PAMM system. What is a PAMM account and why is it the worst idea for your investment? Initial investment account data

PAMM account is a tool for investors in trust management, which has become particularly popular in the last 10 years. What is a PAMM account and how they work, how to invest money in them and why they have become such famous, about everything in this post.

What is PAMM account

PAMM account is one of the forms of combined currency accounts, which allows the investor to allocate its money from the main account at the expense of a qualified trader / manager. These traders / managers can accumulate on their own account as many welfare investors, as well as their own money using this capital for trading on the currency exchange.

Wikipedia

PAMM account is a specific mechanism for the operation of a trading account, a technically simplifying process of transferring funds on a trading account in the trust management of the chosen trust manager for operations in financial markets.

If you try to explain with simple words, the PAMM account is an open trader's account, which is filled with investors' means and controlled by a broker.

PAMM account has a single manager (trader), which trades on the currency exchange with its own money and funds of investors. The main feature of such an account is that the trader manages common money, and the account system automatically distributes profits or loss between all participants in proportion to the size of the investment.

• PAMM account in original: Pamm. - Percentage Allocation Management Module, Translated from the original is the percentage distribution module.

Simple words, PAMM account is a special account of the trader, in which investors can invest. Profit is divided proportional to deposits, like a face, but a small percentage is taken from profit - the trader's commission.

How the real PAMM account works

To understand what PAMM is an account and how it works, consider examples and details.

PAMM account is managed by one person - a trader.

It trades on the currency exchange and has its own profitability statistics. If the yield level you like, you can invest money. Each trader has its own conditions - on which there are conditions about, most often managers take from profits 20 - 50%.

Thus, if in one month the manager brought 20% of the profits, then 10% goes to you, 10% - control.

The more money they invest in the manager, the more money he will receive from profit, therefore some fraudulent operation from the manager cannot be used in PAMM account - both sides are equally interested in receiving profit and successful work..

Infographics - how PAMM is working

In PAMM, the account can simultaneously invest an unlimited number of people, and profit will be automatically distributed in compliance with the amount of the contribution of each investor. It is possible from the first time it is difficult to understand everything, but in fact it is as simple as possible, for clarity, see the rating at the largest broker at the moment.

Example 1. :

For the month, a profit was obtained 20%. Profit on the offer is divided into 60/40 (60% of the investor profits, 40% of the profit of the manager). Investor 1 invested 1000 dollars, the total profit on his contribution was $ 200 (20%), from this profit 60% is a investor, 40% of the manager, i.e. The net income of the investor turned out - 120 dollars.

Example 2. :

Investor 2 has invested $ 7,000 into an aggressive PAMM account N, where a month's profit was achieved in a month. On the offer profit is divided 50/50. The total profit from the investor's contribution 2 was $ 2660 (38% of $ 7000), of which 50% of the investor's share, 50% of the proportion of the manager. The net income of the investor amounted to 1330 dollars.
It is very similar to the mutual fund, there is also a party receiving investment and a large number of investors. The difference from the Passion Fund is that if in the classic share fund, stable average investors' income can be around 8-13% per year, then this figure will be month, 100-140% per annum!

PAMM service is very different from classical trust management, as it has a number of distinctive characteristics and signs. The main one is that the manager itself trades its own funds from the very beginning and even after investors join him, he will not be able to bring his capital (except for profits). This feature serves as an excellent guarantor of the responsibility of the manager before all its depositors.

All accounts are controlled by brokers, which officially register all managers, and do not allow to deceive investors. Brokers provide statistics, data for all operations that have received their term -.

Investing money in PAMM account can almost anyone. To do this, he only needs to open an account with the broker that has liked, which provides this service. After making this operation, you can choose an existing manager and attach your funds to his PAMM account.

A good brokerage company should not only provide a service, but also support it in excellent working condition, such that will be comfortable both for investors and managers.

Broker actions in this area can be described in the following steps:

• Creating managers of good conditions for successful trading;
• Providing opportunities to all those who want to become investors, allowing to introduce their own funds to the PAMM accounts, and directly the investment themselves;
• Maintaining full accounting of all actions of managing and investors, mailing reports, profit distribution and general control over all processes.

Watch an interesting video about what PAMM is an account:

How to invest in PAMM account and make a profit

Having understood with what the PAMM account is and how to work with them, you need to know how exactly the investment process is happening. It is performed in a few steps:

1. Registration and opening.
2. Making funds for a deposit.
3. Search manager using rating;
4. Transferring money from the personal account to PAMM account trader.

After money is enrolled, they immediately begin to work. As you can see the procedure itself is extremely simple, therefore, any person who has some free money can be investing in PAMM, which has some free money and knows how to use the Internet. Movement of funds can be tracked in the broker's personal account. You can bring money from management at any time, applications are executed every hour.

How much can you earn on investments in PAMM account

Surface look is not enough to determine how much money can bring investing in PAMM accounts. There are no clear boundaries. Depending on the style of trading, which uses a trader, the profit can go large jerks or barely to run. Experienced investors are not recommended to be chased behind the colossal numbers (200-500% and higher) and advise you to prefer accounts with measured and stable growth. The best PAMM accounts are those that give from 4-10% per month.

If we translate all this in money, then in these percentages will bring such income:

• $ 100 investments - $ 4-10 income per month;
• $ 1000 investments - $ 40-100 income per month;
• $ 10,000 investments - $ 400-800 per month.

With a monthly reinvestment, by the end of the year revenues can be multiplied.

How to choose a pamm account

PAMM account appeared in 2008 and a broker became the pioneer in this direction. To simplify the PAMMA selection process, the broker provides access to a special rating, which contains a variety of managers that work at the moment. They are decorated in the form of a table, which compares the main indicators of each of the participants.

