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PAMM accounts on the stock market: new opportunities for investors and traders

PAMM accounts on the stock market: new opportunities for investors and traders
The transition of capital from bank deposits in the world is proceeding quite steadily, although not yet too fast. There are still over 30 trillion in deposits, but the trend towards individual investment accounts is evident. Judge for yourself, there are already over 10,000,000 brokerage accounts open, even if most of them are empty or funded for a measly $50, but still. There are about 2,000,000 active clients. The problem is that newbies do not always understand how to buy securities, they think it is difficult, and not everybody wants to learn.
That is why various variants of autotracking have become popular, when a client opens an account, deposits it, and then connects a service due to which trades of a successful trader are repeated. So-called copying. The advantage is that you do not give your money away, which means there is no risk of it being stolen by an unscrupulous manager. But today the market offers even more interesting service - pawn accounts in the stock market.

PAMM accounts at the stock market: what is it and how to open them?

The PAMM account is the simplified mechanism of money transfer to trust management, for a long time it was used only at Forex market. Because of the high risks at the foreign exchange market, very often this way of investing ended up with complete loss of funds, and for this reason, the "PAM" accounts have lost their relevance. Nor do normal investors come to Forex, except for speculators and those who know nothing about it. With the exception of professional traders, who trade on their own.
So, today PAMM accounts got a second life as the number of clients wishing to invest into securities and earn higher percentage than bank deposits is very large and there was no easy decision. Now in order to open a PAMM account at the stock market it is enough to register an account with any broker, deposit a minimum amount and connect to any manager.
Advantages for investors
The main advantage is that newcomers do not need to make investment portfolio, buy and sell securities themselves. Five minutes for the account opening, 1 minute for deposit without commission, 5 minutes for connection to the manager. It's important to consider the minimum amount as well.

I would recommend observing diversification here as well. That is, if you deposit, for example, 1000 dollars, it is better to connect to 5-10 different managers. You pay a percentage of profit, which is very convenient. This option is suitable for everyone who wants to invest in stocks, but does not have time to manage the account.

Advantages for traders
The trader trades with his own money, at least 50 dollars. The ability to connect investors allows you to earn additional income without extra effort. That is, a person just trades for himself as usual, and along with this, he also receives a percentage from those who have decided to repeat it in the automatic mode. The commission is set by the manager himself. If the investor agrees to it, he will connect, if he turns up his nose, there will be less followers.

After opening an account you need to go to the master trade account tab and register as a manager. Statistics on your work will be in the public domain, and if the results are satisfactory to potential investors, they will be able to connect to you. You only need to do the math to understand how much you can earn on it.

If you earn on the stock market 20% per annum and thus set the commission of 30% of profit, and the number of investors reached 100 people and each invested $ 100 (which is absolutely realistic, because on the stock market in asset management give generally much larger amounts). It turns out the following - 10 000 dollars raised capital, the annual income of $ 2 000, your income of 30%, i.e. $ 600. 

That is, the manager himself trading his $250 earned $ 50 a year, and received another $ 600 from the investors connected to it. Not bad. And in general, of course, the volume of attracted funds of good managers can exceed hundreds of thousands of dollars, and this means earning an additional 1-3 million dollars a year is quite realistic. Moreover, they bring profit to the investors not 20% per annum, but 50 and more. It is conservative, naturally risky managers can earn over 100 percent a year. I think the new service will develop rapidly in the near future.

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