PAMM forex stands for Percentage Allocation Module Management.
This means the management of investor funds by a fund manager with a percentage system of profit sharing.
So you act as an investor do not need to trade by your self.
PAMM manager who will manage your funds
You can join the PAMM program through certain brokers, but not all brokers provide PAMM services for their clients.
Investor trader, they can choose a fund manager according to its performance from the percentage of average profit per month generated.
Brokers that provide PAMM services will provide PAMM manager performance data.
If you join the PAMM program, choose a manager who produces the highest average profit in the long run.
Regarding the time of withdrawal of profit, depending on the broker rules that offer the PAMM module.
There are brokers with rules for withdrawing profits at any time.
But there are also withdrawal rules if the contract has expired
TenkoFX PAMM service.
TenkoFX broker is one of the brokers that offer forex PAMM services.
If you are an investor or novice trader who wants to try this service.
You can find successful traders who act as PAMM managers.
By becoming their followers you get the opportunity to profit without having to trade independently.
All operations with profit/loss distribution are automatic.
The Master operates / his personal capital through the PAMM Account provided.
PAMM forex explained.
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An investor who opens a PAMM account at a particular broker means that he has agreed to invest funds.
In the trading system manager’s account by reciprocally gaining a share of the profit in accordance with the agreement.
So as an investor, your funds will be traded by professional traders in the forex market.
Thus you can take part in enjoying the profit of the money market even though you don’t jump to trade directly.
One factor that can determine your success is foresight in choosing forex.
The broker that provides a PAMM account and professional traders who will represent you in trading.
How does the PAMM account work?
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A PAMM account is an innovative service that provides an opportunity for investors to earn income without having to transact independently on the Forex market.
While managers can earn additional income by managing investor funds.
Basic Concept of PAMM Account.
- The manager opens a PAMM account and allocates a number of funds for his initial investment as the manager’s capital.
- The manager will not be able to withdraw the number of funds invested (an incentive for managers to be considered for trading).
- Furthermore, the manager composes his work proposal, there are all provisions that apply to investors, including the percentage of profit sharing.
- Investors can select the account performance of managers before investing their capital.
- The manager starts the transaction on the account by using his personal capital along with the funds of his investors.
- The profits and losses on the account are distributed proportionally between managers and investors, according to the amount invested.
Basic Concept of Investor PAMM Account.
- The investor registers with the broker he trusts then opens the Investor PAMM Account and deposits the funds to the broker (not the PAMM Manager).
- Then selects the PAMM Manager that he trusts through the rank and history list of the PAMM Account Manager displayed on the managing broker’s website.
- Next, to the investor transfer, the funds have deposited in the broker into his PAMM Investor Account, it can be in part or all of his balance depending on the needs.
- The investor compensates the manager for the profits earned. The amount of compensation has been predetermined by the manager in the proposal.
- Investors can withdraw profits at any time (according to minimum conditions) every time there is profit on his account which will then be paid and shared by the broker according to the profit-sharing agreement on the proposal between the Investor and Manager.
- Investors can withdraw funds (deposit balance) at any time from the broker as long as they are not being traded or traded by the Manager.
The PAMM Manager continues the transaction in the PAMM account using his personal capital and the funds of his investors.
The better the manager’s trading results, the higher his position is in the ranking list.
Which means the PAMM Manager with the best ranking is enough proof of his reliability in trading (also on the list, how much per month he can profit and history).
The advantage of being an Investor in the PAMM system.
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- Investors are free to choose traders who will manage their investment funds on the money market. There is access for investors to monitor traders’ accounts, including the number of profits and losses in their trading activities as well as all information about the executing trader.
- The amount of investment funds in the implementing trader account is limited, only according to the prediction of the winnings on the transactions they make.
- The risk that must be borne by investors is smaller with risk diversification, which is investing a limited amount of funds on several trading accounts managed by implementing traders.
- You can invest any amount of funds in any account. There is no limit on the size and maybe invested or the frequency in the same account.
- To make automatic withdrawals from a trader’s PAMM account, it can only be done in the investor’s PAMM cabinet.
- As an investor, you can monitor the balance of executing traders on their trading accounts, including profits that have been obtained.
- Don’t worry about the security of your funds, because there is a guarantee of protection so that the executing trader can only withdraw funds according to certain procedures.
PAMM forex safe tips.
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Although forex investment with the PAMM account system does promise unlimited amounts of profit.
But this investment also contains a high risk where investors can lose a lot of money in a short time.
Therefore you should apply the following tips in your forex investment.
Use only Free money.
Ideally, the capital used to invest is free money or cold money in your savings. Use only 10% to invest so you will not lose everything when a loss occurs.
Special funds that afford to lose.
If you really intend to invest in a forex broker that provides a PAMM account, then use special funds for that.
Don’t speculate with education savings, daily operational costs, or money owed. Remember that this investment is a high-risk long-term investment.
Wise in investing.
Although PAMM forex uses a system of combining capital and profits to get bigger and bigger profits, you must still be wise in managing your funds.
Return on capital.
For those of you who have made a profit of more than 50% of your total capital, it is highly recommended to withdraw profits regularly.
Thus you will be able to secure your initial capital so that your investment is only from profit.
Many investors do not do this and panic when a loss occurs.
After you withdraw your capital then leave the investment from the profit on the account to settle on your PAMM account.
After a few months, the compounding system (a system of combining capital and profits to double profits) will make more and more saved funds.
What is the difference between MAM and PAMM accounts?
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Both PAMM or MAM are money management systems carried out by money managers (or traders) with profit sharing systems.
So investor give funds to a PAMM or MAM trader account, and traders trade with the profit-sharing system, and you also have to pay a fee or commission to the trader.
PAMM (Percentage Allocation Module Management) and MAM (Multi Account Manager) are collective investment services in the forex market.
In PAMM, traders can only trade with lot size in accordance with the percentage of the total equity in the master account, and profit will be shared with investors based on the percentage of contributions in the master account.
At MAM traders can adjust the size of trading lots and also change the leverage for certain sub-accounts depending on the agreement between traders and investors, usually for investors who dare to take high risks.
Starting invest in the PAMM system TenkoFX.
TenkoFX’s PAMM forex service allows investor traders or novice traders to earn profits from the forex market without having to trade independently.
For those of you who don’t have much time to analyze the market, the PAMM system is one of the investment references with a profit-sharing system.
Search and find TenkoFX’s best PAMM managers and start joining to receive profits