A PAMM account is a type of investment where investors have the opportunity to make money without having to involve themselves in any kind of Forex trading and it also allows managers to increase their earning by managing the client funds.
The two Key people behind every PAMM Account:
The Manager and The Investor(s)
The manager is the one that creates the PAMM Account and puts own a certain amount of his initial investment, that’s the Manager’s Capital. This amount is fixed into the account and the manager will have no ability to withdraw from that amount at any time. The manager then moves on to designing the Proposal in which he lists the terms and the strategy behind the certain account. When putting together the proposal the manager must include the percentage of the share of the profit that the investors will pay the manager in compensation.
Shares of the Manager and the Investor(s)
The manager is the one that begins making trades on the account using his own capital plus the investors’ funds. If the manager’s has collected a substantial amount of successful trading results then the position of the account has an even higher place in the rankings, becoming more eligible to seeking investors.
The Investor(s) are the ones that go through PAMM Account Ratings looking to find the most attractive investment proposal for them to invest in. Investors pay the manager a share of their profit in compensation, this is the amount that was is outlined and agreed to in the proposal.
"The profits and losses of every PAMM Account are divided amongst the manager and the investors depending on their share in the account."
PAMM Account Risk Notes
- The manager needs to be cautious with his initial capital amount as well as the initial trading as loses are taken solely from the managers funds.
- Past returns on a PAMM Account are not a guarantee for future profits.
- HiWayFX offers the PAMM Account as an investment service and is not involved in any matters of management that happen within the account between managers and investors.
- HiWayFX will not be held liable for any of the investment decisions made regarding PAMM Accounts.