How PAMM accounts work. Real examples

PAMM accounts are public accounts of a trader who has his own funds and attracts investors. They help to get passive income. The most difficult thing is to choose the right manager who will be able to competently find trade deals that bring income to him and depositors.

How PAMM accounts work

If it is quite simple to explain, then the interested person who has free money invests them, not caring how and where they will work. This is done by the trader, the initiator of the opening of a special account. How does the procedure go from capital contribution to income generation?

First of all, it is necessary to mention the participants of the process:

1. Trader. His task is to find profitable deals and implement them.
2. Investor. Invests funds in a special account chosen by him.
3. The broker is the link between them.

Algorithm of actions:

1. A trader opens an account where he keeps his own money and makes an offer-an offer in which he offers future investors to invest funds, indicates the minimum amount and his percentage of income. Investors evaluate the profitability statistics. If it is more than 8-14% per month, then it becomes interesting for depositors.
2. Investors invest funds by trusting their manager.
3. There is a distribution of income from transactions, if they were profitable.

The trader, in addition to the interest on the invested funds, receives the remuneration specified in the offer.

Real examples

The profitability of the PAMM account is calculated for individual periods.

Table 1

Example of the profitability of a PAMM account

According to these data, the investor determines whether to trust the funds to this manager. Table 1 shows the conditional figures. Such dynamics will attract the attention of interested parties.

Example:

There are three investors and a trader. Their contributions amounted to:

• Trader is $3000, his share is 3000/4700 = 0.638;
• Investor A. $ 1000, his share of 1000/4700 = 0.213;
• The investor is in $700, his share is 0.149.

The total amount of deposits is $4700.

As a result of successful transactions, a profit of 10% was obtained, which will amount to $ 470.

Calculation of everyone's profit:

• Trader – 470*0,638 = 299,86$;
• Investor A – 470*0,213=100,11$;
• Investor In – 470*0,149=70,03$.

If the offer specified a reward of 20% of the profit, then Investor A will give $ 20 of the profit received, and Investor B will give $ 14.

How do I top up my account and withdraw money?

To start earning on deposits in PAMM accounts, you need to register, deposit money in any convenient way:

• Bank cards – Visa, MasterCard;
• Wallets –Yumani, Webmani, Kiwi;
• Via Internet – banking;
• Skrill, Bitpay.

The same methods exist for withdrawing funds. It is enough to create an application in which to specify the amount and method of withdrawal of money.

Self-respecting brokerage platforms conduct a voluntary audit of their activities. This is done in order to attract new investors, to create an atmosphere of trust in the provision of brokerage services.

Optionally, you can order a check of a specific account if you have any doubts.