More and more Forex brokers offer 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 PAMM account service (managed accounts) in order to please more clients, but what are these accounts? What do they offer? And What about PAMM Trading Experience in HotForex?
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.
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.
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 the account, showing the following aspects:
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.
The PAMM Trading Experience in HotForex is currently offered through 2 different types of PAMM accounts which have different characteristics that are detailed below:
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