Pamm accounts

You will then get to review the PAMM traders hosted at the site, taking extra care to look at metrics like month-by-month returns and risk levels.

My list of forex bonuses

What are PAMM Accounts? Best PAMM Accounts of 2020, pamm accounts.

Once you find a trader you like the look of, you'll need to negotiate a commission plan. Finally, you can deposit funds with a debit/credit card or bank wire. The process of investing money into a PAMM account isn’t as simple as transferring money to a trader and then allowing them to invest on your behalf.

What are PAMM accounts? Best PAMM accounts of 2020

Percentage allocation management module (PAMM) accounts allow you to interact with the financial markets without needing to do any of the work. In fact, you don’t need to have any knowledge or experience of how online investment markets work, as a PAMM trader will be buying and selling assets on your behalf.

In this article, we explore how PAMM accounts work, review the best PAMM accounts of 2020, and provide tips on how to pick the right account for you.

What is a PAMM account?

In a nutshell, PAMM accounts operate in a very similar nature to mutual funds. This is because you will be entrusting your money with a third-party who will be trading on your behalf. As such, you will be able to gain exposure to the financial markets without needing to have any experience of trading.

With that being said, there are some clear differences that set PAMM accounts apart. For example, your money will be placed with a seasoned trader that has a good track record in buying and selling investments online, as opposed to a large-scale company.

Moreover, the trader that you opt for will likely be engaging with day trading strategies, rather than buying and holding assets for a number of months or years.

Crucially, PAMM account traders will always put their own money into the investment portfolio, as it ensures they are financially motivated to trade in a risk-averse manner. In return for their efforts, PAMM traders earn a commission on any profits they make for you and your fellow investors. This commission is taken before your personal profits are realized.

How do PAMM accounts work?

Before we get to the underlying make-up of the agreement you enter into with a PAMM trader, we need to explore how an investment actually works. Firstly, it’s best to view a PAMM account as a wider portfolio, with each stakeholder owning part of the investment. This consists of your share, the share of your fellow investors, and then the share of the PAMM trader themselves.

For example, let’s say that you invest $10,000 into a PAMM account.

One other investor also investments $10,000.

The PAMM account trader personally invests $30,000.

As you can see from the above, this PAMM portfolio would consist of $50,000 in investment funds. You and the other investor both own 20% each, while the trader owns 60%. This means that whatever money is in the PAMM account, you will always own 20% of the balance.

Now, let’s say that in the first month of trading, the PAMM account manager makes gains of 30%. On an initial portfolio size of $50,000, this equates to profits of $15,000. As the PAMM trader charges a commission of 10%, this means that they made $1,500, leaving the remaining $13,500 to be distributed across all shareholders.

The total PAMM account is worth $63,500 at the end of month one.

You 20% stake is now worth $12,700.

The other investor’s 20% stake is worth the same.

The PAMM trader’s 60% stake is worth $38,100.

Ultimately, by allowing an experienced trader to buy and sell investments on your behalf, you were able to make a tidy profit of $2,700 without needing to lift a finger!

PAMM account agreement

The process of investing money into a PAMM account isn’t as simple as transferring money to a trader and then allowing them to invest on your behalf.

On the contrary, there are a number of procedures that need to be considered. For example, you will need to sign some sort of limited power of attorney over to the trader, which gives them authorization to trade on your behalf.

This also ensures that there is no legal come-back for the trader in the event they lose money. You then need to think about the specifics of getting the trades placed and looking after your balances. This role is reserved for a regulated online broker that has the capacity to facilitate PAMM accounts.

In this sense, there are two methods in particular that allow you to engage with PAMM accounts – going direct with an eligible broker or using an intermediary.

Broker-direct PAMM accounts

A number of regulated brokers in the online space have the capacity to offer PAMM accounts. You start the process by opening a trading account as you normally would, verifying your identity and then depositing funds.

After that, you would then head over to the PAMM account section of the site, where you will get to view a long list of traders that offer their services.

You’ll need to spend some time assessing the historical trading history of the individual, as well as the types of assets that they like to trade. When you find a PAMM trader you like the look of, you normally need to agree on a commission structure with them.

You’ll then be required to allocate some of your funds to the trader, who will proceed to invest on your behalf.

