board. Features offered to PAMM account investors include a ratings-based dashboard system that indicates historical performance, ranking, manager’s capital, performance over different time periods, profit percentage, and several other criteria, enabling investors to select the money manager of their choice.
Money managers, both individuals and business entities, can signup for a PAMM money manager account. Manager accounts can start with as little as $300. Managers get full control, promotional tools, and the ability to bring in an acquisition partner and auxiliary partner.
Axiory Forex PAMM : Registered in Belize and regulated by that country's International Financial Services Commission (IFSC), Axiory Global Ltd. offers PAMM account services to investors through its MultiTrader platform. The system is backed by selected trading strategies that are the basis of trades by PAMM money managers. Multiple types of accounts are available depending upon client requirements and expected services. The minimum deposit required ranges from $500 to $5,000, depending on account type. The system allows risk parameters to be set by the investor. A dedicated account manager is also available. Axiory cannot accept US clients. FXOpen : FXOpen Ltd. PAMM account offers services using the nomenclature "Master" to indicate a money manager and "Slave" to indicate and investor. Currencies available for PAMM account trading are USD, AUD, CHF, EUR, GBP, JPY, and RUB. Minimum deposits required for investors (or "slave accounts") vary depending on criteria set by the master account (money manager). Depending on PAMM account types, master account fund requirements range from $200 to $5000. The company offers a comprehensive ratings-based dashboard, enabling investors to select a money manager based on their own criteria.
FXTM : Regulated by Belize's IFSC, Forex Time (FXTM) PAMM offers easy account opening for PAMM services. There are no account management fees; investors only pay a performance fee to the money manager. Available features for investors include a trading platform, flexibility in choosing/switching forex portfolios, and customized solutions. The company only sets financial targets and risk limits, and FXTM’s portfolio management department arranges for an appropriate portfolio for an investor’s needs. Also available is a rating system aimed at helping investors select money managers based on defined criteria. FXTM does not offer its services to residents of the US.
InstaForex : With more than two million clients across a variety of offerings, InstaForex offers standard PAMM account services to its clients. Investors enjoy the flexibility of low deposit amounts and the ability to choose from multiple PAMM money managers. InstaForex also offers features to make recurrent investments and automatic withdrawals. US residents cannot open an account with InstaForex.
Regulatory and jurisdictional restrictions define what a broker can or cannot offer a client, particularly in global forex markets. PAMM accounts add another layer of complexity for investors, as they bet their money on the performance of money managers. Care should be taken to verify the regulatory status, geographical purview, and applicability of investors' rights before selecting a PAMM account forex broker.
Disclaimer: At the time of writing this article, the author was not having any accounts with any of the mentioned brokerage firms. Regulations and applicability of mentioned services may vary depending upon an individual’s country of residence.
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