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How to benefit from investing in PAMM accounts

Our review today is devoted to the PAMM concept which is abbreviated as Percentage Allocation Management Module. There is a great deal of information on this scheme of using a PAMM trading account as well as specifics of such investment, though the information is sometimes misleading. In this article, we are going to figure out the essentials. So, you will find out how exactly PAMM accounts are helpful both for beginners and seasoned traders.

In a nutshell, a PAMM account is a regular trading account with a unique feature which is a possibility of investing. Indeed, traders can invest their own capital in a PAMM account and therefore get a part of profits in case of a winning deal and incur losses if something goes wrong. An overall amount in a PAMM account consists of a trader’s own capital and investors’ funds. Profits and losses are distributed in proportion to their participation interest minus a trustee’s reward.

Here is an example of how to calculate a profit. A PAMM trader set a commission for investing at 30% and attracted 10 investors. Each of them provided $500 for trust management. As a result of a winning deal, a trustee increased the pooled money of $5,000 by 20%. The overall profit totaled $1,000. Thus, a PAMM trader’s reward came out at $300 and investors’ returns equaled $700 that was $70 for each of them.

Otherwise, losses are distributed among investors in the same proportions, but a PAMM trader does not earn a reward. To sum up, PAMM accounts enable experienced traders to boost their own income because they amass their capital through the funds of referred investors. In other words, it is a great solution to monetize know-how and experience.

Investors, especially beginners, are interested in easy passive income with their minor involvement. The most important is that they are free to choose a trustee to manage their capital in a transparent manner. A large number of PAMM accounts are available on Forex, so that PAMM managers compete fiercely for every investor. Besides, would-be investors can monitor statistics and make their own conclusions about professional skills of PAMM traders. An investor can judge the following criteria: a number of winning deals, profits earned, trade volumes etc. Thus, you can select the best. On average, the minimum investment amount is $50.

Investing in PAMM accounts poses the same risks of trading. Even efficient traders cannot avoid mistakes which inflict losses. The worst risk in such investments is blatant fraud. There are a lot of stories about PAMM managers who cheated people out of their money and vanished from sight. Therefore, the first thing to do before joining a PAMM system is to choose a reliable broker. The advice is too simple, so that most people can neglect it. Nevertheless, we strongly recommend you choose a broker after careful consideration.

Our advice is InstaForex, a broker with international recognition. Every participants can rely on the PAMM system from InstaForex to ensure full automatic supervision of all transactions and profit shares. A PAMM manager cannot afford any delays and unauthorized steps. Indeed, investors’ funds are accepted and above all profits are calculated and paid in the automated mode. The system developed by InstaForex IT specialists provides perfect safety of your investment. You can withdraw your funds from a PAMM trader’s account on request within 30-60 minutes after you submit your application.

Streamlining the PAMM system, InstaForex launched a unique program of investment projects for large partners. The broker offers beneficial conditions to traders who specialize in trust management, thus giving them ample opportunities for reaping profits. Moreover, such partners are provided with a practical plan to refer new clients and detailed guidance at each stage of work. You are sure to appreciate efficiency of InstaForex instruments of attracting clients!

Within the scope of the Investment Project affiliate program, partners receive affiliate commissions from attracted investments. Besides, they gain an extra reward as an interest on a volume of deals. Importantly, InstaForex offers its Investment Project partners the highest reward compared to other brokers that is 1.5 – 5.3 pips from each deal.

Let’s figure out how to calculate a profit of an Investment Project partner. For example, a partner attracted investments from 10 people as a PAMM trader. Each of them invested $1,000. As a result of a winning deal, a partner enlarged a mutual fund by 20% by closing 1,000 InstaForex lots. A PAMM trader’s reward is set at 50%. To sum up, a partner’s profit makes up: 10*1,000*0.2*0.5+1000*1.5=$2,500.

Last but not least, those who register with the Investment project program enjoy an official status of an InstaForex partner. So, they are entitled to promote the broker’s advantages that is a powerful technique for referring new clients.

In conclusion, the broker uses a secure mechanism which guarantees safety of clients’ funds. It is the service of segregated accounts. Such accounts with InstaForex enable you to manage a deposit which is stored in your bank account or in a client’s account. With this service, your clients are legally protected from fraud.

