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 2025:

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 and FXCC, 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.

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.

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