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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 the Forex market 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 PAMM accounts work

$300

A manager creates a PAMM account, starts trading, and designs their proposal for investors.

Open a PAMM account
$100
$60
$40

The manager keeps on trading on their 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 makes a profit, the amount of funds on the PAMM account increases and the profit is distributed among the manager and investors based on the size of their initial investments.

In our example, the profit made is 200%
and the balance on 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 a part of their profit as remuneration. The remuneration amount is specified by the manager in the proposal and depends on the amount of invested funds.

In our example, the manager's remuneration is 20% of the investors' profit.

Manager's profit including remuneration

$980

Manager's remuneration

+$40

+$24

+$16

Investors' profit excluding manager's remuneration

$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 their PAMM account is by bringing in a partner to help out. The partner doesn't trade Forex and plays no part in managing the PAMM account. 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.

Become a partner

Attention:

  • Past returns on the PAMM account are not a guarantee of future profits.
  • Alpari offers PAMM accounts as a service for managers and investors, but is in no way involved in the management of accounts.
  • Alpari shall not be held responsible for any of the investment decisions made on PAMM accounts.
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