How does Forex PAMM Account Work?
Topic: How does Forex PAMM Account Work?
Fund Manager begins by opening a Manager PAMM account. Here the manager will give his proposal. The Manager's proposal will specify the following:
Minimum Capital needed: This is the minimum amount that the investors should invest in order to participate in a PAMM account. The minimum capital required by most PAMM account is $500.
Success Fee: This is the fee charged by the fund manager. The fee is calculated on the High Watermark basis. High water mark means the peak value of the fund achieved during one month. This is done to safeguard investor's interest and to ensure that the manager gets paid only for his achievements. Under performing managers will not receive a performance bonus till the time the fund reaches the high watermark level.
The success fee is paid to the manager at the end of every month.