Cheating on PAMM accounts
Until recently, investment in PAMM accounts of managing traders perceived as highly risky type of investment. All investors are well aware that their account can manage the layman and the slightest deviation from the trading strategy control can lead to complete loss of funds.
However, despite all the riskiness of the investment method, each brokerage firm were like nuggets that skillfully manage money, and investors who were willing to take desperate risks and provide the trader money.
By PAMM accounts never had issues with investors, as such a system interaction trader and investor suit both sides, because as a guarantor of the inviolability of money (there is no possibility to withdraw money investors) played himself and his broker PAMM system.
Various restrictions on subsidence and loss allows investors to get out of the system with minimal risk and the trader who dreams about big money investor, the PAMM system thanks to the publicity allowed to bring permanent sailing investment.
In general, she PAMM system is an excellent and unique interaction between the investor and the trader’s tool, but around this kind of system has appeared a lot of scams. Earlier, no one could not even think about the fact that what the trick is built around a PAMM accounts.
Bankruptcies of companies.
However, the first shocking news about the closure of the forex broker MMSIS investigation and regulatory authorities to show that the PAMM system has become a shell behind which hid the ordinary pyramid or HYIP.
Initially, the company was ordinary activity where everything was clean and operating PAMM accounts have changed rapidly in their ranking positions every day. However, one day there is a top 20 traders, who constantly bring profit to investors, is not allowed any mistakes, and none of them lost money.
Agree, mysticism turns out that 20 traders safely kept in their positions and no one of them is not allowed any mistakes, even in the most difficult areas of the market, when one Greece with their statements is happening with the euro exchange rate that they wanted.
But the company did not stop, and even created its own index of the top 20, which offers investors earn. As a result, one day, the company gather up millions of investor money, and simply vanished.
The above-described case was only the first warning bell, telling us that in whose hands is the PAMM schitema, he can twist as you’d like it.
The second call for investors rang when bankrupt one of the most popular sites PAMM Forex broker Trend and its subsidiary Paneton Finance. In this case, the broker crooks went to a new level by offering 2.0 PAMM investor thanks to which investors and traders share the risks equally as profit.
Agree, not a trader is not willing to take such risks, and if he can compensate for the loss of control, the fact, then why take the money?
But for some reason, investors did not want to look at the whole picture of a sober look, and the company during the same time created a fictitious stable skeleton, which allegedly makes money. As you know in the end the two brokerage companies were the usual pyramid, and the investors’ funds disappeared.
Such attacks on the reputation of the PAMM system as a whole, make us think, and whether it is necessary to communicate with this type of investment. But do not pull all the same brush, because there are companies that are doing everything transparently.
As is the case in real brokers.
For example, in the Alpari InstaForex and rating control is so dynamic, it is very difficult for one month of the same trader to see at his position.
A number of destroyed PAMM accounts traders sometimes simply surprising. However, such a reality, and it must be taken, because most traders lose than they earn.
How to bypass the party of swindlers?
All you have probably encountered intrusive calls brokerage companies, which promise you a guaranteed a certain percentage of the profit if you invest in such and such traders. If you have something to ensure this is an excellent opportunity to bypass a company party, because no guarantees in investing does not give even the largest hedge funds.
It is also necessary to understand that the stable of traders can be counted on the fingers of one hand, so investment should be borne by short-term in nature and lasts no more than 1-3 months to one trader. Even if you fall into the wrong hands, timely care from the company will not only save your money but also bring already earned.
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