Best Brokers With PAMM Accounts

Written By

Rebecca Holden

Written By

Rebecca Holden

Rebecca is an investment writer and broker analyst. She has evaluated dozens of brokers and trading platforms. Rebecca formerly worked in e-commerce where she helped grow the online presence of some of the UK's largest brands.

» Rebecca Holden Profile Page

Edited By

Michael MacKenzie

Edited By

Michael MacKenzie

Michael is a writer and editor with over a decade in journalism and publishing. His niche lies in editing and fact-checking content in the financial services sector, with a focus on online brokers and trading platforms. Michael previously reported on politics and economics in the Middle East and edits books for established publishers.

» Michael MacKenzie Profile Page

Updated

Feb 9, 2024

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. AvaTrade
2. Pepperstone
3. IC Markets
4. InstaForex
5. LQDFX

Best Brokers With PAMM Accounts Comparison

Best Brokers With PAMM Accounts Comparison

Broker	PAMM Account	Minimum Deposit	Platforms	Regulators	Visit
	✔	-	WebTrader, AvaTradeGO, AvaOptions, MT4, MT5, AlgoTrader, TradingCentral, DupliTrade	ASIC, CySEC, FSCA, ISA, CBol, FSA, FSRA, BVI, ADGM	Visit
	✔	$0	MT4, MT5, cTrader, TradingView, AutoChartist, DupliTrade	FCA, ASIC, CySEC, DFSA, CMA, BaFin, SCB	Visit
	✔	$200	MT4, MT5, cTrader, TradingView, TradingCentral, DupliTrade	ASIC, CySEC, FSA	Visit
	✔	-	MT4, MT5	-	Visit
	✔	$20	MT4	-	Visit
	✔	-	Skilling Trader, MT4, cTrader, TradingView	CySEC	Visit
	✔	$50	ProTrader, MT4, MT5, TradingView, DupliTrade	FCA, ASIC, FSCA, VFSC	Visit
	✔	$0	MT4	CySEC	Visit
	✔	$0	MT4, MT5, cTrader, TradingView, DupliTrade	ASIC, VFSC, FSA	Visit
	✔	$200	MT4, MT5, AutoChartist, TradingCentral	ASIC, CySEC, FSC of Mauritius	Visit
	✔	$10	MT4	-	Visit
	✔	$200	MT4, MT5, TradingView, TradingCentral	ASIC, FSCA, SVGFSA	Visit
	✔	$50	AppTrader, ProTrader, MT4, MT5, TradingView, TradingCentral	FSCA, ASIC, FSA	Visit
	✔	$200	WebTrader, FXDD Mobile App, MT4, MT5	MFSA, FSC, LFSA, SBS	Visit
	✔	$5	MT4, MT5	FSA, CySEC	Visit

#1 - AvaTrade

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Review

Why We Chose AvaTrade

AvaTrade is a leading forex and CFD broker, established in 2006 and regulated across 9 jurisdictions. Over 400,000 users have signed up with the broker which processes over 2 million trades each month. The firm offers multiple trading platforms, including MT4, MT5, and a proprietary WebTrader. 1250+ financial instruments are available for day trading, alongside a comprehensive education center and multilingual customer support.

"AvaTrade offers the full package for short-term traders. There is powerful charting software, reliable execution, transparent fees, and fast account opening with a low minimum deposit."

- DayTrading Review Team

• Instruments: CFDs, Forex, Stocks, Indices, Commodities, ETFs, Bonds, Crypto, Spread Betting
• Regulator: ASIC, CySEC, FSCA, ISA, CBol, FSA, FSRA, BVI, ADGM
• Platforms: WebTrader, AvaTradeGO, AvaOptions, MT4, MT5, AlgoTrader, TradingCentral, DupliTrade
• Minimum Trade: 0.01 Lots
• Leverage: 1:30 (Retail) 1:400 (Pro)

Pros

• Day traders can access stable spreads and zero commissions with no hidden fees
• There's a great range of fee-free deposit methods, including bank wire, credit cards and popular e-wallets like Skrill
• The broker offers reliable 24/5 multilingual customer support with fast response times during testing

Cons

• Traders from the US are not accepted
• It’s a shame that there are no rebate schemes for serious traders looking for additional perks - CMC Markets would be a better choice here
• There is no ECN account with raw spreads

Visit AvaTrade

#2 - Pepperstone

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Review

Why We Chose Pepperstone

Established in Australia in 2010, Pepperstone is a top-rated forex and CFD broker with over 400,000 clients worldwide. It offers access to 1,300+ instruments on leading platforms MT4, MT5, cTrader and TradingView, maintaining low, transparent fees. Pepperstone is also regulated by trusted authorities like the FCA, ASIC, and CySEC, ensuring a secure environment for day traders at all levels.

"Pepperstone stands out as a top choice for day trading, offering razor-sharp spreads, ultra-fast execution, and advanced charting platforms for experienced traders. New traders are also welcomed with no minimum deposit, extensive educational resources, and exceptional 24/7 support."

- DayTrading Review Team

• Instruments: CFDs, Forex, Currency Indices, Stocks, Indices, Commodities, ETFs, Crypto, Spread Betting
• Regulator: FCA, ASIC, CySEC, DFSA, CMA, BaFin, SCB
• Platforms: MT4, MT5, cTrader, TradingView, AutoChartist, DupliTrade
• Minimum Deposit: $0
• Minimum Trade: 0.01 Lots
• Leverage: 1:30 (Retail), 1:500 (Pro)

Pros

• Pepperstone boasts impressive execution speeds, averaging around 30ms, facilitating fast order processing and execution that’s ideal for day trading.
• Award-winning customer support is available via telephone, email or live chat with response times of <5 minutes during testing.
• There’s support for a range of industry-leading charting platforms including MT4, MT5, TradingView, and cTrader, catering to various short-term trading styles, including algo trading.

Cons

• There’s no simplified proprietary trading platform, nor are there any social trading features, which could be a disadvantage if you are new to day trading.
• Despite enhancements to its range of markets, crypto offerings are relatively limited compared to other brokers such as eToro, with no option to invest in real coins.
• Pepperstone does not support cTrader Copy, a popular copy trading feature built into the excellent cTrader platform and available at alternatives like IC Markets.

Visit Pepperstone

#3 - IC Markets

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Review

Why We Chose IC Markets

IC Markets is a globally recognized forex and CFD broker known for its excellent pricing, comprehensive range of trading instruments, and premium trading technology. Founded in 2007 and headquartered in Australia, the brokerage is regulated by the ASIC, CySEC and FSA, and has attracted more than 180,000 clients from over 200 countries.

"IC Markets offers superior pricing, exceptionally fast execution and seamless deposits. The introduction of advanced charting platforms, notably TradingView, and the Raw Trader Plus account, ensures it remains a top choice for intermediate to advanced day traders."

- DayTrading Review Team

• Instruments: CFDs, Forex, Stocks, Indices, Commodities, Bonds, Futures, Crypto
• Regulator: ASIC, CySEC, FSA
• Platforms: MT4, MT5, cTrader, TradingView, TradingCentral, DupliTrade
• Minimum Deposit: $200
• Minimum Trade: 0.01 Lots
• Leverage: 1:30 (ASIC & CySEC), 1:500 (FSA), 1:1000 (Global)

Pros

• IC Markets offers among the tightest spreads in the industry, with 0.0-pip spreads on major currency pairs, making it especially cost-effective for day traders.
• IC Markets offers fast and dependable 24/5 support based on firsthand experience, particularly when it comes to accounts and funding issues.
• As a tightly regulated and widely respected broker, IC Markets prioritizes client security and transparency, helping to ensure a reliable trading experience globally.

Cons

• The breadth and depth of tutorials, webinars and educational resources still need work, trailing alternatives like CMC Markets and reducing its suitability for beginners.
• While IC Markets offers a selection of metals and cryptos for trading via CFDs, the range is not as extensive as brokers like eToro, limiting opportunities for traders interested in these asset classes.
• Despite four industry-leading third-party platforms, there is no proprietary software or trading app built with new traders in mind.

Visit IC Markets

#4 - InstaForex

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Review

Why We Chose InstaForex

InstaForex is a forex and CFD broker founded in 2007. The broker offers diverse market coverage to over 7 million clients, spanning traditional assets like currencies and shares, as well as other interesting opportunities such as IPOs. Traders can also access copy trading services, PAMM accounts and investment opportunities. InstaForex is regulated by the BVI FSC.

"InstaForex maintains its position as a top forex broker, with more currency products than most rivals. The tight spreads and low minimum deposits make it accessible to all experience levels, especially those familiar with the MT4 and MT5 platforms."

- DayTrading Review Team

• Instruments: CFDs, Forex, Stocks, ETFs, Cryptos, Futures, Commodities
• Platforms: MT4, MT5

Pros

• The broker is accessible for beginners, with low minimum deposits, Cent accounts (for global clients) and zero-commission trading available
• There’s a copy trading service available with just a $10 minimum deposit, allowing clients to become both followers and providers
• InstaForex has a strong industry reputation, with a 15+ year history and serving over 7 million clients

Cons

• Market coverage and account conditions vary significantly between the global and EU entities - for example, only 300+ instruments are available for global clients, whilst European traders can access 2500+
• The broker’s website and client cabinet feel outdated and difficult to navigate for newcomers
• The broker’s global branch offers weaker regulation via the offshore jurisdiction of the British Virgin Islands, which means non-EU traders will receive limited safeguards

Visit InstaForex

#5 - LQDFX

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Review

Why We Chose LQDFX

LQDFX is a straight-through processing (STP) broker based in the Marshall Islands. The offshore trading firm offers competitive spreads from 0.0 pips, free deposits, 24/5 support and access to the hugely popular MetaTrader 4 platform. LQDFX also runs a competitive bonus program for short-term traders.

"LQDFX is best for active day traders looking for ultra-tight spreads, low fees and high leverage up to 1:1000. Forex traders will particularly appreciate the strong range of 70+ currency pairs with minimum deposits starting from $20."

- DayTrading Review Team

• Instruments: Forex, CFDs, Stocks, Indices, Commodities, Crypto
• Platforms: MT4
• Minimum Deposit: $20
• Minimum Trade: 0.01 Lots
• Leverage: 1:1000

Pros

• There are multiple STP account types with fast execution speeds, plus an Islamic swap-free option and PAMM accounts
• The broker offers the industry favorite MT4 platform and mobile app, with 30 technical indicators for chart analysis
• Leverage is available up to 1:1000 for experienced day traders

Cons

• There are no additional charting platforms available, such as MT5 or a proprietary solution
• Market research tools and educational resources are very limited compared to top brands like IG
• It's a shame that there's no copy trading platform for beginners or experienced strategy providers

Visit LQDFX

How Did We Choose The Best PAMM Account Brokers?

To identify the top PAMM accounts, we considered several elements:

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.