PAMM accounts on the market
In the market investments in the form of trust management accounts are very popular and in demand, because not all people who are ready to invest in the foreign exchange market have sufficient knowledge, experience and time to acquire them. On many forums you can find participants who are looking for a talented manager with whom they are willing to enter into a partnership agreement. Of course, there is a supply for such a demand, but it is usually associated with serious risk for both parties of the contract. Investors understandably fear risks associated with dishonesty and incompetence of some traders to whom they decide to entrust their capital. Traders are usually worried about working for free. What has changed with the advent of PAMM accounts on and how it affected the currency market as a whole, let's try to understand.
What is a PAMM account on ?
PAMM abbreviation Percent Allocation Management Module stands for Percent Allocation Management Module. The system is quite simple: an investor finds a successful trader, hands over his funds and agrees to give a certain portion of profits as a reward for successful money management. The agreement, in which both interested parties bring to a common denominator such actual conditions of cooperation, as the percentage distribution of profits or losses received, the terms of its implementation, the amount of the minimum investment, the percentage of maximum drawdown, etc., is called a public offer.
How does PAMM account work on ?
Novelty and the main innovation of the technology PAMM accounts on is that this form of trust management achieves the maximum safety of the union of trader and investor. The manager with the help of a special service provided by a dealing center or brokeropens an investment account, creating the initial capital of the PAMM account. Having good statistics of his account management, he attracts investors and receives additional funds under his management to this account. Generally, this was the case before, but in the case of PAMM accounts trustee has no possibility to cash out the entrusted money, he can only trade on them within the established limits. The right to withdraw funds has only the investor himself, who has the right to withdraw his finances at any time, if he is not satisfied with the trade.
PAMM account trustee can get unlimited investments under its management, while making transactions using the total capital from a single PAMM-account. Let us remind you that
managers, whose rating is published on the site and is based on analysis using all kinds of technical tools and charts.
Advantages of using a PAMM account on
Let's analyze the advantages of such cooperation for both sides: for the trader, the investor and the company.
The trader, thanks to the PAMM-technology, can, first of all, get more capital in order to increase their own profits or the implementation of various trading strategies. He can set the required conditions for his PAMM accounts on Having the opportunity to attract an unlimited number of investors. In addition, by managing such an account, the trader can be sure that he will receive his profits, which he earned honestly.
In this case, the company is also not left in the lurch. By creating a service of PAMM-accounts, it attracts talented managers, independently investing in their trade in the future. From cooperation of the trader and the investor the company receives the commissions which are in advance stipulated in the offer. Having in its rating of managers of high quality professionals, the company increases its overall rating and interest of traders to work with it.
For the investor there are at least as many visible advantages. It is an opportunity to put into circulation available funds, not having their own experience in working on, with a large share of safety and transparency. At any time investor who gave his money to the trader can check how well the manager works, how the statistics of the trading account changes, and take the money back in case of an unfavorable development of events. Guarantee of profits is the capital invested by the manager, who, in addition, can not lose all of his entrusted funds, as in the offer there is a clause limiting the losses. Also, the investor can diversify their risks by entrusting money to several managers and creating a PAMM-portfolio.
How to invest in a PAMM account for ?
At the moment, the service of working with PAMM accounts on provide many large Russian and foreign brokers. Considering that this service is quite difficult to create and maintain, the availability of PAMM-at the company is its great advantage over its competitors.
It is worth noting that the service of PAMM-accounts in different companies is implemented differently, but its principle is always the same: to ensure reliable cooperation between the investor and trust manager.
With the practical experience of investing in PAMM accounts you can read in this article:
Investing in PAMM accounts in practice: creating a portfolio on 500$