One of the overarching benefits of going directly with a broker is that you will be using the best trading platforms, with great regulation. Ideally, the platform will hold licenses with well-known regulatory bodies like the FCA, ASIC, and cysec. You will also find the process of depositing and withdrawing funds much easier, as regulated forex brokers usually support debit/credit cards, e-wallets, and bank transfers.

Third-party PAMM accounts

The other option you have is to use a third-party PAMM account provider. These platforms sit between you, the trader, and the brokerage firm.

Although this option comes with less flexibility, it’s potentially more suitable if you wish to automate the entire process.

For example, once you have deposited funds with the third-party, there is often no need to choose a PAMM trader yourself. Similarly, there is no requirement to negotiate a commission fee with the trader, as this is taken care of by the third-party.

This option also gives you access to independent traders that do not use traditional PAMM account brokers.

What you do need to look out for when using a third-party PAMM provider is whether or not the platform holds a license. If it doesn’t, you are potentially taking a risk on the safety of your funds, as you won’t have the backing of a regulated broker.

Pros & cons of PAMM accounts

Best PAMM accounts for 2020

If you like the sound of being able to earn passive income via a PAMM account provider, your next challenge is finding a platform that meets your needs. Even more importantly, you need to ensure that your chosen provider is credible and that the required agreements are in place to safeguard your investment.

To help you out, we’ve reviewed many providers and picked out the best PAMM accounts for 2020. Have a read through each provider before taking the plunge to ensure you find a platform that mirrors your long-term aims.

1. World markets - end-to-end pamm services via a single platform

World markets is an online platform that offers automated trading services. This comes in the form of an AI robot, as well as PAMM accounts. World markets is a third-party platform between you and the broker, which in this case, is HYCM. There are three plans to choose from at the platform, which includes a 30-day trial account.

There is a €2,500 minimum deposit to activate the trial service, though you are under no obligation to continue using the platform once the trial concludes. If this is the case, you simply need to withdraw your balance back to your debit/credit card.

The standard account requires a minimum deposit of €5,000, and it comes with a 20% profit share. So, if the platform makes you €1,000 in the first month, you will retain €800. If you want to benefit from the lowest revenue share possible, the gold account reduces this to just 10%. You will, however, need to deposit at least €25,000 to be eligible.

30-day trial account with a minimum deposit of €2,500

Upfront about their revenue share model of 10-20%

No mark-ups on spreads or pips

2. FX pig - third-party PAMM account services

FX pig is an online platform that connects you with some of the best forex and CFD traders in the space. All of the traders that the platform partners with are pre-vetted, meaning that all of the hard work is done for you. As such, FX pig is potentially the best option on the table for those of you that wish to automate the entire PAMM process.

In order to get started, you will need to invest at least $500, although some PAMM traders come with a minimum of $2,000. This is the case with leading forex trader fxtitan, who has an excellent track record in the online investment arena. In fact, this is highly evident in the 35% commission fee that you will be required to pay.

This means that for every $1,000 you make at the platform, you will retain just $650. On the flip side, this is still an option that is well worth considering as you will be utilizing the services of a proven trader. Moreover, you will be saving heaps of time by not needing to research the credentials of your chosen PAMM trader.

Access to independent traders

All PAMM traders are pre-vetted

Some traders can be backed from just $500

3. Insta forex - direct PAMM accounts with a regulated broker

If you're keener on opening a PAMM account with an established broker, it might be worth considering the merits of insta forex. The online broker is well-known in the forex and CFD space, with heaps of asset classes under its belt.

Most importantly, insta forex is regulated by CYSEC and the FSC, meaning you will benefit from a number of regulatory safeguards. In terms of the specifics, you will first need to open an account with insta forex and then deposit some funds.

You will then get to review the PAMM traders hosted at the site, taking extra care to look at metrics like month-by-month returns and risk levels. Once you find a trader you like the look of, you'll need to negotiate a commission plan. Finally, you can deposit funds with a debit/credit card or bank wire.

Deal directly with an established broker

Low minimum deposit amounts on standard accounts

Regulated by cysec and FSC

4. Alpari - flexible PAMM account agreements

Much like in the case of insta forex, alpari is an online broker that offers PAMM account services. Once you've verified your identity and deposited some funds, you will then need to browse through the many PAMM trader profiles at the broker yourself. Commissions must be negotiated between you and the trader, and the trader is required to put their own money upfront.