An experienced investor will not be difficult to distinguish a promising account from the garbage. The beginners not to make gross mistakes at the start, it is advisable to pay attention to the following:

1. History PAMM account. The best way to evaluate the yield and risks of the PAMM account - to analyze the statistics of his trading history. Standard PAMM account rating will give all the necessary data for analysis. The dynamics of profitability will tell the average profit for the month, quarter, six months and year. A smooth line without sharp peaks may indicate that the trader has a working trading strategy and skillfully uses it.
2. Capitalization. Overall capitalization is another important detail to pay attention to before investing in PAMM account. In this case, the amount of deposits of all investors is meant. What it is more - the better. Fat deposit talks abouttrust Investors and High Motivation Manager.
3. Offer. Choosing a score, it is very important to carefully examine the terms of the offer. It contains a list of conditions that regulate relations between investors and managers. The most important items are: 1. Execution of applications— The period of time through which the investor will be able to draw a profit or contribution. 2. The amount of remuneration manager.

How to open your PAMM and earn most of all?

As can be seen, PAMM account is the benefit not only for the investor, but also for the trader. After all, investors give 20-50% of the Commission. The bottom line is that the trader receives a commission from each investor, and if the total capital is $ 100,000, which is not so much for a good PAMM account, then C profits are 50%, the trader will receive 15-25 thousand dollars only the commissions, not counting Profit from own funds.

Wishing to start an independent trading, you need to do the following:

• Register account and open a separate manager of the manager;
• Configuration (invoice name, leverage, minimum investment amount, set the percentage of the commission for investors);
• Replenish the score;
• Get a trading and make a profit.

Advantages of PAMM accounts

• PAMM accounts are beneficial for all. A skillful trader can get much more profit than from control only with their own money. The investor is able to enter the high-profit forex market at all without experience and with minimal investments.
• Working with PAMM accounts is absolutely transparent. Brokers provide accurate traders ratings, acting as an independent monitoring service. Therefore, if desired, the investor can learn the entire "subtandal" of each manager.
• Very simple start. Registering the broker and the selection of the PAMM manager is literally a few minutes.
• Investment management flexibility. Each PAMM manner can exhibit its resource movement requirements. For example, there are those who allow their investors to freely output and interest on him at least the day after the conclusion of the transaction.
• Equal responsibility. The manager risks not only money in investors, but also its own capital. The volume of this capital investors can learn from the ranking provided by the broker.
• Risk diversification. Investor can diversify risks, freely distributing capital between several accounts.

Of course, there are disadvantages. The most tangible minus is that the investor carries 100% responsibility for his investments. The manager can make a profit and completely merge investor deposits. Therefore, it is better to follow the famous rule here and do not fold all the eggs in one basket. The optimal option is to distribute money between 7-15 PAMM accounts.

In today's article, we will analyze with you what PAMM account is. You are a trader or an investor, Forex market is able to convert the dream of any person in real money. One of these tools are PAMM accounts that allow you to earn in the forex market, without concluding a single trading operation! Therefore, you just need to know what PAMM is an account, and be able to remove profit from this knowledge.

What is a PAMM account and PAMM system.

General Description How it works

PAMM-Account is a percentage distribution control module, in other words, a mechanism that allows you to implement a private investment technology on the Brokerage company to the Forex market.

PAMM abbreviation literally, initially PAMM is writing on Cyrillic English abbreviation PAMM, means - PERCENT ALLOCATION MANAGEMENT MODULE, - percentage distribution control module. And if you think simply is an investment account that opens and is in managing a successful trader and allows investors to invest in its trade, getting a weekly percentage of earned profits.

In general, the PAMM system operates in the framework of the general concept of "Trust Management", allowing traders who have a good experience of successful trading, attract investors' funds by managing which, to make profits at times more than it would be possible when disposed of their own funds. At the same time, investors who independently know how to trade, get the opportunity to invest in the one who is engaged in this professionally. And, as a result, the PAMM account manager receives from trading operations, a part of which remains in the form of a commission, and the rest is distributed among investors in the percentage ratio on the amount of investments. Hence the name - the percentage distribution module, which is concluded in the PAMM translated from the English abbreviation.

Advantages of PAMM accounts

The mechanism for the functioning of PAMM accounts has a number of its advantages that clearly explain why Pamma is one of the most attractive tools for modern investors. On the one hand, investors at all understanding in trading, earn no less successful traders. On the other hand, traders, having a small amount of equity to open a trading account, can already very soon become the most top market managers. All this is a PAMM system, the effectiveness of which competes with most network tools. And it confirm the real reviews of investors and traders.

1. The investor gets the opportunity to earn, getting high profits from trading for forex, which is not independently engaged. The role of the trader performs an experienced managing PAMM account, which knows exactly how to trade profitably.
2. Inspector PAMM accounts in most cases earn even more than the manager. Often, the Commission of the PAMM-account manager is less than 50%. So, most profits take the investor. Of course, because they are invested in trade in their own funds. On the other hand, trading on forex is an occupation that is not given to everyone. For this manager has the right to ask 30% -40 from the profit. Everything is honest!
3. Investor does not need to spend time near the trading platform. This is engaged in a trader. Investing funds in PAMM-account, the investor can look at the PAMM-broker site once a week to control the investment process and make the necessary changes in the PAMM-portfolio. And the trader works with investor money around the clock.
4. The profitability of PAMM accounts reaches 200% per year. Yes, PAMM-Account is much risky than a bank deposit, but you agree to the award for the risk of risk! In addition, correctly choosing a PAMM account for creating a PAMM-portfolio, the investor can mostly diversify the risks, reducing them to a minimum.

