PAMM-accounts, definition and designation?

PAMM - Percent Allocation Management Module

Created by brokers – to enable the trader receiving funds from different investors on one PAMM account;Why: to give the opportunity to the clients to invest money to professional trader, without necessity to spend years on education;PAMM is an opportunity – to choose the optimal trader for each wallet, risk level and needs.

Why PAMM accounts?

Profitability analysis: ROI/ROE/NPV/Payback NPV (for one year) = СF/(1+r)-InvBanks – до 10-15% per yearPamm accounts– 200% per year is a reality

Choosing the trader: parametersHis/her history of trading

Balance

Amount of deals close

Is he successful?

How it works with Instaforex•InvestmentsTrader receives notification by e-mail and SMS. If trader confirms the investment it is deposited to his account. Otherwise the funds are returned to investor;•SynchronizationAll deposits and withdrawals happen at the moment of synchronization –once per hour;•Withdrawal of the funds by investorInvestor can withdraw his share any time; •Withdrawal of the funds by trader Trader can withdraw his share any time if it’s not used for the open deals;•Example: Suppose the trader owns 50% in 60 USD account, 40% of the funds are used in open deals. In that case he can withdraw (50% * 60) * (100% - 40%) = 18 USD.

Share subdivision on PAMM account

• The PAMM trader has the account of 10000 USD (his own money).

• 3 clients invest 1000 USD, 2000 USD и 7000 USD respectively. The total fund in the

account becomes 20000 USD. Thus:

• 1) The first investor receives the share of 5% (1000/20000*100%)

• 2) The second investor receives the share of 10%

• 3) The third investor receives the share of 35%

• 4) The share of trader becomes 50%.

• All shares are subdivided proportionally to the investments of inventors and trader;

• If there is a new investor – the shares will change because the amount of money will be

increased as well

Advantages for investor• No limitations on amounts and sum of investments;• Possibility of automatic return of the funds from the account of PAMM-

trader;• Access to the current state of PAMM-trader account, including the

information of the profit made;• The access to the statistics of PAMM-trader account, including the

information about quantity and volume of investments to the account; • Access to the contact information of PAMM-trader to contact him/her;• The company guarantees the protection from withdrawal of the funds of

investor by PAMM-trader.

Advantages of the trader• The ability to receive investments from numerous clients on 1 account; • The investments are received instantly, without delays;• There is a possibility to reject the investments;• Automatic provision of the profit immediately after receipt of the

funds by investor;• Trader can initiate the end of investment period and send the funds

back to the investor;• Trader has the right to withdraw own funds, which are not used for

trading any time;• Trader has an opportunity to advertise himself on his personal page in

PAM-monitoring

PAMM-partners

•PAMM-partners deal with bringing of investors to the company;•PAMM-partners receive the profit from the income of PAMM-trader;•PAMM-partners receive attractive PAMM-banners which lead investor to the selected by PAMM-partner – PAMM-trader; •Full statistics of attracted investments

Future: 10 year perspective

• Trader – from mass hobby to profession;• Investment to professional traders will dominate indepented trading;• Development of ПАММ/МАМ accounts;• Development of the institute of financial advisor on Forex (PAMM-partner)

Q&AHave not decided yet? Ask me later:

ps@instafxgroup.com