Percentage Allocation Money Management (PAMM) is a solution where a professional account manager executes trades on behalf of clients.
In this setup, the account manager acts as the Fund Manager, while the clients are the Investors. The PAMM account allows investors to pool their funds together, providing them with access to professional fund managers and their trading strategies.
How Does PAMM Work?
PAMM Account Example
To understand the setup and participants involved in a PAMM account, let's walk through an example.
The key participants are:
1. The Forex Broker (VEBSON)
2. Investors
3. Money Managers (Fund Managers)
Now, let's consider three investors: Investor A, Investor B, and Investor C.
They aspire to trade the forex market using a PAMM solution and decide to collaborate. To make this possible, they each open individual PAMM accounts with VEBSON, the forex broker. An experienced forex trader takes on the role of the Money Manager and becomes a VEBSON PAMM Fund Manager. By doing so, the Money Manager aims to optimize their earnings through successful trades and earn a performance fee. Investors A, B, and C select this Money Manager as their VEBSON PAMM Fund Manager to trade on their behalf.
Pooling Your Funds
In this example, Investors A, B and C pool their funds together where they invest $50,000, $35,000, and $15,000 respectively.
The total investment amounts to $100,000. The Money Manager charges a 20% performance fee on the earnings.
1. Investors A - $50,000
2. Investors B - $35,000
3. Investors C - $15,000
4. Money Manager - Charges 20%
Now, Let's assume that during the investment period, there is a 12.5% gain, resulting in earnings of $12,500. After deducting the performance fee of $2,500 (20% of $12,500), the remaining $10,000 is distributed among the participants based on their share of the pool.
Distribute Earnings based on
Contributions
1. Investors A - 50% ($5,000) of the net earnings
2.Investors B - 35% ($3,500) of the net earnings
3.Investors C - 15% ($1,500) of the net earnings
This example demonstrates the potential advantages of using a PAMM account. By pooling their funds, investors can leverage the expertise of professional traders and distribute earnings based on their respective contributions.
8 Reasons to Start Using
VEBSON PAMM Account
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How do you trade with VEBSON？You can trade with VEBSON easily by following the steps below: 1. Open a live account with VEBSON and be verified. 2. Deposit funds to your newly created account. 3. Analyse the product markets and determine which products you wish to trade. 4. Open and monitor your first trading position. 5. When you think it’s time, close the position to complete the trade.
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What is the minimum deposit for Vebson trade?VEBSON allows clients to open a trading account with as little as $10 USD or account currency equivalent for all Standard STP accounts and CENT accounts. Just remember that you can open and keep a live trading account with a $0 balance, there is no account keeping or maintenance fees. For your subsequent deposits, the minimum deposit amount is $10.
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How to deposit funds to your trading account？1. Deposits can be made from inside our Client Portal. Not all deposits made will be reflected in your account immediately. Refer to the deposit methods available on the Deposit Page of our website for more details. 2. Deposit facilities are to be used for trading only. 3. Funds deposited into a trading account should be made from a source (e.g. credit/debit card, bank, alternative payments account, etc.) that is in the same name as the trading account.
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How do I withdraw from Vebson?Clients can securely withdraw their funds with just four simple steps: 1. Log in to the VEBSON portal (https://client.vebson.com/) and navigate to the fund tab. 2. Click on the withdraw button to initiate the process. 3. Enter the withdrawal amount and select your preferred withdrawal method. 4. Finally, click proceed to finalise the withdrawal process.
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What are VEBSON trading hours?Trade all our instruments round the clock 24/7. Check out our trading times for various instruments here. *Trading on some instruments like digital coin is available throughout the week, even during weekends. Please check timings for individual instruments before you start trading.