PAMM-accounts, definition and designation? PAMM - Percent Allocation Management Module Created by brokers – to enable the trader receiving funds from different investors on one PAMM account; Why: to give the opportunity to the clients to invest money to professional trader, without necessity to spend years on education; PAMM is an opportunity – to choose the optimal trader for each wallet, risk level and needs.
Why PAMM accounts? Profitability analysis: ROI/ROE/NPV/Payback NPV (for one year) = СF/(1+r)-Inv Banks – до 10-15% per year Pamm accounts– 200% per year is a reality
Choosing the trader: parameters His/her history of trading Balance Amount of deals close Is he successful?
How it works with Instaforex Investments Trader receives notification by and SMS. If trader confirms the investment it is deposited to his account. Otherwise the funds are returned to investor; Synchronization All deposits and withdrawals happen at the moment of synchronization –once per hour; Withdrawal of the funds by investor Investor can withdraw his share any time; Withdrawal of the funds by trader Trader can withdraw his share any time if it’s not used for the open deals; Example: Suppose the trader owns 50% in 60 USD account, 40% of the funds are used in open deals. In that case he can withdraw (50% * 60) * (100% - 40%) = 18 USD.
Share subdivision on PAMM account The PAMM trader has the account of USD (his own money). 3 clients invest 1000 USD, 2000 USD и 7000 USD respectively. The total fund in the account becomes USD. Thus: 1) The first investor receives the share of 5% (1000/20000*100%) 2) The second investor receives the share of 10% 3) The third investor receives the share of 35% 4) The share of trader becomes 50%. All shares are subdivided proportionally to the investments of inventors and trader; If there is a new investor – the shares will change because the amount of money will be increased as well
Advantages for investor No limitations on amounts and sum of investments; Possibility of automatic return of the funds from the account of PAMM- trader; Access to the current state of PAMM-trader account, including the information of the profit made; The access to the statistics of PAMM-trader account, including the information about quantity and volume of investments to the account; Access to the contact information of PAMM-trader to contact him/her; The company guarantees the protection from withdrawal of the funds of investor by PAMM-trader.
Advantages of the trader The ability to receive investments from numerous clients on 1 account; The investments are received instantly, without delays; There is a possibility to reject the investments; Automatic provision of the profit immediately after receipt of the funds by investor; Trader can initiate the end of investment period and send the funds back to the investor; Trader has the right to withdraw own funds, which are not used for trading any time; Trader has an opportunity to advertise himself on his personal page in PAM-monitoring
PAMM-partners PAMM-partners deal with bringing of investors to the company; PAMM-partners receive the profit from the income of PAMM-trader; PAMM-partners receive attractive PAMM-banners which lead investor to the selected by PAMM-partner – PAMM-trader; Full statistics of attracted investments
Future: 10 year perspective Trader – from mass hobby to profession; Investment to professional traders will dominate indepented trading; Development of ПАММ/МАМ accounts; Development of the institute of financial advisor on Forex (PAMM-partner)
Q&A Have not decided yet? Ask me later: