Foreign exchange market is the largest trading market in the world. People trade in foreign exchange either for practical reasons or with the intention of earning huge profits. However, trading in forex market is not an easy task. The trader needs to have high level expertise to make successful trades as the currency market involves huge risk. The currency market is highly volatile therefore if you have no experience of trading it is advisable that you use PAMM accounts for trading. PAMM accounts are the best choice for beginners.
What is a PAMM account?
PAMM is the abbreviation for percentage allocation management module or percentage allocation money management. In simple terms PAMM is the configuration of pooled money foreign exchange trading. Under PAMM account the investor gets the opportunity to allocate their money in varied proportions to different traders. The major participants in PAMM accounts are investor, forex broker and trader. The Siby Varghese top pamm trader is one of the best in the field.
Role of forex broker/brokerage firm
- Forex broker is the people who are responsible for providing a reliable and common platform to the investor and the trader. This platform is the medium for interaction of money managers and the investors.
- One of the most important roles of a forex broker is to ease the trading activities of the trader within the arena of rules and regulations. They are liable to keep a tab on the activities of the money managers.
- Foreign exchange brokers are also liable to facilitate the deposits, withdrawals, account keeping and other activities in relation to trading. They should guide the investors for the smooth functioning of trading activities.
- Another major role that a broker is liable to undertake is that they need to provide the investors and traders with transparent review, ratings, feedbacks, etc. It will help the investors and the money managers to understand each other.
How to select money managers
Forex brokers are the intermediaries between the investors and the money managers. Investors learn about money managers through brokers. It is the responsibility of the broker to provide different ways of selecting a money manager. The broker should provide information like qualification, previous performances, associated investors, reviews, etc. to the investors about the engaged money manager. There are also other ways to analyse the performance of the money manager like outside rating systems.