The HotForex PAMM Program allows Fund Managers to trade with the funds of multiple PAMM Investor Accounts for a pre-agreed Success Fee (%). Profits and losses made on the PAMM Manager’s Account are automatically allocated to each Investor’s Account based on the amount they invested.

Let’s look at an example to see the Profit/ Loss Allocation method in action:

Investment in PAMM Manager Account

The PAMM Manager and Investors are all invested in the Manager’s account. Their shares of the total investment and therefore their potential share of any profit/ losses are based on the amount of equity they invest.




HotForex Infographic 1
Hotforex Investor
INVESTOR 3

$2000

Hotforex Investor

Joins with investment
of $2000 which equals 40%
of the PAMM account

Hotforex Investor
INVESTOR 1

$1000

Joins with investment of $1000
which equals 20% of the
PAMM account

Hotforex Investor
Hotforex Investor
INVESTOR 2

$500

Joins with investment of $500 which
equals 10% of the PAMM account

Hotforex Investor
Hotforex Investor
FUND MANAGER

$1500

Hotforex Investor

Opens PAMM account
from myHotForex with
initial investment of $1500








Distribution of Profit/ Loss

If a Manager is in profit when positions on the PAMM Manager account are closed and the account balance increases, the profit will be distributed between all Investors in the account based on their participation.

HotForex Infographic 1
Hotforex Investor
INVESTOR 3
$2000 $1200 
InvestmentProfit
Hotforex Investor
Hotforex Investor
INVESTOR 1
$1000 $600 
InvestmentProfit
Hotforex Investor
Hotforex Investor
INVESTOR 2
$500 $300 
InvestmentProfit
Hotforex Investor
Hotforex Investor
FUND MANAGER
$1500 $900 
InvestmentProfit
Hotforex Investor








Payment of the Manager’s Success Fee

Based on the Manager’s Offer, Investors are obligated to pay a Success Fee to the PAMM Manager for his positive performance.



HotForex Allocation Method
Fund Manager
(Success Fee received)
Investment$1500
Profit+$900
SUCC. FEE+$315
WITHDRAWING$2715
15%

$90

Success
Fee
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15%

$45

Success
Fee
arrow




15%

$180

Success
Fee
arrow
Hotforex Investor
INVESTOR 1
Investment$1000
Profit+$600
SUCC. FEE-$90
WITHDRAWING$1765



Hotforex Investor
INVESTOR 2
Investment$500
Profit+$300
SUCC. FEE-$45
WITHDRAWING$755



Hotforex Investor
INVESTOR 3
Investment$2000
Profit+$1200
SUCC. FEE-$180
WITHDRAWING$3020





The Manager Account controls the above three Sub Accounts. Therefore, the total equity in the Manager Account is the sum of equities in the Sub Accounts; in the above example $ 6,000. Fund Manager places a trade of 1 Standard Lot. At this point no positions are placed in any of the 3 Sub Accounts.

Manager Account then closes the trade with a profit of $ 6,000. At this point the profit is automatically allocated to the Sub Accounts.

Sub 1 will be allocated 1/6th of the profits ($1,000), Sub 2 will be allocated 2/6th ($2,000) and Sub 3 will be allocated 3/6th ($3,000).


In Summary:

  1. Fund Manager opens Manager Account from the myHotForex
  2. Fund Manager receives Manager Account log-in details. These log-ins will be used to trade on the MT4 platform (Manager Account).
  3. Investors will deposit in the Manager Account, and P/L will be allocated as outlined above.
Risk Warning: Trading leveraged products such as Forex and CFDs may not be suitable for all investors as they carry a high degree of risk to your capital. Please read the full Risk Disclosure
pamm-managers