PAMM
- What is PAMM (Percentage Allocation Management Module)?
- How does PAMM system work?
- Standard features of PAMM system
What is PAMM (Percentage Allocation Management Module)?
Many online Forex and CFD brokers offer unique PAMM Accounts service for professional traders.
PAMM means Percentage Allocation Management Module.
The service is really unique, as it does not set any restrictions for managers operating in only the spot currency exchange market, unlike those popular models of account management available on the Forex market.
PAMM technology opens access to such professional instruments as shares and funds, as well as markets for stock exchange derivatives.
This kind of combination of conditions and opportunities gives full play to the operations with investment portfolios, from wide speculations to hedging and complex financial structures within a single PAMM account.
This is a perfect way to attract investors, as any customer of online Forex and CFD brokers can become a potential subscriber of any PAMM account (upon depositing the required minimal amount).
All the PAMM accounts you open and manage are automatically represented in the platforms, in the PAMM Accounts Rating section.
This option opens access to the information on the registered PAMM accounts: their descriptions, histories and current profitability.
All the PAMM accounts have equal opportunities to get to the top positions in the rating, which improves the chances to attract new subscribers and investors.
How does PAMM system work?
Opening investment accounts (besides client subscription to PAMM-accounts) is also done based on client’s request and assumes execution of a specific procedure.
As a result of its completion, all necessary terms and conditions are agreed with the client and an Agreement for a specific investment product is executed.
After opening of an investment account of particular type, Client can also see such account in his or her Personal Profile or in trading terminal.
Nature of investment accounts assumes that client is a passive investor, who doesn’t work with such accounts on his own.
Therefore, investment accounts of all types are available for monitoring via Personal Profile, but are unavailable for trading by client himself.
In this case, he or she serves as an overseeing investor.
Client subscription for investment accounts of PAMM type is executed in accordance with a separate automated procedure and doesn’t require opening of a separate account for subscribing client.
Standard features of PAMM system
The PAMM Accounts service features the following opportunities:
- Organizing open or closed PAMM accounts for entrusted management and managing them automatically;
- All kinds of trading operations available at the trading site;
- Managers can hold complete control over all the investments and trading operations, but has no access to the confidential information of the PAMM account subscribers (personal accounts);
- Every investor’s income can be calculated quickly at any moment, in proportions to his/her deposit;
- Each account member can view a detailed statistic report on every deposit, represented as a graph or a table.
Online Forex and CFD brokers take care of the interests of every participant at the trading site and of their own reputation as well, so they supervise the entire process to make sure the managers observe the declared risks of asset management on the PAMM accounts.
Since online Forex and CFD brokers provide access to various markets and different trading instruments, the following types of PAMM investments are available in the platforms.
The PAMM Accounts instrument is a professional service providing an easy-to-use and advanced management system, which gives everyone – managers, investors and brokers – the opportunity to perform all the necessary operations.