What Is PAMM?
PAMM (Percentage Allocation Management Module) is an innovative trading platform offered by ProfusionFX, offering clients the opportunity to follow the trades of professional or ‘master’ traders. All accounts share a portion of each trade, based on their own account’s equity. PAMM is a partnership where you bring the capital to be invested and the money manager brings their time and expertise to manage that investment for you. Just open a PAMM investment account, transfer the investment amount you’d like to start with, and let an experienced trader do the investing work for you.
It is a technical solution that helps to automatize profit/loss distribution, eliminate human error and allows Money Managers to manage multiple Investors accounts via one centralized MT4 interface. Up until now Money Managers were forced to trade with multiple copies of Meta Trader 4 which limited the number of clients they could service, decreased the effectiveness of their trading and their profit. With the PAMM service from ProfusionFX, the manager can organize all of their clients together in one Meta Trader 4 terminal and an unlimited number of Investors can join under one master account.
Funds from all Investors on the manager account are traded as one unit and this means more room for money management and better position management options. The PAMM service keeps your account individual and gains and losses are automatically distributed by the broker between the PAMM Manager and you, the investor, on a percentage basis so that everyone receives their percentage rate of return.