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PAMM accounts for non licensed money managers ??
May 02, 2013 at 19:54
Vues 5,912
4 Replies
May 02, 2013 at 19:54
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
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
Membre depuis Apr 30, 2013
posts 1
May 28, 2013 at 19:23
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.
May 29, 2013 at 16:24
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
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
Membre depuis Aug 06, 2011
posts 326
Jun 03, 2013 at 09:00
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! 😎
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! 😎
Membre depuis Jan 10, 2013
posts 259
Jun 10, 2013 at 05:33
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.
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