PAMM: Forex Managed Accounts for Currency Investors
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 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 does the PAMM Work?
Nowadays, many Forex brokers have invested in PAMM technology and they can 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 to 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 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 can 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
A Forex investor must select the right Forex broker. The right broker should provide the safety of funds, fast technology, and competitive trading spreads and commissions.
| FOREX MANAGED ACCOUNTS |
TRADING TERMS |
PAMM FEATURES |
OPENING ACCOUNT |
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□ Typical Spread EURUSD: 0.3 pip (plus $7 per full traded lot trading commissions) □ Capital Leverage: 1:30
□ Minimum Deposit for Forex Investors: 100 USD
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■ Flexibility over trade allotment ■ Allocate as little as 0.01 lots ■ Allocate funds by Lot, Percentage, or Proportional ■ No restrictions on trading styles (EA friendly) ■ Monitor the account's performance in real-time
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□ Typical Spread EURUSD: 1.2 pip without trading commissions □ Capital Leverage: 1:30
□ Minimum Deposit for Forex Investors: 100 USD
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■ Multi Account Manager (MAM) and Percent Allocation Management Model (PAMM) ■ Electronic Communications Network (ECN) with deep liquidity ■ Order management monitoring
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► Visit the FP Markets website
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□ Typical Spread EURUSD: 0-2 pip □ Capital Leverage: 1:30
□ Minimum Deposit for Forex Investors:
200 USD for STP and 1,000 for ECN
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■ 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
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□ Typical Spread EURUSD: 0.1 pip plus $7.0 per lot □ Capital Leverage: 1:30
□ Minimum Deposit for Forex Investors: 20 USD
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■ Trade block orders on MT4 from a single master account
■ Allows all order types:
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Forex-Investors.com (c)
□ Find More: » Brokers Directory | » Forex Brokers & VIP Accounts | » ECN Forex FAQ | » Forex Managed Accounts
