PAMM Accounts

The TradeFCM PAMM Account is an investment service that gives investors the chance to make money without trading themselves on Forex and allows managers to earn additional income for managing client funds.

The Basic Idea Behind the PAMM Account

A manageropens a PAMM Account, allocating a certain amount of his initial investment as the Manager’s Capital. He will be unable to withdraw from this amount (an additional incentive for the manager to demonstrate caution in his trading). Next, he designs his Proposal, in which he lists the terms for investors. This includes the percentage of their share of the profit they will pay him in compensation.

Investorssearch through the PAMM Account Ratings to find the account they would like to invest in.

The manager begins making trades on the account using both his personal capital and the funds of his investors. Profits and losses on the account are divided among the manager and investors on compensation, based on their share in the account.

Want to invest funds in a PAMM ACCOUNT
The manager keeps on trading on his PAMM account using both their personal capital and the funds of their investors. The better the manager's trading results the better their position in the Ratings.
If the manager earns profit the amount of funds on the PAMM account increases and the profit is distributed between the manager and the investors based on the amount of their initial investments.

In our example the profit made 200%
and the balance of the account has risen to 1,500 USD.

The investors pay the manager some part of their profit in compensation. The size of the compensation is specified by the manager in his Proposal and depends on the amount of invested funds.

In our example manager’s compensation makes 20% of the investors’ profit.

TradeFCM PAMM Partnership Program

One way a PAMM manager can work on developing his PAMM Account is by bringing in a partner to help out. The partner doesn’t trade on Forex and doesn’t participate in the PAMM Account management. There are two types of partners a manager can recruit:

1.An Acquisition Partner helps bring in new investors to the account. They are paid a percentage of the manager’s compensation for each client they refer.

2.An Auxiliary Partner can help in other facets of the PAMM Account: analysis, marketing and advertising, etc. They are paid a fixed percentage of the manager’s total compensation from investors.

Any TradeFCM client can take part in the PAMM Partnership Programs after signing up the document and sending back to us . A partner can then get in touch with the manager and agree on the percentage they will be paid.

Here, we'll take a look at how Acquisition Partners are compensated:

A manager opens a PAMM Account with TradeFCM. The manager is earning a steady profit, but he is having trouble attracting new investment.

An TradeFCMclient offers to help the manager find new investors. The manager accepts his offer and makes the client his Acquisition Partner, agreeing to award him 10% of the compensation earned from each client he refers to the account.

The Acquisition Partner refers two investors: Investor 1 and Investor 2. Having accepted the manager’s terms in his Proposal, the investors will pay the manager 20% of their share of the profits as compensation.

The manager has 20,000 USD of his own money invested in the account.

Investor 1 invests 50,000 USD.

Investor 2 invests 30,000 USD.

The overall balance of the PAMM Account is 100,000 USD.

Here's how this looks:

Over the course of the one-month trading interval, the manager achieves a 50% return. The overall balance of the PAMM Account is now 150,000 USD.
Here’s how the compensation is paid out:
Investor 1 earns 50% on his initial investment of 50,000 USD, or 25,000 USD. He will pay 20% of this amount (5,000 USD) in compensation. The Acquisition Partner takes 10%, or 500 USD. The remaining 4,500 USD goes to the manager.
Having invested 30,000 USD in the PAMM Account, Investor 2 earns 15,000 USD in proftits. 3,000 USD (20%) of this amount will be paid in compensation. The Acquisition Partner gets 300 USD (10%). The manager is left with 2,700 USD.
  • So the Acquisition Partner earns a total of 800 USD (500 + 300) from his referred clients. The Manager ends up with 7,200 USD.

How the Profits Earned on the Account are Distributed

Now we'll look at how Auxiliary Partners are compensated:

A manager opens a PAMM Account with TradeFCM and recruits an Auxiliary Partner to help him out with risk analysis. The Auxiliary Partner will earn 10% of the manager’s compensation from investors.
Two investors join the manager’s PAMM Account, accepting the terms in the manager’s Proposal. They will pay the manager 20% of their share of the profits on the account.
The manager has 20,000 USD of his own money invested in the account.
Investor 1 invests 50,000 USD.
Investor 2 invests 30,000 USD.The overall balance of the PAMM Account is 100,000 USD.
Here's how this looks

The manager earns a 50% return on his trading for the one-month trading interval. The balance of the PAMM Account rises from 100,000 USD to 150,000 USD.

So here’s what happens:

Investor 1 earns 50% on his initial investment of 50,000 USD, or 25,000 USD. He will pay 20% of this amount (5,000 USD) in compensation to the manager.

Having invested 30,000 USD in the PAMM Account, Investor 2 earns 15,000 USD in proftits. 3,000 USD (20%) of this amount will go to the manager.

The manager makes 8,000 USD in compensation for the month, 800 USD of which (10% of the 8,000 USD) will go to the Auxiliary Partner, leaving himself with 7,200 USD.

How the Profits Earned on the Account are Distributed:

Now, we'll see what happens when both Auxiliary Partners and Acquisition Partners are involved:

Here’s how our scenario plays out:

  • A manager opens a PAMM Account with TradeFCM.
  • First, he recruits a partner to help bring in clients: the Acquisition Partner.
  • Next he brings in a partner to help market his PAMM Account: Auxiliary Partner 1. Auxiliary Partner 1 will also help bring in investors, working in a role as an Acquisition Partner in addition to her role as a marketing specialist. Her compensation will come in two different forms.
  • The manager also finds a third partner who specializes in risk analysis: Auxiliary Partner 2.

The Manager agrees with his partners on their compensation:

  • For the Acquisition Partner: 10%
  • For Auxiliary Partner 1: 10% as an Acquisition Partner / 20% as an Auxiliary Partner
  • For Auxiliary Partner 2: 10%

In his Proposal, the manager stipulates that each of the investors in his account will pay 20% from their share of the profits as compensation.

The Acquisition Partner brings in two investors to the PAMM Account: Investor 1 (who invests 50,000 USD) and Investor 2 (30,000 USD). Auxiliary Partner 1 refers Investor 3 (10,000 USD) to the account. Investor 4 joins the account on his own, investing 20,000 USD. The PAMM manager has 5,000 USD of his own money invested in the account.

In this example, the overall balance of the PAMM Account starts out at 115,000 USD.

Here's how this looks

At the end of the one-month trading interval, the PAMM Account has achieved a return of 50%. The balance has risen from 115,000 USD to 172,500 USD.

Here’s how much each of the Investors has earned in profits:

Investor 1, who initially invested 50,000 USD in the account, will earn 25,000 USD in profits (50% of 50,000 USD).

Investor 2 earns 15,000 USD on his initial investment of 30,000 USD.

Investor 3 earns 5,000 USD on his initial investment of 10,000 USD.

Investor 4 earns 10,000 USD on his initial investment of 20,000 USD.

How the Profits Earned on the Account are Distributed: