Managed Account (PAMM) — extra income for investors and managers
Managed Account (PAMM) is a variation of asset management when a manager uses funds of multiple investors on a single account. All the profits or losses are distributed between the participants in accordance to their share in the account and the account’s offer.
How it works
- A trader signs up as a Managed Account (PAMM) manager and opens one or multiple Managed Accounts (PAMM).
- An investor signs up with FIBO Group and selects one or multiple accounts for investment, then transfers their funds to them.
- At the end of each investment period profits or losses registered on the account are being distributed between the investors and the manager in proportion to their funds invested.
Managed Account (PAMM) — extra income for investors and managers
Managed Account (PAMM) is a variation of asset management when a manager uses funds of multiple investors on a single account. All the profits or losses are distributed between the participants in accordance to their share in the account and the account’s offer.
Profits calculation
$1 000
general profit for 1 (one) investment period
A manager’s profit shall amount to $720.
From which:
$ 600 (60% * $ 1 000) – profit from own
investment
$ 120 (30% * $400) – part of investors’ profits
An investor’s profit
shall amount to $280.
From general investor profit (40% of $1 000) a manager´s fee is being deducted
according to the offer´s conditions:
$ 400 - 30% * $400 = $120
$2 000
amount of funds on the account as of the beginning of the period
- A manager’s profit shall amount to $720.
From which:
$ 600 (60% * $ 1 000) – profit from own
investment
$ 120 (30% * $400) – part of investors’ profits - An investor’s profit
shall amount to $280.
From general investor profit (40% of $1 000) a manager´s fee is being deducted
according to the offer´s conditions:
$ 400 - 30% * $400 = $120
Losses calculation
Losses just as profits are distributed proportionally to manager’s and investors’ shares.
General loss $200
$120 (60% of $200) – manager´s loss
$80 (40% of $200) – investor´s loss
$200
general loss for 1 (one) investment period
$2 000
amount of funds on the account as of the beginning of the period
- A manager’s profit shall amount to $720.
From which:
$ 600 (60% * $ 1 000) – profit from own
investment
$ 120 (30% * $400) – part of investors’ profits - An investor’s profit
shall amount to $280.
From general investor profit (40% of $1 000) a manager´s fee is being deducted
according to the offer´s conditions:
$ 400 - 30% * $400 = $120
At the end of each investment period an investor can:
Option 1
Withdraw all the funds
(investment and profits))
Option 2
Withdraw profits only
leaving the initial investment on the account
Option 3
Leave the profits on the account thus
increase the investor’s share for the next investment period
Mutual advantages
Balance operations (deposit and withdrawal), correctness and accurate processing time of profit distribution between manager and investors is ensured and guaranteed by FIBO Group.
Are you agent? You are a PAMM-agent!
The "PAMM-agent" program is a partnership program designed to attract investors into a PAMM. Managers share their remuneration with agents who bring new investors.
- A Manager can take advantage of the program, because the amount of managed funds exceeds his or her profit.
- This is beneficial to the Manager, because the larger the amount of funds managed by him, the higher his income.
- As for an Investor, he or she is not involved in the program as long as the amount of the PAMM-agent's remuneration is specified by the Offer and is calculated as the share of the Manager's remuneration.
The amount of the PAMM-agent's remuneration is specified by the Offer and is calculated as the share of the Manager's remuneration.
FAQ
- Is it possible to change the offer’s parameters of the Managed account (PAMM)?
No, you can't change the PAMM offer. Before submitting your PAMM account application, make sure to get acquainted with the rules of provision of the "Managed account (PAMM)" service. After submitting the application, the Company's manager shall contact you to confirm the offer’s parameters.
- On which accounts is the "Managed account (PAMM)" service available? What is the difference between accounts?
The Managed account (PAMM) service is available in the following account types: MT4 Fixed, MT4 NDD, and MT4 NDD No Commission. Description of their differences can be found in the section "Types of trading accounts". There is also a comparative table of account types.
- Where can I get acquainted with the rules of the "Managed account (PAMM)" service?
The regulations for the service "Managed account (PAMM)" can be found on the Company's website (Home page – “Clients” – “Documents” – subsection “For investors” – “Procedure for provision of the “Managed account (PAMM)” service”).
- Glossary of basic terms and definitions of the Managed Account (PAMM).
Agreement with the Company and has an activated trading or investor account opened in his name.
Managed account (PAMM) — a trading account that allows the Manager to use their own capital and the total capital of Investors for Management in order to make a profit.
