This is the first item against which we must put a tick. General scheme of turning you into a PAMM investor will look like this:
Choosing and registration in a company providing PAMM service (also known as PAMM platform/Forex broker/dealing center). Replenishment of your personal account. Choosing a PAMM account/trader. Creating a managed account. Replenishment of your managed account from your personal one…
…and voila! After finishing all the procedures, all you need to do is watch your trusted person’s actions and regularly open your pocket in case you have made the right choice.
I will talk about all these items in different articles and today we’ll talk about choosing a platform where the whole action will take place.
As you must have already understood from the previous article, PAMM service (platform. broker) is nothing but an intermediary, a connecting link between trader and investor and also a “person” responsible for solving different technical, organizational and documentation issues arising in such cooperation. On a PAMM platform open trading takes place in individual accounts among which you will have to choose the most successful manager in your opinion and a promising PAMM account. That is, the advantage of all PAMM services is that they are a raw materials source in some way, already formed ratings of PAMM accounts with open traders’ offers and the possibility of constant monitoring of their actions are to your service. Besides, PAMM services exclude any interference connected with human factor; all financial operations are performed by automatic system, including distribution of profit. Such services are absolutely free as companies make profit on spreads or commissions from deals. PAMM services in principle exclude any acts of fraud from traders’ side; organization of profit distribution process, compliance of mutual agreements, and in the end responsibility for safety of money – all of that is included in duties of every good dealing center. But responsibility for safety of your money doesn’t mean compensation or guarantee of drawdown absence – no PAMM platform can promise you that. Maximum that you can be offered is a system “PAMM 2.0” from Forex Trend company where distribution of risks is made, sometimes proportional, sometimes not; or the new function from Alpari “Limitation of losses for clients: “This function is very useful for investors who don’t have time or possibility to watch constantly the manager’s work and the condition of their investments. Now investors can set maximally allowed limit of losses on their managed account. At reaching this set level, an automatic request for closing the managed account will be done, about which the account owner will be immediately informed via e-mail and SMS.
Choosing a PAMM platform is a particular headache for traders; as for us, people who invest, everything is a bit easier with this issue. The main criteria while choosing a decent intermediary are:
- Reliability. This parameter includes: term of company existence (not less than 3.5 years), existence of licenses for broker work, it is advisable that your applicant’s activity is regulated by FRA also known as KROUFR (Financial Regulation Agency). Be sure to check appropriate forum threads – some feedbacks have been left there anyway. “Scam” will come to light with the first search results. Scope of activity. The bigger and the better known the company is, the wider its network of influence is and the stronger it holds on to its reputation. Existence of offices in other cities/countries, section “Staff” where real faces of founders and other workers are shown – are for the company’s good, and from your side they are a significant “plus” for the dealing center. Quality of support service. Be sure to check this moment, contacting client support service using different ways: the more connection channels you are offered (actual address, telephones, e-mail, Skype, online-chat) and the more adequate people are on the other side, the more reliable and safer your future mutual cooperation becomes. Size of client base. It is an important factor because choosing a trader with a small range of clients is not an easy task and it is fraught with not so satisfactory results. Work of dealing center’s private forum is an indirect but still a very important item. If something happens, “mud baths” will be done here in the first place. Also, the condition of the program’s site itself – template engine, copied texts, absence of technical documentation (books, lessons, forum, etc.) reflect total futility of platform organizers, and, although indirectly, put your personal funds in danger.
These are the main moments in general.
But there is no need to worry too much about choosing a PAMM platform, you just need to try hard not to run into a fraudster. Today there are many dealing centers that proved themselves as reliable and successful intermediaries long ago. Here is the list of most popular ones among them:
- Alpari Broco Fibo FxOpen FxPro Instaforex Акмос Трейд Forex-trend Dukasscopy
Ratings of dealing centers can help you in your search of PAMM platforms. There is all required information about every service including their clients’ feedbacks in a compact and conclusive form there.
When we learn all details of choosing a trader, I will personally make up my mind about the “platform” for actions and I will give reasons for my choice.Смотрите так же по теме: