A PAMM (Percentage Allocation Management Module) account is an advanced investment solution wherein traders allocate their capital in designated proportions to a collective pool managed by experienced money managers.
Traders remain control over the percentages into the PAMM accounts however trades are done through Money managers' investment strategies and decisions. Money managers execute trades in the forex market on behalf of the investors, with profits and losses distributed in accordance with each investor's share of the pool.
PAMM Account Advantages
PAMM Account Advantages
Capital is managed by professional forex traders who use their expertise and strategies to maximize returns.
Investors share both profits and losses proportionally, offering access to professional trading strategies and portfolio diversification.
Investors can track their account performance and the trader's progress through detailed reports and the broker's platform, ensuring informed decision-making.
The trader receives a percentage of the profits generated, while the remaining profit is distributed to investors based on their share of the pool.
The following example illustrates how funds contributed by traders are distributed from a PAMM money manager's account:
In this case, Investors A, B, and C choose to invest in a PAMM account managed by a professional money manager on the Mega Fusion platform.
The total pooled capital in the PAMM account is $30,000. The experienced money manager uses this capital to trade in the forex market
Over the course of a month, generates a total profit of $6,000.
If the money manager charges a 20% performance fee on the profits, the net distributed profits will be:
manager performance fee (20%)
$1,200
Investor share (80%)
Investor A receives $960
Investor B receives $1,440
Investor C receives $2,400
This example demonstrates how profits and losses are shared proportionally based on the percentage of funds each investor contributes to the PAMM account.
Mega Fusion provides a user-friendly platform to access PAMM accounts, allowing you to grow your wealth without the need for hands-on trade management. By investing in PAMM accounts, you tap into a system that maximizes returns while effectively managing risk through professional oversight and transparent performance tracking.