Offshore forex brokerage house Weltrade has chosen to discontinue the offering of PAMM accounts, the company said earlier this week. The decision is due to technical features of the software and is in line with the updated objectives in the process of company development.
All PAMM accounts, both those of managers and of investors, will be closed on 1 March, 2017. Client funds will be transferred to Safe e-payment system. The opening of such accounts has been disabled from January 18 and existing accounts will continue to work until 28 February.
Percent allocation management module, or PAMM, is a type of pooled money forex service which allows traders to follow more experienced peers and invest in a proportion to those they follow. The concept includes two types of traders – PAMM managers, who act as master traders and can design an attractive proposal for investors, and investors, who can browse through PAMM accounts and choose how to invest their funds. Gains and losses are distributed between managers and investors in proportion to their participation.
Weltrade offers trading in forex, precious metals and contracts for difference (CFDs). It was set up in 2006 as SystemForex and was rebranded in 2012. The broker is based in Belize, where it received a forex broker license in December 2015 from the International Financial Services Commission (IFSC). It has four representative offices – in Russia, Ukraine, Belarus, and Thailand, as well as 126 regional partners in Europe Asia, Africa, and Latin America. Weltrade has more than 100,000 clients in nearly 20 countries, including Russia, the Commonwealth of Independent States (CIS) (former Soviet countries) and some Asian countries.