Best Brokers With PAMM Accounts
PAMM (Percentage Allocation Management Module) brokers allow you to invest a percentage of your money with a selected trader. This trader uses both their own and investors’ funds to trade, typically forex, with profits or losses shared based on each investor’s percentage of the total investment.
PAMM accounts appeal to investors with limited experience or time looking to profit from the forex market by leveraging the expertise of experienced traders.
Best PAMM Account Brokers For 2024
We've scoured the hundreds of brokers in our database to create our shortlist of the best brokers with PAMM accounts:
-
1
xChief$100 No Deposit Bonus
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$100.01 Lots1:1000ASICCFDs, Forex, Metals, Commodities, Stocks, IndicesMT4, MT5Wire Transfer, Bitcoin Payments, Credit Card, UnionPay, Skrill, Neteller, WebMoney, Perfect Money, Debit Card, Ethereum Payments, FasaPay, VoletUSD, EUR, GBP, JPY, CHF -
2
Coinexx100% Deposit Welcome Bonus
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
0.001 BTC0.01 Lots1:500Forex, Commodities, Indices, CryptocurrenciesMT4, MT5Bitcoin Payments, Ethereum PaymentsUSD
This is why we think these brokers are the best in this category:
- xChief - 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.
- Coinexx - 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.
Best Brokers With PAMM Accounts Comparison
| Broker | PAMM Account | Minimum Deposit | Platforms | Regulators |
|---|---|---|---|---|
|
|
✔ | $10 | MT4, MT5 | ASIC |
|
|
✔ | 0.001 BTC | MT4, MT5 | - |
xChief
"xChief continues to prove popular with investors looking to trade highly leveraged CFDs on the popular MetaTrader platforms. The broker's rebate scheme and investment accounts will particularly appeal to seasoned traders. However, the lack of top-tier regulatory oversight is a major drawback."
William Berg, Reviewer
xChief Quick Facts
| Bonus Offer | $100 No Deposit Bonus |
|---|---|
| Demo Account | Yes |
| Instruments | CFDs, Forex, Metals, Commodities, Stocks, Indices |
| Regulator | ASIC |
| Platforms | MT4, MT5 |
| Minimum Deposit | $10 |
| Minimum Trade | 0.01 Lots |
| Leverage | 1:1000 |
| Account Currencies | USD, EUR, GBP, JPY, CHF |
Pros
- The low minimum deposit of $10 will appeal to beginners, as well as the beginners’ guides in the Library
- xChief offers STP/ECN execution with low spreads from 0.0 pips and low commission rates starting from $2.50 per side
- Traders can access a copy trading solution via the MetaQuotes Signals service
Cons
- xChief is an offshore broker with weak regulatory oversight from the VFSC, so traders will receive limited safeguards
- Fees and minimums are imposed on most withdrawal methods, including a €60 minimum for SWIFT bank transfers
- The broker trails competitors when it comes to research tools and educational resources
Coinexx
"Coinexx best serves short-term traders willing to foregoes regulatory protections in return for highly-leveraged CFDs and trading accounts, deposits and withdrawals processed in cryptos like BTC. "
Tobias Robinson, Reviewer
Coinexx Quick Facts
| Bonus Offer | 100% Deposit Welcome Bonus |
|---|---|
| Demo Account | Yes |
| Instruments | Forex, Commodities, Indices, Cryptocurrencies |
| Platforms | MT4, MT5 |
| Minimum Deposit | 0.001 BTC |
| Minimum Trade | 0.01 Lots |
| Leverage | 1:500 |
| Account Currencies | USD |
Pros
- Coinexx uses an ECN model that facilitates ultra-tight spreads from 0 pips, which alongside high leverage up to 1:500, may serve fast-paced, high-volume trading strategies.
- Coinexx is one of a limited pool of brokers to support the ActTrader platform, which is highly customizable with detachable widgets, as well as 48 indicators, 11 timeframes, and price quotes up to 8 decimal places.
- The virtual private server (VPS), hosted near the firm’s data center in Amsterdam, offers 24/7 connectivity, low latency and 99.99% uptime, catering to algo traders.
Cons
- Although it supports near-instant account funding in 25+ cryptos, the absence of fiat deposit options at Coinexx will be severely limiting for many traders.
- Despite operating for over 7 years, Coinexx still hasn’t secured any regulatory approvals, respected industry awards or the full confidence of our experts.
