Despite salespeople trying too hard sometimes, the account should be ready within the same day – without complicated procedures involved.
Account Eligibility
You are fine as long as you don’t currently reside in the following countries:
- USA
- North-Korea
- New Zealand
- Iran
- Iraq
- Syria
KTM Min Depo
Depending on your country, a minimum deposit may or may not apply. Contact your local sales team for more info.
Account Types
There are two account types “raw” & “standard” that differ in commissions. The main difference is the variable cost for the standard is €1.5 and no commission, meanwhile raw is 0.2 + €8 per round.
Ostensibly, there is no difference between the two. I suspect that the difference may be rooted in the market vs non-market maker execution.
How to open an account at KTM
You’d need to:
- Fill in your data
- Answer questions about your trading experience (questionnaire)
- Verify identity (depending on your country of residence it may not apply ⬆)
Money Management (PAMM/MAM)
KTM feels like a particularly good option when you consider money management options (PAMM, MAM, Social Trading). Moderately low Forex & CFD fees open up an extra room for money managers and investors to have a good deal.
To connect the two, KTM uses the Percentage allocation management module (PAMM), also known as percentage allocation money management or PAMM.
The biggest difference from Multiple Account Management (MAM) is that, unlike MAM, PAMM keeps all funds in one money manager’s account, leaving an investor without the options to impact the trading on their side.
Another difference is that to join PAMM new traders don’t have to wait until the current trades are still closed, in contrast, anybody can join at any point, the money managers would just need to increase the stake in an active position in accordance to the new capital (if that’s not done, while the new investor has joined with some positions still active, the final proportion of loss/profit will be affected by the new capital).
To become a money manager, you’d need to:
- Open & Verify Account
- Allocated at least €1,000 to your MT4/5 Live Account
- Reach out to KTM to Set you up as a Money Manager
- Distribute the link to your PAMM
To become an investor (KTM does offer public managed accounts):
- Open & Verify Account
- Allocated funds to your MT4/5 Live Account
- Locate money managers via KTM’s PAMM network/join closed PAMM
As an investor, you will receive, daily equity updates and trade overviews. Unfortunately, KTM’s solution won’t let you know about the status of your trading live.
Overall, albeit being rough at the edges and a bit convoluted in terms of investor onboarding, KTM’s PAMM is a solid solution that, together with KTM’s exceptionally good customer service, should ensure both money managers and investors won’t get lost or impatient.
Money management fees can be agreed upon based on management and performance fees. Management fees are not tied to the profit your money manager makes, and are usually on the lower side (1-2%), meanwhile performance fees (usually calculated at a high watermark) serve to reward the money managers (usually 25%-50%).
Social Trading
KTM social trading is limited to the ad-hoc solution by social trading tools. At the time of the review, the solution hasn’t been fully implemented.
Despite not being exactly the eToro of social trading, KTM’s social trading area does the job well enough to consider it as an option.