This typically stands at 40% at alpari, which ensures the trader has a decent financial interest in the project. When we explored the types of traders hosted at the platform, we were pleased to see that some have verifiable results that surpass seven years. In terms of the specifics, alpari is regulated by cysec, so it's a trustworthy platform. Supported payment methods include debit/credit cards, e-wallets, and wire transfers.

Cysec regulated broker

Established PAMM traders using the platform

Traders typically put 40% of their money into the portfolio

Finding the right PAMM account for you

On the face of it, PAMM accounts seem to solve a lot of problems for retail investors. Not only do you get to trade full-time without needing to have any knowledge or experience of financial instruments, but the entire process is passive. However, the space is dominated by scam platforms that operate without the required regulatory license, so it’s crucial that you perform your own research.

To help you find a reliable platform that suits your needs, keep the following factors in mind when comparing the best PAMM accounts.

You first need to explore what type of PAMM account you will be opening. For example, will you be using an all-in service with a third-party, or will you go direct with a broker that supports PAMM accounts? This is crucial, as you need to understand how your investment is protected.

PAMM providers often ask for a much larger upfront investment than if you were just depositing at a regular broker. This ensures that the investment is worthwhile for the PAMM trader, as they will be operating on a commission model. For example, highly rated forex trader fxtitan requires a minimum investment of $2,000.

Commission structure

You also need to have a firm grasp of the commission structure in place, as this can vary quite widely in the PAMM space. For example, the most favourable plan offered by world markets comes with a commission of just 10%, but you will need to deposit €25,000. Over at FX pig, top-rated trader fxtitan requires a commission of 35%. If you are going direct with a regulated broker, you will often need to negotiate your own commission structure with the trader.

In the world of PAMM accounts, the drawdown is an important figure to understand. In its most basic form, this is the maximum amount that the trader’s portfolio has gone down by, in relation to its peak value. For example, let’s say that the portfolio starts off at $10,000.

In the following month, the portfolio goes up to $12,000. In month three, the portfolio value goes down to $10,800, which is a drop of 10% from its peak. As such, the maximum drawdown is 10%. Crucially, you wouldn’t want to go with a PAMM trader has a double-digit drawdown, as it indicates they place higher-risk investments with less success.

On the one hand, you shouldn’t invest in a PAMM account if you think that you will need to keep dipping into your portfolio. After all, the process should be viewed as a long-term investment that will allow you to grow your money over time.

However, there might come a time where you actually need to access your PAMM account funds and wish to make a withdrawal. With this in mind, make sure you understand the redemption policy of your investment, as you might need to lock your money up for a number of months before a withdrawal is permitted.

You should also ensure that you are backing a PAMM trader that is active in your preferred asset class. For example, it’s no good investing money with a cryptocurrency trader if you want to gain exposure to the forex space. You should be able to view what financial instruments the PAMM trader is involved in prior to making an investment.

Conclusion

In summary, PAMM accounts tick all of the right boxes for those of you that wish to let someone take care of your trading in the background while potentially earning a passive income. Not only can you invest without lifting a finger, but you don’t need to have any significant knowledge of how investments work. Instead, the PAMM account trader is responsible for managing your money. In return, they get to keep a percentage of your gains in the form of an agreed commission structure.

With that said, there is never any guarantee that you will make money with using a PAMM account provider. This is why you are best advised to do your research and diversify your portfolio across several PAMM traders. In doing so, you still stand the chance of making money even if one of your traders has a losing month.

PAMM investor account

Are you a new trader with little experience who wishes to replicate the performance of successful strategies?

Are you an experienced investor willing to differentiate your trading strategies?

The key to markets PAMM investor account is the answer to the above questions.

What is a PAMM account?

A PAMM account, also known as percentage allocation management module, is a software application which allows traders to share their strategies with investors interested in them.

What are the advantages of investing in a PAMM account?

The procedure to invest in a PAMM account is very easy: choose which PAMM you wish to join and click on the green button “invest”.

PAMM account features

A dedicated PAMM investor account is separated from your personal MT4 trading account to ensure the segregation of funds used for personal and PAMM trading strategies.

The PAMM investor account can be easily accessed through a web interface either on a desktop PC, a smartphone or a tablet. The URL to access your PAMM investor account is pammlogin.Keytomarkets.Com you can use any browser (e.G. Chrome, safari, firefox, opera, etc.).

