Extra income for Managers and Investors
- PAMM is a service that allows traders to manage funds of many investors on a single trading account.
- Professional traders gain additional income from managing investor’s funds.
- Investors don’t need any trading experience on FOREX and CFD markets, but only need to choose one or several Managers.
- The manager’s fee is set in advance and it can only be allocated in case there is profit on a PAMM.
- You can choose to increase your investment amount or to withdraw it in the end of an investment period which is usually equals to one week.
- FIBO Group company supervises all deposit and withdrawal operations, profit distribution and guarantees the timeliness of all transactions.
How it works
1 Let’s assume
A trader decides to open a Managed account (PAMM) and registers as a Manager.
The currency of the Managed account (PAMM) is USD and the offer parameters are set as 300/30/10/4, where:
2 Beginning of the first investment period
Since the Manager is the only participant of his or her Managed account, the Balance of the Account equals the Manager's Capital and the Manager's share in the Managed account is 100%.
3 End of the first investment period
During the first investment period the Manager makes a profit of $200, or 20% of the initial Balance. According to his or her decision, all the profit is reinvested and increases the Manager's Capital by $200. The Manager's share is still 100%.
4 Beginning of the second investment period
By the beginning of the 2nd investment period an investor contributes $800 into the Managed account. Now the balance is $2000, and the shares of the Manager and of the Investor are 60% and 40% accordingly.
5 End of the second investment period
During the second investment period Manager earns $1000 profit.
6 Profit distribution
The sum is proportionately divided between the participants, that is:
- Manager's Profit: $1000x0.6 = $600
- Investor's Profit: $1000x0.4 = $400.
- Besides, according to the Offer, 30% of Investor's profit is paid to the Manager as a commission for profitable trades.
- The Investor's profit is divided into 2 parts - $280 and $120, of which $120 goes to the Manager.
7 Beginning of the third investment period
All Managed account participants decided to reinvest all of their profits and for the beginning of the 3rd investment period the Managed account balance is $3000. Due to balance operations related to reallocation and reinvestment of profits the shares of participants are reconsidered. Now the Manager owns a share of 64%, whereas the Investor's funds make up 36% of the Managed account Balance.
8 End of the third investment period
As a result of unsuccessful management by the end of the 3rd investment period the Managed account suffered a loss of $500.
9 Loss distribution
Loss is distributed between the participants proportionately to their shares, therefore the capitals of the Manager and Investor are shortened by $320 and $180 dollars accordingly.
10 Beginning of the fourth investment period
The fourth investment period begins with the balance of $ 2,500, while the percentage of participants remains unchanged. From this moment the Manager will only receive a Manager’s Fee if they increase the profit of the investors funds compared to the last time they received a fee from the PAMM account.
11 End of the fourth investment period
The Manager makes a $1000 profit.
12 Profit distribution
How will the profit be allocated and how much is the manager's commission?
- The last time the Manager got his commision the Managed account balance was $3000. Therefore $500 goes to the recovery of the Managed account form $2500 to $3000;
- The remaining $500 are proportionately distributed (64% and 36%) for the profit of the Manager and the Investor ($320 and $180);
- The Investor gets $180x0.7 = $126;
- The Manager's commission is $54.
13 Profit distribution
How will the profit be allocated and how much is the manager's commission?
- The last time the Manager got his commision the Managed account balance was $3000. Therefore $500 goes to the recovery of the Managed account form $2500 to $3000;
- The remaining $500 are proportionately distributed (64% and 36%) for the profit of the Manager and the Investor ($320 and $180);
- The Investor gets $180x0.7 = $126;
- The Manager's commission is $54.
Mutual advantages
Manager |
|---|
| The opportunity to use their experience and knowledge to generate higher income. |
| Remuneration depends on the successful management and the volume of attracted capital from investors. |
| Attracting an unlimited number of investors and the determination of the minimum amount and term of the investment. |
| Trade is conducted on one trading account without complicated accounting system. |
Investor |
|---|
| Opportunity to earn income without being an expert on FOREX and CFD. |
| Manager's remuneration is charged only in case of income that makes it work for a positive result. |
| Choosing between hundreds of Managers and investing in any number of PAMM. |
| No one has the opportunity to withdraw funds other than the investor himself. |
FIBO Group supervises all deposit and withdrawal operations, profit distribution and guarantees the timeliness of all transactions.
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.
- A PAMM-agent may also benefit the program because once a client invests into a PAMM account, the agent will receive the fee until the funds of the investor are in the PAMM.
- 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.
Become manager