Forex Brokers Offering PAMM Accounts

Written by Zornitsa Stefanova

Zornitsa Stefanova

Zornitsa Stefanova is experienced forex and crypto analyst. She also covers various financial topics such as stocks trading and retirement investments.

, | Updated: June 13, 2024

You want to trade but lack the time and expertise to do so? Opening a PAMM account with a reliable broker is a viable solution for investors and money managers alike. This type of managed account poses an attractive option for investors looking to dip their toes into the markets without actively trading themselves. To help you make an educated decision, we compiled a list of the top 10 brokers offering the best conditions for PAMM accounts. Dive right into our toplist to learn what makes them our top choices.

1FP Markets

Rating: 4.8 ⭐

73.85% of retail investor accounts lose money

2Fusion Markets

Rating: 4.8 ⭐

74-89% of retail CFD accounts lose money

3AvaTrade

Rating: 4.5 ⭐

76% of retail investor accounts lose money

4Pepperstone

Rating: 4.5 ⭐

75.5% of retail investor accounts lose money

5FXCM

Rating: 4.2 ⭐

70% of retail investor accounts lose money

6FxPro

Rating: 3.9 ⭐

74% of retail investor accounts lose money

7Swissquote

Rating: 3.6 ⭐

61% of retail investor accounts lose money

8BlackBull Markets

Rating: 3.6 ⭐

9Vantage FX

Rating: 3.4 ⭐

10Axi

Rating: 3.3 ⭐

The vast majority of retail client accounts lose money

Top 10 Brokers with PAMM Accounts

1. TRADE NOW READ REVIEW
   1. FP Markets

   FP Markets nabbed the first place on our list as it offers institutional-grade liquidity, direct access to interbank prices, and highly competitive spreads, allowing money managers and investors alike to extract maximum value from their PAMM accounts. The broker’s PAMM solution stands out with efficiency, flexibility, and excellent trading conditions overall. Customers will benefit from solid execution and advanced order management monitoring for enhanced transparency.

   Their compatibility with MetaTrader 4 (MT4) further adds to the appeal of PAMM accounts at FP Markets. Investment managers can adjust their trading conditions as needed, including their mark-ups, commissions, base account currencies, and performance charges. All this, coupled with impeccable customer service and a portfolio of 10,000+ instruments, makes FP Markets our top pick for PAMM account users.

   10 per quarter for non-AU traders; 20 per quarter and notional volume of AU$1,000,000 per 4 quarters in the last 1 year 73.85% of retail CFD accounts lose money
2. TRADE NOW READ REVIEW
   2. FxPro

   FxPro secured the second spot on our list with its impeccable regulatory background, solid product range, and favorable conditions for PAMM account users. Seasoned money managers looking to leverage their expertise and skills will benefit from customizable commissions and performance fees.

   Eligible customers can manage their PAMM accounts via the award-winning MetaTrader 4 and MetaTrader 5 platforms. Users have access to advanced risk management tools and can choose from various allocation methods, including equity, lot size, and margin. Managers can execute trades manually or automatically with the help of expert advisors and earn extra by collecting rebates from spread-bet trades.

   Trade Responsibly. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
3. TRADE NOW READ REVIEW
   3. Fusion Markets

   Fusion Markets welcomed its first customers in 2019 and quickly made waves with its discount commissions, sharp spreads, and overall favorable trading terms. Facilitating trades with over 150 instruments, this ASIC-regulated broker delivers superior MAM and PAMM solutions via the robust MetaFX platform. There are no restrictions on the number of trading accounts customers can manage.

   The broker gives account holders the flexibility to trade in mini, micro, and standard lots. Managers and investors both have access to expert advisors and can allocate funds based on percentage, equity, or lot. Trades incur additional execution charges of 0.1 pip to compensate for the higher execution costs of the MetaFX platform.