- Aside from 7 calculators (forex, margin, pip, currency, commission, swap, PnL), Coinexx offers very little in terms of additional tools, with no education or research features to support traders.
How Did We Choose The Best PAMM Account Brokers?
To identify the top PAMM accounts, we considered several elements:
- We confirmed brokers offer a PAMM account.
- We prioritized brokers we trust as security is paramount when entrusting your funds to another. Pepperstone is a highly reputable PAMM broker, holding multiple top-tier regulatory licenses.
- We explored fund manager reports where available. LQDFX offers helpful stats on 270+ money managers, showcasing account gains, P&L, and max drawdown weekly, monthly, or overall.
- We favored brokers with an accessible minimum investment. GO Markets has a $500 deposit to activate a PAMM account, which is around the industry norm.
- We chose brokers with user-friendly dashboards and monitoring tools. Vantage shines here, allowing investors to monitor their account’s performance via the PAMM dashboard with a click.
- We assessed the costs charged to use PAMM accounts. GO Markets operates a simple pricing structure where clients pay a performance fee, which is a percentage of profits.
- We opted for brokers with reliable customer service. M4Markets proved dependable during testing, with fast response in <2 minutes and helpful information about PAMM account details.
What Is A PAMM Account?
A PAMM (Percentage Allocation Management Module) account is a type of managed trading account where you assign your money to an experienced trader, allowing for proportional profit sharing based on the percentage of your capital in the pool.
There are two main parties involved in a PAMM account: the investors and the money manager. Both are registered with a brokerage, with the investors’ funds pooled together, and the total pot traded by the money manager.
Retail traders will normally take the role of the investor in a PAMM account – the responsibility for managing the account’s funds is generally left to experienced traders, though there may be some cases where talented amateurs qualify for this position.
Critically, there is no guarantee the money manager will make a profit. You could lose all your investment.
How Do PAMM Accounts Work?
Here is an example to show you how PAMM accounts work:
Initial Investment:
- Trader A: $1,500 (15%)
- Trader B: $3,500 (35%)
- Trader C: $2,000 (20%)
- Money Manager: $3,000 (30%)
- Total: $10,000
The money manager decides to invest in a mix of forex pairs, anticipating market movements based on geopolitical events. However, an unexpected political announcement significantly affects currency values, and the portfolio initially loses 10% of its value, reducing the pool to $9,000.
The money manager quickly adjusts the strategy, focusing on safe-haven currencies and leveraging short positions on affected pairs. This change in strategy not only recovers the loss but also generates a 20% profit on the original pool amount, leading to a final pool of $12,000.
Before distribution, the money manager takes a 15% performance fee from the profits ($2,000), leaving $11,700 ($12,000 – $300) to be distributed among the parties in line with their percentage contributions.
Final Distribution:
- Trader A: 15% of $11,700 = $1,755
- Trader B: 35% of $11,700 = $4,095
- Trader C: 20% of $11,700 = $2,340
- Money Manager: 30% of $11,700 = $3,510 (from pool) + $300 (performance fee) = $3,810
Bottom Line
PAMM brokers offer a type of managed account where you allocate a percentage of your funds to an experienced trader who will execute trades for you.
These accounts significantly reduce the effort needed for forex trading, allowing you to pick a manager who will handle trading activities on your behalf.
Nonetheless, profits are not guaranteed, and finding a reliable broker with a good selection of fund managers is not always straightforward.
That’s why we recommend exploring our list of top brokers offering LAMM accounts, which have undergone thorough reviews by our experts.
FAQ
What Are The Benefits Of PAMM Accounts?
PAMM accounts offer investors the opportunity to benefit from the forex market through experienced traders managing their investments, ensuring a hands-off approach while potentially generating returns.
They incentivize money managers through performance-based commissions and also allow investors to choose from a variety of managers to mitigate risk.
What Are The Risks Of PAMM Accounts?
Investing in PAMM accounts carries the inherent risk of capital loss, directly tied to the decisions of the money manager, over which investors have limited control.
Additionally, the lack of detailed information on a money manager’s strategy can make it challenging for investors to fully assess and understand the risks involved.
Are PAMM Accounts Only Available For Forex?
The PAMM system is predominantly used in forex. However, it isn’t just forex that can be traded using PAMM solutions, with brokers such as Alpari offering PAMM solutions where cryptos like Bitcoin can also be traded.