A PAMM account (Percentage Allocation Management Module) is an investment system commonly offered by Forex brokers. It allows investors to allocate their funds to a skilled trader, also called a PAMM manager, who manages trading on behalf of all participants.
The profits and losses from trading are distributed proportionally, based on each investor’s share in the pool. This setup is sometimes compared to a mutual fund, but it is typically more flexible, transparent, and focused on Forex or CFD trading.
In a PAMM structure, there are three main parties:
The Broker – provides the PAMM platform and ensures transparency in fund allocation.
The PAMM Manager (Trader) – executes trades on the pooled account.
The Investors – allocate money to the PAMM manager’s account and share results.
A trader opens a PAMM account with a broker.
Investors review the trader’s performance history (e.g., profits, drawdown, risk profile).
Investors allocate money into that PAMM account.
The manager trades with the pooled funds.
Profits (or losses) are distributed proportionally among investors after fees.
For example:
Total PAMM account balance: $100,000.
Investor A deposits $50,000 (50%).
Investor B deposits $30,000 (30%).
Investor C deposits $20,000 (20%).
If the PAMM manager earns a 10% profit in one month, the distribution is:
Investor A → $5,000 profit.
Investor B → $3,000 profit.
Investor C → $2,000 profit.
If the manager charges a 20% performance fee, it will be deducted from each investor’s profit accordingly.
NOTE: SATORI PAMM IS CONSERVATIVE PAMM !
Strategy: trades only major currency pairs, uses low leverage, aims for steady 3–5% monthly growth.
Investors: people who prefer stability, like retirees or conservative professionals.
Result: lower risk, but returns are moderate.
Strategy: trades volatile pairs (e.g., GBP/JPY, XAUUSD), uses high leverage, aims for 15–20% monthly return.
Investors: risk-tolerant individuals seeking faster growth.
Result: potential for higher profits, but also higher drawdowns and risk of loss.
Accessibility: Investors don’t need trading skills.
Diversification: One can allocate funds to multiple PAMM managers.
Transparency: Brokers automatically calculate and distribute profits/losses.
Flexibility: Investors can deposit or withdraw at specified intervals.
Market Risk: Losses are possible if the manager makes poor trades.
Manager Risk: Choosing an inexperienced or overly aggressive manager can lead to large drawdowns.
Liquidity Restrictions: Some brokers limit how often withdrawals can be made.
A PAMM account is a practical way for investors to participate in Forex trading without needing advanced skills. By selecting reliable managers and diversifying across strategies, investors can balance risk and return. However, like any investment, PAMM accounts require careful research and risk management.