   Gleneagle Asset Management Limited (ABN 29 103 162 278) trading as Fusion Markets, is the issuer of the Fusion Markets Products described in this communication. Trading in Fusion Markets Products involves the potential for profit as well as the risk of loss which may vastly exceed the amount of your initial deposit and is not suitable for all investors. You should read all of these Financial Product Service Terms, the Product Disclosure Statement (PDS) and the Financial Services Guide (available on our website) carefully, consider your own financial situation, needs and objectives for investing in these Fusion Markets Products and obtain independent financial advice.
4. TRADE NOW READ REVIEW
   4. AvaTrade

   AvaTrade is an industry-pioneering broker that has been providing excellent trading conditions for over 18 years. Regulated in seven jurisdictions, this trusted broker offers superb PAMM and MAM services to money managers and investors looking for greater flexibility. Money managers can automate trades with expert advisors and allocate them based on balance, lot size, and equity.

   There are no restrictions on the number of sub-accounts you can control. Creating sub-groups dedicated to specific strategies is also possible. Minimum trading volumes start at a single micro lot, with the option to connect PAMM accounts to the familiar MetaTrader 5 platform.

   CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
5. TRADE NOW READ REVIEW
   5. Vantage FX

   With multiple tier-one licenses, a transparent pricing structure, and tight spreads from 0.0 pips, Vantage positions itself as an attractive option for investors and money managers looking for favorable PAMM account conditions. PAMM accounts are available on MetaTrader 4 and MetaTrader 5, offering flexibility in terms of commissions and fees.

   Investor onboarding is automated for greater convenience, with money managers enjoying full control over their trading strategies and decisions. Managing the accounts with the help of expert advisors is also an option and so is trading via an intuitive browser-based interface. On top of this, Vantage boasts an outstanding product line of over 1,000 instruments tradable at ultra-competitive spreads from zero pips.

6. TRADE NOW READ REVIEW
   6. Pepperstone

   Pepperstone establishes itself as a solid choice for traders prioritizing security, transparency, and fair trading conditions. The renowned broker operates as part of the well-known Pepperstone Group, with licenses granted from CySEC, FCA, ASIC, and DFSA. It offers superior spreads from zero pips for over 1,200 financial markets, coupled with reliable order execution and interbank-grade liquidity.

   The established broker provides PAMM and MAM accounts as part of its Pepperstone Partners program. These are perfectly suited to the needs of seasoned and knowledgeable money managers, offering flexible fee structures to fit various business needs. Eligible customers can manage up to a hundred sub-accounts at a time and plug their PAMM accounts into the popular MetaTrader 5 or MetaTrader 4 platforms.

   CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.5% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
7. TRADE NOW READ REVIEW
   7. Swissquote

   Swissquote has over 28 years of experience delivering competitive conditions for trading in forex, stocks, commodities, indices, and other relevant financial products. Its FINMA, DFSA, CySEC, and FCA licenses make a solid case for the legitimacy of this Luxembourg-based brokerage. Its parent company, Swissquote Group Holding Limited, trades publicly on Switzerland’s principal stock exchange, further adding to the integrity of this broker.

   Seasoned asset managers who set up PAMM accounts with Swissquote will benefit from flexible trade allocation features, seamless execution, and deep interbank liquidity. The broker draws liquidity from over 15 first-tier liquidity providers. Swissquote allows full hedging on these accounts, which few other brokers permit. MAM and LAMM accounts are also available here.

   CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 61% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
8. TRADE NOW READ REVIEW
   8. FXCM

   At FXCM, traders can explore hundreds of competitively-priced markets for forex, contracts for difference, and spread betting. The broker holds licenses issued by CySEC, ISA, ASIC, and FCA, enabling clients to trade in a strictly regulated and secure environment. FXCM leverages enhanced execution technologies to deliver accurate, low spreads for optimal trading results.

   Asset managers can reap multiple benefits from the cost-effective PAMM solutions provided by FXCM. It is worth mentioning that only referring and introducing brokers can register such accounts. PAMM products are unavailable to individual retail traders for the time being.

   CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. 
9. TRADE NOW READ REVIEW
   9. BlackBull Markets

   BlackBull Markets rightfully ranks among the top ten brokers for PAMM and MAM accounts, offering highly competitive conditions to money managers and investors alike. The reputable Auckland-based broker caters to thousands of customers from over 180 jurisdictions, facilitating low-cost trades in a whopping 26,000+ financial markets tradable with spreads from 0.0 pips and maximum leverage of 1:500.

