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PAMM or pyramid?
The PAMM system there are, perhaps, most large companies offering their services to traders in Forex. These services provide the Manager, working only on one trading account, to use the capital a large number of investors.

In turn, the people who become clients traders can easily connect their deposits workflow, earning money thanks to the workshop Manager's trading. The broker is not responsible for the success of those or other speculators. The company creates comfortable conditions for cooperation of managers and investors.

Let's imagine a situation, when an account Executive has earned certain amount at the end of the calendar month. In this case, the PAMM system automatically splits the profit per share for the trader and its clients. Thus, all participants in this collaboration have a share of the profits.

The share of profit is distributed in accordance with the terms and conditions that are managing his PAMM account. Most companies allows investors to monitor the progress of work with graphics yield clearly shows the UPS and downs in the head.

Can be PAMM pyramids?

But everything is so transparent in the PAMM – system, as is claimed brokerage company? On the one hand we do see how things are going with our trader. On the other hand, can we be sure that we really the result of whose work? In some cases no.

Theoretically it is even conceivable that any of the chosen Trustee is not, and his PAMM is a pyramid. As a trader, may be the company which costs nothing to draw a graph to show us the most comfortable for her digits. Are you sure that the timetable of profitability of the account You have chosen for investment, not an artistic picture of the employee?

Imagine that an organization decides to create a PAMM – account, able in the shortest possible time to attract the attention of investors. Draw a beautiful curve, are written in convenient data, that is, all conditions are created to ensure that potential investors are eagerly looking for a job "Manager".

Then, after a time, bill somehow fused, for example, completely. Claims to the broker can not be any, so the Manager does not assume financial responsibility for that capital, which was led, so the problem of losing money and will remain so for the investor.

What can we say about those companies that don't even provide the graphics data to managers? In this case, there is no evidence that this PAMM is not a pyramid. Of course, the open access to the creation of PAMM – accounts to all comers, but that does not mean that in addition to the ordinary governing no such PAMM – accounts, which were described above.

Still would have to look carefully at what's happening around you, be careful when choosing a company offering investment accounts, as well as those of traders, with which we plan to deal with. The organization will not withdraw money it created PAMM – account, knowing that typing a lot of capital, the bill will go to the bottom.

Of course, all this is only speculation, but they probably do not have a serious reason, is able to convince the author that to create such a model is impossible.

Category: Forex | Added by: (30.10.2017)
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