Best MAM/PAMM Systems for Money Managers
Forex account managers use specialized
systems in running trading activities for traders. Managed accounts are good
because they allow account managers to solicit and engage in multiple clients
to form a manageable pool for greater returns. The return of a client is
proportional to his contribution to the pool.
Account managers use MAM/PAMM systems to
execute trades. The best MAM/PAMM systems for money managers should have the
best features that help money managers in making their work easy and effective.
Understanding PAMM
Profit Allocation Money Management (PAMM)
is a method where investment managers (account managers) conduct managed
accounts services on behalf of investors (clients). In this arrangement, an
account manager takes full responsibility of running the trading account of a
client who does not perform any trade.
Usually, the account money managers are
experienced traders who are capable of making informed trading decisions. The
client entrusts him to perform all the trading activities with the hope that he
will get profit.
This active process must have an
intermediary who will take funds from the client and enable the money manager
to perform trading activities. An online broker is usually the intermediary.
Understanding Multi-Account Manager
The MAM systems for money managers raise
the level of sophistication and potential returns by giving the money manager
the ability to assign specific sub-accounts a higher leverage.
A money manager using this system can enjoy
flexibility and choice within the speculative markets.
The best MAM systems for money managers
should only be used by money managers who have a high level of market
understanding and have a high-risk tolerance.
The broker connecting the investor and the
money manager should be able to provide the best MAM/PAMM systems for money
managers to enable them have an easy time in managing accounts.
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