How Do PAMM Accounts Work?

The TradeFCM PAMM Account is an investment service that gives investors the chance to make money without trading themselves on Forex and allows managers to earn additional income for managing client funds.

The Basic Idea Behind the PAMM Account

  • A manageropens a PAMM Account, allocating a certain amount of his initial investment as the Manager's Capital. He will be unable to withdraw from this amount (an additional incentive for the manager to demonstrate caution in his trading). Next, he designs his Proposal, in which he lists the terms for investors. This includes the percentage of their share of the profit they will pay him in compensation.
  • Investorssearch through the PAMM Account Ratings to find the account they would like to invest in.
  • The manager begins making trades on the account using both his personal capital and the funds of his investors. Profits and losses on the account are divided among the manager and investors on compensation, based on their share in the account.

Want to invest funds in a PAMM ACCOUNT 

The manager keeps on trading on his PAMM account using both their personal capital and the funds of their investors. The better the manager's trading results the better their position in the Ratings.

If the manager earns profit the amount of funds on the PAMM account increases and the profit is distributed between the manager and the investors based on the amount of their initial investments.

In our example the profit made 200%
and the balance of the account has risen to 1,500 USD.

The investors pay the manager some part of their profit in compensation. The size of the compensation is specified by the manager in his Proposal and depends on the amount of invested funds.

In our example manager's compensation makes 20% of the investors' profit.

TradeFCM PAMM Partnership Program

One way a PAMM manager can work on developing his PAMM Account is by bringing in a partner to help out. The partner doesn't trade on Forex and doesn't participate in the PAMM Account management. There are two types of partners a manager can recruit:

  • An Acquisition Partner helps bring in new investors to the account. They are paid a percentage of the manager's compensation for each client they refer.
  • An Auxiliary Partner can help in other facets of the PAMM Account: analysis, marketing and advertising, etc. They are paid a fixed percentage of the manager's total compensation from investors.

Any TradeFCM client can take part in the PAMM Partnership Programs after signing up the document and sending back to us . A partner can then get in touch with the manager and agree on the percentage they will be paid.

Auxiliary Partners and Acquisition Partners