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Forex Brokers with MAM/PAMM/LAMM

Types of managed accounts: MAM(Multi-Account Manager), PAMM(Percentage Allocation Management Module) or LAMM (Lot Allocated Management Module).

With MAM,PAMM or LAMM account, money managers can trade on behalf of their clients through a software which execute orders with a master account and automate trade allocations to customer accounts.

1.1 MAM(Multi-Account Manager)

MAM accounts :

  • Provide great flexibility with different allocation methods – Lot(Like LAMM),Percentage(like PAMM)
  • Allow money managers to adjust risk of each sub-account based on clients’ risk preference. For example, MAM accounts allow managers to change the amount of leverage applied to a specific sub-account.

1.2 PAMM(Percentage Allocation Management Module)

With PAMM, allocation of profit or loss are based on percentage of funds invested by the customer.

Example of PAMM:

  • Total funds = 100K
  • Customer Account A 30K USD = 30% of the all funds
  • Customer Account B 10K USD = 10% of the all funds
  • Customer Account C 20K USD = 20% of the all funds

If the money manager have a profitable trade which give 1000USD of profit.

  • Customer Account A 30K USD = 30% of the all funds
  • So profit for customer A = 1000 * 30% = 300 USD
  • Customer Account B 10K USD = 10% of the all funds
  • So profit for customer B = 1000 * 10% = 100 USD
  • Customer Account C 20K USD = 20% of the all funds
  • So profit for customer C = 1000 * 20% = 200 USD

1.3 LAMM (Lot Allocated Management Module).

With LAMM, the profit & loss depend on how many LOTs a customer is willing to trade.

Example of LAMM:

  • Customer Account A 30K USD, 2 lot to be traded each time
  • Customer Account B 20K USD, 2 lot to be traded each time
  • Customer Account C 50K USD 0.5 lot to be traded each time
  • Total managed funds = 30K+20K+50K= 100K

If the money manager have a profitable trade which give 1000 USD of profit per lot ,the profit will be devided as follows:

  • Customer Account A 30K USD, 2 lot to be traded each time
  • So profit for customer A = 1000 USD * 2 (lot) = 2000 USD
  • Customer Account B 10K USD, 2 lot to be traded each time
  • So profit for customer B = 1000 USD * 2 (lot) = 2000 USD
  • Customer Account C 20K USD 0.5 lot to be traded each time
  • So profit for customer C = 1000 USD * 0.5 (lot) = 500 USD

Losses can be calculated in the same way.

InstaForex

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Company: InstaTrade LLC; InstaTrade Investment Company Ltd.   Warning:January 13, 2015:  French AMF published a updated list of forex brokers that offer forex trading service in France without authorisation of AMF.  InstaForex is on the list.   June 9, 2014:  The Ontario Securities Commission warned against InstaForex, because  instaforex “is not registered to engage in the business of (i) trading in securities or (ii) […] Continue Reading →

Dukascopy Bank SA

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Company: Dukascopy Trading Technologies Corp. Note: Dukascopy Bank SA (In Switzerland) is regulated by the Swiss Financial Market Supervisory Authority FINMA both as a bank and a securities dealer.   Dukascopy Europe(in Latvia) is not regulated as a bank or a securities dealer  and is not regulated by FINMA.    Continue Reading →

Finexo

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Company: Safecap Investments Ltd. Note:  2015-7-2:  Cysec fined Safecap Investments Ltd €168,000 “The Cyprus Securities and Exchange Commission (the “CySEC”) would like to inform the public that, at the meetings held on the 2nd March 2015 and on the 25th May 2015, decided to impose the total administrative fines of €168.000 to CIF Safecap Investments Ltd (‘’the Company’) for […] Continue Reading →