What is PAMM acount?


PAMM Account:
It is a new investment service that allows investors to earn money without making trades independently. Investors receive income by investing their balance in the trader's account, and the trader collects a fee from the investor's income for managing their balance.
PAMM Portfolio Account:
It is a set of PAMM accounts. This investment provides investors with the opportunity to diversify the investment risk, as they can gather different PAMM accounts with various risk/return attributes in their account and allocate their balance to those accounts in their desired proportion.
An investor investigates the effectiveness of the portfolio managers' strategies through the independent rating and invests in the selected PAMM account. If the trades are successful, the investor will receive income and pays a portion of it to the account manager because of successful trades.
What is the investment in the PAMM account?
Nowadays, investment in PAMM accounts is one of the methods of gaining high returns with low risk. PAMM, which stands for Percent Allocation Management Module, is a new and growing possibility for those who tend to invest in the FOREX market but do not have enough information or ability to do so.
Opening PAMM account
Advantages of PAMM account for traders (PAMM account manager):
When the manager is able to implement profitable trades but does not have enough money to earn noticeable money, they suggest managing other people's money and receiving a portion of the investors' profit.

Advantages of PAMM account for investors:
When an investor does not have enough knowledge and ability to succeed in the FOREX market, they can invest in successful managers' accounts and gain profit.

Investment and trading in PAMM accounts are automatic. Profit and loss are calculated based on the amount of money and the fee percentage determined by the account manager (trader). It is an agreement between the investor and the manager. Profit and losses resulting from the PAMM account owner’s activities are distributed between investors.

A trader who opens a PAMM account must have the minimum amount of money required.

The investors investigate the traders' trade results and their investment conditions, then decide whether to invest in their account or not.

The trader (the PAMM account owner) trades. The assets of the trader and investors are used in trades. As an investor, you should specify a stop-loss point if the broker provides you with this opportunity, or you should always scrutinize your account.

The profit earned by the trader is divided between investors correctly. The trader also receives their fee.

How to choose the best PAMM account?
After we realized what exactly is the PAMM account, the question raised is how we should choose the best PAMM account for investment. There are sets of various criteria and filters which assist investors to choose reliable PAMM accounts, such as:
Age of the PAMM account
Maximum drawdown
PAMM account profitability.

You can ask any question you have