WHAT IS A PAMM ACCOUNT?

PAMM account Forex- this is an account transferred for trading to a trader on the terms that are established by the PAMM account service of a certain broker and the trader who will trade on this account. In this case, the account is under the control of the investor, he can at any time withdraw funds transferred for trading, in addition, only the investor himself can deposit and withdraw money from his PAMM account. The trader receives a certain percentage of profit for his trading using the investor’s funds; it is determined by the offer. Also, depending on the type of PAMM account, the trader may be required to use part of his personal funds for trading and guarantee the maximum drawdown level on the account.

How to choose the best PAMM accounts for Forex?

By what criterion does an investor usually choose a PAMM account and a trader to invest in Forex? Of course, this is primarily high profitability. It is large numbers in profit percentage that usually mislead people and make them want to make money quickly. This is where the investor’s main mistake lies, due to which many people lose their money without even having time to feel its rustle in their hands.

Of course, high account profitability is good, but profitability must be assessed exclusively in the long term. Many traders use high-risk strategies in their trading, such as martingale. Such strategies can dramatically increase the deposit, but can also instantly drain it.

Before choosing a PAMM account for investing in Forex, carefully look at the trader’s trading over a long period of time (from a year or more), whether he has had strong deposit drawdowns and what the average profitability is over a long period. It is possible that the trader has caught the wave at the moment and his trading is bringing high profits, but if before that there were long negative periods in trading, then there is a high risk that problems will begin again, this time with your money.

It will be even better if you diversify your investments i.e. invest money in different PAMM accounts, with different degrees of risk and profitability. For example, a third of the funds are in a highly profitable PAMM account, which brings a high percentage of profit, but in the long term has dangerous drawdowns of the deposit. Another third of the funds are in the medium-risk PAMM and the remaining third in the PAMM, which is the most stable in long-term trading statistics, but has a low average income.

You can develop your own investment strategy that will bring you constant profits. But most importantly, take your time and carefully analyze the trading statistics of various traders before you make a decision.

HOW TO CHOOSE PAMM SERVICES FOR INVESTING?

Recently, the creation of PAMM services has become a fashionable phenomenon among brokers; there are many of them, but if you conduct a more or less serious analysis of such services, then most of them are not suitable for more or less serious investing. At first glance, it can be quite difficult to determine the quality of a PAMM service, and as a result, the investor pays for mistakes in choice with lost money, lost profits and lost time.

The main reasons why the PAMM service is not suitable for successful investing:

• Undeveloped technical part and functionality of the PAMM service, which does not allow for full monitoring and assessment of the quality of traders' trading for the right choice when investing.
• Lack of opportunities to protect the investor’s capital in the event of a trader’s unprofitable trading, inability to choose the degree of risk when investing.
• There is a lack of experienced and successful traders who trade with this broker and are interested in raising funds for trading from investors.
• The internal policy of the broker (dealing center), aimed more at the speedy drain of investors' money than at the desire to increase the profitability of the PAMM service.

These are not all the reasons, but they are enough to understand that you need to take a responsible approach to choosing a PAMM service for successful (profitable) investing. Below are PAMM services of brokers that have stood the test of time and satisfy most of the requirements for investing in Forex.

Investing is a very exciting activity if you approach it wisely. Good luck and stable profits to you!

RATING OF PAMM ACCOUNTS AND SERVICES FOR FOREX INVESTMENT

PAMM accounts AMarkets (AMarkets).

PAMM service AMarkets is a modern investment system that opens the doors of financial markets to everyone. With its help, you get the opportunity to make money on the Forex market without having any special knowledge or experience. No independent trading! You choose a manager from our rating and invest funds in his investment account. Your job is to monitor the result, and a professional will do the rest.

PAMM accounts Forex4You (Forex fo u).

Technically, PAMM accounts operate on the basis of the broker's electronic platform, called the PAMM service. This is a third party fiduciary that acts as an independent intermediary between the investor and the trustee. The PAMM broker provides a service of managed accounts, thereby allowing investors to transfer funds to traders for management without the risk of fraud. The relationship of a PAMM broker with its clients (traders and investors) is described in the regulations for the provision of services.

The investor's profit and the manager's commission are calculated automatically. In your personal section, you can monitor the status of your account in real time, deposit and withdraw funds.

On the PAMM broker's platform, only the investor who has created a managed account can replenish it or withdraw funds from it. A PAMM manager has access only to carry out trading operations. These restrictions are also automatically enforced by the PAMM service. Withdrawal of funds from a managed account occurs according to the schedule of the PAMM account offer, usually no longer than 24 hours after the investor submits a withdrawal request.

