PAMM – Percent allocation management module
1) What is PAMM ?
PAMM is Percent allocation management module for forex traders.There are PAMM manager and PAMM investor in this proccess.
PAMM manager is fund manager. He trades with his own live account.If he can double his account equity than investors can double their accounts too.
PAMM investor is person who invest money. If fund manager increase his account equity and investor will increase too.
Here we can see another example with one fund manager and 2 investors :
Let we see another example with description :
Let we see one example where we have fund manager and 3 investors. Afther few months we have this situation :
Investor 1 invested $34.500
Investor 2 invested $20.000
Investor 3 invested $5500
On this picture investor had $10.000 and he made profit $10.000. Now he has $20.000 from his trading and plus he earned money as fund manager from commission.From investor 1 he earned $9315 , from investor 2 he earned $5400 and from investor 3 he earned $1485. Now he has $36.200 ( $10.000 his deposit, $10.000 from trading, rest from commission).
Conclusion : If fund manager increase equity of his account and investors will increase too.
Top forex brokers which offers PAMM – PAMM brokers list :
1. Instaforex PAMM system for investors
Instaforex is the biggest forex broker in Asia and one of the biggest brokers in the world. There are a lot of good traders and fund managers so this broker offers excellent way to make profit. Instaforex PAMM traders and Instaforex PAMM investors you can become in couple minutes and only you need to register live account.
2. Hotforex PAMM system
Hotforex is forex broker with several prizes till now. Good customer suport and fast deposit and withdraw option are very important characteristics of this broker. Fund managers will not get penalty for withdrawals.Hotforex offers zero fees on deposits too.
3. Fxopen forex PAMM accounts
Fxopen offers one of the first PAMM systems on the internet. On this website you can read everything about PAMM system and you can choose a lot of good fund managers. Of course try to pick longtime traders if you are PAMM investor.If you are scalping trader and you want to become PAMM fund manager fxopen offers mt4 ECN accounts.
4. Hiwayfx PAMM managed accounts
This forex broker offers a lot of deposit options, nice platform and easy steps and descriptions for future PAMM investors and PAMM traders.
5. Liteforex PAMM forex Managed Accounts
This forex broker has not a lot of users as brokers above in this list but customer support and whole system are perfect.You can read a lot of reviews about all PAMM traders and all PAMM trading processes are automated.
6. Alpari PAMM account :
Alpari offers excellent platform and you can become fund manager or investor in couple minutes as we can see on image above. When you create account you will get very easy user navigation platform. this user platform has only Alpari Russia website (of course all communication and navigation is on several languages and on english too).
Fund manager you can become with $500 investment and afther 3 months you can get the first investors.Each fund manager will offer to you fee value. Manager Remuneration or PAMM trader commission is fee that you need to pay from your profit to manager.
How to choose PAMM fund manager ?
Forex market attracts its clients because it seems to be an easy market to get a portion of $5.3 trillion daily deals with high returns and big volume as well as market’s volatility. But, as you guess from the “it seems” part, getting money in this market is not a safest bet for many traders. If it were just a place to collect your invested returns, it probably would be there. A large portion of that money comes from quick thinkers, and it goes to smart thinkers. To get the best of the Forex market, you will need to learn as much as possible about the market, its basics of the technical aspect of it. However, to get a grip over it, you’ll need to have a good fundament in financials. If you don’t, then find somebody who does. If you don’t have a financial background, you might want to think about PAMM investing.
PAMM investing is having your money entrusted to a manager who can safely deal with it as if it’s their own. And in a way, it is theirs to operate on the basis of profit/loss. With PAMM investing there is software that distributes the profits and losses automatically.
Here are some tips on how to wisely choose your PAMM manager.
One of the first things to consider is the manager’s experience. It’s the same thing with hiring any sort of help you want to get somebody who has experience. For this sort of help, you want to check the period an account managed by that certain fund manager. You want to see an account that has been around for at least three or four years. Only then you should check out the rest of the accounts results. The consistency in performance is what gives away a trader with experience.
After the experienced is checked and passed, you want to see how it went with live trades. If you see that your broker isn’t offering valuable information, you can ask your fund manager to show those results, for example, on myfxbook. You will there see what’s the drawdown like, as it give you a hint about the size of the risk. If you see high risk in drawdown, we suggest you avoid those. When that’s passed, you can check how consistent your fund manager is with a certain result. The consistency is better than having big profits with the lack of consistency, as that shows more luck and less strategy.
Next thing to check is the capability of the fund manager to recover. Recovery factor represents the quickness the trader can recover from suffering drawdown. Obviously, what you want form you manager is to have a great recovery factor, as it represents their reliability.
The recovery passed, check how much investors have their accounts managed by your fund manager. That’s another safe thing upon which you can know if your fund manager is reliable. If several investors trust that particular fund manager, that’s a good reference. If there is a chance, you’ll want to see how good your fund manager is with all those clients.
Total equity is something to check out also for choosing your fund manager. The safest bet is to find somebody who trades at accounts of medium sizes. The reason for that is when a fund manager has a lot of capital to operate with; they might deal with risky trades. You never know what they would do with the amount of funds you have. Therefore, try to find somebody who deals with the similar account you have.
How you pay your fund manager?
Since a fund manager is basically a trader, but who trades with your money, he can only get a portion of the return you two get. Fund managers who are successful trader, you can expect that they would ask larger remuneration. However, if your fund manager does have a proven track, don’t bother to negotiate too much about his or her commission.
But, you can always make sure to make a good deal and discuss all the terms with the broker before investing your capital.