PAMM: Forex Managed Accounts for Currency Investors
Forex Managed Accounts (PAMM)

PAMM stands for Percentage Allocation Money Management and refers to a technology that connects retail Forex investors and successful professional traders (Money Managers) via a Forex platform.

 

Connecting Forex Investors and Money Managers

 

Most Forex traders don’t have the skills, time, and experience to achieve good results in the Foreign Exchange market. This is why many retail traders seek the services of specialized Forex professionals. The PAMM account type provides a unique opportunity for all Forex investors needing to diversify their investments between different trading strategies and achieve stable returns.

Professional Forex traders start with their own capital, but after they can prove their results have the opportunity to become Money Managers (MM).

When a Forex investor joins a PAMM program, he allocates part of his capital (in the desired proportion) to the selected Money Manager. This professional manager will trade multiple forex trading accounts using a common trading interface.

 

How the PAMM Works?

 

Nowadays, many Forex brokers have invested in PAMM technology and they are able to connect retail Forex investors and professional Money Managers from all around the globe. It is a win-win situation for all participants, as:

(1) Retail traders enjoy better returns and more effective portfolio diversification

(2) Money Managers make money by charging a performance-fee on their clients

(3) Forex brokers make money by the trading volumes

 

PAMM Accounts Features

  • Traders can allocate as much of their capital as they want to one or more Money Managers
  • Money Managers become listed in a Forex Broker’s PAMM list and get ranked based on their performance
  • Money managers have a huge motive to perform well in order to earn their performance fee which is usually paid at the end of each calendar month
  • Money managers have no access to the investor’s trading account and capital
  • The PAMM module is able to automatically calculate copy-trades, profits, and fees without any intervention by the Money Manager or the client
  • Forex investors can increase, decrease, or withdraw their allocated capital at any time

 

Starting a PAMM Account

 

It is very crucial for a Forex investor to select the right Forex broker. The right broker should provide the safety of funds, fast technology, and competitive trading spreads and commissions.

 
Table: Compare Forex Managed Accounts (Forex Brokers PAMM Accounts)
 
FOREX
MANAGED ACCOUNTS

TRADING TERMS

PAMM FEATURES

OPENING ACCOUNT

  • Order Execution: ECN/STP
  • License: ASIC (Australia) and FCA UK

□ Typical Spread EURUSD: 0.1 pip plus $7.0 per lot

□ Capital Leverage: 1:30
 
□ Minimum Deposit for Forex Investors: 20 USD

■ Trade block orders on MT4 from a single master account

  • 6 allocation methods:
    - Lot Allocation
    - Percent Allocation
    - Proportional By Balance
    - Proportional By Equity
    - Equity Percent Allocation
    - Allocation by Equal Risk
    - Trade sizes from 0.01

■ Allows all order types:

  • Market orders
  • Stop, Limit, and Trailing Stop
  • Close, Close All

► Visit the AXI website

 

► Review Fx Broker

 

  • Order Execution: ECN/STP
  • License: N/A

 

□ Typical Spread EURUSD: 1.2 pip without trading commissions

□ Capital Leverage: 1:30
 
□ Minimum Deposit for Forex Investors: 50 USD

■ Over 100 money managers

■ Investors allocation being split by up to 0.0000001 in volume, and performance

■ The management fees being paid automatically

► Visit the LQDFX website

 

► Review Fx Broker 

 
FXTM Forex Managed Accounts
  • Order Execution: ECN/STP
  • License: FCA UK, CYSEC

 

□ Typical Spread EURUSD: 1.8 pip

□ Capital Leverage: 1:30

□ Minimum Deposit for Forex Investors: 100 USD

■ 70+ Money Managers

■ FXTM PAMM servers: ECN Zero & ECN MT4

■ Full segregation of funds

■ Ranking via Risk Level, Drawdown percentage, Monthly Return

► Visit the FXTM Forex Managed Accounts

 

► Review FXTM at ForexExperts 

FxOpen Forex Managed Accounts

  • Order Execution: ECN/STP
  • License: FSP (NZ), FCA (UK)

 

□ Typical Spread EURUSD: 0-2 pip

□ Capital Leverage: 1:30
 
□ Minimum Deposit for Forex Investors: 
200 USD for STP and 1,000 for ECN

■ 150+ Money Managers

■ PAMM ECN & STP execution

■ PAMM Account Currencies: USD, AUD, CHF, EUR, GBP, JPY, RUB

■ PAMM Forex & Crypto Trading

■ Full segregation of funds

■ Analyze PAMM account performance

■ Analytical charting shows the daily and total gain, max drawdown, Sharpe ratio, etc.

■ Guarantees exact and instantaneous copying of trades on Follower’s funds

Visit the FxOpen Forex Managed Accounts

 

Review FxOpen at TradingCenter

 
 
 
Forex Managed (PAMM) Accounts
Forex-Investors.com (c)