Managers – Open a PAMM account and invest a certain amount of funds in it (manager’s capital). This fund is the risk on a par with their investors. The manager creates a proposal, where the terms of cooperation are defined, including the manager’s remuneration; the percentage of investor profits they receive as a reward for managing the account.
Investors – Assess the effectiveness of different managers by looking at the independent ratings, and select an account to invest in. If the manager achieves a positive trading result, the investor makes a profit, paying out a percentage of this to the manager.