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How Do PAMM Accounts Work?

The Alpari 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

Want to invest funds in a PAMM Account or become a PAMM Account manager?

Register

How a PAMM Account Works

$300

A manager creates a PAMM Account, starts trading and designs his Proposal for investors.

Open a PAMM Account
$100
$60
$40

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.

200%

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.

Investment + Profit

$300 + $600

60%

20%

12%

8%

$1,500

Investment + Profit

$100 + $200

$60 + $120

$40 + $80

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.

Manager's profit including his compensation

$980

Manager's compensation

+$40

+$24

+$16

Investors' profit excluding manager's compensation

$260
$100 + ($200 - 20%)

$156
$60 + ($120 - 20%)

$104
$40 + ($80 - 20%)

Alpari 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:

Any Alpari client can take part in the PAMM Partnership Programs after signing up in myAlpari. A partner can then get in touch with the manager and agree on the percentage they will be paid.

Attention:

  • Past returns on the PAMM Account are not a guarantee of future profits.
  • Alpari offers the PAMM Account as a service for managers and investors, but is not involved in the management of the account.
  • Alpari will not be held responsible for any of the investment decisions made on PAMM Accounts.
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