we are always striving to keep up with trends in the financial world and stay in touch with the needs of our clients. In doing so, our specialists have developed a service which allows investors to safely transfer funds to the management of an experienced trader and start taking advantage of the high profitability of the Forex market.
Alpari is proud to offer its clients the "PAMM-Account", a unique investment tool which is already the recipient of a number of prestigious financial awards. The PAMM-Account has earned the confidence of both private investors and professional money managers due to its convenience and reliability.
At Alpari, we have a wide selection of PAMM-Accounts, including the pamm.mt4, pamm.ecn.mt4, and the pamm.ndd.mt4. Most recently, we introduced the pamm.systematic account, which allows the account manager to use a wealth of already-developed trading strategies to optimize their portfolio.
We'd like to invite you to take part in the "Investor's Compass" contest, where trading takes place on virtual accounts. Now you will have the chance to not only invest without risk, but also to receive cash prizes. The Top 10 investors at the end of the month will win a total of 2,600 USD! Invest without Risk The Investor's Compass Register now to win!
* Read Close 1 Why PAMM-Accounts?
Whenever you save up a bit of money, you first need to find a place to put it. The easiest option is to just hold on to your money, keeping it at home or in your wallet (or purse). While this avoids the financial risks assocociated with investment, this method of storing your money won't earn you any extra income or interest. At first glance this wouldn't seem to be a problem, but in reality the purchasing power of your money will actually deteriorate over time due to inflation.
Inflation describes a decrease in the value of money and the corresponding rise in the prices of goods and services. Imagine that you have $1 million saved up and you would like to see these savings grow. Supposing that the annual rate of inflation is 12% (which is quite typical), it follows that inflation is 1% per month. To maintain the purchasing power of your savings through the first month, you will need to increase your capital by $10,000 (1% of $1 million). If you choose to hold on to your money (in this example, let's just pretend you keep it under your matress, where it won't accrue any interest) the relative value will actually decrease! Just to keep your purchasing power from dropping (that is, the amount of goods and services your money can buy), your savings need to increase by at least 1% per month.
The most common solution is to deposit money in the bank. The problem is that current bank interest rates barely cover the rate of inflation, if they do at all. With the current economic conditions, the most effective and reliable way to store your money is investment.
* Read Close 2 What is Investment?
Investment, simply stated, is the use of money or capital to achieve profitable returns. Let's quickly examine some of the most popular forms of investment today.
Not long ago, real estate was considered to be the most reliable type of investment available, boasting an incredible track record of increasing property values. After the recent crash of the real estate market, it is clear that property isn't the sound investment opportunity it once was. If you have been keeping up with the performance of the markets lately, you probably know that now is not the time to place your hard-earned money into some of the other traditional investment tools (stocks, mutual funds etc.) either. Moreover, with the exception of mutual funds (which have disadvantages of their own such as a lack of transparency and liquidity), many of the traditional investment instruments are only accessible to professional traders with years of experience and a sizable sum of money at their disposal. Now there is a more effective way to invest your money in the market. * Read Close 3 Investing in Forex
The Forex market has seen a recent surge in popularity among investors, in great part due to its high potential yields. However, like other markets, investing in Forex involves many risks. For beginners, with their lack of experience managing risk and controlling their emotions, the Forex market can be overwhelming. And besides, most of us don't have the free time to carefully analyze the markets every day or to acquire the experience and knowledge needed to make currency trading profitable. For a long time there was little the average inexperienced investor could do; short on experience and pressed for time. There was always the opportunity to put your money under the management of a professional Forex trader, but investors always faced risks. First, the professional trader might not be as good as he said he was, and fail to live up to his promises of high returns. Then there were the "non-trading risks." The possibility always existed that your "professional investor" was not a professional investor at all; that he would simply take your money and run.
Now Alpari offers its clients the latest breakthrough in account management:
Alpari has developed the PAMM-Account, a tool designed to protect novice investors from trading and non-trading risks on the Forex market. Now investors can: o Research the performance of PAMM-Accounts by browsing data published on our website. o Ask an account manager any question you like in the Manager's personal section on the Alpari forum. There you can receive a direct response from the Manager and find out what other posters think about them. o Agree on terms with a PAMM-Account manager and open a managed account with Alpari. The terms of our PAMM-Acounts are based on the agreement of Manager and Investor in the Manager's Proposal and Alpari's regulations. o Deposit and withdraw funds based on the terms agreed upon in the Manager's Proposal. o Receive statements that show every transaction made on the account, including deposits, withdrawals and the Manager's remuneration.
PAMM-Account TOP-20 Invest in a PAMM-Account Open a PAMM-Account How does it work? Partnership Programs
With the PAMM-Account Ratings, you can evaluate a Manager’s performance, select a PAMM-Account and begin investing.
To start investing your capital in a PAMM-Account, you will need to:
* Log in to myAlpari; * Deposit the sum you plan to invest into a Transitory Account; * Go to the "Investor’s Workshop” and click on the PAMM-Account Rating icon; * In the PAMM-Account Ratings, choose the PAMM-Account best suited to your investment goals; * Make sure there is a Public Proposal available for the PAMM-Account you have chosen, and click "Create a Managed Account”; * Fill out all of the required fields, then read and agree to the Regulatory Documents. Then click "Open invest Account"; * Check your email. Your registration details will be sent to your specified email address.
