The money managing systems in FX are varied and there are certain differences between PAMM, LAMM and MAM which need to be kept in mindbefore plunging into any of these options.You need to scrutinize the specifics of each of these systemsand ascertain that the managed account suits your needs.Let us a take a closer look at the characteristics of these 3 accounts.
LAMM (Lot Allocation Management Module) it is a less advanced version of PAMM, and it does not take into account, the size of each individual investors account. In case of each customer account, whenever the manager buys a standard lot of currency, the customer’s account would also increase by one standard lot. This type of managed account is only suitable in a situation where the manager’s investment is equivalent to the customers. Certain points can be raised against this systemif the investor is investing much more than the manager.
MAM (Multi-Account Manager) these types of accounts give the managers the ability to allot a much higher leverage toparticular subaccounts. This feature is suitable for those investors who are willing to raise the stakes and have a high tolerance for risks.
PAMM (Percent Allocation Management Module)
In this type of system, the Investor’s portfolio is solely co-related to the corresponding investment or deposit. Every account has its own ratio by volume. Basically, PAMM invites the investors to make an investment and this invitation is put forward by the manager; therefore the manager is looking out for his interests too. The trades profit losses and other credentials of the manager are assigned between managed portfolios according to the allocated ratio.
Due to the flexibility PAMM offers and extended opportunities, it is preferred to other money managing systems: 1) The ability to control the conditions of the investment such as setting the trading period and many other attributes. 2) TOP Manager List, which is publically displayed to investors and is based on performance; 3) Reporting of the trades is also available and it has been established after carefully perusing the professional needs of the manager.
All that said, people choose PAMM because of the broad options it provides and a large number of professional managers available on this platform. They can be accessed via the TOP list feature. The ability to follow trades in real timegives the investors more assurity and a better handle over their investments.
Soft-FX PAMM SaaS can be installed with MT4 through manager API. Conidering how simple this system is, integration of PAMM SaaS involves no major investments.It is highly compatible with MT4 and the web interface it is implemented on.It can be customized according to the preferences of each customer.
In short, one thing is quite blatant– types of managed accounts have distinctive differences from each other and their choice depends on the preferences of the investor and the managers. However, due to the flexibility of PAMM, it is superior to other managed accounts and is being widely used for its diversity and user friendly applications.
HiWayFX provides its clients with the opportunity to invest in different fund managers. Learn how you can benefit your with HiWayFX PAMM.