Best PAMM Accounts
A PAMM account could be right for you if you lack the time or experience to trade Forex. Sit back, relax and let others invest on your behalf.
But first, if you're a US resident, see our guide to PAMM accounts for US residents instead.
In this article:
- What's a PAMM account?
- 4XC PAMM Account
- NordFX PAMM Account
- LiteFinance Copy Trading
- FP Markets Copy Trading
What's a PAMM account?
PAMM is complicated word for what is a rather simple idea. When you invest in a PAMM account, you pool your money in a fund, and let a third party invest the fund on your behalf. The fund manager is usually entitled to a performance fee, only paid from profits. The word PAMM is an abbreviation of "Percentage Allocation Management Module".
PAMM accounts are similar to "social trading" or "copy trading" accounts, the difference being that a social trading or copy trading account, is opened in your name. Your funds aren't pooled with that of traders. This gives you a little more control over how you manage risk, as we'll touch on later, but is just as safe as a PAMM account from a regulatory perspective.
4XC PAMM Account
4xc.com is an offshore broker founded by industry veterans. It has won a string of awards, including one for "Best Customer Service" in 2020. It provides fast execution, with tight spreads and no re-quotes. Client funds are held in segregated accounts with European banks.
- Platform: its PAMM service allows you to invest in over 270 funds. Its interface shows performance metrics such as percentage gains over time as well the current profit or loss on open trades (called "Open P&L").
- Min. deposit: the minimum amount you'll need to invest in a PAMM account varies from one account to the next, and is set by the fund manager. We've seen amounts range between $100 and $25,000. Large funds typically have higher minimum deposits.
- Performance fees: there are no fixed costs associated with opening a PAMM account. Instead, fund managers charge a performance fee, which can vary between 5% and 50%. Importantly, the performance fee is only paid on profitable trades.
- Risk management: once you've invested in a fund, your exposure is limited to the size of your investment.
Visit 4xc.com to search and compare PAMM managers. Importantly, you'll need to register (no deposit is required) to view PAMM account performance statistics.
NordFX PAMM Account
NordFX.com is an offshore broker in business since 2008. As it offers higher leverage than 4XC, up to 1:1000, you'll need to pay close attention to each PAMM manager's maximum daily drawdown when assessing risk and return. Higher leverage may appeal if you're a gambler at heart, however, it can also lead to large losses.
- Service: its PAMM service is home to over 250 managers, however, only 20 of them manage funds in excess of $2,000. Interestingly, you also get to see how much each PAMM manager has invested of his/her's own funds.
- Min. deposit: the minimum deposit varies from one fund to the next. We've seen some PAMM managers offer lower performance fees in return for a larger investment.
- Fees: you'll need to pay close attention to each PAMM manager's fees, which may include performance fees, management fees (paid at regular intervals), deposit fees and withdrawal fees. The higher the fees, the higher the return you'll need to earn to generate a profit.
- Risk management: once you've invested in a fund, your exposure is limited to the size of your investment. You'll find a wealth of information to help you assess each manager's risk profile, including information about leverage, daily drawdowns and the fund's Sharpe ratio.
To compare PAMM managers, open a free trading account on NordFX.com. All you'll need is an email address. NordFX accepts customers from a wide range of countries, including the UK and Australia. However, it cannot accept residents from the United States, Canada or the European Union for regulatory reasons. You'll also need to use a debit card, credit card or crypto to fund your account, as bank transfers aren't possible at the moment.
LiteFinance Copy Trading
LiteFinance.com, formerly known as LiteForex.com, is a global ECN broker founded in 2005. Just like FPMarkets, it supports both the MetaTrader 4 and 5 platforms, and allows all trading styles.
- Service: its copy trading service is home to over 1,600 traders. We found 2 traders manage over US$ 1 million in assets, some of which is their own money, which helps aligns their interests with yours.
- Min. deposit: there's no minimum investment. You get to chose how much you wish to invest in each copy relationship.
- Performance fees: are set by each trader, and tend to vary between 20% and 30%, as was the case with FPMarkets. These fees only apply to profitable trades.
- Liquidity: as your copy trading account is in your own name, you're free to withdraw your funds at any time. LiteFinance allows automatic withdrawals up to $5,000 per day across a wide range of payment methods ($2,000 per day for clients from Kenya and Tanzania).
- Risk management: you can stop copying a trader automatically once certain profit or loss thresholds have been met. No other risk management tools apply, as day-to-day trading decisions are made by the trader you're copying.
To get started, login to your account with LiteFinance.com. It's free to register and should only take a few minutes of your time.
FP Markets Copy Trading
FPMarkets.com is a global Forex and CFD broker, founded in 2005 in Australia. Trade CFDs on currency pairs, stocks, indices, and commodities or copy other successful traders. All accounts come with negative balance protection, as standard.
- Platform: FP Markets is a relative newcomer to this space. It launched its copy trading platform in March 2021 and allows you to chose from over 300 signal providers. Its interface makes it easy to review each traders' performance, however, it lacks information about their total assets under management.
- Min. deposit: the minimum deposit varies from one trader to the next. We've seen amounts vary between $50 and $1,000. You then decide how you wish to copy their trades: copy their trades in proportion to your investment, or only allocate a fixed amount towards each trade.
- Performance fees: there are no fixed fees associated with opening an account, or copying another trader. Instead, each trader sets a performance fee that is only charged on profitable trades. We've seen percentages vary between 20% and 30%.
- Liquidity: you're free to withdraw your funds or end the copy relationship at any time, as your copy trading account is in your own name. FP Markets charges no withdrawal fees. You may withdraw funds to a bank, a credit card, a debit card or even a crypto blockchain.
- Risk management: is one of FP Markets' strong points. You can stop copying a trader automatically once certain profit or loss thresholds have been met. You may also temporarily pause the copy relationship, or close copied trades individually.
To get started, visit FPMarkets.com and open a free account with FP Markets LLC, the entity through which it provides its copy trading service. The company name will be shown on the account opening form. You'll need to be logged in to your account to compare traders and their performance metrics. To see for yourself, check our review of FP Markets' PAMM account, which includes a video walk-through.
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