Advantages for traders-managers

1. How much successful trader is needed, in order to earn your first million dollars? With the profitability of trade 100% per year, starting with 1000 USD, it will take 10 years. Then how if you work for Forex really profitable, registering your PAMM account with a popular broker, the first million in the management you will receive in six months a year. The main thing is to show good profitable trade statistics! And this is enough enough to believe in you and began to invest in your trade in your trade! Thus, the first plus, which is to trader in PAMM account, are the real funds that you get to manage much faster than if you decide them to earn themselves.
2. Important is the size of the profit gained, which the trader can learn from the investment received. The amount of profit with a good amount of investment reaches several hundred thousand dollars a year or more.

How to reduce investment risks in PAMM-account Forex

Trading in the financial market, just as investing in trading is a fairly risky activity that threatens the loss of part or all capital at once. On the other hand, the investor risks significantly less than the trader, because: the trader invests only in itself, and the investor invests in the best. On any PAMM-site you will find a PAMM account rating, which has a sufficient number of successful managers who are engaged in trading for more than one year, showing all the time of trading excellent profit statistics. However, there are a number of simple rules, observing which the trader is able to reduce the risk of capital loss to a minimum:

1. Risk diversification. It would be foolish to invest at once the entire amount of funds in one PAMM account, even if it is the best on the site of the broker. In order not to put all the capital depending on the success of one person, invest in several minutes, and better in 5-7 or even 10 PAMM accounts! Thus, even if one or two PAMM managers lose their entire capital invested in them, you will still remain with the profit, because the successes of the rest will block the profit caused to you. It works and allows you to preserve the capital of investors!
2. Investing on the strategy. Investing strategies in PAMM-account is a topic of a separate article with which you can. In short, as in any form of financial activities in investments in PAMM-account, an investor can use certain strategies that significantly reduce drawdowns and maximize the profit gained.
3. Investing in a reliable broker. We will touch the non-trade risks with which any investor may encounter - this is a forex broker bankruptcy, on the site of which the investor invests its funds in PAMM account. In this plan, give your preferences to those brokerage companies that work under the jurisdiction of regulators providing for the damage to the damage to the clients of the broker, in the case of its bankruptcy.
4. Separate attention, exploring reviews. Reviews will help you choose not only a decent broker for investment, but also a PAMM account. Usually, all the owners of PAMM accounts register from their named branches on the largest forums to discuss their trade, the investment process and answering questions and investor reviews. Reviews will help you figure out how correct will be your choice!

Now a little about those products that have arisen as a logical continuation of the successful development of the investment technology in the PAMM account. Investing on Forex Broker sites, you will come across such investment instruments as PAMM-indexes. Just above, we have already talked about risk diversification. In this case, the broker himself takes to diversify the risks for customers, creating PAMM-indexes from a number of successful PAMM accounts, which allows the investor to invest in one investment product, which employs 5-10 PAMM accounts at once. The advantages of this product is as follows:

1. The minimum amount of investment in the 1st PAMM account is from 50-100 USD. The minimum amount of investment in the PAMM index is about 100 USD. Thus, in order to invest in 10 PAMM accounts, you will need about 1000 USD independently, and in order to invest in 10 PAMM accounts through a PAMM index you need only 100 USD.
2. PAMM-portfolio, in essence, and is a PAMM index, and the management of the specified investment product is carried out by a specialist of a brokerage company, whose experience allows you to make adjustments to the PAMM-index on time, preventing trade amenders.

PAMM accounts and PAMM System - Investor reviews and traders

Frankly speaking, PAMM-account and in the general sense of this word PAMM system is a unique mechanism that allows you to make your capital work more efficiently than in most other well-known investment products. And everything would be smooth and fine, if it were not for one "but" - the wild investment market of the Runet, on which there is nothing 100% guaranteed, as in other matters in the whole financial market. But if traders and investors can still cope with trading risks, for which there is a lot of effective ways, then with non-trading risks in the CIS financial market, it is very difficult to cope.

The sad events of the PAMM-Market of the Runet of the beginning of 2015 proved that even a PAMM-site can be turned into scams, but after those events, investor confidence in PAMM accounts was significantly shaken. Even after a year, PAMM accounts and the PAMM system continue to feel the lack of investors, although successful traders who know how to trade profitably and wish to multiply the capital of their investors, more than enough.

Hence the reviews of investors who, on the one hand, are looking for an opportunity for investment in a PAMM account, on the other hand, it is possible to look towards new developing brokers. Let's hope that the PAMM-investment market will survive these troubled times, and investors, thanks to the approximate behavior of existing PAMM-brokers, will begin to leave more positive feedback by returning their faith in the stability of the PAMM investment market. Moreover, certain positive shifts in this regard are! We will tell about them in our following articles. What would not miss anything, subscribe to our newsletter. Subscription form on the right in the Wederbar.

PAMM service is a product that is able to satisfy the inquiries of any investor who wants to earn at Forex without independent trading.

All that you need is to choose the appropriate conditions for a successful manager and simply get your passive income from Forex Trading, without understanding, at the same time, in all, therefore, today we will discuss how to use this service correctly and where it is best to open a PAMM accounts, In order for the result of such investments coincided with expectations.

Open PAMM account for forex?

According to its principle, this account is a percentage distribution module, that is, a certain mechanism with which the method of private investment on Forex has been implemented on the trading platform of the broker. Similar words, this is an investment account that is managed by a successful trader, taking investors in their own trading and receiving weekly interest from earned profit.

Thus, traders who already have sufficient experience for profitable activities can attract investors and earn much more than trading exclusively on their own money. At the same time, investors, absolutely not able to trade independently, can invest in the time, each has its own benefits - the manager receives his commission percentage, and the rest of the income is distributed in the percentage ratio between investors in proportion to their investments.

How to choose a pamm account

Any forex broker, which provides this investment product on its trading platform, there is a rating of managers. And here you should realize that the managing invested means is a trader that earns on Forex, trading independently. And the more professional skills, the activity will be less risky, and your investments are more profitable.

Thus, choosing a suitable manager, you should pay attention not only to the profit, which the trader earned during the PAMM account management, and in the risks that were present in its trade. That is, first of all, you need to compare the profitability indicators and trading drawdowns of the manager in a complex with a number of additional criteria, and only then make a decision, it is worth investing or not.

Now about everything in order:

Time of existence of accounting

Pay attention is only on those accounts that work for more than a year, that is, it is necessary to invest in the manager who has already proved its own effectiveness. After all, the market always changes and many strategies cease to work, so often those who per month have received over 15% over time, do not withstand market dynamics. The "experience" of accounts for more than 1 year is an indicator that the trader is able to receive income under any market conditions.

Profitability

It should be borne here that it is easy to earn more than 150% of the governor's profit is unrealistic. The profitability of the PAMM account over 150% is the indicator that the trader uses aggressive trading systems in a complex with averaging tactics and without insurance orders. Of course, the profitability of such an account can be fantastic, but it increases the risk that tomorrow if the trader neglects risk management in trade, then this account does not live for a long time. Therefore, you should choose the option, with an annual yield of no more than 100%.

Maximum drawdown

Not more than 20% are considered an acceptable drawdown of Invest Account. A high level of drawdown is an indicator of using managers to a transaction for more than 2% of the amount of capital, or applying "grid" strategies and systems with martingale. This option is not for us, because if the trader constantly risks steeply, then his deposit will soon "leave the copper pelvis" or simply grafts losses.

Stability of trade

Account exists for a long time without a unprofitable week? He is also not worth trusted. The point is that usually such indicators are among traders who traded without stops, and unprofitable transactions averaged that it is fraught with unpleasant surprises in the form of a serious drawing or complete "plum". Therefore, on a series with high yield, the trader must have an unsuccessful week that will be an indicator that the manager does not "fly." Therefore, with the overall profitability of the PAMM account, there must be rare small weekly decides.

Capital manager

In the rating, you can often see managers with a large amount of funds - this means that the trader is confident in his abilities. But you can also meet a deposit where the manager threw a permissible minimum, and the entire profit quickly displays - that is, the entrepreneur is not sure of his skills and tries to avoid losses. Therefore, to trust the trader, which, on a number of depositors' money, manages its own major capital.

Forex brokers with PAMM accounts

Today, the PAMM-Investment service can use more than 10 brokerage companies working in RuNet - in this regard, it is necessary to be guided by the classical criteria for selecting the operator:

• the presence of regulation is of course almost everyone has offshore, but it is better that it was CYSEC
• payment policy of the company - the forums are better to ask how the company displays funds
• the absence of over bonuses - if the company offers huge bonuses, then a broker is sinking and trying to attract customers
• broker reviews - Common reviews should also be positive

By choosing several reliable dealers, it is worth assessing their conditions. Since the principle of work of PAMM accounts, each forex broker is almost the same, then everything will depend on the amount of funds you have. In addition, other investment conditions are shown in the Offer of the Manager, which can be different on each account.

For example, the Alpari's well-known company allows you to invest an amount from $ 10, which is available today.

In addition, the dealer also offers "wholesale" investment in PAMM-portfolios, which consist of several accounts (minimum investment of 100 US dollars). The company has already submitted an application for a license of the Central Bank, which increases its reliability rating.

Also, excellent conditions offers privatefx broker. Here, it is possible to become an investor with the amount of $ 20 for a period of 1 week. In addition, the operator proposes to invest in indexes, in which investor funds are distributed from 3 to 10 PAMMM - the minimum amount from $ 100, for rows from 2 weeks.

Since investment is the main activity of the broker, on its trading platform you can find a lot of professional managers.

Another broker with excellent conditions - InstaForex . The minimum amount of investments in PAMM-account is from $ 10, while you can use the advanced tool for analysis.

This broker also will also be licensed by the Central Bank of the Russian Federation, which allows it to be considered as a potential option.

Risks in investment in PAMM account

Investing, on a number of financial trading itself, is a risky activity. To reduce the risk level, follow a number of several simple rules:

1. Diversify risks - invest immediately into several accounts. So that your profits do not depend on the success of only one person, select 5-7 best managers, and distribute your investments between them. In this case, even if the 1-2 trader lose your capital, due to the profits of other entrepreneurs, you will easily block all losses.
2. Invest in strategy with which you can significantly reduce drawdowns and maximize the resulting income.
3. Competently choose the managers - do not chase for mega yield, and choose the optimal ratio of all parameters.

Thus, this service is one of the most attractive, for modern investors. And most importantly - to competently approach this issue and carefully analyze the work of the account and the most brokerage company before investing your funds.

Last updated: & nbsp 22.03.2020

Reading time: 14 min. | Views: 10256.

Good afternoon, dear readers of the Financial magazine "Site"! Studying various ways to invest cash in order to receive income, it is impossible to bypass the PAMM account. It is about them that will be discussed in this article.

From this publication you will learn:

• What is a PAMM account and how it works;
• How to open your PAMM account and in which companies it is better to do this;
• How to choose a PAMM account for investment;
• What risks are investor carrying out investment in the PAMM account.

In addition, at the end of the article, you can find answers to questions that most often arise when deciding to invest in the PAMM account.

The submitted publication will be useful not only to those who have decided to use in the work of the PAMM account. It is useful for those who decided to increase their financial literacy, as well as interested in investment in various ways, including.

About investing in PAMM accounts, what it is, how to choose and where it is better to open a pamm account, what feedback can be found about PAMM investments for forex - you read about all this in this issue

Many seek to find a way to earn decent money without having to visit the office. Few who like to give all your strength and skills of someone else's company. That is why, having achieved some experience and knowledge, people start looking for such that practically independent of the efforts made.

PAMM-account represent a financial instrument that is characterized by a high degree of reliability and profitability. It is enough to have several such accounts to regularly get a good profit by applying minimum effort . However, before taking advantage of this opportunity, it is important to understand what the features of such a financial instrument, as well as how to use it better.

