PAMM (Percentage Allocation Management Module) accounts allow fund managers to manage multiple trading accounts from a single account, without having to create a separate investment fund. The performance (profits and losses) of a PAMM account manager will be distributed among the managed accounts.

A PAMM account involves the allocation of funds by a client (investor) to another client (trader) who uses the same broker. A single trader (PAMM master) can host up to as many investors (PAMM slaves) as possible.

PAMM accounts are designed to leverage a trader's skills and experience to earn extra income. If you are confident about your trading strategy, you can set up your own PAMM fund strategy to further monetize your trading skills. Any investors you have will pay a fee every time you make a profit.

How a PAMM account works

Traders in a PAMM account are called "fund managers" or "masters", and investors are called "followers/investors/children/slaves"; they follow their master’s trading strategy or portfolio allocation.

The master has limited power of attorney and can act on behalf of their followers. The master/trader typically gets paid through a performance fee and/or management fee. Each account will be subjected to profit sharing (also known as performance fee), tabulated for each calendar month on the first week of the following month.

A master/trader can simultaneously manage an unlimited number of Investor accounts.

IMPORTANT: PAMM Slaves (investors) won't have real-time visibility into their trades; instead, they will experience either profit or loss based on the subscribed trading strategy. Additionally, they retain the flexibility to withdraw their funds at any time.

Key considerations regarding a PAMM account

PAMM accounts are designed to offer flexibility and control:

• In a PAMM setup, clients can unsubscribe from the master strategy at any time via the PAMM portal, and performance fees will be automatically deducted.
• Trades viewed by children/investors are delayed.
• The PAMM master holds actual cash invested by investors, facilitated by an internal transfer between the master and investor.
• If a PAMM investor wants to trade independently, they are free to do so by opening a sub-account.