In addition, based on the trading of PAMM managers, the broker keeps records of the profitability of PAMM accounts and publishes their statistics.

PAMM broker rating

There are several brokers in Russia and around the world that provide PAMM account services. In countries where Forex and trust management are regulated by the state, public ratings of managers are prohibited, therefore PAMM broker companies are registered, as a rule, in unregulated jurisdictions.

To choose the best PAMM broker, you need to evaluate the reliability of the Forex company itself, the presence of experienced managers, detailed trading statistics and the amount under management. When choosing a PAMM platform, you need to be careful; there are cases when fraudulent schemes for raising funds are disguised as PAMM accounts.

Monitoring PAMM accounts

The best PAMM brokers have transparent monitoring of PAMM accounts with such important indicators as:

• graph of profitability (or share price) by day, or better yet, by hour;
• candlestick chart of leverage or deposit loading, with open high low close values;
• funds of investors and the manager himself;
• maximum drawdown on history, taking into account intraday fluctuations;
• maximum daily loss, calculated taking into account intraday drawdowns.

Using these indicators, you can determine exactly how the manager trades and what risks the trading system carries. If a broker shows, for example, only a weekly profitability chart, it is impossible to assess not only the risks, but also the reality of trading itself on a PAMM account.

Below is a list of the largest and most reliable PAMM brokers.

The best PAMM managers Alpari

A young but promising PAMM broker that provides real ECN accounts and good trading conditions. Such well-known managers as

You probably already know that STForex has launched its pamm service and it continues to develop little by little. Today I would like to talk about the changes that have occurred in it and publish some reviews from clients who have already used it. If you are not familiar with what a PAMM service is, then it is a special platform that allows you to invest money in trust management, bypassing all non-trading risks and earn money through competent analysis of managing traders.

There are several similar platforms in the Russian Federation, and my broker’s is not the first, but one of the most promising, because... its development is constantly underway. As an example, there was the following comment on the forum:

Let's touch on the second point, where the user asks that the service have the opportunity to communicate with managers on the forum and each of them have their own thread. Less than a couple of weeks have passed since this opportunity was realized and now you can ask your questions to each of the trustees. You may be interested in what strategy the trader uses, what his goals are, etc. Now all this has become possible.

Thanks to this, you can now make investment decisions based not only on statistical data. Just select the PAMM accounts you are interested in in the rating and find their branches by going to. By the way, in the very near future the forum will integrate a payment system for messages, so it’s worth becoming an active member of the forum in order to put the money you earn into trading if you are a novice trader. Next, there was a request to create the ability to add such an option so that you could see the profitability of the account for 3 months:

And this was implemented in the PAMM service and I am very glad that the company really listens to its customers in order to make their work more convenient, understandable and simple, which cannot be said about other companies that simply unsubscribe saying that everything is fine with them anyway . I think you've encountered something similar.

If you become a client of the STF broker, then you can always indicate all your wishes and feedback on the forum, both regarding the investment service and any other available solutions in the company. Of course, everything is still not as ideal as we would like, but the platform is still very young and if we take as an example the very first similar solutions from other brokers, of which, by the way, there are not many, then they have been developing for several years and I am sure that here, over time, there will be one of the best solutions for investors, and each of us can help make the pamm service better. After all, this is in our interests; using a high-quality platform we will be able to earn money consistently, although even now some people are doing well at this.

A relatively young phenomenon in the financial sector. The opportunity to make money on Forex for those who do not know how to trade appeared less than 10 years ago. During this time, the PAMM system made a colossal leap in development, a natural consequence of which was the emergence of a large number of new platforms for the trust management of investor funds.

The reliability of a PAMM broker in the Forex market is determined by the following factors:

• - time of the company’s presence on the market;
• - a large selection of PAMM managers with stable trading results for one or several years;
• - convenient interface of the site and section for PAMM investing;
• - the ability to conduct a comprehensive analysis of financial results.

The rating of the best PAMM brokers of 2016 was compiled based on these parameters. Which company has maintained leadership for more than one year? Which PAMM brokers can you trust with your funds? We will try to answer these questions in detail.

Rating of the best brokers for PAMM investing.

1st place: PAMM broker Alpari.

Alpari is a long-lived company in the Forex market. This is not only one of the most attractive platforms for making money through classical trading, but also a place where thousands of investors earn money by entrusting their funds to experienced traders to manage them. The rating of managers currently includes about 300 accounts, almost 20% of which have been successfully operating for more than 3 years. The oldest account recently turned 7 years old. contains all the necessary information for analysis and selection of a suitable account: profitability chart, profit level for different periods, age. In the investment account card you can see what leverage was involved in trading, the dynamics of changes in investors' capital, statistics on key indicators, and currency pairs used in trading.

