The international FX broker announced on Wednesday, the 17th of April 2019. The forex exchange broker informed the public that it now offers a new service which is Percent Allocation Management Accounts.
So, what are these PAMM accounts? These accounts are mostly for newbies in foreign exchange trading. It is for those traders who don’t have the necessary knowledge on Forex trading and those busy traders. These accounts will enable the traders to invest their funds without involving themselves in the trading.
Benefits of using PAMM Accounts
New traders will have many things to gain by using these accounts. It will enable them to give a specific amount to their investment managers. The investment managers now should invest the traders’ fund in the foreign exchange market. Now, if the managers make a profit through the investment, they will cut their commission & payout. However, it will be on the proportion of what the trader who gave them the money invested.
Now with this new PAMM accounts from NordFX, the customers will have many tools which they will use on Zero and Pro accounts. Also, they will have many financial instruments to use. Some of the tools and instruments available for customers are; fifteen cryptocurrency pairs, Thirty-three currency pairs, four cryptocurrency indexes. They will also have access to Contracts For Differences (CFD) for world stock indices & oil. This was according to the statement which the company released regarding the launch.
As for where trading will take place, NordFX states that it will be on MetaTrader four platform. Also, the company offers a leverage of 1:1000 for the Percent Allocation Management Accounts. The firm states that the minimum amount which the managers will not withdraw from their investment is 50 dollars.
We gathered from the statement that NordFX has no requirements for investors. Also, it is the trader managing the account that will determine the amount to invest in any instrument. The terms of the deals will still come from them since they will be the ones to make an offer to investors.
Crypto and Foreign Exchange brokers include PAMMs
It is true that NordFX has just launched the PAMM accounts, but the company is not the first to offer it. We got another report that FXOpen, another Retail brokerage firm started this offering since February. The company offered these accounts as soon as its clients did an upgrade to the MetaTrader 5 platform.
Okay, let’s point something out here. These Percent Allocation Management Accounts are not only for Forex trading. The traders operating in the cryptocurrency market are now using these accounts. For instance, a retail forex brokerage company Fibo Group launched the PAMM accounts last year for newbie crypto traders. The advantage of their offering was that it allowed crypto traders to manage money for other service users. As such, they traded with investors’ money and made commissions.
