Sep 26 2019 0
More and more forex brokers are offering managed PAMM accounts, they are sold as an alternative for investors who have little knowledge in Forex but want to invest in this market. Beyond, it can be said that PAMM accounts are an automated Forex trading option which is becoming the most popular among investors, and HotForex is not the exception to the rule. Looking back in mid-2011, the HotForex broker developed a HotForex PAMM account service (managed accounts) in order to please more clients, but what are these accounts? What do they offer? Let's find the answers today.
Read full HotForex review 2020.
What are PAMM Accounts? What do they offer?
PAMM accounts, Managed Accounts or Percentage Allocation Management Module, are trading accounts managed by expert traders, with years of experience in the market, instead of being managed by investors. The devil is wiser for being old than for being the devil, and it is well known that there is no substitute for experience. This is the idea which these accounts were created. Therefore all the work of analyzing the market, opening and closing positions is done by a professional trader. In exchange, the professional receives a percentage of the money earned by the operations as payment to his knowledge and to the management of the operations. If the investor decides to trade in Forex through a PAMM managed account, he does not have to do any work, he simply has to open the account with a broker that offers this service, deposit funds, choose the trader that will manage his funds and operate with them. However, it is advisable to regularly monitor the work of the trader who is managing your money. This investment alternative through the PAMM accounts a priori seems safe, since it is managed by traders with years of experience.
PAMM Trading Experience in HotForex, what makes it different?
HotForex allows to invest in the Forex currency market, in precious metals (gold and silver), in stock indices and in CFD, through professional account managers, and it is mandatory that HotForex PAMM account managers invest their own funds along with the money of their investors. This implies that the managers will always take into consideration the interests of their investors every time they place a position. After all, they also operate their own money! In this way, the investor must only deposit funds in the account and control the manager's performance over time. In most cases, PAMM account managers do not operate each investor's trading account separately. Each professional trader merges into a single account all the accounts of the investors under his charge who have selected him to manage their funds according to their best criteria. With this method, the profits and losses obtained by the manager are distributed equally among investors in relation to the capital that each one of them has contributed when opening the account, in addition, it allows to diversify the risk.
Advantages of the PAMM Trading Experience in HotForex
- The manager obtains his profits from the revenue generated by his operations in the market using his capital and from the investors. This means that the investor only "pays" for the results obtained.
- The investor has the possibility to follow all the operations carried out by the manager and withdraw his capital at the time he considers it appropriate.
- The minimum initial deposit required by HotForex to invest in a PAMM account is only $ 500 (some fund managers may require higher minimum deposits from interested investors).
- PAMM Trading Experience in HotForex could be a multiple one since is possible to invest in different managers at the same time.
- You can deposit funds or withdraw them from your PAMM investment account in the daily rollover without additional or hidden charges.
- PAMM accounts have the great advantage of allowing diversification of investments. For example, a trader can have a regular trading account with Hotforex and another PAMM account at the same time and with the same company.
- Choosing the most profitable PAMM accounts (managers) in HotForex
Making the PAMM Trading Experience in HotForex a winning one depends, mostly the proper selection of the manager. To do so, Hotforex allows you to verify through the website the performance of each manager since you opened this HotForex trading account, showing the following aspects:
- Start date of operations.
- Winning / losing trades.
- Detail of transactions.
- Percentage of daily and monthly profit.
- Maximum gain and maximum loss.
- Better operation and worse operation.
- The trading style.
- Total percentage of winning operations.
- Percentage of long winning operations.
- Percentage of short winning operations.
- Instruments with which it operates.
- Initial capital and current capital (earnings).
In addition, HotForex offers the opportunity to find a manager in the customizable PAMM Performance table in a simple way: you can filter and compare results by active/inactive strategies, current classification, the name of the PAMM strategy, minimum deposit, profit and maximum loss.
Types of PAMM accounts offered by Hotforex
The PAMM Trading Experience in HotForex is currently offered through 2 different types of PAMM accounts which have different characteristics that are detailed below:
- Premium PAMM Account: It is the regular PAMM account of Hotforex which requires a minimum deposit of $500. It uses the Metatrader 4 platform for its transactions and allows trading with currency pairs, precious metals, and stock indices. It offers an STP type execution with extremely low spreads from 1 pip onwards and a maximum leverage of 1:200. The minimum transaction size is 0.01 lots and does not charge commissions for operations.
Check more details about Premium account here
- Currenex PAMM Account: It is a more specialized PAMM account which offers trading conditions of type ECN and requires a minimum deposit of $500. It uses the Metatrader 4 platform for its transactions and allows trading with currency pairs, precious metals and stock indices. It offers an STP type execution with extremely low spreads from 0.2 pips onwards and a maximum leverage of 1:200. The minimum transaction size is 0.01 lots and charges a commission of $5 for each lot transacted.
Check more details about Currenex account here