Brokers With PAMM Accounts
PAMM (Percentage Allocation Management Module) accounts pool money for professional investors to trade forex, crypto or other markets. Our team explain how PAMM accounts work, typical commissions, UK regulations, plus the pros and cons. Our traders also list the best brokers with PAMM accounts in 2024:
Best PAMM Brokers
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FXCC is an established broker that’s been offering low-cost online trading since 2010. Registered in Nevis and regulated by the CySEC, it stands out for its ECN trading conditions, no minimum deposit and smooth account opening that takes less than 5 minutes.
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IC Markets is a globally recognized forex and CFD broker known for its excellent pricing, comprehensive range of trading instruments, and premium trading technology. Founded in 2007 and headquartered in Australia, the brokerage is regulated by the ASIC, CySEC and FSA, and has attracted more than 180,000 clients from over 200 countries.
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InstaForex is a forex and CFD broker founded in 2007. The broker offers diverse market coverage to millions of clients, spanning traditional assets like currencies and shares, as well as other interesting opportunities such as IPOs.
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Founded in 2009, Vantage offers trading on 1000+ short-term CFD products to over 900,000 clients. You can trade Forex CFDs from 0.0 pips on the RAW account through TradingView, MT4 or MT5. Vantage is ASIC-regulated and client funds are segregated. Copy traders will also appreciate the range of social trading tools.
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Fusion Markets is an online broker established in 2017 and regulated by the ASIC, VFSC and FSA. It is best known for its low-cost forex and CFD trading, although its multiple account types and copy trading solutions cater to a range of traders. New clients can sign up and start trading in 3 easy steps.
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GO Markets is an established forex and CFD broker with multiple industry awards and accolades. The ECN/STP broker is popular with budding traders, offering competitive accounts in multiple base currencies and a range of flexible payment methods. With top-tier regulation from CySEC and ASIC, GO Markets is a trusted broker.
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Founded in 2008, NordFX is an offshore CFD broker offering forex, stock, commodities, indices and crypto trading to over 1.7 million clients in 190 countries. Traders access markets through the MT4 and MT5 platforms and benefit from low commissions, spreads from zero and decent extra features. Minimum deposits start from just $10 and very high leverage is available up to 1:1000.
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Founded in 2015, VT Markets maintains its position as a top Australian multi-asset CFD broker. With 1000+ tradeable instruments and support for the MetaTrader 4 and MetaTrader 5 platforms, this broker delivers a wide range of trading opportunities to over 200,000 clients worldwide. VT Markets is regulated by the ASIC, FSCA, and FSC.
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FXDD is an established forex and CFD broker founded in 2002. Regulated in Malta, Mauritius, Peru and Malaysia, the broker provides secure trading platforms, competitive ECN spreads and reliable 24/7 customer support. Competitive pricing and ultra-low latency is also offered via the broker's Direct Market Access execution model and tier 1 aggregated liquidity.
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M4Markets is an award-winning broker regulated by the CySEC, FSA and DFSA. Although relatively new, the broker continues to improve its offering with a range of innovative tools, platforms and accounts. Beginners can start with just $5, whilst experienced investors can access leverage up to 1:5000.
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Founded in 2010, ThinkMarkets is a reputable CFD and forex broker with regulation from several top-tier bodies including the FCA and ASIC. The broker provides services to over 450,000 accounts from 11 global offices. Traders can use a bespoke platform, MT4 or MT5 to access a wide variety of assets including 3500+ stocks and ETFs, 46 forex pairs and over 20 cryptocurrencies.
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IronFX is a multi-regulated forex and CFD broker founded in 2010. This award-winning firm offers 500+ markets to over 1.5 million clients across 180 countries. Traders can access various account types with competitive pricing on the MT4 platform, as well as 24/5 customer support in 30 languages.
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4xCube is an online forex and CFD broker registered and licensed in the Cook Islands. Clients can trade on popular financial markets and choose between three accounts based on their capital and trading strategy.
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Dukascopy is an online broker operated by a Swiss-regulated banking group. It offers a good selection of 500+ markets, with forex, stocks, gold, ETFs, indices, bonds and cryptocurrencies available. It also offers flexible trading opportunities through the choice of CFDs or binary options. Traders will use MetaTrader 4 or a proprietary platform that is well-suited to automated trading.
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xChief is a foreign exchange and CFD broker, established in 2014. The company is based offshore and registered with the VFSC and FMA. Users can choose between a wide selection of accounts and base currencies, making ForexChief accessible to global traders. The brand also stands out for its no deposit bonus and fee rebates for high-volume traders.
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Coinexx is an unregulated broker that provides leverage up to 1:500 on forex, commodities, indices and cryptocurrencies with deep liquidity, pure ECN spreads and negative balance protection. The broker uses crypto as base currencies and has low minimum deposit requirements of 0.001 BTC.