The minimum investment to start working in the PAMM system is only $10. You can invest your funds in one manager or in several, creating your own. Investments are also possible in, for which minimal investment risks are declared. The structure of ready-made portfolios here is represented by shares of leading companies, bonds, real estate, Forex instruments and precious metals.

A distinctive feature of the Alpari PAMM broker is a multi-level reward system, which is directly dependent on the investment amount. Managers can also provide the client with additional bonuses.

At Alpari, the rollover (the time when an investor can withdraw their funds from the account) takes place twice a day, which is very convenient for investors and increases the level of confidence in the system.

Invest in PAMM broker Alpari.

2nd place: Alfa-Forex company.

The PAMM system at Alfa-Forex has been operating since 2013. Despite his youth, the broker has already acquired successful managers. The most popular of them has accumulated more than $1 million in its account, earning its investors up to 200% profit during its existence. In the PAMM service of Alfa-Forex, you can open an account in one of three currencies to choose from: euro, dollar or ruble. The rating of PAMM accounts is open for public viewing. In the general list you can see the age of the account, total profitability and amount of funds. Detailed statistics are available in the account card.

To make it easier for investors to analyze accounts, different types of charts have been developed. In graphical expression, you can see the ratio of balance and free funds in a PAMM account, profitability and drawdown, changes in the manager’s capital, and the dynamics of deposit loading. The depositor independently sets both the minimum entry amount and the minimum withdrawal threshold. On the company's official website there is a tool that allows you to calculate the approximate profit when investing in a specific manager.

The interface of the Alfa-Forex PAMM service is simple, and the system itself is easy to use. The site contains all the necessary information, using which the investor will be able to assemble a high-quality investment portfolio.

Invest in Alfa-Forex company managers.

3rd place: InstaForex dealing center.

In terms of popularity among investors, InstaForex is inferior to the first two leaders of the PAMM investment market due to the fact that it can offer a relatively small number of stable managers who have been trading on the market for a long time. A trading account with a maximum investment of 480 thousand dollars was registered just 3 months ago. But the PAMM service of the InstaForex broker has an important advantage - it is the opportunity to invest in most managers with a deposit of only 1 dollar.

Customer requests are synchronized once every hour. This schedule protects investors from large losses. They can get their money back at any time of the day. The order will be executed during the next synchronization. Partial withdrawal of funds is not possible in the InstaForex PAMM system.

Account monitoring is presented in two versions - public, accessible to everyone on the main page of the site, and hidden, which contains more necessary information for a qualitative analysis of the account. To see the latter, you need to register with the company.

As the main drawback of the InstaForex PAMM platform, users note the lack of information about the maximum account drawdown for the period. The presence of this indicator would help investors in forming a better investment portfolio.

Invest in PAMM accounts of DC InstaForex.

4th place: broker FIBO Group.

Broker FIBO Group has been providing the PAMM investment service since 2009, but at the moment it remains quite inconvenient for investors. In total, about 170 accounts are registered in the system. The public rating provides standard information about drawdowns, profitability, and aggressiveness of trading. There are graphs. Unfortunately, there are no transaction-by-deal statistics.

• - so, as a result of successful trading, both the investor and the manager receive their profit/reward. In case of unsuccessful trading, only the investor suffers losses;
• - if you want to withdraw funds from your account early, the investor will be able to do this only with a fine. According to the standard procedure, a withdrawal request can only be submitted in the last week of the trading period;
• - and in general, the company is only developing its PAMM service. The lack of stable managers is its main disadvantage.

Open a PAMM investor account with FIBO Group.

5th place: FXOpen company.

Despite the long period of operation on the market, the total investment capital of the PAMM broker FXOpen does not reach $3 million (for comparison: the same amount is in the accounts of 3-4 top Alpari managers). The operating principle of the FX Open PAMM service has much in common with FIBO Group, namely the method of distributing funds between the investor and the manager. The latter receives a reward in case of profitable trading, but does not compensate the investor anything in case of losses.

An advantage for investors is the opportunity to make an offer to the manager on their own terms. In addition, one PAMM account can have many offers, between which you can switch completely free of charge. One of the disadvantages of the broker is the inconvenient trading period - 4 or 12 weeks.

Invest in the PAMM system of the broker FXOpen.

The company RVDMarkets, which went bankrupt at the end of last year, dropped out of the rating of PAMM brokers. In 2016, a new broker, PrivateFX, formed on the basis of FXTrend, appeared on the scene. If he proves himself well, then perhaps by the end of 2016 we will see him among the leaders in the field of PAMM investing.