The PAMM investor receives a daily report via email for each subscribed PAMM.

If you do not wish to trade on your account as you only want to subscribe a PAMM then there is no need to download the MT4 platform or any other software.

Innovative and advanced live reports and statistics including:

Historical chart of the used leverage.

Daily return volatility.

Recovery factor.

Return geometric average.

Sharpe ratio and much more.

Key to markets PAMM account is for you if:

You want to invest in forex and commodities with minimum effort.

You don’t want to give up your trading activity (the MT4 account for personal trading is separate from the PAMM account, so you can also continue to invest as you’ve always done).

You wish to invest in different strategies while saving on the VPS cost.

You want to keep control on your capital (you will have real-time reporting available and will receive a daily statement via email detailing profits and losses of the day).

Open an ECN MT4
pro account

KEY TO MARKETS INTERNATIONAL limited, 1/F river court, 6 st denis street – port louis 11328 – mauritius, is a company incorporated in mauritius, under company number 169425 and regulated by the financial services commission of mauritius as an investment dealer, licence number GB19024503. Key to markets international limited is a payment processor for non-EU clients using skrill and neteller wallets.

KEY TO MARKETS (UK) limited, vicarage house – 58-60 kensington church street – london, W8 4DB – united kingdom, is a company registered in the united kingdom and regulated by the financial conduct authority (FCA register number 527809).

KEY TO MARKETS NZ limited, level 10, 21 queen street – auckland, 1010 – new zealand, is a company registered in new zealand under number 4472148 KEY TO MARKETS NZ limited is wholly-owned and controlled by KEY TO MARKETS (UK) limited. Key to markets NZ limited is the provider of the MT4 platform.

All of the above KEY TO MARKETS companies do not offer any services to residents of the USA, iran, new zealand, north korea and other countries where restrictions apply. For the full list of restricted countries please contact us.

Risk warning and disclosure:

Trading in margined foreign exchange carries a high level of risk to your capital and is subject to rapid and unexpected price movements. A key risk of leveraged trading is that if a market moves against your position you can incur additional liabilities far in excess of your initial margin deposit. Only speculate with money you can afford to lose. The products listed on this website may not be suitable for all customers, therefore ensure you fully understand the risks involved and seek independent financial advice if necessary. Nothing on key to markets’ websites, emails or any other form of communication or advertisement is intended to be a recommendation to buy or sell in any financial derivative markets. No representation, implicit or explicit, has been made that any account will or is likely to realize any particular profit or loss. Please read our full: risk and disclosure notice.

All about PAMM accounts

PAMM definition

PAMM – (it is the abbreviation for Percent Allocation Management Module) account is intended to raise investment capital for management by forex trader.

Nowadays investing in PAMM accounts is one of the less risky ways of earning passive income online.

The idea behind the PAMM account forex for traders: is as follows: if a trader can trade profitably and has no capital necessary to gain enough profit, he can offer capital management service and earn a reward in the form of percent of profit gained thereafter.

The idea behind the PAMM account forex for investor: investor, who has no deep knowledge in forex trading ( how to start trading forex ) can invest own funds in profitable traders and earn money on it.

Investing in PAMM accounts is available in an automatic mode. Profits and losses are allocated among investors and PAMM manager according to the percent defined by the manager in PAMM manager offer. Simply speaking, the offer is an agreement regulating relationships between investor and PAMM manager. The profits or losses resulted from a trading activity of PAMM manager are allocated between investors in proportion to their percentage share.

Explanation of how PAMM account works

Trader opens a special PAMM account. He must have the minimum amount of capital (required to open the account) specified on his forex broker’s web-site and define the investment terms in a PAMM manager offer (minimum investment deposit, time period of investment, premium as a percentage of profit gained, etc.).

Investor checks trading results of the trader with a system monitoring PAMM accounts held with a brokerage company or any other system, analyzes terms set in the offer and then takes a decision to invest.

The trader performs trading transactions. Funds of the trader and investors are used in trading: in theory, it must motivate the trader to be responsible, but it can be otherwise in practice. In the given case you need to set the maximum loss limit (if the feature is available with your broker) or to monitor your account. You should make use of opportunity of early withdrawal of your funds (if it is allowed by the terms defined by your broker) in case of increased risk.

