PAMM means Percentage Allocation Management Module, with it the trading is developed as in an individual account but the benefits are divided according to the percentage of the total funds that each accounts represents. The module simplifies and secures the relations between Investors, Traders (Money Managers) and the Broker. The percent allocation management module is a form of piggybacking a large investor’s money onto the smaller account of a trader. The trader’s own money remains at risk, which theoretically reduces the chance of irresponsible management of the combined funds. PAMM is actually a more advanced descendant of “LAMM”, which is a “lot allocation management module”.
If you are looking to manage someone’s capital in Forex or wish to invest your money under a management of a skilled trader then PAMM Forex broker is that what you really need. Here you can find the list of Forex brokers that offer PAMM to their customers.
|Title||Minimum deposit||Min.position size|
|Forex Capital Trading||$500||0.025|
Understanding PAMM Forex Brokers
Forex Percent Allocation Management Module (PAMM) accounts are mushrooming these days. While it is believed that you do not need to master any forex trading strategies to benefit from PAMM, you still should know the basics. If you are informed enough, you will be able to select the best PAMM Forex Brokers to trade forex for you. Here’s to help you understand more about PAMM.
Definition of PAMM
PAMM is well-known as a new technological solution in the world of foreign exchange. It is a software tool which allows the trader or money manager to manage simultaneously unlimited quantity of his managed accounts on one trading platform by PAMM Forex Brokers. Under a forex PAMM account, the profits (and losses) can be distributed across all the managed accounts in the same proportion as their account size irrespective of the lot size of the trade. In other words, each managed account has its own ratio in PAMM which depends on the size of the deposit, and any profit or loss resulted from the trades is distributed across these managed accounts in the same exact ratio.
Benefits of PAMM
People basically see PAMM as the new handy passive income opportunity that has less risk but more flexibility. Managed accounts are generally better suited to investors whose substantial funds to invest, but PAMM accounts allow small investors to enjoy the security and return of such managed account. While the typically managed accounts demand the minimum of $25,000 deposit, PAMM accounts usually demand the minimum of $10,000 deposit. A great system by PAMM Forex Brokers makes the job of the money manager simple and makes the investors have access to the trades executed by the money manager, which helps in keeping track of their investment.