   Eligible customers can connect to the broker’s PAMM/MAM solution by logging in with their existing sign-in credentials and navigating to the Accounts tab, where they must select the “Open PAMM/MAM Account” option. The application assessment process requires roughly one business day. The accounts are available for the MT4 and MT5 platforms.

10. TRADE NOW READ REVIEW
    10. Axi

    Our extensive research revealed that Axi positions itself as one of the best brokers with PAMM accounts, allowing eligible customers to manage an unlimited number of investor accounts. The brokerage caters to PAMM account holders with six methods of funds allocation and invaluable tools for comprehensive performance monitoring.

    The broker’s PAMM solution runs on the FYNXT platform developed by the Singapore-based company of the same name. Investors can pick from multiple strategies and a large pool of experienced asset managers. The accounts can accommodate investors of all experience and skill levels.

    CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading in CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Comprehensive Comparison of the Top 10 Forex Brokers Offering PAMM Accounts

PAMM Accounts Explained in Short

PAMM (Percentage Allocation Money Management) accounts pose a prime choice for individuals looking to invest in forex and other markets while lacking the know-how or time to engage in trading. They also work to the advantage of seasoned traders looking to capitalize on their expertise and experience. This type of account enables multiple investors to allocate funds to an experienced trader or asset manager and authorize them to trade on their behalf.

A money manager can transact on behalf of multiple investors from a single PAMM account. Investor money is all pooled into the balance, with each investor contributing an amount they feel comfortable with. Losses and gains are apportioned depending on each investor’s contribution to the pool.

Fund allocation can be based on a percentage, fixed amount, or lot size. This form of automated trading could prove beneficial for both parties involved. On one hand, investors lacking the time to monitor the markets have experienced money managers trading on their behalf. On the other hand, money managers collect fees each time they exit a trade on profit.

Example of How PAMM Forex Trading Accounts Work

Individuals with no forex trading background often have trouble wrapping their heads around PAMM accounts. We shall demonstrate how this setup works with a concrete example. We have three fictitious investors (Sam, Daniel, and Tilk) who have all selected Jack as their asset manager upon agreeing he would collect a 15% cut of all profits generated in the PAMM account. Let’s assume the account has a pooled balance of $10,000. Here is how each party contributes to the pool:

• Jack contributes $3,000 for a 30% share of the $10,000 pool
• Sam has a 25% share as she contributed $2,500
• Daniel contributed $2,300 for a 23% share
• Tilk put up $2,200 for a 22% contribution to the pool

Jack captures a 20% profit after his first month of trading on behalf of the three investors. The pool has now increased to $12,000 ($2,000 net profit on top of the original $10,000 investment). Jack deducts his 15% asset management fee ($300) from the net profits. Sam, Tilk, and Daniel collect their cuts from the remaining profits ($1,700) based on their initial contribution percentages as follows:

• Sam earns $425 or 25% of $1,700
• Daniel collects $391 or 23% of $1,700
• Tilk gets $374 or 22% of $1,700
• Jack pockets $510 or 30% of $1,700

The pooled amount in the PAMM account has now increased from $10,000 to $11,700 after Jack deducted his $300 fee. The three investors are satisfied with his performance and decide to continue using his services for another month without cashing out any of their profits.

Unfortunately, this second month is unprofitable as Jack loses 10% of the pooled investment ($1,170). He collects no commission for his services during this period. The balance of the PAMM account has now dropped from $11,700 to $10,530. Each party participating in the venture loses 10% of their pool contribution as follows:

• Sam loses $292.5 of her $2,925 share.
• Daniel is down $269.1 of his $2,691 share.
• Tilk sees his $2,574 share decrease by $257.4.
• Jack loses $351 of his $3,510 contribution to the pool.

The balance of the PAMM account is now down to $10,530, and the three investors must decide whether to give Jack a chance at redeeming himself during the next trading term. The investors can stay with him or switch to another asset manager after cashing out their shares. Alternatively, they can continue using Jack’s services but with reduced shares.

Costs Associated with PAMM Accounts

Investors pay performance fees to the asset managers trading on their behalf. The charges may vary significantly, depending on the asset manager and the platform powering the PAMM setup. Performance fees are typically percentage-based and are deducted from the combined net profits money managers generate during a single trading term, usually a month.

