Forex Club, the second-largest forex broker on the Russian market in terms of trading volume, announced that it is discontinuing its “Service Managers” feature, after six years of existence. The service was an analog to the percentage allocation money management (PAMM) system for trading with pooled investors’ money and risk equally shared between them and the trader.
Instead of its former “Service Managers” tool, Forex Club will be offering an alternative solution line: Trading systems, model portfolios and investment ideas, developed by trading and investment specialists. In essence it would work as a trading signals system and will exclude the element of trust management. According to the broker, this would reduce the risk for clients with little experience and not enough time for market analysis, interested in obtaining passive income.
A recently published survey of the Interfax-Center for Economic Analysis (Interfax-CEA) among Russian forex brokers found that the popularity of PAMM accounts among them is declining. – In 2014 nearly 17% of the respondents had used the model, while in 2015 their share dropped to 12.5%.
In an interview for the Russian-language website Forex Magnates, Igor Galkin, head of the sales department of Forex Club, explained that the broker’s decision was taken based on their clients’ needs for passive investments with more control and less risk. He noted that the interest in the PAMM system is declining both on a global level and in Russia and several other brokers in the local market have already stopped offering it.
Forex Club also announced that as of April 4 it will suspend the opening of new investment deals on the Libertex terminal and only the closing of deals option will remain active. Galkin clarified that this does not mean the service will be closed permanently and if such decision is taken, the clients will be informed in a timely manner.
Forex Club was founded in 1997 in Russia, but is headquartered and regulated in Cyprus. It has grown into a group of companies, including one in the US, registered with the United States Commodity Futures Trading Commission and is a member of the National Futures Association.
The Forex Club companies offer trading in forex, CFDs on stocks, metals, indices and energy commodities, as well as training services and analytical tools.
Other countries, in which the broker is active, are China, Ukraine, Kazakhstan, Armenia, Azerbaijan. Recently Forex Club applied for forex registration in Belarus.