How New Traders Use the PAMM System to Earn While They Learn

Have you always wanted to invest in the markets, but you’re not quite sure how to go about it?

A PAMM account might be exactly what you’re looking for. A PAAM account allows you to earn money by following successful traders while learning how to develop your own winning trading strategy over time.

What Is A PAMM System?

PAMM, which stands for Percentage Allocation Management Module, is a great way to invest in the markets if you don’t have time, or if you’re not yet confident enough to trade yourself.

This kind of trading service is based on copy trading, allowing you (as well as other traders) to have a trading account connected to a “Master” account, which manages multiple trading accounts.

The PAMM Master account gathers the total sum of the deposits of all customers (or followers) and all trading positions carried out by the Master account are proportionally reflected in the follower trading accounts, which means that all profits (and losses) are also proportionally distributed to the managed accounts (or followers).

The relationship between a follower and the PAMM manager describes the agreement they have regarding profit/loss distribution, as well as the performance fees, the master commission, the minimum performance constraint, assignment commission, early revocation penalty, minimum capital required, etc.

These criteria are called the “offer parameters” and must be accepted by followers if they want to take part in the PAAM.

How Can You Take Advantage Of a PAMM System?

With current bank interest rates and other so-called safe financial instruments being quite low (especially in Europe), more and more investors are looking for higher return types of investments.

But making consistent money on the markets isn’t as easy as it may sound. It’s a very stressful activity, one that requires patience, dedication, commitment, trading knowledge, and time to analyze the market and properly implement your trading strategy.

For these reasons, many investors aren’t yet ready to trade the markets, but they’re ready to use PAMM account services to gain access to the markets and generate money to achieve their financial goals while learning how to become a successful and profitable trader.

Consequently, PAMM services are great for beginners, as it helps connect experienced and successful traders to people interested in the financial market, but who are not sure how to invest their money yet. 

What should you look for in a broker offering PAMM Services?

One of the most important aspects to take into consideration when deciding which kind of PAMM services you will use is 1) the reliability of the PAMM broker, 2) how easy it is for you to withdraw money, and 3) how detailed the statistics available to you are in choosing the Master account to follow.

Use a regulated and licensed broker

FXPRIMUS, a regulated broker based in Cyprus, offers high quality and robust PAMM services, which is an offering of Primus Markets INTL Limited and Primus Africa (Pty) Ltd, member Companies of the FXPRIMUS Group.

Be sure that your fund is protected and that you can easily withdraw money

According to FXPRIMUS, their PAMM Service comes with “full transparency in terms of performance and fees, with full flexibility to deposit and withdrawal as you see fit”.

To ensure the safety of investors, customer deposits should be kept in their own trading accounts; so then they are the only ones who are able to make deposits/withdrawals.

Analyze the available statistics to select the best Master account for you

FXPRIMUS gives you a lot of information and important statistics about Master performance, so then you can choose the best accounts to follow depending on your risk aversion, your trading profile and your financial goals.

General information will include the type of trading account, when it has been created, its currency, its number of followers, etc. while advanced statistics will help you understand better how well a given account is performing and how risky it is: gain, average win/loss, exposure level, drawdown, profit factor, expectancy, Sharpe ratio, etc.

Bottom-Line

PAAM accounts are the best way for you to take advantage of an automatized profit/loss distribution according to the money manager trading strategies you choose to follow. It means that you can get exposure to the markets without any deep trading knowledge.

Using PAAM services also means that your money can be professionally managed thanks to a proven trading strategy with money management rules. Right now, you do not need to work hard on your trading strategy, nor worry about how long it is going to take to create a profitable one.

You simply have to choose the Master account that seems profitable enough for you according to your risk profile, picking one that has a solid track-record that generates results over time.

While your account makes money, you can take advantage of your own time. Your account is in safe hands, so you can focus on learning how markets work and how to trade them, as well as how to develop your own trading strategy and trade the markets once you’re ready.