Compare PAMM Forex Accounts

Forex Brokers

What Does PAMM Mean?

The Percent Allocation Management Module (PAMM) is a technical solution that allows Forex traders to have their accounts managed by professionals. See below for more details about PAMM Accounts.

How Does the PAMM System Work?

Typically, a PAMM system operates as follows:

  1. A Fund Manager opens a PAMM Account with a Forex Brokerage Company.

  2. The Fund Manager sets a) the minimum amount required for traders to participate in the PAMM account, and b) the success fee paid by participating traders.

  3. The Fund Manager is listed in the Forex Broker’s PAMM directory.

  4. Traders, after selecting a Fund Manager, can participate in the PAMM Account by agreeing to the specified conditions (success fee).

  5. At the end of a predefined period (usually a month), Fund Managers receive a success fee based on their performance.

Note: Traders can withdraw their profits and/or funds at any time. Fund Managers, however, cannot withdraw clients’ funds under any circumstances.

 
Table: Compare PAMM Forex Brokers
PAMM-ACCOUNT BROKER

GENERAL INFO

PAMM ACCOUNTS

 PROMOTION
 NEW ACCOUNTS

ECN/STP

Regulation:

  • MFSA (Malta)
  • FSC (Mauritius)

Spread EURUSD:

0.3 Pips plus $7.0 per lot

 

US Residents: No

■ Allocate funds by Lot, Percentage, or Proportional

■ Allocate as little as 0.01 lot

■ Monitor performance in real time

■ No restrictions on EA trading

  

■ Promotion: TradingCentral

■ Minimum Account: $100

Funding Options:

  • Bank Wire
  • Credit and Debit Cards
  • Neteller
  • UnionPay
  • ECN trading, 65 Fx pairs, and tight spreads

 

ECN/STP

Regulation:

  • FSP (NZ), FCA (UK)

 

Spread EURUSD:

0.3 Pips plus $3.0 per lot

 

US Residents: No

■ Analytical charting shows the performance

-daily and total gain

-max drawdown

-Sharpe ratio

■ The FXOpen MT4 ECN trading platform

■ Promotion: 30% bonus

■ Minimum Account: $1

Funding Options:

  • Bank Wire
  • Credit and Debit Cards
  • WebMoney
  • FasaPay, AdvCash
  • Cryptocurrencies

 

  • A wide variety of Forex pairs (70+)

AXI Forex

ECN/STP BROKER

Regulation:
  • ASIC (AFSL-318232)
  • FCA UK (509746)

Spread EURUSD: 

0.0 Pip plus $7.0 per lot

 

US Residents: No

■ Trade block orders from a single master account through the MT4 platform

  • Allocation methods:
    - Lot Allocation
    - Percent Allocation
    - Proportional By Balance
    - Proportional By Equity
    - Equity Percent Allocation
    - Allocation by Equal Risk
    - Trade sizes from 0.01
  • Market, Stop, and Limit orders

■ Promotion: N/A

■ Minimum Account: $10

Funding Options:

  • Bank Wire
  • Credit and Debit Cards
  • Skrill, Neteller
  • FasaPay
  • Cryptocurrencies
 

  • Tight trading spreads, low latency

 
 
 

What is a PAMM Forex Account?

 

A PAMM (Percentage Allocation Management Module or Percentage Allocation Money Management) Forex Account is an investment system where a professional fund manager trades on behalf of multiple investors using a single pooled account. Investors contribute funds to this shared account, and the manager executes trades based on their expertise. Profits and losses are then distributed proportionally among all participants according to their investment share.

PAMM accounts have become increasingly popular due to their transparency, automated profit distribution, and expert management—making them an ideal choice for investors who lack the time or experience to trade actively themselves.

How Does a PAMM Account Work?

Fund Manager (Trader):

  • Oversees and manages the pooled funds.

  • Executes trades based on their strategy.

  • Earns a performance fee (a percentage of profits) and sometimes a management fee.

Investors (PAMM Followers):

  • Allocate funds to the PAMM account.

  • Receive profits or losses proportionate to their investment.

  • Do not control trades directly but can monitor the account’s performance.

Broker’s Role:

  • Acts as a neutral intermediary, ensuring fair profit and loss distribution.

  • Provides transparent, real-time reporting.

  • Handles secure deposits and withdrawals.

Key Features of PAMM Accounts

  • Profit Sharing: Gains or losses are shared fairly among investors based on their investment size.

  • Transparency: All trades and performance records are openly available for review.

  • Risk Control: Investors can select fund managers that match their personal risk tolerance.

  • Automated Allocation: Funds are pooled and allocated automatically by the broker according to each investor’s share.

  • Flexible Investment: Investors can join or exit the PAMM account at any time.

Types of PAMM Accounts

  • PAMM Manager Account:

    Managed by the fund manager who makes all trading decisions and earns fees (typically 20-30% of profits).

  • PAMM Investor Account:

    Used by investors to allocate capital and receive proportional profit or loss distributions automatically.

Advantages of PAMM Accounts

  • Passive Income: Investors earn returns without needing to trade actively.

  • Professional Management: Access to expert trading strategies.

  • Diversification: Ability to invest in multiple PAMM accounts to spread risk.

  • Low Entry Barrier: Many PAMM accounts accept small minimum investments.

Risks to Consider

  • Market Risk: Losses can occur if the manager’s strategy underperforms.

  • Manager Risk: Success depends heavily on the skill and decisions of the fund manager.

  • Fees: Performance and management fees reduce overall returns.

How to Get Started with a PAMM Account

  1. Choose a Trusted Broker (examples: FXTM, Alpari, RoboForex).

  2. Select a PAMM Manager based on past performance, strategy, and risk level.

  3. Invest Funds by allocating capital to the chosen PAMM account.

  4. Monitor & Withdraw Profits – Track performance and cash out when desired.

Who Should Use PAMM?

  • Investors who want hands-off Forex exposure.

  • Traders looking to earn fees by managing funds.

  • Beginners who lack experience but want market access.

 
 
■ Forex PAMM Accounts
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