What is a Forex PAMM account?
Basically, PAMM accounts are managed trading accounts in which a professional trader is responsible for conducting market operations using the money of investors who invested their money with them. PAMM accounts are an excellent option for people or companies wishing to invest in the forex market but with no experience and / or time to analyze and operate the market on their own. As many people know by experience, trading in the market is not easy and requires time and preparation to do it successfully.
For this reason PAMM accounts were created to provide access to financial markets to investors who want to harness the enormous potential of the Forex market even without a profound knowledge about this subject.
PAMM accounts service of FXOpen
FXOpen is a Forex broker ECN/STP with several years of operating in the market that offers its services to customers around the world. This broker began in the middle of 2010 a PAMM account service for both money managers (professional account managers) and for clients wishing to invest in the Forex market through managed accounts. The great advantage of PAMM accounts of FXOpen is that the investor will save all the work to analyze the market and to open and close positions, leaving all this work into the hands of the account manager. The investor should only monitor the performance of the account manager through the months and withdraw or reinvest profits as these are produced.
For the money managers, the obvious advantage of PAMM accounts is that they can trade with a much larger amount of funds compared with the amount of money they could invest by their own. This gives the manager a greater flexibility in its market trades and the possibility to increase his income through a percentage of the profits that he charge by the funds management. For this reason, the PAMM accounts of FXOpen are a good investment opportunity for both account managers and individual investors.
For more information about the broker FXOpen you can visit the following page:
Types of PAMM accounts offered by FXOpen
FXOpen currently offers two types of PAMM accounts with different features related with the type of execution and other similar aspects.
- PAMM Standard: This account allows the money manager to trade with 28 different currency pairs, gold and silver. It also offers fixed spreads from 2 to 4 pips for major currency pairs like EUR/USD do not charge any fees for opening/closing positions. The minimum capital for the manager of the account is $1000 (the amount to open the account) and for the investor that amount is set by the manager itself, so it depends on each account. The leverage offered varies from 1:1 to 1:100, with the minimum size for every transaction of 0.1 lots. The trading platform offered to the manager of the account is Metatrader 4 and supports the use of hedging strategies (coverage) and Expert Advisors (automated trading systems). This PAMM account do not allow trading strategies based in scalping and the maximum number of trades that can be opened simultaneously is 100.
- PAMM ECN: This account allows the money manager to trade with 32 different currency pairs, gold and silver. Because this account offers ECN execution with market depth (interbank liquidity) it offers variable and extremely low spreads from 0.5 pips for major currency pairs. FXOpen charges a fee of $2.3 to $3.5 for each trade of 1 lot in this trading account. The minimum capital for the manager of the account is $ 5000 (the amount to open the account) and for the investor that amount is set by the manager itself, so it depends on each account. The leverage offered varies from 1:1 to 1:100, with the minimum size for every transaction of 0.1 lots. The trading platform offered to the manager of the account is Metatrader 4 and supports the use of hedging strategies (coverage) and Expert Advisors (automated trading systems). As an ECN account it allows the use of scalping strategies and the maximum number of positions that can be opened simultaneously is unlimited.
Selection of the PAMM Account Manager
Logically, the return that investors get with their PAMM accounts depends on the money manager, that is the professional trader trading in the market using the funds of FXOpen customers who invested their capital in the Standard PAMM accounts or the ECN PAMM accounts opened by them . Therefore, if an investor wants to profit from their PAMM account he must choose a manager that presents a good trading performance over time, otherwise he could suffer big losses.
For this reason, FXOpen, allows to check the performance of different money managers who have a PAMM account with the company through a section of its website where, among other variables, the visitor can see the number of days the money manager has been trading, the total gain during the entire period, the amount of pips gained, the number of long and short operations, the maximum draw down (maximum loss), the percentage of daily gain, the number of winning and losing trades, the number of investors and others. Thus, the investor can analyze the performance of any account manager and choose according to his criteria the manager that offer the best opportunities to make money usign his capital.
PAMM accounts of FXOpen offer a good opportunity for small and large investors wishing to invest in the Forex market using the knowledge and experience of professional traders who have years trading in the market. As explained above, the customer only has to invest their money and let the manager to trade with that money in the market the way he considers most convenient. This saves a lot of time and effort for the investor.
Interested in a PAMM account of FXOpen?
If you are interested in learning more about FXOpen PAMM accounts, open a demo account or open a real account to invest in the Forex market you can access the website of FXOpen through the following link or banner:
