PAMM Account
Multi Account Manager accounts are for money managers and clients looking
for managers to efficiently manage their funds.
In PAMM accounts, all trading activities are concentrated on a single money manager’s account wherein the funds of all investors are consolidated. Investors, without doing trading themselves, may earn profit by simply entrusting the whole trading process to their chosen fund manager. And the manager receives an agreed upon amount which serves as commission from investors for managing their funds.
How does PAMM account work?
- A manager opens a PAMM Account. The only requirement is to have 3 investor sub accounts with a cumulative deposit of $5,000 in them.
- The performance fees or the profit sharing percentage is agreed between the PAMM Manager and the Investors. Once the investors provide their consent to delegate trading rights on their account to the PAMM Manager, the account setup is completed by us.
- Now the PAMM Manager executes trades in his/her assigned (MT4/MT5) Manager account and these trades are automatically allocated to all of the attached sub-accounts in proportion of their respective account equity.
- The PAMM Manager cannot withdraw funds from the sub accounts, and only has access to trade in them.
- The sub-account holders (i.e. the investors) have full control over the deposits and withdrawals in their respective accounts, but can not enter any trades themselves. They may however at anytime request us to detach their sub-account from the PAMM Manager.
- The profit split (or the performance fees) is transferred from every sub account to the Manager by ForexNXTforex, as per their mutual agreement.
