PAMM Accounts – how does it work and why is this kind of capital management special?
This is one of the most popular and effortless/competent investment ways in Forex as it does not require any particular knowledge about Forex, or a lot o time needed for capital growth. By passing on the management of your money to professional traders who trade successfully and steadily and are well established will do it for you. You can connect to these accounts via the broker that will perform the technical part of this service.
The trading process works like this: a professional for an agreed profit interest can let a few, a dozen or several investors with their own accounts join his account that he is trading in. This sort of service is called PAMM Accounts and the person managing that account is called PAMM Account Manager. When the trader makes a deal these same actions will be repeated in all connected PAMM Accounts (in other words within the total investment amount).
Why is it worth investing in PAMM Accounts?
- A professional who has been doing it for a long time and is well-established is doing the trading.
- The Account Manager is interested to increase your profit to the maximum, not only because he gets a percentage. Remember he has also invested his money into this account so all profit and loss will affect him accordingly.
- You don't need to have a degree in economics or finances to invest in Forex.
- Others will do the job for you, so that you can save time and money for your family.
- You can diversify your investment capital to as many channels you want and that will potentially reduce the risk and increase your profit.
- You can choose the PAMM Account you want to connect to from a large list of successful account managers.
- You can always track the statistics of the managed account.
- You can always talk live with the manager of your account and get useful information about your investments.
What is the minimum deposit and what percentage I will have to give the manager?
The minimum capital acceptable for Alpari PAMM Account is $30. The longer and more established the trader is the bigger (usually) is his profit and minimum deposit needed. The percentage you give away also depends on the amount you invest – the larger the deposit, smaller the interest. So it is no surprise that traders who can increase the balance by a few hundred and even a thousand percent will ask for a large part of the profit (30%-50%) and a minimum capital investment from 30-100 USD. So as the service grows so does the number of successful PAMM managers who will allow you to join their account with a deposit of 30-100 USD. To start with, you can invest small sums and once you are confident with the traders work you can increase the sum depending on your financial position.
