Alpari PAMM Review (Alpari Copy Trading)
The world and its trends are constantly changing.
Most people are now trying to find the best financial deals to gain as many additional revenues as possible using the most effective modern-day investment methods, such as Forex.
However, the complexity of Forex trading makes new traders reluctant to study further. Most new traders enter the market in the hope of instant success, but once they realize how complex it is to formulate the best trading strategies, they tend to back out and leave the business altogether.
Little do they know that there is a better way to join the Forex market without having to formulate complicated trading strategies; the Forex PAMM Investment service offered by Alpari Malaysia.
What is Alpari PAMM Investment Service?
Alpari PAMM is a pioneer copy-trading investment service. PAMM allows new and professional traders to work as a team in order to gain mutual benefits and earn more revenues.
Traders can join Alpari PAMM Investment Service either as Investors or Managers.
✅ 1. PAMM Investor
Joining the PAMM Investment Service as an Investor will allow new traders to trade forex without having to learn Forex trading from scratch.
As a PAMM Investor, you simply need to invest your funds in different PAMM Accounts with different Managers and let them work their magic. Later, when the Managers close their trades successfully, you will also gain profits, depending on your investment in the PAMM Account or PAMM Portfolio. You may be required to pay a certain amount of fee to the Managers for the services rendered.
As PAMM Investors, you are required to invest no less than 50 USD or 50 EUR (or depending on the Manager’s proposal) for private PAMM Accounts, and 100 USD or 100 EUR for regular PAMM Portfolios. After that, Alpari sets the subsequent deposits and withdrawals at a minimum amount of 10 USD or 10 EUR.
Moreover, the Investors must also maintain a minimum balance of 50 USD or 50 EUR for private PAMM Accounts (or according to the Manager’s proposal) and 100 USD or 100 EUR for PAMM Portfolio. If the remaining balance is less than the required amount, the account will be automatically closed.
✅ 2. PAMM Manager
The role of PAMM Investment Manager will be more suitable for experienced traders who are confident in their trading skills and seek more challenges in their daily trading activities.
By being a PAMM Investment Manager, professional traders will have the chance to face a more challenging trading environment, because this way they would risk not only their capital but also that of their investors.
What’s more, PAMM Managers are entitled to create their own trading proposal with specific terms of cooperation; this will give them complete control over their trading activities. On top of everything, they will receive a reward for their services and can determine the percentage of profits as their commission.
💠 REGULAR Trader:
At Alpari, PAMM Managers will be able to create a PAMM Account using all the available investment accounts, from PAMM Standard MT4 to PAMM ECN MT5.
The PAMM Standard MT4 and PAMM Standard MT5 investment accounts require PAMM Managers to maintain a minimum capital of 300 USD/EUR for public accounts and 100 USD/EUR for private accounts. Meanwhile, PAMM ECN MT4 requires a minimum capital of 300 USD/EUR for public and private accounts. In contrast, PAMM Pro ECN MT4 and PAMM ECN MT5 account managers will need to maintain a minimum capital of 500 USD/EUR for both public and private accounts.
All these investment accounts are available for PAMM Investors by making a minimum investment amount of 50 USD or 50 EUR.
In addition to different types of accounts, PAMM Investment Service also comes with flexible leverage up to 1:3000 for PAMM Standard MT4 and MT5 Accounts and up to 1:3000 for PAMM ECN MT4, PAMM ECN MT5, and PAMM Pro ECN MT4 Accounts. However, PAMM Managers who want to trade via the PAMM Pro ECN MT4 and PAM ECN MT5 investment accounts are to pay a $16 commission.
As for the PAMM Manager’s commission itself, it can be charged up to 50% of the Investors’ profits, and they may only process deposit and withdrawal requests at least once a day (the threshold is from 1 to 30 minutes before processing time).
On the other hand, joining the PAMM Portfolio Service as a Manager will require a 1000 USD or 1000 EUR non-withdrawable capital for public PAMM Portfolios and 100 USD or 100 EUR for private PAMM Portfolios. Besides, the maximum percentage of commission for one PAMM Account within one PAMM Portfolio is up to 35%.
Furthermore, the Managers can only invest their personal funds in the PAMM Accounts for public PAMM portfolios up to 50%, whereas private PAMM Portfolio does not have any restrictions regarding PAMM Manager’s personal funding.
And finally, A Manager’s performance fee is capped from 0% to 15% of the Investor’s profits, and they may only process deposit and withdrawal requests at least once a day (the threshold is from 1 to 240 minutes before processing time).
How does Alpari's PAMM Investment Service work?
There are two types of PAMM Investment Services you can use at Alpari:
1. PAMM Account
PAMM Account is a single trading account shared between PAMM Investors and their Managers. Both Investors and Managers will invest a certain amount of funds in the same PAMM Account. Then, the Manager will manage the total investment funds available in the account and formulate the best trading strategies.
Later, when the Manager’s trading strategies are successful and the PAMM Account gains profits, both Investors and the Manager share the profits based on the percentage of their invested funds.
And finally, after the profits are calculated, Investors are required to pay an agreed commission for the manager’s services.
One PAMM Account includes one Manager and multiple Investors, and Investors can invest their funds in one or multiple PAMM Accounts simultaneously. They simply need to find the best Managers that suit their trading objectives and appetite for risks.
For example:
Susie is a professional trader who has decided to open a PAMM Account. Next, John and Jane come as the PAMM Investors who invest their funds in the same PAMM Account with Susie as their Manager.
John and Jane invest 200 USD and 300 USD respectively, while Susie, the Manager, invests 500 USD of her own money in the same PAMM Account, with a 20% agreed commission.
As the Manager, Susie then uses all 1,000 USD available in the PAMM Account and formulates the best strategies to get the best potential results. Finally, when the trades are successful, Susie manages to gain a 100% profit, resulting in a 2,000 USD balance in the PAMM Account.
At the end of the trading session, both Investors and the Manager will share the profits according to the percentage of their initial balance in the PAMM Account.
And finally, the Manager’s commission will be deducted from the Investors’ profits.
• John’s 20% from 200 USD = 40 USD
• Jane’s 30% from 300 USD = 90 USD
Resulting in the end balance as follows:
2. PAMM Portfolio
When a PAMM Manager conducts trades using a single PAMM Account, he will have only one possibility for making profits; this could lead to a higher level of risks. That single account will determine the fate of the allocated funds belonging to both the Manager and Investors. When the trades are successful, the money multiplies. However, when the trades fail, both Investors and Manager will lose a certain amount of money.
That is why the only way to distribute these possible profits and anticipate the upcoming risk of Forex trading is by creating a PAMM Portfolio using several independent PAMM Accounts.
PAMM Portfolio means that the Managers will assemble several of their individual PAMM Accounts, invest their funds in these accounts, and formulate different trading strategies with different risk allocations for each of them.
That way, the Managers will be able to anticipate the market’s movements using different strategies applied to each of these PAMM Accounts. If the Manager loses the funds in one or two PAMM Accounts in the portfolio, they will be able to cover their losses using the profits gained from the remaining PAMM Accounts within the same portfolio.
In PAMM Portfolio, the Managers also take control of all the assembled PAMM Accounts, including the number of the accounts, the fund allocations, and the percentage of their commission.
At the same time, investing in the PAMM Portfolio means that Investors will be able to get a higher chance of profits due to the number of accounts and different strategies involved in the portfolio.
Besides, investing in PAMM Portfolio will be suitable for Investors who want to invest their money in different trading strategies to increase their potential profits in case one strategy fails and results in a loss. That is why most Investors usually invest in two or more PAMM Portfolio Managers, depending on their trading circumstances and appetite for risks.
For example:
• Susie creates a PAMM Portfolio consisted of five individual PAMM Accounts. She deposits 2,000 USD and sets a 10% performance fee.
• John and Jane decide to join and invest their money, 1,000 USD each, in Susie’s PAMM Portfolio.
• Now there is a 4,000 USD deposit in the PAMM Portfolio. This portfolio will then be divided into five different PAMM Accounts with different trading strategies and fund allocations: 2 PAMM Accounts containing 1,000 USD (25%), two accounts containing 750 USD (18.75%), and one last PAMM account that will contain 500 USD (12.5%).
• The trading session starts, the Manager can make changes in the fund allocations during this time, and the Investors are allowed to monitor the trades using myAlpari.
• After the trades are closed, 3 of the PAMM Accounts result in profits: 20%, 10%, and 20%. However, the two remaining PAMM Accounts result in losses: 10% and 20%.
• Therefore, the end balance of the PAMM Portfolio will be 4,000 + 275 = 4,275 USD, and it will be returned based on the percentage of the Portfolio’s initial balance.
• And finally, the Manager’s commission will be deducted from the Investors’ profits ➜ 10% from 68.75 USD = 6.88 USD, resulting in the end balance as follows:
