The Forex and CFD broker HotForex started a PAMM accounts service (managed accounts) for its clients which allow investing in the Forex market through professional account managers who are responsible for operating and managing the market open positions. In this case, the investors only have to deposit funds in their accounts and monitor the performance of the same over time.
It can be said that the PAMM accounts are an option of Forex auto trading which is increasingly popular for the following reasons:
- The accounts are a good option to invest in the Forex market even to people without any knowledge about the financial markets. In this sense, PAMM accounts are also advantageous for investors with experience and knowledge, but with little time to analyze the market and trade on their own since this work is performed by the account manager.
- PAMM accounts offer the possibility to diversify investments. For example, a trader can have a regular trading account and a PAMM account with HotForex at the same time.
- This type of account ensures that the account managers trade with the utmost care and risk control because their capital is also invested. To open a PAMM account and raising funds from investors, the manager must invest a certain amount of their own money.
- The accounts allow taking advantage of the knowledge and experience of highly experienced traders in the markets.
- Manager´s profits come from the benefits generated by their trades in the market using their capital and the investor´s capital. This means that the investor only “pays” for the results.
- The investors can follow all trades performed by the manager and withdrawal their capital at any time.
You can get more information about HotForex and its brokerage services in the following analysis of this company: HotForex Broker Review
- 41 currency pairs in the Forex market.
- CFD on precious metals and oil in the spot market.
- CFD on stock market indices such as the S&P 500.
How can we choose the best HotForex PAMM account managers?
- Account opening.
- Winning and losing trades.
- Details about each trade performed by the manager.
- Percentage of daily and monthly income.
- The maximum gain and maximum loss.
- Best and worst trades.
- The style of trading.
- Total percentage of winning trades.
- Winning percentage of long trades.
- Winning percentage of short trades.
- Instruments with which the manager trades.
- Initial capital and actual capital (gains).
Types of PAMM accounts offered by HotForex
- PAMM Premium: This is the regular PAMM account of Hotforex which requires a minimum deposit of $250. It uses the Metatrader 4 platform for transactions and allows to trade with currency pairs, precious metals and stock indices. It offers an STP execution of trades with extremely low spreads from 1 pip on and maximum leverage of 1:300. The minimum transaction size is 0.01 lots and it does not charge commissions for transactions.
- PAMM Premium Plus: This is a more specialized PAMM account which offers ECN trading conditions and requires a minimum deposit of $250. It uses the Metatrader 4 platform for transactions and allows to trade with currency pairs, precious metals and stock indices. It offers an STP execution of trades with extremely low spreads from 0.3 pips on and maximum leverage of 1:300. The minimum transaction size is 0.01 lots and charges a fee of $5 for each traded lot
* The opening of the accounts can be made in euros and U.S. dollars.
If you want more information about Hotforex PAMM accounts please access the broker`s website through the following links: