PAMM Accounts

RoboForex RAMM Investment Accounts

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What are RAMM accounts? The RoboForex RAMM (Risk Allocation Management Model) account system is a type of Forex trading account management service that is becoming a rapidly growing form of investment in the foreign exchange market and is based on efficient risk management and the proportional allocation of benefits. It is based on the concept of PAMM-managed accounts, offering the … Read more

Alpari PAMM Managed Accounts

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What are PAMM Accounts?

A PAMM Account is usually a series of trading managed accounts, which are unified to form an independent unified trading structure, where trades are carried out only by the money manager of the PAMM Account. The series of managed accounts that comprise the consolidated PAMM Account are handled by the trading platform as a single account.

The principle by which PAMM accounts work is the proportional distribution of gains and losses among the various investors whose accounts form the PAMM account. PAMM account provides benefits to all participants, as an investor can potentially obtain high profits without having to make a single trade by itself and the account manager receives a percentage of the profits and the possibility to access large amounts of capital.

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HF Markets (HotForex) PAMM Accounts

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The Forex and CFD broker HF Markets or simply HFM, started a PAMM accounts service (managed accounts) for its clients which allows investing in the Forex market through professional account managers who are responsible for trading 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 for automated trading in Forex which is increasingly popular for the following reasons:

  • The accounts are a good option to invest in the Forex market even for 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 HF Markets 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 raise 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.

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