Money Managers do not earn profits from a PAMM Account's trades, however, they are able to create offers with different fees in order to acquire their compensation.
Below you will find an explanation of the fees and what they entail:
The Performance Fee is applied as a fee for the Money Manager's trading knowledge and experience. It allows the Money Manager to earn a percentage of the profits made from trading.
This charge can be set up in escalating percentage levels, with varying costs applied depending on the percentage of return earned.
As seen in the example below, a 0% to 30% profit return will result in the investor paying 10% in Performance Fees.
If the Money Manager earns more than 30% in profit returns, the Investor will be charged 20% in fees.
The Management Fee is applied for the management of the pool of funds. Depending on the equity shared by the investor, the Money Manager has the option to charge a Percentage or currency value. This fee can also be set at levels; it is typically decreased in proportion to increasing investments.
As seen in the example below, should the investor deposit between €0 and €2000, a 10% fee is applied. If the investor deposits more than €2000, the fee will be reduced to 5%.
The Deposit fee is applied for the initial deposit, and every subsequent deposit into a fund.
As seen in the example below, as 15% fee is applied for deposits between €0 and €10,000 . If the investor deposits €15,000 or more, a 5% fee is applied.