Investor account — a non-trading account intended exclusively for withdrawing and depositing funds to a Managed account (PAMM). Each participant has a Managed account (PAMM). One investor account can be used to withdraw and Deposit funds to an unlimited number of managed accounts (PAMM).
Manager — Managed account participant, a Client of the Company who passed the registration procedure as a Manager of a Managed account.
Investor — Managed account participant, a Client of the Company who passed the registration procedure as an Investor of a Managed account.
PAMM-agent — a Client of the Company who passed the registration procedure as a PAMM agent.
Management — the Manager performs speculative trading operations on the world financial markets using the funds of the Managed account (PAMM) in the interests of Investors and for remuneration in the form of a share of the earned profit.
Manager's Offer (Offer) — the specific Manager’s offer for potential Investors to invest in the Manager’s Managed account on specific terms, and for the potential PAMM agents – to attract investments to the Manager’s Managed account for a fee.
Balance transaction — withdrawing or depositing funds to a Managed account.
Managed account balance — sum of the Manager’s Capital, Investors’ Capitals and overall result (profit or loss) of all closed trading positions on a Managed account.
Equity of Managed account — actual total amount of funds of a Managed account, calculated as the amount of Balance and current (floating) profit (or loss) on open trading positions.
Margin — funds reserved as margin collateral for open trading positions.
Free margin — funds not reserved as margin collateral for open trading positions, calculated as the difference between Equity and Margin.
Manager’s Capital – Manager’s own funds deposited to a Managed account.
Manager’s Funds – actual amount of the Manager’s own funds on a Managed account, calculated as the Manager’s share in the amount of the Managed account funds.
Investor’s Capital — Investor’s own funds deposited to a Managed account.
Investor’s Funds — actual amount of the Investor’s own funds on a Managed account, calculated as the Investor’s share in the amount of Funds of a Managed account.
Investment period — a period of time multiple of one week during which the Manager exercises Management of a Managed account and upon the expiration of which settlements and distribution of Profit and Fee between the Manager, Investors and PAMM agents take place.
Manager’s Profit — positive financial result of the Management of the Manager’s Funds.
Investor’s Income — positive financial result of the Management of the Investor’s Capital. It is subject to be distributed between the Manager and Investor upon the expiration of the Investment period.
Investor’s Profit — Investor’s Income minus the Manager’s Fee, minus penalty (if a penalty is prescribed in the Managed account offer).
Manager’s Fee — parameter of the Offer that determines the percentage of the Investor’s Profit to be paid to the Manager.
PAMM Agent’s Fee — parameter of the Offer determining the share of the Manager’s Fee payable to the PAMM agent.
Rating of Managed accounts — list of active Managed accounts on the Company’s site with the option to be rated by the main parameters (currency of account, Manager’s Capital,
total and daily profitability, Offer, etc.).Liquidation of a Managed account — a current Managed account closure procedure initiated by the Manager or the Company.
The Time of the Company (FIBO Time, EET) — the time at which the Company’strading platform and its mobile versions operate. It meets Eastern European Time (EET).
Trading Day — any weekday when the Management of a Managed account is possible. Regarding to a Managed account service, trading days begin and end as follows (EET):
Monday: 00:35 on Monday till 00:35 on Tuesday
Tuesday: 00:35 on Tuesday till 00:35 on Wednesday
Wednesday: 00:35 on Wednesday till 00:35 on Thursday
Thursday: 00:35 on Thursday till 00:35 on Friday
Friday: 00:35 till 23:59:59 on FridayRollover Time — time for statistical data collection, calculations and Balance operations. Corresponds to 00:35 EET of the following days of the week: Tuesday, Wednesday, Thursday, Friday, 05:30 EET Saturday and 23:45 EET Sunday.
- Who trades for me on Managed account? Is it the Company?
It is the manager who operates the Managed account (PAMM). The company registers the results of operation at the end of each investment period and performs funds distribution between investors, manager and PAMM-agents.
- Can you advice me on which Managed account (PAMM) do I invest into?
To choose a Managed account for investment, use the Managed account rating, which can be found on the Company's website "Investors" - "Rating", where all available accounts for investment are presented.
- What is the criterion to sort the Managed accounts (PAMM) in the rating?
By default, the rating of Managed Accounts (PAMM) is formed by the "Account funds" parameter. However, using the settings for sorting, you can make a rating by other parameters: age of the Managed account (PAMM), profitability for different periods, the size of the Manager's Capital, limit the limits of profitability, select the maximum drawdown of PAMM.
- How is the profitability of a Managed Account (PAMM) calculated?