As the example from earlier showed, asset managers do not collect fees if they suffer losses at the end of a trading term. Top-ranking brokers usually charge no commissions or fees for offering PAMM accounts to their customers. However, additional costs result from the spreads built into the trades, round-trip trading commissions, and account funding fees.

Other Common Types of Managed Trading Accounts

MAM and LAMM are the other two types of managed trading accounts commonly offered by online forex brokers. MAM is short for “multi-account manager” and is similar to PAMM as it enables master account holders (asset managers) to execute trades on investors’ behalf. The main difference between the two setups is that MAM offers greater flexibility in terms of funds allocation and risk adjustment.

MAM account holders can adjust the strategies of the people trading for them, close out positions, or even trade independently. This is not the case with PAMM accounts where investors have no control over the trading decisions of their asset managers. LAMM is a less widespread type of managed trading account, although some of our recommended brokers, like Swissquote, do offer it as an option.

LAMM stands for “lot allocation management module”, a setup where investor funds allocation occurs in lots instead of percentages as is commonly the case with PAMM accounts. Profit allocation is again proportionate to each participating investor’s contribution to the pooled funds. What distinguishes this model from PAMM and MAM is that the distribution of profits and losses is also in lots, with each investor determining their lot size.

Another major difference is that LAMM does not require investors to transfer money to their asset managers. An investor registers an account and merely links it to a strategy supplied by an asset manager. The investor’s deposits are not part of a combined funds pool as the manager’s positions are automatically replicated in their accounts, according to the copied strategy. Respectively, the investor must have sufficient balance to cover the positions of the asset manager. Replicated trades must be of the same volume traded by the manager.

Setting Up a PAMM Account

Creating a PAMM account is a relatively hassle-free process for applicants meeting the eligibility criteria. Most brokers offering this service require investors to first register standard trading accounts, verify their identities, and fund their live balance. Potential investors can then apply for PAMM investor accounts directly from their dashboard or by contacting customer support. Once approved, investors must select money managers to trade on their behalf. New investors should also determine how much money they want to allocate to each manager they pick.

The process is similar for experienced traders looking to monetize their expertise and skills. The only difference is they must apply for PAMM money manager accounts rather than investor accounts. Assuming you have registered with a suitable broker, you must access your existing live account, navigate to the dashboard, and click the “PAMM Manager Account” tab to complete the application form. Allow one or two business days for the relevant department to evaluate your request.

Once approved, you must choose a performance fee to charge your investors whenever you generate profits on their behalf. In essence, money managers share their portfolios for others to review and invest in. Potential investors can see and review your strategies, trading results, return on investment (ROI), and performance ratings. The better your performance, the greater the likelihood of attracting more investors. The brokers recommended on this page impose no restrictions on the number of investors following you.

Advantages and Disadvantages of Opening PAMM Forex Account

PAMM accounts are ideal for individuals looking to generate passive income by leveraging the experience of competent and successful traders. Investors can access large databases of seasoned money managers, enabling them to compare their performance and strategies to make informed decisions on who to follow. Performance analytics and results are regularly updated to help potential investors objectively identify the most suitable money managers based on their strategies and risk tolerance.

Investors have their funds segregated from the money of their asset managers and fellow investors. Money managers cannot tamper with the balance of their investors or withdraw from it. Many managers charge reasonable fees, allowing you to generate additional income without investing much time or effort into learning the ins and outs of the markets. The biggest downside of PAMM accounts is that investors have little to no control over the trading decisions of their money managers.

PAMM accounts benefit money managers by enabling them to earn extra from performance fees. Apart from the spreads and trading commissions, running a PAMM account as a money manager is not associated with additional costs. It provides valuable opportunities to scale your business without running up huge expenses.

Managers have control over their trading decisions and have their strategies kept private and protected as intellectual property. There is no ceiling on the number of investors following a single manager. The more investors you attract, the more money you can collect from performance fees. On the downside, money managers risk losing their investors if they suffer trading losses at the end of the month, even more so after several unsuccessful months.

Z. Stefanova