In our example 200% profit . Now balance = 1,500 USD:

Profit between PAMM account participants

Profit gained by the trader is proportionally allocated between PAMM account participants

PAMM manager gets a reward for his work.

PAMM accounts – pros and cons

PAMM broker acts as an independent guarantor that obligations of a PAMM manager and an investor are to be fulfilled. It results in the following advantage.

Profitable trader may receive profit from management of both own and investors’ funds

Trader (PAMM manager) may not take money of investors and go away. Although the capital of investors is managed by PAMM manager, he cannot withdraw it

PAMM broker provides a real history of a PAMM account. It can be said that a brokerage company acts as an independent service monitoring PAMM accounts, since it provides access to trading statistics of PAM manager. Selection of PAMM manager can take literally several minutes owing to easy-to-use interfaces of ratings and filters developed by PAMM brokers

Ease of investing in PAMM accounts of various PAMM managers within a single service. Investor can deposit his account once and allocate his capital among several PAMM managers.

PAMM manager risks not only the investors’ money, but also his own capital. Any investor can view PAMM manager’s equity thanks to PAMM brokers. Sophisticated investors keep away from PAMM managers, who have a small amount of own funds on their accounts.

An investor may diversify risks by allocating capital among several PAMM accounts.

If a broker doesn’t enable an investor to set the maximum loss limit for PAMM account, the investor’s loss can hit “-100%” value, which means an absolute drawdown.

A relatively closed nature of PAMM accounts system: investor cannot often study a trading style of PAMM manager in details

How to choose a manager for PAMM investment?

How to select the best PAMM accounts with a rating of PAMM managers.

After we have dealt with what are PAMM accounts, a reasonable question arises: “how to select PAMM accounts among the plethora of other ones listed in a rating of PAMM managers?” different interfaces of PAMM accounts services make the process of selection more difficult. However, there is a series of general criteria and filters that facilitates selection of reliable PAMM accounts. Let’s consider them in the order of their importance:

PAMM account age

First of all, I filter PAMM managers by account age, while selecting PAMM accounts with a broker’s rating. I think it is the most important criterion of the selection. The first reason for thinking so is that it excludes the possibility of a plain luck of PAMM manager.

The second reason is that an account having a long history is amenable to more deep analysis. We recommend considering PAMM accounts aged no less than 6 months. New PAMM accounts opened by proven PAMM managers can be regarded as exceptions; at that, history of their old accounts should be also analyzed.

Maximum drawdown criterion

After you have filtered accounts by their age, you should filter them by maximum drawdown criterion, if possible. This is the very same criterion that gives you a clear idea about risks, to which funds of investors are exposed during investing in PAMM account. We recommend thinking of accounts with the maximum drawdown level equal to no more than 40% for beginning investors. We recommend you choose traders that trades manually or by “safe” forex robots

PAMM account profitability

You should consider potential profitability criterion only after you have filtered PAMM accounts by their age and maximum drawdown level. Selection of accounts by their profitability depends on an individual approach of investor. We can only say that the profitability criterion should be considered coupled with the maximum drawdown criterion (what is drawdawn), since in case of stratospheric profitability risks increase to the same level.

In my experience, accounts, where ratio of maximum drawdown to profitability is not higher than 1:3, show the best performance: i.E. The maximum drawdown doesn’t exceed 15% in case of 5% monthly profit. Few PAMM accounts meet the condition and certainly deserve investors’ attention.

Equity of PAMM manager

You should pay your attention to equity of PAMM manager, while selecting a PAMM account. It is obvious that the higher is equity value, the more own capital PAMM manager risks during trading. The value should be considered coupled with a total balance of PAMM account (equity of investors + equity of PAMM manager). At that, it is better, if equity of PAMM manager amounts to no less than 10% of total balance.

Equity of investors

The logic behind it is fairly simple: a large amount of funds being under management implies a high level of investors’ confidence.

PAMM account brokers

In our forex brokers list you can find PAMM brokers (you need use advanced search filter). We recommend you these pamm brokers:

Alpari ( this was first company provided PAMM service)

Conclusion

The main problem of the PAMM accounts system is that investor is not aware of who manages his capital in particular. It can be both an experienced trader, a beginning trader utilizing a hazard strategy and even a robot developed by a broker with the aim of intentional partial or absolute destroying of investors’ accounts after several profitable time periods of PAMM investing. There is a partial solution of the problem involving an openness of forex trader: publication of his trading statements, opening accounts with several brokers, negotiating of risks with investors.

