PAMM - account: investment service that gives investors the opportunity to earn without trading on their own, and account manager - to get an additional percentage, for the management of investors' money.
Until recently PAMM accounts I have met only on the forex. Among brokers Binary Options service at PAMM accounts nobody offered. Now this service is - Alpari
Open PAMM-account and absolutely any trader can become a manager. To do this, you need to register with a broker and open a trading account. This amount is called the "manager's capital". Next, you need to submit an application to the broker to include the trader in the list of managers. As soon as the application is moderated by the broker, the trader's account will be included in the general rating of managers. The position in the rating depends on the success of the trader. The manager is interested in trading very carefully, because he trades not only investors' money, but also his own. Further, the manager creates an offer, where he indicates the conditions of cooperation for investors, and also indicates a percentage of the profit for his services.
An investor relies on an independent rating, verifies the actions of the manager, chooses a suitable manager and invests in a PAMM account. The conditions that the manager indicates to his PAMM account are basic. An investor can always offer his own conditions, the most favorable for himself. A flexible approach helps the manager and the investor to agree on mutually beneficial terms.
System fiduciary constructed in such a way: the money is not transferred directly to the manager, the money kept in a special account, which is assigned to the manager. All trading activity control is applied in proportion to the volume of funds entrusted to the management. Since trading PAMM Account Manager is not tied strictly to the investment in his account, this means that investment can be withdrawn at any time by the investor. Having 300 $, you can open a PAMM account and become a manager or investor.
How it works? Let's look at an example!
The trader opened a PAMM-account at $ 3000 and became manager. Managing designated percentage of their remuneration for the work of the manager in the amount of 20%. The PAMM-account joined two investors, one entrusted $ 5000, 2000 second $. Thus, the total balance of the PAMM account become equal to $ 10000.
A month later, trade manager could increase the balance of the PAMM account to 50%, and the balance was equal $ 15000.
Profit distribution is in accordance with the size of the original investment. An investor who entrusted $ 5000, got his profit of 50 2500% or $. Of the money he needs to pay the manager 20 500% or $.
The investor must take into account the risks, not to rely entirely on the manager. The main rule for the investor - to deduce profits regularly. The graph profitability of the PAMM-account there will always be ups and downs, and the drawdown of the deposit increase. The acceptable range is the norm, because there are no ideal for traders who are able to correctly identify the price fluctuations in a specific period of time.
This approach investing in the PAMM-account:
1. Those who do not have time to sit at kompyuterom and engage in independent market analysis.
2. For beginners, who do not want to spend time learning and are willing to trust professional traders.
3. Those who want to invest and make a profit. After all, the money should work for man, and not to lie under her pillow.
If you can refer yourself to at least one of the above groups, then the broker's offer is PAMM-accounts perfectly right for you!