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Alpari Introduces New PAMM Portfolio Builder

Jun 18 2013
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Did you ever dream of making money off Forex effortlessly, without the need to make touch choices and constantly analyze the market? Wouldn't it be great is you could have someone else do all the hard work, while you enjoy your life and just reap the profits? Well, there is a way this can be done, with the help of a little thing called a PAMM (Percentage Allocation Management Module) account. This type of account has been getting very popular of late, and to that end Alpari has a new offer today – the PAMM Portfolio Builder. 
 
A PAMM account is basically an account where a trader can invest their money and allow an account manager to take over and do the actual trading (in exchange for a small fee, of course). This way, the trader can receive profit from trades with practically no knowledge of financial markets. Since the account manager is also required to place a certain amount in the account, the chances of fraud are theoretically none. A PAMM Portfolio is a collection of PAMM accounts, grouped together to provide a certain amount of profit (reward) while undertaking the level of risk that is most comfortable to the investor. For example, Alpari's PAMM Portfolios fall under one of three categories: Aggressive, Balanced and Conservative. As you can judge by the names, Aggressive portfolios offer the maximum potential reward, as well as the greatest risk. Conservative ones provide slower gains, but at a small risk, while Balanced ones fall somewhere in between. 
 
Until now, the only things investors using Alpari PAMM Portfolios were able to choose and control were the type of portfolio and one of three initial deposit amounts ($1,000, $3,000 and $10,000). What the PAMM Portfolio Builder offers is a chance to have more control over trading, while still retaining the benefits of using a PAMM account service. The Builder allows traders to choose the accounts they wish to have in their portfolio from an extensive list (over 200 available at the moment), as well as the percentage of the portfolio each account will represent. The tool also provides performance data for the compiled portfolio over a number of different time periods. The minimum investment amount for the portfolio is calculated using the formula “Minimum Investment Level/Percentage Share” for each PAMM account included. The highest of these values is multiplied by the percentage share of each account and added up to give the minimum investment required.
 
For example, a portfolio may contain five different accounts. One of them has a 50% share in the portfolio, another has 20%, and the remaining three have 10% each. If the minimum investment amount for each is $100, calculate 100/50=2, 100/20=5 and 100/10=10. The highest value is 10, which is then multiplied by the percent share of each account – 10*50, 10*20 and 10*10, respectively, and the results are added up. This means the initial investment would be $800. 
 
Though the greater flexibility the PAMM Portfolio Builder offers is an undeniable benefit to investors, investors would do well to examine the accounts they are choosing to include carefully. The first thing to look for is the return/risk ratio of the account – the higher the number, the better. The amount of money the manager has invested is also important. The more someone is willing to risk in their trades, the more serious they are about being successful. Leverage is also something to look for. High leverage means tradign for higher amounts, but also a greater risk in case of a loss. An account manager using leverage of 1:100 must have great skill and a good return/risk ratio to back their choice. Of course, the initial deposit amount is also important, especially at Alpari, since it affects the commission paid by the investor for the manager's services. Although a low initial investment may seem like a cheap way to make money with no effort, it also means paying the highest compensation to the account manager. 
 
Bear in mind that there are other brokers who also offer managed accounts with great flexibility. For example, the manager's compensation at XEMarkets is settled between the potential investors and the manager in question – a much more accommodating arrangement, in my opinion. Also, the initial deposit at XEMarkets is as low as $5, while the maximum leverage goes up to 1:888 (though any account manager using that much is playing a risky game, if you ask me).   
 
 

About Alpari

 
Founded in 1998, the international Alpari brand is one of the leading names in online Forex trading and was recently listed as the world's third largest broker in a 2012 report from online financial portal Forex Magnates, with an average monthly trading volume of more than 200 billion US dollars.
 
Alpari has earned the trust of hundreds of thousands of clients in more than 150 countries across the world, thanks in large part to its reputation for delivering high-quality products and top-notch customer support. The Alpari brand is represented in many of the world's leading centers of commerce, with offices in New York, London, Tokyo, Dubai, Frankfurt and Moscow.
 
 
TAGS: alpari  pamm  pamm account  pamm portfolio  pamm portfolio builder 

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