The total profitability (%) shows the total profit or loss of the Managed account on the running total basis from the moment of registration, and is calculated with the formula:
Y=(А1/А * В1/В * … * Z1/Z — 1) * 100%, where:
Y – Total Profitability;
А...А1, B...B1 - Periods between Balance transactions;
А - Initial Balance;
А1 - Equity right before the first following Balance transaction;
B - Equity immediately after the Balance transaction;
B1 — Equity right before the next following Balance transaction;
Z — Equity immediately after the last Balance transaction;
Z1 — Equity at the moment of calculation.
Daily (weekly, monthly) profit shows current profit or loss of the Managed account during particular trading day, current week and month accordingly. Are measured in percentage and calculated by the formula:
Yd (Yw,Ym) = ((Y2 + 1)/(Y1 + 1) - 1) * 100 %, where:
Yd (Yw,Ym) — Daily (weekly, monthly) profit;
Y2 – General Profit at the end of the trading day* (week*,month*) (decimal fraction);
Y1 – General Profit on the beginning of the trading day (week, month) (decimal fraction).
* for current trading day (week, month) - at the moment of calculation.
- Can I talk to the PAMM Manager before I invest in his account?
You may drop a message for the Manager in your Client Area only after you invested in their Managed account (PAMM).
- Does a Manager have access to their investors funds? Can they withdraw an Investor’s funds?
No, no one but Investor can withdraw funds from a Managed account (PAMM).
- Can an Investor see a Manager’s open trades online (live)?
No, this option is not available. However, the Investor has access to information about closed deals and can monitor the dynamics of account funds on the PAMM statistics page.
- How much am I going to profit in a month if I invest $1000?
The profit of a Managed account (PAMM) depends on the activities of its Manager: the correct choice of assets (currency pairs) for investing and managing (trading) them. The results of the work (profit or loss) of the Manager are recorded at the end of each investment period.
- Can I partially withdraw funds from PAMM?
You may withdraw your funds in any volume and with no fee in the end of the Investment period.
- What is the deposit procedure for Managed account (PAMM)?
PAMM account deposit is carried out in Client Area, ‘MY PAMM’ section. Money transfer is executed by the Company based on a Client’s request to transfer funds from a trading or invest account.
a) When a Managed Account (PAMM) is credited?
Requests to deposit a PAMM account may be submitted any time. Request execution takes place at Rollover time which corresponds to 00:35 EET of the following days of the week: Tuesday, Wednesday, Thursday, Friday, 05:30 EET Saturday and 23:45 EET Sunday.
***When a PAMM account is created, the request of a Manager to deposit it is generated and executed automatically upon the Company’s confirmation of the Offer.b) Can I invest in various PAMM accounts at a time?
Yes, the number of Managed accounts (PAMM) selected for investment is not limited.
- I invested (withdrew) my funds in (from) a PAMM, when is my request going to be processed?
All the non-trading (financial) transactions are processed in accordance with ‘Procedure of provision of the ‘Managed account (PAMM)’ service’. Deposits and withdrawals are processed at the upcoming Rollover time which corresponds to 00:35 EET of the following days of the week: Tuesday, Wednesday, Thursday, Friday, 05:30 EET Saturday and 23:45 EET Sunday.
- Can an Investor withdraw their funds from a PAMM any time they like?
Yes, an Investor may withdraw their funds from a PAMM account any time, however in case the withdrawal takes place before the end of the investment period, an Investor may be charged a fee, the amount of which is indicated in the PAMM account’s offer. This is introduced to minimize the risks for a Manager in case of unexpected withdrawals that may lead to forced position closure to comply with margin requirements. If a withdrawal (either partial or total) is carried out in the end of the Investment period, funds are withdrawn in full and are not subject to fee.
- Which is more profitable: becoming a Manager or an Investor?
If you are an experienced and successful trader, you may profit more by running your own PAMM account. Your income is taken both from your own deposit and Manager’s fee.
In case you don’t have enough experience in trading, you may invest into a PAMM. In both cases the profit depends on Manager’s performance. - What is ‘Profit factor’?
Profit-factor is a ratio of the total value of all the completed profitable transactions to the total value of all the completed loss-making transactions for the whole period of existence of the Managed account.
- What is ‘Total net profit’?
Total net profit — is the profit of the Managed account on a running total basis for all the completed transactions for the whole period of existence of the Managed account.
- What is ‘Maximum drawdown’?
Maximum drawdown is a maximum relative decrease of the total profitability comparing with the latest historical maximum value of the total profitability.