PAMM accounts for non licensed money managers ??

wahjay

Menjadi Anggota Sejak Oct 08, 2011 41 postingan

May 02, 2013 at 19:54

Menjadi Anggota Sejak Oct 08, 2011 41 postingan

Hey guys,

So, I was looking into opening a PAMM account soon however I noticed that PAMM accounts in brokers such as Alpari can be opened by basically any trader ! The problem is : if you are not a licensed money manager by your country's regulator, managing other people's money even through your broker is normally illegal ! In my case, i'm in france and my broker FXCM told me all people doing that are totally being illegal since you should be registered as a money manager, cta or whatever..

So my question is simple : 99% of people on myfxbook are illegal? How come Alpari and some other brokers don't check their traders? Is it dangerous to open an account , dangerous as a crime or is it seen different by the law , depending on countries etc?

Thanks

forex_trader_125803

Menjadi Anggota Sejak Apr 30, 2013 1 postingan

May 28, 2013 at 19:23

Menjadi Anggota Sejak Apr 30, 2013 1 postingan

some brokers just need a limited power of attorney signed by an investor. they allow a pamm manager/trader trade on their behalf. if it's any help. so it's not illegal if they don't have a license.

wahjay

Menjadi Anggota Sejak Oct 08, 2011 41 postingan

May 29, 2013 at 16:24

Menjadi Anggota Sejak Oct 08, 2011 41 postingan

But wait, the broker might have a licence, but the money manager does not always. In that case who trades? well it's the unlicensed money manager = you accept funds and trade investors funds.

So.. i know some countries like france where this is completely illegal. Now once again my question is still left unanswered..

I'm not sure it's 100% legal if not properly done.

Thanks

forex_trader_43716

Menjadi Anggota Sejak Aug 06, 2011 326 postingan

Jun 03, 2013 at 09:00

Menjadi Anggota Sejak Aug 06, 2011 326 postingan

I believe you can set-up as a PAMM manager with a broker outside your own legal jurisdiction, and provided you attract clientele from outside your legal jurisdiction, and outside other legal jurisdictions that require licensing (USA, Australia, UK, etc.), then you are doing nothing wrong.

By the way, all this ooh_aah about being regulated and licensed amounts to very little. Remember, it was those guys in $5,000 pin-stripe suits and degrees that gave us the Global Financial Crisis! 😎

forexpipcatcher

Menjadi Anggota Sejak Jan 10, 2013 259 postingan

Jun 10, 2013 at 05:33

Menjadi Anggota Sejak Jan 10, 2013 259 postingan

myfxpt posted:
I believe you can set-up as a PAMM manager with a broker outside your own legal jurisdiction, and provided you attract clientele from outside your legal jurisdiction, and outside other legal jurisdictions that require licensing (USA, Australia, UK, etc.), then you are doing nothing wrong.

By the way, all this ooh_aah about being regulated and licensed amounts to very little. Remember, it was those guys in $5,000 pin-stripe suits and degrees that gave us the Global Financial Crisis! 😎

Not 'gave us" you clown, gave you the Global Financial Crisis because your to stupid to capitalise on it.

EURUSD	1.11868	GBPUSD	1.34112
USDJPY	157.96	USDCAD	1.40875