The Forex broker Instaforex has a PAMM accounts service designed for investors interested in investing in the Forex market through experienced traders whose job is to manage the funds of these investors for a percentage of the profits obtained from their trades as a return for their services. All InstaForex customers can participate in this service, whether as funds manager of other clients who have an account with the broker or as investors interested in taking advantage of the experience of other traders who trade successfully in the market regularly.
Thus, the PAMM system of InstaForex includes two categories of customers:
- Customers enrolled in the PAMM system as investors.
Customers enrolled in the PAMM system as traders or managers.
These PAMM accounts allow investors to use the system to invest their funds in the account manager (trader) of their choice in order to obtain a share of the profits from the trades carried out by the trader. The process of investment and transfer of funds is under the control of the company, and after this, the investor becomes a kind of co-owner on the manager´s account which allows the investor to share the profits obtained by this account in a proportion that is in accordance with the investment.
At this point it should be noted that the investors can withdraw their funds from the PAMM account whenever they want.
It is also important to note that the system can monitor the performance of all PAMM accounts and account managers so that the investor can select the accounts that in his opinion offer the best chance to earn income. In this case it is important to select the appropriate manager, because these accounts do not offer 100% guarantee of earnings (nothing in Forex trading can offers such thing). For each manager, the data available to the investor consultation are:
- Overall rating.
- Initial capital.
- Current Capital.
- Number of operations performed.
- Number of open positions.
- Percentage of profits.
- Percentage of profits charged by the manager.
The investor has the option of choosing among hundreds of account managers.
Advantages of the PAMM accounts system for investors
Among the main advantages of this system for investors, we can mention the following:
- There is no minimum limit for investment in an account of this type. The investor has the opportunity to invest from $ 1 to thousands of dollars.
- The investor has the option of choosing from hundreds of PAMM accounts. To this end, the system makes available to the investor all the data for these accounts as their performance, profits and others.
- Complete information with data to contact the account manager.
- These accounts offers the possibility to diversify risk by investing varying amounts in different PAMM accounts. Thus, the investor can create his own portfolio of investments through this system.
- No limit on the number of investments or deposits that an investor can do in one of these accounts.
- The investors can order the immediate return of their funds invested in any PAMM account.
- Account managers do not have access to the funds of investors at any time. The manager can only remove his own capital.
- The investors has access to statistics of the PAMM accounts in which they invested their funds. This information includes data on the number and volume of investments made by other investors.
Advantages of the PAMM accounts system for traders
Among the main advantages of this system for account managers (traders), we can mention the following:
- The manager can trade with all funds of its investors in a single account.
- This type of account offers a fast and convenient registration system.
- There is no limit on the amount of investment that the investors can make.
- Automatic calculation of the benefits of account the manager.
- Automatic payment of benefits of the account manager derived from its trades.
- The account information is available through the PAMM system and InstaForex website.
- The system offers the possibility of receiving online applications from investors to invest in the PAMM account of the manager. The notifications of these requests can be received via email or SMS.
- This type of account gives the manager the possibility of promoting its PAMM account through the Internet.
Example of a PAMM account with Instaforex
Let´s suppose that a trader opens a PAMM account with an initial capital of $10000. Then 3 clients of Instaforex invest in the account the following amounts:
- Investor A: $ 1000.
- Investor B: $ 2000.
- Investor C: $ 7000.
Thus, we have an account with a total capital of $20000. Therefore, each participant will receive the following percentage of profits:
- Manager: 100% x ($ 10000 / $ 20000) + thecommission for their services = 50% + commission for their services.
- Investor A: 100% x ($ 1000 / $ 20000) = 5%.
- Investor B: 100% x ($ 2000 / $ 20000) = 10%.
- Investor C: 100% x ($ 7000 / $ 20000) = 35%
If you are interested in learning more about the Instaforex PAMM account you can get more information through the following links: