If you’re an amateur investor anxious to jump into investing with both feet but you feel like you could use a little help, a percent allocation management module, or PAMM, might be for you. These are solutions that allow everyday investors to use skilled trading managers while gaining access to the financial markets they once did not have access to. The accounts, called PAMM investment accounts, are operated by a manager but allow numerous investors to pool their money together in order to make more money than they would by themselves.
The Best of Both Worlds
The way a Forex PAMM account works is simple. There are no hidden fees or commissions. All profits and losses are calculated and then distributed to everyone in the pool, according to the initial deposit of each individual investor. It’s a simple way to learn about investing while taking advantage of the skills of more experienced investment managers, and it isn’t a complicated process. The transactions are secure, and investors do everything under the close supervision of these managers, which is good for both parties.
As far as the PAMM managers go, they have to qualify in order to be a part of this investment method, and they have to use their own funds to back their trading strategies. For the investor, some of the advantages to a PAMM include:
- They can choose their managers.
- They get real-time stats on performance, profit and loss, etc.
- Their funds are segregated from everyone else’s.
- They can create their own counteroffers.
- They get access to top-notch managers.
Even better, investors can start one of these accounts even if they have no experience whatsoever in trading stocks. While no investments are completely risk-free, this is the perfect way to start investing and learn the art of investing at the same time, with little overall risk to you.
How to Get Started
If you’re interested in setting up a PAMM account, you can often do this online. You can quickly and easily open the account, make a deposit, and choose your investors, and they’ll take it from there. If you’re inexperienced but interested in investing without having to take huge risks, do your due diligence and research PAMM.