There are very many people who wish they could enter the Forex trading market. However, because of fear of losing their money, lack of time and even the complexity of the FX market, a majority of interested population keep off this lucrative industry. A solution comes in the name of Percentage Allocation Management Module or Percentage Allocation Money Management (PAMM). PAMM is a form of pooled FX trading system. An investor allocates his or her money in desired proportion to traders or money managers of choice. These professional traders may manage few or many Forex trading accounts using their own capital together with the pooled sums of money from investors in order to gain a profit.
What PAMM accounts to look for?
As you would expect, traders have different levels of success when it comes to portfolio management. The same case applies to Forex trading. This then means that investors will seek the traders who can deliver the highest rate of return consistently. An investor will have to sign an agreement whereby he or she agrees to take the risk for the FX trades made using their capital by the money managers. In the agreement, it is stated how much money or percentage the manager will charge for offering the services.
Leading brokers in PAMM
FXTM or Forex Time is one of the leading FX brokers whose presence can be found in several parts of the world. The firm was started in 2011 and is licensed by the Financial Services Board (FSB) of South Africa. The FXTM PAMM allows clients to join as either investors or strategic providers (managers). The matching of managers to investors is managed by the firm’s Portfolio Management department.
XM was launched in 2009 after the merging of the Trading Point and Mega Trader FX. The broker is based in Cyprus and is registered in the European Union and licensed by the Cyprus Securities Exchange Commission (CySEC). The firm offers 55 different currency pairs which one can trade in.
FXPro is currently one of the most popular Forex brokers in the market. The firm enjoys a collective brand name of FxPro UK Ltd. It is regulated by the Financial Conduct Authority (FCA) of the UK. Its other arm, FX Pro Financial Services Ltd is licensed by the CySEC of Cyprus as well as the Financial Services Board (FSB) of South Africa. In 2017, October, the firm was granted a license to operate in the UAE by the Dubai Financial Services Authority (DFSA).
Grand Capital is a Russian brokerage firm and is owned by the Grand Capital Ltd which is registered in Seychelles. It was started in 2006 and is regulated by the Financial Commission (FinaCom). The firm is also regulated by External Dispute Resolution (EDR), a Hong Kong based organization. Grand Capital firm holds a B-Category license which means that any client is eligible for a compensation of up to $5,000.
Forex4You was started in 2007. It is licensed by FSC and has won several awards mainly in Asia. The firm is a brand of E-Global Trade & Finance Group, Inc. The company is registered in the British Virgin Islands and is regulated by the FSC.