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Baxia Markets is an offshore CFD broker that offers trading on forex, commodities and indices with tight spreads on a straight-through processing model with ultra-low latency. Trade on MetaTrader 4 or MetaTrader 5 with leverage up to 1:500 and no restrictions to scalping or hedging strategies. Users also benefit from third-party copy trading services.
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TMGM is an ASIC-regulated forex and CFD broker with a vast range of tradeable assets covering forex, stock, index, crypto and commodity markets. The account types on offer provide a flexible choice between no commission or zero spreads, with competitive pricing all-round.
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Switch Markets is a multi-asset CFD brokerage, regulated by ASIC and SVGFSA. The new brand offers trading on the MT4 and MT5 platforms and leverage up to 1:500. The broker boasts over 2000+ instruments, with some additional tools including copy trading services and free VPS hosting.
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Fortrade is a multi-asset, multi-regulated broker with branches regulated by the FCA, CySEC and ASIC among others. The brand offers trading opportunities on a wide range of instruments including stocks, bonds, commodities, forex, indices, cryptocurrencies and ETFs, with competitive fees and support for MetaTrader 4 and a proprietary platform.
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Established in 2005 in Australia, FP Markets is an ASIC- and CySEC-regulated broker boasting an extensive suite of tradable assets. Its Standard and Raw accounts cater to traders at every level, while it packs a punch in the tooling department, from the MetaTrader suite and intuitive TradingView to actionable trading ideas from Trading Central and AutoChartist.
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FXOpen is a multi-asset broker with regulation from several trustworthy bodies including the UK's FCA. The broker offers CFD trading on forex, stocks, commodities, indices, cryptocurrencies and ETFs via the MetaTrader 4 & 5 and TradingView platforms.
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Infinox is a UK-based and FCA-regulated broker that offers diverse trading products thanks to its STP and ECN account types and support for MetaTrader 4, MetaTrader 5 and a proprietary platform. Clients can also benefit from a free VPS that can support automated strategies and a social trading platform, catering to both beginner and seasoned traders.
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Just2Trade is a reliable multi-regulated broker registered with FINRA, NFA and CySEC. The company has 155,000 clients from 130 countries and stands out for its huge suite of instruments and additional features, including a social network, robo advisors and a funded trader programme.
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FXPrimus is an award-winning CySEC-regulated brokerage offering CFD trading on 200+ instruments via the MetaTrader 4, MetaTrader 5 and cTrader platforms. The choice between a competitive commission-free account and two affordable raw spread options make this an accessible broker for anyone seeking forex, stocks, indices and commodities with high leverage.
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FXTM is a forex and CFD broker established in 2011 and operating across four continents. The company is secure and regulated by leading authorities, including the FCA. Offering 1,000+ markets and three account types, they cater to all levels of trader.
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LegacyFX is a multi-asset broker offering an MT5 download & free signals.
What Are PAMM Accounts?
Percentage Allocation Management Module, or Percentage Allocation Money Management, accounts are a form of pooled money trading. Investors allocate their funds to experienced money managers and traders. The money managers then take a percentage of the profits produced.
PAMM accounts are a popular option for investors who don’t have the time to trade themselves. The PAMM trading system is mostly used in forex, but some brokers, like FXOpen, also offer PAMM accounts for cryptocurrency, including Bitcoin and Litecoin.
How Do PAMM Accounts Work?
Similar to LAMM and MAM, PAMM derives its name from the technology that allows money managers to control and trade pooled funds. This account is a collection of the funds allocated by the investors as well as the money manager’s trading capital.
Brokers with PAMM accounts typically advertise money managers to potential investors on their platform, giving details about the manager’s experience, past profitability, asset allocation etc. Interested investors can then choose to allocate money from their individual accounts to the pooled fund.
To do so, investors may need to sign up with a Limited Power of Attorney (LPOA). This is a signed agreement to ensure investors agree to take on the risk for the trades. The LPOA also details the fee the manager charges (flat or percentage).
PAMM accounts are offered by several leading brokers, like Pepperstone, FXCC and Skilling, who usually provide information about the money managers on their platform. However, ultimately, the risk of losses comes down to you as an investor.
Example
There are three main players in the PAMM account setup: the forex broker, the money manager and the investors.
Let’s assume the money manager charges 10% of the profit made from the PAMM account and two investors are interested in investing.
The total value of the PAMM pooled fund is £10,000 with the allocation as follows:
- Investor 1: £5,000 (50%)
- Investor 2: £2,000 (20%)
- Money manager: £3,000 (30%)
After one trading period, the money manager’s investments have led to a 50% profit on the fund. As such, the current fund value is £15,000. The fund has made a profit of £5,000. The manager then takes 10% of the profit (£500) before reallocating the remaining profit (£4,500) to Investor 1 and Investor 2.