First we give the definition that is given in scientific financial works.

So what is the PAMM account?

PAMM account represents a specific mechanism for using a trading account, with which you can transfer cash to the professional manager in trust management In order to implement financial transactions on various stock exchanges.

Abbreviation PAMM (PAMM) happened from the English phrase PERCENT ALLOCATION MANAGEMENT MODULE . With the literal translation into Russian it means percentage Distribution Module.

Many are frightened such asking definitions. Therefore, it is useful to consider the principle of operation of the PAMM-account on the example.

Visual example

Suppose that the investor has a certain amount of free funds, for example, 10,000 dollars. He would like to increase them, but does not possess time, experience and desire. At the same time, he knows that his good friend is involved in trade. For this, it uses not only personal funds, but also attracted capital.

The investor decides to convey his money into the trader's management for one month, provided that he will deduct it a certain percentage of income earned on them.

Eventually through 30 Days Investor will return invested funds with dividends (for example, 20 %). That is, in the end, he will get his 10 000 $ + 2 000 $ . At the same time, the manager for successful activity will be rewarded by paying to him commissions.

In a simplified form exactly it looks like pAMM-SYSTEM. That is, the investor funds are transferred to the account that belongs to the manager. He carries out. At the same time, the number of investors who transferred funds to the management of one trader is not limited.

Advantage This type of investment is the absolute transparency of all actions that the manager performs.

When investing in PAMM accounts, all operations that the trader is tracked in automatic mode. At the same time, the broker, which provided the trading platform, is necessarily monitored that the transactions performed were legitimate, and the rights of investors were not disturbed.

PAMM account - how it works

2. How PAMM works account - the principle and scheme of work PAMM account

It turns out that the PAMM accounts are a certain investment service. It allows investors to make a profit without exercising independent operations in the Forex market. The manager at the same time receives a certain income for providing investors to manage their means.

Consider in more detail how the PAMM accounts work.

2.1. Principle of work PAMM account - 4 main stages

In the work of PAMM accounts, several main steps can be distinguished.

Stage 1. Opening PAMM-account

The managing makes the decision to open a PAMM account. He picks up a brokerage company that provides such an opportunity. C can be found in last article.

Broker opens a special score manager, which is called PAMM. After that, the manager contributes a certain amount of money. It represents the capital of the manager.

With these means in the trade process, it will risk in the same way as investors' money. That is, the capital of the manager is a definite insurance against the odds of the trader.

Stage 2. Creating an offer

After the PAMM account is open, and the managers have been made to it, it publishes offer. It is an offer to investors to make money to PAMM account.

Offer complies with the following information:

• minimum amount of investment in the account;
• for what time it is impossible to withdraw invested funds;
• the percentage of profits that will switch to the control as a remuneration.

Stage 3. Investing funds in PAMM account

Investors spend analysis existing PAMM accounts. To do this, they use an independent rating.

Deciding with the choice, the investor makes money for PAMM-account, which seems to him the most successful.

Stage 4. Obtaining income

Managing using its own, as well as investor nested by investor, leads trade in the forex market.

In this case, the loss and profits that are obtained during the trading are automatically redistributed between all the participants of the account: managing and Investors.

The distribution is carried out in proportion to the shares of each participant.

2.2. Scheme of work PAMM account (with visual drawings)

First of all, the managing opens a PAMM account. Further, he decides, under what conditions would like to cooperate with investors, prepares the offer.

After that, he begins trade using its own funds. Investors, seeing the profit, which the trader managed to earn in the trade process, decide on the investment of funds in the PAMM account.

Now the manager carries out trading operations using not only own funds, but also money investors. At the same time, the bigger profitability it shows, the closer to the beginning it will be the bill in the overall rating.

If the project manager achieves profit in the process of trading, the amount of PAMM account increases.

At the same time, the profit is distributed between its participants in proportion to the amount of the funds invested initially.

Part of the profit received each investor gives the manager as commissions.

Thus, the operation of the PAMM account in a simplified form can be cited in the table using specific numbers. This will greatly facilitate understanding.

PAMM portfolio - what it is and how it works

3. How PAMM works portfolio - principle and scheme of work PAMM portfolio

PAMM-portfolio Represents several PAMM accounts united together. Such an investment method helps diversify riskswho carries the investor during investment.

It becomes possible due to the fact that the investor picks up in portfolio investment several PAMM accountswhose ratio of profitability and risk levels, as well as the amount of investments for it are optimal.

3.1. Principle of operation of PAMM portfolios - 4 consecutive stages

Considering the principle of the PAMM-portfolio, it is advisable to consider several consecutive stages.

Stage 1. Portfolio formation

The manager forms a portfolio, which includes several PAMM accounts. After that, he puts his own funds into the resulting portfolio, thanks to which it will be more prudent.

The manager has the opportunity to change the composition of the portfolio, including the new PAMM accounts and excluding old. You can also change the shares of various accounts in the portfolio.

Stage 2. Investments

The investor analyzes the information presented on the site information on the results of the work of various portfolios. Choosing the one that seems to him most effective, he invests funds in the PAMM-portfolio.

Stage 3. Trading

At PAMM accounts, which are part of the portfolio, trade through the opening and closing of transactions in the Forex market.

Stage 4. Profit Distribution

At the PAMM-portfolio after a while the financial result is formed (profit or loss). It is distributed among the portfolio participants in proportion to their contribution to it.

The manager in addition to the part of the profit receives commissions that investors pay him.

3.2. Scheme of work PAMM portfolios (with visual drawings)

The function of the manager at the initial stage includes:

• create a PAMM-portfolio;
• to determine under what conditions investors will be able to participate in it;
• invest your own funds and start trade.