* Open a Managed Account Ready to invest and earn on Forex? * Go to the Help page PAMM-Account FAQ
link to page
To become a Manager, you need to complete the following instructions or use the link to Open a PAMM-Account:
* Authorize in myAlpari; * Deposit no less than the minimum Manager’s Capital necessary to create a PAMM-Account to a Transitory Account; * Go to the Manager’s Workshop and click the "Create a PAMM-Account” icon; * Choose the type of PAMM-Account you want to create: pamm.mt4, pamm.systematic, pamm.ndd.mt4, pamm.ecn.mt4; * Fill out all the required fields, get acquainted with and agree to the Regulatory Documents and click "Open Account”; * Check your email. Your registration details will be sent to your specified email address.
Important! When opening a PAMM-Account, the Client must have the sum that they indicated as the Manager's Capital on a Transitory Account. This sum will be deducted from the Transitory Account and credited to the PAMM-Account as soon as the "Open Account" button is clicked.
* Open an alpari.invest Account Ready to manage investors’ capital? * Go to the Help page PAMM-Account FAQ
link to page Wealth is the slave of a wise man. The master of a fool. (Seneca)
Is wealth management really that easy? Many of us can earn and spend money, but not many of us can manage it. But since we are all wise here, we know that money management is the key to success! So if you have a knack for money management, why not make money on it? If you can’t manage money? There is a simple answer to these questions: Management and Investment!
Here we present an example of both types of activity: Management and Investment
A successful trader, Smith, opens a PAMM-Account at Alpari and becomes its Manager. The Manager’s Capital is 20,000 USD (pic. 1). Smith then presents Alpari clients with the opportunity to place their funds under his management. The Manager (Smith) proposes to share the profit between the Investors every month (trading interval), while 20% will go to the Manager (Smith) as remuneration for his work. 1.png Pic. 1. PAMM-Account 20,000 USD.
Investors Simpson (Investor 1) and Ford (Investor 2) decide to invest their funds in Smith's (Manager's) PAMM-Account. Simpson and Ford invest 50,000 USD and 30,000 USD respectively. Thus, the PAMM-Account balance, including the Manager's capital, is 100,000 USD (pic. 2). 2.png Pic. 2. PAMM-Account balance at the start of work on the account
Due to the Manager's successful performance, the PAMM-account makes a 50% profit (50,000 USD) on the intitial deposit (100,000 USD) in the first month and the PAMM-Account balance becomes 150,000 USD.
Respectively, Investor 1 (Simpson) makes a 50% profit (25,000 USD) on his original investment (50,000 USD) and pays the Manager remuneration in the amount of 20% (5,000 USD) of his profit. Investor 2 (Ford) makes a 50% profit (15,000 USD) on his original investment (30,000 USD) and pays the Manager remuneration in the amount of 20% (3,000 USD) of his profit (pic. 3). 3.png Pic. 3. PAMM-Account balance at the end of the first month
The Manager’s (Smith's) work on the PAMM-Account during the first month results in a net profit of 50,000 USD:
* Investor Simpson — 20,000 USD; * Investor Ford — 12,000 USD; * Manager Smith — 18,000 USD (10,000 — profit on his share, 8,000 — Manager’s Remuneration).
At the beginning of the second month, the Manager (Smith) withdraws his profit (18,000 USD), Investor 1 (Simpson) completely reinvests (reinvestment — buildup of earlier investments using profit made on them) all his funds (70,000 USD), and Investor 2 (Ford) withdraws 2,000 USD and reinvests his remaining funds (40,000 USD) (pic. 4). 4.png Pic. 4. Reinvestment and Withdrawal of Funds
Another Investor, Jackson (Investor 3), joins the PAMM-account and invests 10,000 USD (pic. 5). 5.png Pic. 5. The PAMM-Account balance at the start of the second month
Due to the Manager's successful performance, the PAMM-Account makes a 100% profit (140,000 USD) on the initial deposit (140,000 USD) in the second month and the total PAMM-Account balance becomes 280,000 USD.
Respectively, Investor 1 (Simpson) makes a 100% profit (70,000 USD) on his original investment (70,000 USD) and pays the Manager remuneration in the amount of 20% (14,000 USD) of his profit. Investor 2 (Ford) makes a 100% profit (40,000 USD) on his original investment (40,000 USD) and pays the Manager remuneration in the amount of 20% (8,000 USD) of his profit. Investor 3 (Jackson) makes a 100% profit (10,000 USD) on his original investment (10,000 USD) and pays the Manager remuneration in the amount of 20% (2,000 USD) of his profit (pic. 6). 6.png Pic. 6. PAMM-Account balance at the end of the second month
The Manager’s (Smith's) work on the PAMM-Account during the second month results in a net profit of 140,000 USD:
* Investor Simpson — 56,000 USD; * Investor Ford — 32,000 USD; * Investor Jackson — 8,000 USD; * Manager Smith — 44,000 USD (20,000 — profit on his own share, 24,000 — Manager’s Remuneration).
This example has described the general framework of work on a PAMM-Account at Alpari. It is intended to show you the opportunities to profit from the management and investment of funds.
