Pamm-system is the best investment solution
Coordinating the efforts of several entrepreneurs to achieve a common goal can significantly increase their profitability and forex is no exception. To make the best use of your resources, it is sometimes enough to open a PAMM-account and attract investors. However, it should be remembered that in this case, not only gross profit will be shared, but also losses.
General investments in the Forex exchange certainly have both risks and benefits that you must know before choosing a PAMM.
What is a PAMM-account?
A PAMM-account is called a managed account that operates on the international currency and stock markets. The essence of his work is that he is supplemented by several investors and after the completion of warrants for the sale of a trader receives a profit or loss in proportion to the size of the deposit. The term “PAMM” is derived from the English abbreviation “Percent Allocation Management Module”, which is translated as “interest distribution management module”.
Investments in PAMM-accounts
It is very attractive to invest in the PAMM-accounts of young traders. To create their reputation and attract as many investors as possible, they work much more aggressively than experienced specialists. New PAMM accounts can receive up to 500% of profit and more in the first months of its existence. Nevertheless, this is only the so-called period of development of PAMM-accounts, which carries some possible risks.
PAMM-investment helps to unite the efforts of several investors in order to obtain greater profits. If a trader usually receives $ 100 of profit with an initial capital of $ 1,000, the 10% can be a good argument to convince investors X, Y and Z to invest in the PAMM.
Suppose, as a result, the PAMM-account contains $ 10,000 due to the following investments:
Trader – $ 1,000;
X – $ 6,000;
Y is $ 2,000;
Z is $ 1,000.
When the promised 10% profit is received, its size will be $ 1000.
According to the invested funds, the distribution of this profit should be as follows:
The trader is $ 100.
X – $ 600;
Y is $ 200;
Z – $ 100;
However, in the process of profit making, not only money was involved, but also the work of the trader, which must be paid in accordance with the offer contract.
A conventional offer contract provides compensation to the trader, say, at the rate of 50% of the profit that the PAMM investor receives.
Thus, attracting investors X, Y and Z will allow him to get a total of:
The usual profit according to the invested funds is $ 100; 50% of profit
X is $ 300;
50% of the profit Y – $ 200;
50% of the profit Z – $ 50;
Total – $ 550.
Also, in the offer contract, a specific trading period is prescribed, following which the profit is calculated and the remuneration is calculated. For a trader, the benefit is that his labor is paid from the money of investors depending on the profitability of operations.
For investors, the benefit is that they only need to provide their own capital and wait for profits – all the work is done by the trader. The whole question is the correct choice of the trader with what you actually will help specialists of FinTech software development from the account management department.
Invest in a PAMM-account
If you are interested in the opportunity to make a profit using the PAMM-accounts service, please leave a request indicating your contact details and the specialist of the managed accounts department of FinTech will contact you for consultation.