What is the PAMM accounts system?



> PAMM stands for "Percentage Allocation Management Module," which is a type of investment service offered by Vital Markets. With a PAMM account, an investment manager (also known as a PAMM Money Manager, PAMM Manager) trades a single account (PAMM Fund) on behalf of multiple investors (PAMM Investors), and the profits or losses are allocated among the investors based on their percentage of investment. PAMM Manager benefits from the fees set in the particular Offer within the PAMM Fund.


> The investment manager (PAMM Manager) is responsible for making decisions about what to buy and sell and for managing the overall risk of the account. Investors can monitor the performance of the PAMM account (PAMM Fund) and withdraw their investments at any time.


> PAMM accounts can be a convenient way for investors to access professional investment management without having to manage their own accounts. However, it is important for investors to carefully research the PAMM Manager and their PAMM Funds, as well as to understand the fees and risks involved.

Practical case:



> PAMM Money Manager creates PAMM Fund and sets a certain offer within this Fund (Deposit fee is 10%).

> Investor 1 invests ($6000 - 10% Deposit Fee = $5400) $5400 (60%) in this Fund.

> Investor 2 invests ($4000 - 10% Deposit Fee = $3600) $3600 (40%) in this Fund. 

This PAMM Fund (pool of funds) has $9000 now. PAMM Manager starts trading and makes a $4000 profit which 60% ($2400) will be allocated to Investor 1 and 40% ($1600) to Investor 2.

> PAMM Money Manager's profit is $1000 from the Deposit fees.

> PAMM Investor 1's profit is $2400.

> PAMM Investor 2's profit is $1600.


For more information about fees click here. 



Vocabulary on the topic:



> PAMM - Percentage Allocation Management Module. PAMM accounts are a type of money-pooling system that can be used for trading. 


> PAMM Investor -  PAMM Investor is an individual or entity that entrusts the management of their investments to a professional portfolio manager or PAMM Money Manager. To join any chosen PAMM Fund, PAMM Investor would need to use their Account ID and Trader Password received via email.


> PAMM Money Manager - PAMM Money Manager, also known as a PAMM portfolio manager or PAMM trader, is a professional who is responsible for managing a PAMM Fund on behalf of one or more PAMM Investors. PAMM Money Managers use the capital contributed by PAMM Investors to trade financial instruments, such as forex, stocks, or commodities, with the goal of generating profits for the investors.


> PAMM Fund - is a "pool of funds". PAMM Fund is a type of investment vehicle that allows multiple investors to pool their capital and entrust the management of their investments to a professional PAMM Money Manager. The PAMM Fund is created by PAMM Money Manager. The Money Manager is responsible for making investment decisions and typically receives a percentage of the profits earned as a fee for their services.


> Offer - a conditional proposal made by a PAMM Manager when setting up their PAMM Fund for PAMM Investors to invest money. The offer includes some fees. For more information about fees click here.



How can I be sure that the profit is guaranteed if I invest?

> It is highly advisable for investors to be aware and considerate of the amount of money invested and which Money Manager is chosen to carry out their trades via the Fund in question. Becoming a PAMM Investor does not assure you a guaranteed profit. Trading can result in both gains and losses. Vital Markets acts as a technical intermediary between the Money Manager and the Investor and bears no responsibility for any gains or losses.


Can I create both PAMM Money Manager and PAMM Investor accounts?

> Vital Markets allows any user to be both PAMM Money Manager and PAMM Investor at the same time with the ability to invest in their own PAMM Fund.


What Currencies are available on PAMM Accounts?


> PAMM Money Manager's currency will be USD only.


> PAMM Fund could be created in any of the following currencies:

EUR, USD, GBP, CAD, AUD, BTC.


> PAMM Investor is able to choose from the following currencies for their accounts:

EUR, USD, GBP, CAD, AUD, BTC.


What is the available leverage on PAMM Accounts?


> Leverage options are only accessible on the PAMM Fund account because this is the one that will be used for trading by PAMM Manager.


> Leverage options for the PAMM Fund account range from 1:50 to 1:500.



 

Useful guides


Vital Markets - All about PAMM Investor

Vital Markets - All about PAMM Manager & PAMM Fund

Vital Markets - What could be the Offer's fees?



Further information can be found on our Terms and Conditions