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PAMM accounts: Whose Service is Better?

13 March 08:09 AM

News of forex broker rating. PAMM accounts have entered the lives of traders and investors suddenly and powerfully, as they managed to involve into work at forex market even those who… do not know how to trade here. Due to PAMM accounts, even those investors that are far from technical and fundamental analysis receive a very simple and clear way for their direct and often highly profitable investments: from the long list of best traders they are to choose the ones, whose results they find satisfactory and invest their means into his account. In such a case (provided that such warranty is given by a broker company) gained profit will be automatically distributed between trader and investor on a monthly basis.

Convenient? Certainly, yes. Honestly? Let us say that it is so in the majority of cases, although broker companies that suggest PAMM accounts may have a lot of nuances, and traders and investors may have different attitude to these DCs. So, who are the best brokers for forex investors? What are the peculiarities of their services and are there any differences between them? New rating of Masterforex-V Academy is supposed to give answers to these questions in the nomination “Best PAMM accounts of forex brokers in 2012”.

Simple principles of relations between traders and investors while working with PAMM accounts

PAMM (Percent Allocation Management Module) is a trading account consisting of one or several accounts, which is used by professional managing trader for forex or stock exchange trade, and to profit account of which any investor may add, enabling the managing trader to earn profit for himself and for investors.

Thus, if a managing trader
- earns profit, it is distributed among all investors of single PAMM account depending on their share in this account;
- trades at a loss, all investors of PAMM account lose money.

Managing trader gains his percent only from profit. Investor’s stop-loss limit (for example, 15%-25%) is set at the PAMM account of a broker company. If a managing trader experiences one loss after another, his trade will be stopped at the point of stop-loss or investor may withdraw his means much earlier.

Any investment is always accompanied by risk, explained in his interview to “Market Leader” Evgeny Olkhovski (Canada), well-known financial experts of Masterforex-V Academy. However, it is not a rare occurrence to see people that are to apt to risky transactions choose PAMM accounts and invest large sums in them, having believed in super profit and paying no attention to logics and common sense.

“However, one should remember,” continues Evgeny Olkhovski, “the higher is the promised profit from PAMM account, the higher is the risk of loss. Companies promising high profit with minimal risk are to be dealt with cautiously.

PAMM account is a highly risky investment. No loss can be guaranteed, as the account is managed by an ordinary trader, who is neither secured from losing operations. Therefore, nobody can guarantee high profit or secure from the loss of a part or even all invested means,” concluded the financial expert, “but there is a number of rules that are to be followed by any investor when investing into PAMM account.

The first rule concerns the choice of forex broker.”

Who are best and worst brokers providing PAMM accounts for forex market investors?

At present there are over 20 broker companies that suggest PAMM account to investors at forex market, as explained by Evgeny Olkhovski. He said that that Masterforex-V Academy has decided to help investors that are planning to invest in PAMM accounts and make them less risky by finding out the opinion of traders and investors about PAMM accounts of Forex brokers. For this purpose Academy is starting a new rating vote for “Best PAMM accounts of forex brokers”.

The table above shows brokers and DCs that are taking part in the new vote. Each contestant takes part in the general Forex broker rating of Masterforex-V Academy, where points on the left of each company’s logo serve as a basis for its starting points. At the top of the rating are five representatives of the higher league of forex broker rating: FIBO Group, ForexTrend, Dukascopy Bank SA, Alpari, and FX Open. They are followed by Grand Capital, FXDD, Lite Forex, ATC Brokers, FX Company, Instaforex, Ikon Group, Nord Markets, Tradex Capital, Hot Forex, EES FX ECN, and eForex. The table is closed by the brokers of the lower league, namely, ForexTime, Trading Point, FinFX, Axiory, and Broco.

The column to the right of the company’s logo shows total points received by a broker or a DC. Every vote "For" or "Against", which is given by a trader or investor to a broker company, raises or lowers the total number of starting points.

If a trader or an investor decides to take part in the rating for the Best PAMM account of forex broker, he is to undergo a simple free registration at Masterforex-V Academy forum. When the registration is over, one has to fill personal information into a special form. Such measure is taken to protect from voting more than once.

Three broker companies that gain least points, as well as those who gain no points at all, will automatically take part in Academy’s “Black rating” for “Anti-brand broker-of 2012”.

You can discuss, leave your feedback, or give recommendations about PAMM account of Forex brokers at Masterforex-V Academy forum for traders and investors in the section “Best PAMM accounts of forex brokers”.

“Market Leader” and Masterforex-V Trading Academy hold a questionnaire at Forex forum for traders and investors: in you opinion, PAMM service of which broker can be called the best?
■ leaders of Masterforex-V Academy rating of forex brokers ;
■ those who have positive feedbacks;
■ the service of PAMM accounts is not interesting for investments.

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