Top 10 best PAMM forex brokers for 2021

Top rated:

Are you looking for the best PAMM forex brokers because you don’t necessarily have the funds or knowledge to trade forex yourself, but still want to make a profit?

PAMM accounts brokers can come in all different shapes and sizes and even different names.

The key thing you should look out for is a trustworthy broker, one that has a good reputation, is regulated by a respected financial regulator and offers you a good amount of control over your funds when you want it as well as transparency.

Whichever pamm broker you decide to sign up with, ensure it is one you can trust.

What’s a PAMM account?

Starting from the basics, PAMM stands for percentage allocation money management, and as the name would suggest, this is a type of managed account.

With the PAMM account, very simply, you make the deposit to your account as a trader, and this money and investment is then taken care of by a fund manager who will make the trades on your behalf with the hope of being profitable.

This is not done in isolation and your account could be one of hundreds of accounts managed within the operation. Profits and losses are then distributed equally according to the amount that you have invested from your account. All of these actions are completed by an assigned account manager and full transparency of operation to make sure you can see exactly what is going on.

Top 10 best forex pamm brokers of 2021

Here’s our list of the best PAMM account forex brokers:

1. IC markets

If you’re looking to set up a PAMM account, IC markets is the most highly recommended broker, with their PAMM/MAM service operating since 2012. IC markets offer the most flexible allocation methods available today and produce real-time reports on performance and commissions, allowing PAMM account users to still feel in control of their funds. Money managers attached to the account will also be able to utilise some of the best expert advisors available.

As a trader here you will also benefit from some of the fastest ECN execution as well as the best value spreads around starting from 0pips on the RAW account. As with many PAMM accounts, there is a minimum trade inplace, but this is still a very accessible 1 micro lot (0.01 standard lots). All of the trading here is just one click away with the very best in transparency provided by the IC markets account managers, and all trading taking place through the much trusted MT4 trading platform.

2. Pepperstone

Pepperstone is perhaps one of the world’s best brokers of recent years. By signing up to a PAMM account with pepperstone, you will be pleased to know that the money manager who trades your funds will not be held back in the slightest. Pepperstone is very liberal when it comes to using different trading strategies, such as hedging and scalping, expert advisors, and have some of the best execution speeds available.

Pepperstone allows for control of more than 100 sub accounts, and all with no delay or unexpected latency whatsoever. This is ideal for those looking to deal with multiple accounts as more experienced or high-volume traders. Both MT4 and MT5 are utilized for trading through this broker at maximum efficiency, and a minimum trade amount again of 1 micro lot is imposed, keeping pepperstone very accessible to all.

3. Fxpro

Signing up for a PAMM account with fxpro is highly beneficial and is a great way to ensure your funds go far. Money managers can allocate funds in the way they feel is best, utilise expert advisors and receive comprehensive reports on their performance. But perhaps one of fxpro’s most tempting offerings is that it is possible to earn a rebate, which is quite unique, and could be a great incentive to trade more. When it comes to trading commissions, mark-up, and performance fees, these can be set by the individual money manager which provides some level of flexibility in the approach with fxpro.

PAMM accounts can also utilize EA’s fully to create the best possible trading situations, and a variety of different allocation methods can be implemented to ensure there is something suitable to all traders. Allocation can be based on proportional equity against balance, or as an equity percentage allocation.

MAM/PAMM accounts

Money managers can gain the flexibility to choose trading conditions, including commissions, spread mark-ups, account currency, performance fees and margin/call. Our low commission structure, combined with tight spreads, results in greater margins for trade managers.

Multi account manager –
MAM

The MAM account should not be confused with the metaquotes multi-terminal system, which has its limitations.

A MAM account allows you to use the percentage allocation method like a PAMM account.

It provides greater flexibility to allocate the trades and adjust the risk of each sub-account based on the clients’ risk profiles

The manager can allocate trades on a fixed basis, which means that he can define the number of lots traded by each individual account.

This fixed allocation can also be done using a LAMM (lot allocation management module) account.

The manager can also change the amount of leverage applied to the sub-accounts if his clients want to take on a greater level of risk.

Percent allocation management module – PAMM

The PAMM account features a management module that distributes the sizes of trades according to an allocation percentage.

