The managed forex accounts are a investment vehicle where a professional money manager trades on a client’s behalf for a fee.
Managed forex accounts are the a convenient trading alternative for the short and long term, ideal for non-professional traders.
Before you hire any money manager take in care this 3 key points:
The parts involved in the managed forex account are the investor, the broker and the money manager, is very important that the 3 parts works in the same direction to achieve clients profit.
The multi account manager is a software that allow money managers pull multiple client accounts under one single fund. So every traded done on the master fund will be allocated on client account according with a criteria chosen by the money manager, this criteria can be according with an specific size, proportional by balance, weighted percentually or by specific risk.
The PAMM is a interface of the MAM software that allows money manager to pull several clients in a single account and traded all the accounts there, the percent allocation management module means that the clients will received the trades with their profit or loss according with their percent weight on the total fund.
A Limited Power of Attorney allows an individual or a company to trade and managed a trading account on behalf of another individual or company that grants him this right in exchange of a performance fee.
The hwm is a way of performance fee calculation that ensure client will only pay over the profit generated on his account by the money manager.