- Investor 1: 50% * £4,500 = £2,250
- Investor 2: 20% * £4,500 = £900
- Money manager: 30% * £4,500 = £1,350 (+£500)
The investors can then choose whether they want to take money out of the account or invest more.
Now, let’s assume that instead of making a 50% profit, the money manager makes a 10% loss in the trading period. The fund’s value would fall from £10,000 to £9,000. Because no profit was made, the manager cannot take a 10% cut of the profits. Instead, the loss is absorbed by the two investors as such:
- Investor 1: -10% * £5,000 = -£500
- Investor 2: -10% * £2,000 = -£200
- Money manager: -10% * £3,000 = -£300
What Do Brokers With PAMM Accounts Do?
PAMM brokers play several key roles. Firstly, they should provide a reliable, secure platform that gives the investors and money managers clear communication channels. They should also provide an investing platform for money managers to trade effectively.
Finally, PAMM brokers should provide details about the money managers to potential investors. This includes reviews from previous investors, feedback channels, transparent performance reporting, risk ratings and strategy details.
FXPrimus Top Performing PAMM Accounts
Pros Of PAMM Accounts
Brokers with PAMM accounts offer several advantages:
- Hands-off forex trading for investors
- Money managers need to be accepted by the brokers and therefore are usually experienced traders
- PAMM companies should protect clients by ensuring the managers cannot withdraw investors’ funds from the account, but only their own capital/profits
- Money managers need to invest some of their own funds and normally only receive a commission on profits, aligning the interests between investors and the manager
- Investors can normally review strategy details, risk ratings, and demo account performance before investing funds into the pooled account
Cons Of PAMM Accounts
Before you open a PAMM account, it is also worth considering the drawbacks:
- There is no guarantee that the money manager will be profitable
- Investors don’t have control over which assets the manager invests their capital into
- The amount of information provided about the money managers varies between PAMM brokers
How To Compare PAMM Brokers
Here are the key points to look for when comparing brokers with PAMM accounts:
Regulation
UK traders can be assured that PAMM brokers licensed by the Financial Conduct Authority (FCA) should follow industry-standard investor protection protocols. This includes liquidation compensation under the Financial Services Compensation Scheme (FSCS).
Top FCA-regulated brokers with PAMM accounts include Vantage FX and AvaTrade.
Platforms
Money managers with advanced platforms will have an edge when it comes to performing trades.
For example, Pepperstone offers PAMM software with direct integration to the popular MetaTrader 4 and MetaTrader 5 platforms, giving managers access to a range of tools and features with a secure login. This includes a selection of time frames, expert advisors, multiple order types and over 30 built-in technical indicators.
Minimum Deposit
Some brokers focus on providing PAMM services to larger or professional investors, whilst others appeal to new investors. As such, the minimum investment can vary.
Entry-level PAMM accounts typically require a starting payment of £10+, while premium services may require an initial investment of £1000+.
Bottom Line On PAMM Accounts
Brokers with PAMM accounts connect investors with experienced forex traders. PAMM accounts are particularly attractive to newer traders or those with limited time and money to invest. However, there is still a risk of losing your investment and you may have limited control over how the funds are traded once you hand them over.
See our list of the best brokers with PAMM accounts to get started.
FAQ
What Is A PAMM Account?
PAMM accounts pool money from a group of investors that is then managed by an experienced trader, also known as a money manager. The money manager will use the funds to trade forex. After a commission on the profits is paid, they are redistributed to the investors, who can earn without trading themselves.
Do UK Brokers Offer PAMM Accounts?
Yes, many brokers in the UK offer PAMM accounts. Among the best providers are Pepperstone and FXCC.
Unfortunately, some popular UK companies, like eToro and Interactive Brokers, do not offer a PAMM trading service.
How Do You Become A PAMM Account Manager?
How to become a PAMM account manager varies by broker. Typically, you will need to show you have experience trading profitably, and preferably experience as a professional or institutional trader.
Pepperstone, for example, requires traders to have at least 3 years of experience as well a relevant regulatory licence. As such, becoming a PAMM manager is primarily reserved for qualified, experienced traders.
How Do PAMM Forex Accounts Work?
PAMM systems work by pooling the money of interested investors and providing this pool to an experienced trader. The trader/manager then uses the funds to invest in the forex market to generate profits. The manager charges a fee on the profits made before redistributing them to the investors. This is based on the share of the pooled funds the investor handed over.
Can You Only Open PAMM Accounts For Forex?
Most PAMM accounts are built for forex trading. However, some brokers also offer cryptocurrency PAMM accounts, including FXOpen.