This solution is offered by many forex brokers for investors and fund managers.

With a PAMM account, an investor can also allocate a percentage of his account to one or more managers.

The manager’s PAMM account is a large “main account”, whose capital is equal to the sum of the sub-accounts.

The manager’s trades are automatically replicated in the sub-accounts according to a percentage basis.

For example, if the trader makes a 100-lot trade on the EURUSD, the trade is divided among the individual sub-accounts (clients) into smaller parts based on the percentage of equity of each sub-account in relation to the master account.

This means that if the size of an individual sub-account is equal to 1% of the main account’s equity, the size of the trade on this account will be 1 lot (1% of 100 lots).

MAM/PAMM account forex broker

Zero markets partnership features

Ultra-fast trade allocation

Unlimited trading accounts

Support for all trading styles

Across all account types

Full stop-loss, take-profit

Real-time performance reports

Same day account opening

MAM & PAMM account

Account types standard and
super ZERO

Spread & commission customisable trading conditions

Partner with a global MAM/PAMM forex broker.

Open a mam/pamm account today

Why choose ZERO markets MAM/PAMM account?

Quick deposit and withdrawal

ZERO markets helps money managers plan profit and loss goals on a per-account basis, based on open trade conditions. Now, you can easily withdraw or deposit funds in and out of MAM/PAMM accounts without disrupting trading activity.

Transparent calculation of fees and commissions

We track the forex markets in real-time so that you get fast accreditation of commissions in your live trading account, which you can withdraw at any time. All ZERO markets MAM managers can also quickly calculate performance fees for all their clients, as needed.

Customisable trading conditions

Customise your trading conditions across commissions, spread mark-ups, performance fees and margin/call and account currency. Our tight raw spreads and low commission rates provide ideal conditions for managers.

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PAMM investor account

Are you a new trader with little experience who wishes to replicate the performance of successful strategies?

Are you an experienced investor willing to differentiate your trading strategies?

The key to markets PAMM investor account is the answer to the above questions.

What is a PAMM account?

A PAMM account, also known as percentage allocation management module, is a software application which allows traders to share their strategies with investors interested in them.

What are the advantages of investing in a PAMM account?

The procedure to invest in a PAMM account is very easy: choose which PAMM you wish to join and click on the green button “invest”.

PAMM account features

A dedicated PAMM investor account is separated from your personal MT4 trading account to ensure the segregation of funds used for personal and PAMM trading strategies.

The PAMM investor receives a daily report via email for each subscribed PAMM.

If you do not wish to trade on your account as you only want to subscribe a PAMM then there is no need to download the MT4 platform or any other software.

Innovative and advanced live reports and statistics including:

Historical chart of the used leverage.

Daily return volatility.

Recovery factor.

Return geometric average.

Sharpe ratio and much more.

Key to markets PAMM account is for you if:

You want to invest in forex and commodities with minimum effort.

You don’t want to give up your trading activity (the MT4 account for personal trading is separate from the PAMM account, so you can also continue to invest as you’ve always done).

You wish to invest in different strategies while saving on the VPS cost.

You want to keep control on your capital (you will have real-time reporting available and will receive a daily statement via email detailing profits and losses of the day).

Open an ECN MT4
pro account

Risk warning and disclosure:

How forex PAMM accounts work

Interested in trading foreign currency exchange markets but don't have the time or know-how to trade forex? Forex PAMM accounts may be a good choice for you. (related reading: introduction to currency trading)

What is a PAMM account?

Percentage allocation management module, also known as percentage allocation money management or PAMM, is a form of pooled money forex trading. An investor gets to allocate his or her money in desired proportion to the qualified trader(s)/money manager(s) of his or her choice. These traders/managers may manage multiple forex trading accounts using their own capital and such pooled moneys, with an aim to generate profits.

To demonstrate PAMM accounts further, let’s look at an example:

The participants in the PAMM account setup:

The investors (say peter, paul, and phil) are interested in reaping profits from forex trading, but they either don't have time to devote to trading activities or don’t have sufficient knowledge to trade forex. Enter the professional money managers (marcus and mathew), who have expertise in trading and managing other people’s money (like a mutual fund manager), along with their individual trading capital. The forex trading firm signs up marcus and mathew as money managers for managing other investors’ money. The investors (peter, paul and phil) also signup with limited power of attorney (LPOA). The crux of the signed agreement is that investors agree to take the risk for the forex trades, by giving their capital to their chosen money manager who will use the pooled money to trade forex per his trading style and strategy. It also states how much the money (or percentage) the manager will charge as his take for offering this service.

