Forex Brokers Offering Managed Accounts

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

In a managed account, the money manager is authorized to trade on behalf of the account owner based on their expertise and an agreed-upon investment strategy. The money manager analyzes the market, identifies trading opportunities, and executes trades to generate profits for the account owner.

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Percent Allocation Management Module (PAMM) is a type of managed account that distributes gains, losses, and fees to each investor's accounts. As the name suggests, the distribution amount is based on each client's allocation percentage. That being said, the investor's portfolio is highly dependent on the size and performance of the trade.

Continue Reading at What are the Differences between MAM, PAMM, and LAMM?

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?