NordFX, an international foreign exchange (forex) broker, announced this Wednesday that it has added a new service to its offering – PAMM (Percent Allocation Management Module) accounts.
What are PAMM accounts? PAMMs are designed for traders who don’t have enough knowledge to trade on the FX market, or don’t have enough time, as the service gives inexperienced traders the chance to invest funds without trading their money themselves.
Specifically, PAMMs allow traders to allocate a certain amount of cash to investment managers. The managers then invest those funds in FX trades and, if they make a profit, they take a commission and payout – in proportion to the amount that they put in – to the investors that gave them money.
Through NordFX’s PAMM service, customers of the broker have access to a range of trading tools on Pro and Zero accounts, as well as a number of financial instruments. This includes 33 currency pairs, metals, 15 crypto pairs, four cryptocurrency indexes, and CFD contracts for major world stock indices and oil, the statement said.
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Trading is carried out on the MetaTrader 4 platform, and the firm offers maximum leverage of 1:1000 for PAMM accounts. The minimum non-withdrawable amount of the manager’s own investments is $50.
“There are no requirements from the company for investors, and the managing trader determines the minimum amount for investments, as well as other terms, in his offer,” the statement released today said.
FX and Crypto Brokers add PAMMs to Offering
NordFX is the latest broker to offer PAMMs, but definitely not the first. As Finance Magnates reported, Retail brokerage FXOpen began offering this service from the end of February when its clients upgrade to the MetaTrader 5 platform.
However, PAMMs aren’t just used in the forex industry but have also become a service offering for cryptocurrency traders. One such company to do so was retail forex broker Fibo Group, which launched a new service to add PAMM accounts to its crypto offering last year, a move that effectively allows digital currency traders to become money managers for other users.