Forex trading is very profitable, but also complicated. There is no doubt about it. You can make a good profit trading forex. However, profitability requires more than good analysis or risk-management and trusted forex broker. You don’t have to be a trader on the forex market to make a profit. As you learn, traders can become teachers or open brokerages. Thus, there are many options for career opportunities in the forex market.
A forex broker refers to the system or platform through which retail traders can trade online. Although the foreign currency market is available online and globally, it does not allow retail traders to access it directly. To be able to trade on that platform, traders will need to register with a broker. The broker allows traders to track and monitor live currency pair exchange rates, price action charts, as well as offer other important tools for trading. Many online forex brokers offer a free demo account. Demo accounts are invaluable for forex traders, especially beginners. They allow them to practice and improve their trading skills while learning and growing, without risking any capital of their own.
In general, the term white-label refers to a type partnership where a company selling products and/or services of another company is promoted as an affiliate marketer. White-label in Forex is a similar type of affiliate partnership. A firm that provides a solution and infrastructure to a new brokerage company in the forex market is called a white-label provider. Such infrastructure includes MT4/MT5 servers, system backup, gateway to the external market, building a worldwide accessible network, as well as other requirements.
What then is a white label broker? It’s nearly the same, and very easy to grasp. We have explained the white label provider in the previous paragraph. The white-label provider is the brokerage that uses the white-label provider’s services. White-label can be described as an affiliate partnership. Therefore, the white label broker pays commission to the white label provider. If there are technical issues, or if you need to implement new solutions, the white label broker contacts the white-label provider.
PAMM and MAM are two types of accounts in forex. PAMM, which stands for Percentage Allocation Monet Management, is a specific type or investment that allows investors to invest in a trader’s trading accounts. Investors also invest in trader’s potential to make profit. In order to make a profit/commission on the investor’s trading account, the traders are called masters/managers. MAM, also known as Multi-Account Manager, is, in general, the same as PAMM. MAM gives the investor control over the trader’s trading operations. The investor has the ability to open and close trades as well as ask the trader to modify the way he manages the account.