What is PAMM?

PAMM or percent allocation management is a way to invest in forex without actually trading yourself. This way you can choose the best possible managers to trade for you.

How PAMM account works?

Fund Manager opens a Manager PAMM account which also specifies the Manager’s Proposal.
The minimum amount that the Manager accepts to manage on a per Investor Basis. Please note that the floor set by Alpari is at least $50 per Investor Account.
Success Fee: The percentage from the profits payable to the Fund Manager on a Monthly basis. This is based on a High Watermark* basis.

* High Watermark: The highest peak in value that an investment fund/account has reached. The high-water mark ensures that the manager does not get paid large sums for poor performance. So if the manager loses money over a period, he or she must get the fund above the high watermark before receiving a performance bonus. For example, say after reaching its peak a fund loses $100,000 in year one, and then makes $250,000 in year two. The manager therefore not only reached the high-water mark but exceeded it by $150,000 ($250,000 – $100,000), which is the amount on which the manager gets paid the bonus.

The Fund Manager’s Profile will now be listed on the Alpari PAMM Website. Investors will be able to select to invest with a Manager via the listed profile.

At the end of every month, the Success Fee will be deducted from the Investor’s Account and paid to the Manager. In the case that the account is not profitable no Success Fees will be deducted.

Example:

Investor deposits $1000 in a PAMM Manager account on the first day of Month 1. The success fee is 10% on profits on a monthly basis.

Month Starting balance Profit
1 1000 100
2 1100 -200
2 900 200

Month 1:  Manager generates $100 profit so at the end of the month is entitled to $10.

Month 2:  Manager looses $200 so no Success fee is paid by Investor.

Month 3:  Manager makes $200 in profit but is not entitled of any Success Fee.

This is because the Success Fee is based on a High Watermark Regime. This means that the manager took the account to its highest level at $1,100. So only when the ending balance of the account goes over that level will the manager gets paid the success fee.

What is the minimum investment?

The minimum investment is $50. This is set by Alpari as their minimum.

What is the maximum investment?

There is actually no maximum limit for how much you can invest in our PAMM accounts.

How about tax?

We are not liable for your tax, and we do not forward the profits to you. This is done by the broker. You will have to pay any tax yourself, if applicable in your country of residence.

Can i take out my money any time?

You can take out you money. But if you do so within the first two weeks after investing, then you will be applied a fee of 5% of the amount that you withdraw.

Is my money safe?

Your money is not held by us, but by a licensed broker with a good reputation. Your money is held in a separate account at Barclays bank.

Is there any other costs?

We don’t charge you anything else. But the broker will be charging a broker commission, to cover their costs when we are holding trades for a longer period.

Is there any risk to my money?

There is always a risk. But we are trading a system where we minimize the risk and keep very tight money management. We are not trading on luck and feelings, but only mathematical and patterns. Further on we are trading in a way, that even if the rate moves thousands of pips we have a plan to cover this. We are then able to move the trading to the new level without any problems.

What does it cost?

Actually we are making you money. But we charge 15% of the profit. But we only take the percent when you are in positive equity. This is calculated on an overall basis, so that you will only pay 15% for the profit made.

Alpari fequently asked questions:

Under link you can find additional information.

https://alpari.com/en/investor/pamm/

Addional questions?

If you have additional questions, feel free to contact us directly at info@pantherpamm.com