The opinion of the review`s author is private and not obligated to reflect the position of the resource. If you have any remarks and suggestions on new articles please contact us via this form.
Author: Aqeela | 日期 of  2019-12-05
This is a very useful article! I am still not entering the Forex market (although I really want to) because I am afraid that I might not be ready yet and lose everything. But since I've read this, I think there is no reason to be scared anymore. I can rely on the PAMM investment to at least even out my balance in case I mess things up. I am also interested in opening an account to the broker who offers this program. I will ready my fund and start trading as soon as possible. Wish me luck!
Author: Uferia | 日期 of  2019-11-27
PAMM system is one of the most helpful systems in the Forex industry. It helps not only the novices but the professionals as well. Having someone else manage your investment is a huge convenience. I decided to use it when I became very occupied with my job that I started to neglect my trading activities. Instead of leaving it inactive, I decided to invest it on a PAMM trader and let it grow. Until now, I am still into PAMM system and the results are highly favorable.
Author: Miriam | 日期 of  2019-11-19
I have been seeing this PAMM system almost everywhere and I honestly find this program interesting. Especially after reading this article, I completely understood how this works and I think it will really be helpful not only to beginners but even for professionals who are busy with their other matters. Sadly, my broker does not offer this system so I won't be able to try it. But If I can save enough, I might try opening an account at another broker and test this program out.
Author: Goelle | 日期 of  2019-11-14
Throughout the first few months of my trading experience, I was relying on the PAMM system. It was great because at the same time, I was also doing my own trading activities. That is why even when I mess up, the losses would still be recovered through the profit from the PAMM system. Eventually, I found my trading style and was able to earn as well. So I was earning on my own on top of the earnings from the PAMM investment. It as only recently when I stopped investing because I wanted to try being a PAMM trader this time.
Author: Herissa | 日期 of  2019-11-06
I am currently investing in the PAMM system and I can see how much it helps in the growth of my account. I am not really having problems with my trading activities. I am earning, but not hugely. Still, I was happy with that. I planned to continue that way until my account manager suggested the PAMM system. Since I could invest a small amount, I gave it a try. Surprisingly, even with a small investment, the PAMM trader was able to return with a profit higher than my average. Because of that, I increased my investment and now, my account is boosted.
Author: Grechel | 日期 of  2019-10-30
The PAMM system was my saving grace when I started trading. For about four months, I have only been acquiring losses and only very few winnings. I was on the verge of giving up and just accepting that Forex trading is not for me but my account manager told me to try investing on the PAMM system first. I decided to try for the last time and invested $50 on the system. Amazingly, even with a small amount, there was progress even only during the first week. It continued on for months and my losses were gradually recovered. Until now, I am still invested on this system and I have no regrets at all.
Author: Grezille | 日期 of  2019-10-21
From a PAMM Investor, I am now a PAMM trader. I am not saying that everyone who have invested on the PAMM system must become a trader in the future. All I'm saying is that this PAMM system had been very helpful to me that I was inspired to also do well and become a PAMM trader to help other investors in return. I am not only helping others, I am also earning quite well. Beyond doubt, engaging to this system is worthwhile.
Author: Grenard | 日期 of  2019-10-17
I started investing in the PAMM system when I was half a year into trading feeling frustrated that nothing is happening on my account. I selected a PAMM trader and she was great. She earned well on the first month and continued on the following months. Profits were coming in my account consistently. I only stopped the investment when I decided that I am ready to work alone and earn on my own. I am currently earning well and I owe majority of my fund now to the PAMM system.
Author: Chisev | 日期 of  2019-10-07
I swear, the PAMM system is the best thing that ever happened on my trading journey. I don't know if this is common, but I had a phase where I couldn't get any trade right. Every time I open a position, it just ends up losing. Since my account balance has been dropping, I decided to invest on the PAMM system and let another trader do the work for me. Amazingly, the results were more than what I expected and the losses were recovered in a short amount of time.
Author: Violet | 日期 of  2019-10-03
The PAMM system is convenient and helpful. It benefits not only the newbie traders but also those who are already experienced. It is very convenient to those with hectic schedule as their account would continuously grow despite not having the time to manage it all the time. And of course, to newbies, they can earn stable profits even with little knowledge on the market.
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