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How It Works

The HFM PAMM Program allows investors to invest funds in experienced PAMM Fund Managers who trade the markets on their behalf. PAMM Managers earn a pre-agreed Success Fee when they make a profit for their investors.

The Basic Idea behind the PAMM Account

  • A Manager opens a PAMM Account and activates the account by allocating his initial investments as the Manager's Capital. PAMM Manager Account will be unlisted from the active PAMM Rankings in case the Manager's Capital is withdrawn. This serves as an additional motivation for the manager to demonstrate cautiousness in his trading. Then the Manager decides on his Offer, in which he lists the terms for any investor that wants to invest in his account.
  • Investors search through the PAMM Account Rankings to find the Manager they would like to invest in.
  • Once Investor(s) invest in a Manager’s PAMM account, the Manager will start making trades on the account using both his personal capital (Manager’s Capital) and the funds of his investor(s). Profits and losses in the account are divided amongst the manager and the investor(s) based on their share in the account.
Manager George Investor John Investor Peter
Initial Investment 3,000 USD 5,000 USD 2,000 USD
Current Balance 3,000 USD 5,000 USD 2,000 USD

An experienced trader (George) opens a PAMM Manager Account with HFM, making an initial investment of 3,000 USD into the account, which is his Manager’s Capital. George is now a PAMM Fund Manager.

After trading on his account for at least a month, Manager George established a trading track record. He then decides to publish his PAMM Manager offer and starts accepting clients. In his PAMM Manager offer he states that his Success Fee will be 10% of each investor’s share of the profits on the account.

After the Manager Offer is published, two investors join the account. Investor 1 is John who invests 5,000 USD and investor 2 is Peter who invests 2,000 USD.


Therefore, at the beginning of the Trading month the total balance of the PAMM account is 10,000 USD.

Manager George Investor John Investor Peter
Initial Investment 3,000 USD 5,000 USD 2,000 USD
Closed P/L 1,200 USD 2,000 USD 800 USD
Success Fees (120 USD) (200 USD) (80 USD)
Amount Withdrawn (1,080 USD) (0 USD) (720 USD)
Current Balance 3,000 USD 6,800 USD 2,000 USD

Manager George earns a 40% return on his trading for the month. The balance of the account has risen from 10,000 USD to 14,000 USD.

The 4,000 USD in profits earned will be distributed among the investors in the account (including the manager) based on their level of investment.


  • Having initially invested 5,000 USD in the account, investor John earns 2,000 USD (40%) in profits. He pays the manager 200 USD, or 10% of this amount.
  • Investor Peter earns 800 USD on his initial investment of 2,000 USD. He will pay the manager 80 USD in Success fee.
  • Manager George will earn 1200 USD on his initial investment of 3,000 USD and will also earn his success fee.

All in all the three parties will earn the following:

  • Investor John: 1800 USD
  • Investor Peter: 720 USD
  • 1,080 USD (excluding the 400 USD earned as Success Fees from all 3 Investor Accounts - paid directly to the Fund Managers' myHF wallet)
Manager George Investor John Investor Peter Investor Jenny
Investment 3,000 USD 5,000 USD 2,000 USD 990 USD
Current Balance* 3,000 USD 6,800 USD 2,000 USD 2,000 USD


At the beginning of the second trading month Manager George withdraws the 1,080 USD he earned during the previous month. The manager’s capital stays the same at 3,000 USD.

Investor John ended up with 6,800 USD after the first trading month. He will keep all of his funds in the account. Investor Peter withdraws 720 USD. He has 2,000 USD in the account.

* (after Success Fees + Withdrawals have been processed)




Another Investor joins the PAMM Account. Investor Jenny invests 990 USD in the account.

Manager George Investor John Investor Peter Investor Jenny
Investment 3,000 USD 6,800 USD 2,000 USD 990 USD
Closed P/L 3,000 USD 6,800 USD 2,000 USD 990 USD
Success Fees (300 USD) (680 USD) (200 USD) (99 USD)
Current Balance 5,700 USD 12,920 USD 3,800 USD 1,881 USD

Over the second trading month, Manager George earns a 100% return on the PAMM account. This means that the balance of the account has risen from 12,790 USD to 25,580 USD.

As in the previous trading month, the total profits in the PAMM, in this case 12,790 USD, will be divided up among the investors in the account (including the manager) based on their investment.





  • Investor John earns 6,800 USD (profits of 12,790 * 23.45%). He will pay the manager 680USD in Success Fees.
  • Investor Peter earns 2,000 USD (profits of 12,790 * 15,64%). He will pay the manager 200 USD in Success Fees.
  • Investor Jenny earns 990 USD (profits of 12,790*7,74%). She will pay the manager 99 USD in Success Fees.

Manager George gets a total of 1,279 USD in Success Fee from all 4 Investor Accounts in addition to the 2,700 (Profit - Success Fee) he earned by trading profitably. All 4 parties will have the following balances for this trading month:

  • Investor John: 12,920 USD
  • Investor Peter: 3.800 USD
  • Investor Jenny: 1881 USD
  • 5,700 USD (excluding the 1,279 USD earned as Success Fees from all 4 Investor Accounts - paid directly to the Fund Managers' myHF wallet).