the trader's, but it makes less sense when the customer's portfolio is much larger than the trader's. Thus, PAMM was developed as an alternative to LAMM. Alpari launched the PAMM service in 2008. Depending on currency with which the customer has funded their own account, the ratio calculation of each customer's share is typically converted to United States dollar amounts. This facilitates a more streamlined investor-trader relationship. Money allocation for traders and investors In this infographic example, there are four investors, each with a different amount of risk capital that choose the same money manager. The money manager trades the entire capital, $100,000 total, on one master account (the money manager can only trade the accounts; no access to the investor's funds is permitted to withdraw funds). The money manager then makes a profit of $12,500, and because in this example the commission fee is 20%, that equals to $2,500 in commissions for the money manager. This leaves $110,000 in the master account. The $10,000 profit made will now be credited back to the investors accounts based on the percentage of their share of risk capital in the pool. References Foreign exchange market Financial software