A PAMM account, also known as Percentage Allocation Management Module, is a software application which allows Traders to share their strategies with Investors interested in them.
The funds of the Investors who joined the PAMM are pooled into a single MT4 account (also known as “Master account” or “MM”) which is operated by the Trader as any other MT4 account.
On an hourly basis the PAMM system performs an automatic procedure known as “Rollover“ and calculates the Net Asset Value (NAV) so the balance and equity value of the Investors’ accounts is updated accordingly.
It is essential to understand that the PAMM system allocates on an hourly basis the P/L of both closed and open trades and does not allocate the traded lots as usually done by MAM systems offered by other brokers. This feature brings up several benefits: for examples the distribution among Investors of the P/L generated by a microlot trade (0.01 volume) without any “rounding” issue.
A PAMM Manager account can be set up when at least one Investor has funded a real trading account with at least $1,000. This first Investor could also be the PAMM Manager.
Once this condition is met, the new Manager can send us an email requesting the creation of the new PAMM account and listing the desired features:
Usually the new PAMM is set up within 1 business day and the Manager will receive:
|Customizable fee structures: set performance, management and other types of fees.|
|No additional costs.|
|Display your strategy on our Social PAMM page to attract new Investors and scale up your business.|
|Free widgets for your website.|
|Total protection of the intellectual property of your trading strategy.|
|No “rounding” issues as the PAMM systems distributes the P/L of each trade not the lots.|
Public PAMM accounts are available at this address: Social PAMMs.
If you don’t want to make your PAMM account public you will be given a private password that your Investors can use to join your new PAMM account.