Investors, evaluate PAMM-portfolios from the point of view of profitability, which he showed from the moment of education, the level of risk, as well as the conditions of cooperation. In accordance with these criteria, they choose the portfolio optimal from their point of view and invest in it.

All the money that was invested in the portfolio is distributed between the PAMM accounts that the manager included in its structure. At the same time, the controller may at any time change the composition of the portfolio and the share of accounts of accounts.

In the PAMM accounts, which are included in the portfolio, trade is carried out. In the course of it, both positive and negative results can be folded. It inevitably affects profit or loss that portfolio participants receive.

Investors can track the state of the PAMM portfolio from a personal account. You can also apply for input and removal of funds.

The financial result that is formed on the PAMM-portfolio is distributed between all its participants. If profit was received, investors pre-aroused part of it list the manager in the form of commissions.

Thus, the PAMM-portfolio represents a certain combination of PAMM accounts. The purpose of its creation is risk diversificationthat appear in the process of investing in one PAMM account.

Opening PAMM-account - detailed instructions

4. How to open PAMM account - step-by-step guide for beginner investors

It is also important to discuss how to open a PAMM account to a beginner investor in the Forex market. It should be understood that the first parties take part in the PAMM account:

1. investor invests in it;
2. managerwho exercises trade in the Forex market at the expense of the PAMM account;
3. brokerage company or dealing Center.

The success of investments is determined not only by the right choice of a brokerage company, but also a competent analysis of the governing.

It can be said that the distribution of functions occurs:

• broker It guarantees that the manager will not disappear with the money trusted to it, and also monitors the distribution of profits and loss to be adequate;
• manager Leads trade activities on forex and multiplying cash invested.

Step 1. Formation of a PAMM portfolio for investment

Any investor should remember that before The start of investing in PAMM should determine the structure of investments, as well as decide how much money he is willing to invest. In the language of financial terms, he must compile an investment portfolio.

An important rule , whose observance will reduce the risks of investment, says: should diversify investment flows.

In other words, the invested means must be divided between several accounts. This will allow reduce investment risks, as well as save money from their loss.

In this regard, under the investment portfolio, a certain set of investments, a tool that allows the fund owner to maximize the profit gained.

It is important to remember that investing all the money in one PAMM account leads to the fact that the risk of their loss increases many times.

Step 2. Broker Selection

When choosing a brokerage company, investors most often take into account:

• experience;
• reliability;
• as far as it is popular among other investors.

Absolutely all brokers can be included in the rating, they must comply with certain requirements.

In the process of selecting a broker, follow the following criteria:

• how long works in the market company;
• the profitability of the dealing company during the entire period of its activity, as well as in the last months;
• how many clients are registered at the broker;
• what are the conditions for opening accounts;
• as far as the interface is convenient;
• does the broker have any achievements, including confirmed by awards.

All listed criteria corresponds to this brokerage company.

Many believe that when choosing a broker, you can also focus on various reviews . But this is not entirely right. Do not forget that many negative statements on the forums do not correspond to reality. Often they are ordered by competitors.

Also, very often reviews write those who have lost their money due to the incorrectly chosen behavior strategy on the market, as well as during self-trade. But the loss of money is one of the traders at all means the broker is to blame, because he not In response for misses of beginners.

Step 3. Registration

As soon as the brokerage platform is selected, you can proceed to active actions. But before you start investing, you need to go through registration of personal cabinet. You will need email, full name and other data.

It is not worth using unreal data. At any time (especially, if you need to withdraw the tool), brokers can request data confirmation by sending scanned versions of documents.

Step 4. Choosing a Manager

The choice of the manager is the most important point In the opening of the PAMM account. There is any broker on the site rating traders . When choosing, you should pay attention to those managers, on the accounts of which the maximum profit was shown over the past six months.

At the same time, it is necessary to compare the following parameters:

• strategy;
• the number of funds entrusted;
• total funds in circulation.

Step 5. Opening PAMM-account

It remains to make the last step - to directly open the PAMM account. After that, it is important not to forget to enroll money on it.

Thus, to open a PAMM account using the above instruction will not be difficult. It is important to remember that such an investment method should be used on a sufficiently long period. Therefore, quick profit get will not succeed.

And the last advice - don't fear draft. It is important to understand that without them it is impossible to do, if you participate in trading in the foreign exchange market.

We make the right choice of PAMM accounts for investment

5. How to choose a reliable PAMM invoice for investment - 8 simple but important rules

Those who decided not to simply invest in the PAMM account, but also to make money on it, it is not easy to decide on the choice. A huge number of diverse accounts and traders can be driven into a dead end.

Nevertheless, if you follow a few simple rules, you can significantly increase the effectiveness of PAMM investment.

Rule 1. When investing in PAMM-accounts should not be chased behind superflore

If you choose to invest an account, which showed a huge income, is highly risk to stumble upon such a trader who considers forex a certain selection of casinos.

He leads a rackless trade without a specific plan, risking in one transaction mostly of the funds on the account. In such accounts, a huge profit percentage shows only the fact that a risking trader lucky. Wherein there is no guaranteethat in the future his luck will continue.

It is best to focus on stable positive results for a long period. They can be significantly lower. But the risk of such investments is not so high.

Rule 2. Funds intended for investment should be divided between several companies

When attaching funds in the PAMM account, it is important to clearly realize that the investor becomes a market participant who carries a huge risk. It inevitably faces the probability of losing the total amount of investments or its part.

It should be attached to the maximum effort to minimize this risk. That is why it is so important to distribute funds between several brokerage companies.

If you put all the money only in one market participant (broker), in case of its bankruptcy, you can lose all capital.

At the same time, if the capital is divided at least between four companies, with a bankruptcy one of them will be lost only a quarter of the invested funds. This, of course, is unparalleled, but most of the funds will be able to save.

Rule 3. Do not put in one PAMM account

This rule, like the previous one, is based on the need. diversify risks.

To understand the principle of action, it is enough to bring a small example:

When attaching 1 000 $ In one PAMM-account in the case of his drain, the investor loses a thousand dollars. At the same time, if he distributes the same amount between five accounts equally, in case of a drain of one of them, it will lose only 200 $ .

Rule 4. Make rates on experience!

It is important to understand that you can buy experience in the forex market, only trading for several years. Only in this case can the most effective strategy can be developed, to deal with the nuances of trade, decide how to behave in difficult situations.

Do not invest large amounts even in very successful young bills. It is best to pay attention to those PAMM accounts that act 1 -2 of the year.

Rule 5. Important Account Indicator - Stability

When searching for accounts for investment, you should pay attention to those that bring stable profit. Do not forget that the presence of great profits today does not guarantee that it will be tomorrow.

At the same time, a stable positive result from the month a month allows to judge the quality strategy of the manager. Should not be on the score and huge awards.

Rule 6. Remember the psychology of the trader

Investing in PAMM, do not forget that the usual person manages the score. Therefore, it is important to take into account some psychological moments.

An important rule is not to invest more 5-10 % of the amount that the trader manages at the moment. A sharp increase in the volume of the deposit can play a cruel joke. There will be too much psychological pressure on the trader, which he may not withstand. As a result, the risk of draining deposit is significantly increased.

Rule 7. Martingale pays a huge danger

The forex market is quite popular strategy called martingale . There is a huge number of his varieties, but the essence of all is one - after closing a loss transaction, a new in the same direction is exhibited, but with a doubling of volume. The experience of a huge number of traders proved that at a rather large time interval, Martingale's strategy is always unprofitable.

Investor. NOT It is worth investing in a PAMM account, which managing which in the trade process is focused on the strategy martingale, because it greatly increases the risk of draining the deposit.

Naturally, no trader is confirmed in what strategy it applies. Therefore, it is important to know the investor to know the methods that help calculate Martingale.

Consider the simplest of them:

1. Large brokers in the account information provide information about the credit shoulder used. If there are periods when there is a full load in the process, this is one of the signs of Martingale.
2. The opening of several transactions with a constantly increasing volume in one direction by one currency pair can also be a sign of using the Martingale trader.
3. Another sign of the application of the named strategy is suspicious of the stability of profit. Even after a significant drawdown in the account, income is formed, and usually on the same amount.

Rule 8. For investment it is best to choose such PAMM accounts in which the share of own capital trader is high enough

Some investors believe that the proportion of the trader's own funds does not matter. But it is not entirely true. The one who has invested the rather substantial amount of his money will not risk them.

In addition, there are cases when the broker comes into collusion with the trader about the deposit drain. One of the signs that he will soon occur is a high profit with a very small share of own funds.

Thus, sometimes it is necessary to determine which PAMM is not easy to invest. However, subject to uncomplicated rules, the likelihood of choosing the ideal option for investments is significantly increasing.

6. Where is it better to open PAMM account - Top 5 proven companies + comparative table

Of the information presented above, it is clear that PAMM accounts are the way to interact the manager with one or more investors, the purpose of which is to receive profits and the growth of capital. In this case, all account operations are carried out in online mode, That is, investors have the opportunity in real time to track how the amount of funds nested them change.

Investments in PAMM appeared relatively recently. But they very quickly won tremendous popularity. That is why competition in the PAMM account market is growing continuously.

To date, this service offers quite a large number of brokers. That is why it is so useful for reviews of the best of them represented by professionals.

Company number 1. Alpari (Alpari)

Alpari is the largest platform for operations with PAMM accounts in Russia and the CIS countries. The company began to engage in operations in the foreign exchange market in 1998 year.

Today, the volume of funds transferred to the confidential office with the mediation of Alpari is almost $ 15 million. The number of investors who invested in PAMM accounts with the help of this broker has already exceeded 50,000. Their total profits exceeded three million dollars.

Choosing alpari, investors can count on informational support. In addition, they are at their disposal a constantly updated rating of managing PAMM accounts.

Company number 2. InstaForex.

According to most professionals, the InstaForex broker has a very high level of reliability. In the market, the Diling Company has been operating since 2007 and invariably occupies the highest positions in the ratings.

Repeatedly, InstaForex was noted by the title of the best Asian broker operating in the Forex market.

On this site, traders can get:

• free consultation;
• traditional video lessons;
• access to the huge base of analytics and statistics.

Company number 3. Forextrend.

Forextrend company defines its mission like this: to introduce new and modern ones on Forex, as well as civilized ways to conduct trading. For this purpose, conditions and services provided to customers are continuously improved. In addition, Forextrend makes every effort to popularize new tools.

In 2013, the company received a reward as best Pamm Brokerproviding the ability to invest in PAMM accounts.

Forextrend in this area provides investors the following services:

• consulting on investment issues;
• pAMM account rating created on the site;
• continuous monitoring of existing PAMM accounts.

Company number 4. Alpha Forex (Alfa-Forex)

At the time of the creation of the Alfa-Forex management, the long-term goal has set itself a long-term goal: to conquer the status of a better broker in the Forex market in Eurasia. It was this platform first provided the opportunity to use for trade terminal MetaTrader 5. .

The main purpose of the company in the process of working with PAMM-accounts is stability and transparency. Managing on this platform receive commissions only if a positive financial result has been reached.

Company number 5. Forex4you.

Forex4you is an international broker who sets global goals. In work, he tries to ensure the maximum competence of employees, and also be absolutely honest with its customers.

Forex4you independently develops unique trading tools, as well as regularly introduces various new technologies. Investors who have decided to cooperate with this company can make a profit in automatic mode.

More clearly compare brokers in the top 5 will help the table below.

