It is entirely possible that one might not be too familiar with the art of trading with PAMM accounts. To define it in a concise manner, it is a way in which people trade. This works in the following manner: a trader opens a current/trading account with a particular amount of trading capital in it (which is popularly known as manager’s capital) and sets it to work in the market. Once the account starts to make profit, its success and performance brilliance is advertised to other traders with an aim to attract investment. Then, people who are interested in investing in the forex market are drawn in with the promises of huge profits, and hence they invest in the account as well. The amount invested by the manager or the account owner is called the “manager’s capital”, which cannot be withdrawn once it is invested. The investors on their part read the terms and conditions, and decide whether to respond to a particular advertisement or not. If they do, they invest. And there exists a particular ratio between the investment of the manager and all the other investors, which is the ratio that is used to distribute the profit between the participants of a particular PAMM account. Here the forex broker acts as the administrator of the distributor of funds, acting both as a regulator and a type of escrow. This information has been shared by www.easymarkets.com. Advantages of PAMM Managers: In case of successful traders, there is no need to mention PAMM traders separately. The account provides them with a lot of opportunity to act as an account manager, who makes gains not only off their own money but also off from the trades which they execute on behalf of the investors. The rights to set their own conditions are also enjoyed by them, since they exercise a certain level of control over the terms and conditions, e.g. the ways in which the profits are distributed, and how long the period lasts. And because the distribution of funds is automated, this prevents any chance of risk for the account manager. Investors: Contributing to a PAMM account has multiple advantages for a particular investor as well. First of all, they can benefit a lot from the trading expertise of a lot of, successful managers. Secondly, they are able to withdraw from the PAMM at any time they please, if they are dissatisfied with the performance of the account manager. On the third point, they are able to diversify their investments across multiple PAMMs, which reduce risk by a huge portion. And finally, it also protects them from fraud because of the automatic manner in which funds are distributed.