For simplicity of example, let’s assume that all three investors chose marcus to manage their share of money for forex trading and marcus charges 10% of the profit.

In terms of percentage contribution to the total pooled PAMM fund of $ 15,000, each investor has the following share:

Paul = $4,000 / $15,000 = 26.67% and similarly,

Top 10 best PAMM forex brokers for 2021

Top rated:

Are you looking for the best PAMM forex brokers because you don’t necessarily have the funds or knowledge to trade forex yourself, but still want to make a profit?

PAMM accounts brokers can come in all different shapes and sizes and even different names.

Whichever pamm broker you decide to sign up with, ensure it is one you can trust.

What’s a PAMM account?

Starting from the basics, PAMM stands for percentage allocation money management, and as the name would suggest, this is a type of managed account.

Top 10 best forex pamm brokers of 2021

Here’s our list of the best PAMM account forex brokers:

1. IC markets

2. Pepperstone

3. Fxpro

Best forex PAMM accounts

What is a forex PAMM account?

A forex PAMM account connects the funds and trading of professional traders with other investors from all around the world allowing you to copy their trading. These forex PAMM accounts allow investors to trade forex without needing to trade on their own and also allow the PAMM account managers to generate additional income through managing the investors’ funds in the PAMM account. This is a pre agreed commission based on the forex PAMM accounts performance. The distribution of the profit is made automatically according to the offer from the chosen forex PAMM accounts.

It’s so simple to get started! You simply choose the PAMM account that you want to join, become a follower and copy trade from the PAMM account without doing anything!

Fxopen offers by far the most active PAMM accounts with over 200+ to choose from and $10million+ in trading capital. You can start using some of the best forex PAMM accounts by choosing those you want to add to your trading portfolio. The majority of these PAMM accounts have been running for at least a few months and the statistics all in one table make it easy to compare and help you to decide which is the best forex PAMM account for you.

How to become a forex PAMM account follower?

It is VERY easy to start taking advantage of professional traders by simply joining any forex PAMM account and letting them do all of the hard work for you. You can basically have many years of forex trading experience, knowledge and verified results at your finger tips. I feel that way too many forex traders miss out on the potential benefits of a PAMM acount because they just do not understand how it works but it is so easy – do not miss out! Just make sure that you understand the risks of trading before you start.

Step 1. Select the forex PAMM account that you wish to follow

step 2. Click join

step 3. Choose the PAMM offer for the account you wish to join. That’s it!

Simply select one or multiple forex PAMM accounts that you wish to invest in and you will start copying trades from the accounts trading which is done by another trader on your behalf. This makes it completely hands free forex trading. You are simply a follower benefiting from copying trades and does not require that you have any forex knowledge or experience, although this would be advantageous!

Fill out the simple form here to register with fxopen.

After you pass verification, open an investment account.

Fund your investment account in your my fxopen area.

Choose a suitable master from the PAMM account rating and copy his/her trading strategy.

Check performance

Forex PAMM account table fields explained

PAMM name

This is the name of the forex PAMM account.

Total gain

The total percentage gain or loss since the forex PAMM account began.

Daily gain

The average daily percentage gain or loss the forex PAMM account has had.

Account age

How many days the forex PAMM account has been running.

Max drawdown

The maximum drawdown on the account as a percentage. Drawdown is a percentage of the account which has been lost when there was a run of losing trades. It is a measure of the largest loss that the trading account had at any given moment or period of time.

Equity

The value of the forex PAMM account if all positions were closed.

PF (profit factor)

This is the profit factor of the forex robot. Profit factor is the gross profit / gross loss. E.G profit of $6000 and a loss of $3000 would give a profit factor of 2.0. This means that for every $1 risked, you can expect a return of $2. If a forex robot has a profit factor less than 1, eg profit factor of 0.7, this means that for every $1 you can expect $0.70 back (the forex robot is a losing one!). If a forex robot has a high profit factor, it is a good one – eg profit factor of 6.0 ($6 gained for every $1 risked).

Followers

The amount of traders who are actively following the forex PAMM account.

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Get my free forex robot!

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