Comparative table of companies with PAMM service or automatic copying of transactions:

7. Reviews and opinions of investors about PAMM accounts

On the Internet there is a huge number of reviews about PAMM accounts. They are very diverse. Alone They claim that they have managed to make money on this method of investing big money. Others They scold a pamm account, calling them fraud and deception of ordinary people.

It is important to understand that the PAMM-investment is often scolded by those who did not bother to figure them out before investing. Such investors do not imagine how the account is carried out.

Moreover, they do not understand how to choose a PAMM account, and what can be expected from such investments.

There are often cases when the reviews are simply bought by competitors. Their goal is just to fill with dirt other brokerage companies.

To understand how to listen to which of them are real, it is often not easy. Therefore, many investors doubt whether to invest cash in PAMM accounts.

In this case, you can only give one advice: It is best to trust not words, but statistical data and facts. Only they can open the real truth about PAMM investment, showing potential yield and risks.

It is also useful to familiarize yourself with (this is one possible options for investing money).

One way to make money in the Forex market is investing in PAMM - accounts Some part of capital. Compared to manual trade, PAMM - investment is a more preferred investment of funds for those who consider the Forex market with something incomprehensible, but still wishes to earn and decide to take advantage of the services of more experienced market participants.

What is PAMM - investment?

PAMM - investment - This is the process of transferring its funds to the investor in trust management of the chosen trader. The English abbreviation itself PAMM is decrypted as Percent Allocation Management Module, which means the percentage distribution control module. PAMM - the score is a trading account in which this module is implemented and it is responsible for the equal distribution of profits and losses between the investor and the account manager, which is at the same time its owner. Investor's earnings are the percentage of profits received during its trade. The earnings of the manager also constitutes the percentage of this profits. The share distribution is based on the contract concluded. The most popular percentage distribution between the investor and the manager is 50% by 50%, 60% by 40%, 70% by 30%. Losses are similarly distributed.

PAMM - system scheme can be represented as follows:

1. So, the start of the system gives a dealing center, creating PAMM - service, where all procedures starting with the input of funds and ending with the distribution and output of the profit is carried out automatically.

2. Register in PAMM - a District Center system can traders who consider themselves successful and experienced who are willing to take advantage of such responsibility as receiving in the trust management of foreign cash. So, a successful trader (managing) creates PAMM - the score in the system, passing personal data verification.

Perhaps, until recently, the only dealing center ensuring the full functioning of the PAMM system, which has 14 years old. Extremely in its reputation, this dealing center attracts only experienced and professional capital controls, in order to ensure not only the preservation, but also a beneficial increase in investors' investments. That is why the company presents certain requirements for persons wishing to open PAMM - the score: the initial deposit when opening PAMM - account should be at least $ 3,000, which will also participate in trade and make earnings and losses. Consequently, the manager himself is interested in successful trade, otherwise its losses will be equal to the investor loss (with a 50% scheme by 50%), or slightly smaller with a different distribution scheme. This requirement regarding the amount of the deposit is a kind of guarantee that the manager will be a person who really understands the forex trade, believes in its strength and opportunities, so it is not afraid to risk its personal cash.

For comparison: some other dealing centers, PAMM practitioners - investment, make ridiculous requirements for creating a PAMM account - an initial deposit of $ 1. Surely there will be a "clever" who want to become managers of someone else's capital, having no experience, neither the funds previously earned for forex, as a result, a trusted deposit is circumscribed on a quick drain.

3. After the establishment of PAMM - the manager's account has the right to take into account the capital of investors. As an investor, both legal and individuals can act as a legal and individual. A deposit can be from several dollars to the amount limited by the managers or principles of the PAMM itself. At the same time, an agreement is stipulating all the terms of cooperation, the main of which is the procedure for the distribution of profits and losses. A little later, we will publish material on how to choose the proper manager to the outcome of the cooperation as efficiently as possible. It is important to note that the funds of the investor actually remain in his own account, the manager does not have direct access to them, so there is absolutely no sense to talk about anywhere or deception!

4. The manager carries out forex trading with its trusted means for selected strategies, both manual and automated. The profit and losses are divided with the investor. One managing within a single account can cooperate with several investors. In turn, the investor can invest its funds at the same time in several PAMM accounts.

On average, the annual increase in the capital of the investor, taking into account the payment of the Commission, the trader is more than 30-50% (compare with 10-15% on bank deposits!). All operations within the system are also carried out automated, so there can be no unfair distributions of profits and losses: everything under the contract. Acquainted with investment conditions in PAMM - Alpari's accounts, find out, how to invest in PAMM - accounts, Check the investment methods without risk and get answers to frequently asked questions on PAMM - investment, by going through this link.

Of course, like any other financial activity in the Forex market, PAMM - investment is accompanied by risks, namely, receiving losses in case of incorrect to perform actions by trusted managers. However, it is possible to minimize these risks, following the rules and strategies of competent investment. By the way, the Alpari company recently suggested the scheme almost break-free investment - The so-called structured products, the functioning of which implies the competent distribution of the investment portfolio between bank deposits, and PAMM accounts. To learn more about the features of investment in the structured Alpari products.

Advantages of PAMM - investment.

The advantages of competent PAMM - investment are indisputable:

• - the percentage of possible profit received above dozens of times than in any bank;
• - the minimum of the participation of the investor in the functioning of the system - it is only required to make funds to the account, from time to time to follow the status of the account, make a profit;
• - the ability to make account operations (input / output) at any time of the day;
• - The possibility of minimizing risks, following special strategies and regulations of competent investment.

The investment of funds in PAMM - accounts is a truly real way to increase its capital, more efficient than bank deposits and more easy than independent trading on Forex. And although the Alpari company is a "legislator mod" in matters of creating an extensive PAMM structure - accounts, currently find managers and profitable PAMMs - accounts can be broker Forex4y, and B. companies InstaForex.