PAMM (Percentage Allocation Management Module) forex brokers are widely used by traders to increase their income as "managers" or automate their orders in a more experienced hand as "investors". Although currently many traders are seriously committed to developing their own trading systems, many of them do not have much free time to do so or are not yet confident in managing funds on their own.

For that reason, PAMM was created to bring together managers (professional traders who want to have additional returns) and investors (traders who are unable to devote time to trading or who are not yet confident in their trading abilities) so that can both take advantage of their situation.

By registering for a PAMM account, experienced traders can earn commissions from their work as managers who manage investors' trading accounts, while novice traders can trade professionally without having to be directly involved in the process. Therefore, it is not surprising that investors are advised to carry out strict selection of the prospective managers because they will be the ones who will manage their investment funds.

If you are interested in registering as a manager or investor in a PAMM account, the brokers below can be your reference:

HF Markets

HF Markets has a PAMM system that allows the distribution of profit payments according to the sharing agreement between managers and investors. HF Markets also provides a Rescue Level feature, which is a service that limits investor funds from total loss. Here, HF Markets will close all open trading positions if the loss figure has reached the maximum loss limit.

HF Markets PAMM services can be enjoyed with a minimum deposit of $250 and full order automation. Clients can also get real-time reporting on manager performance and full control in risk management. For clients who want to earn passive income, there is also a PAMM affiliate program with a certain commission.

InstaForex

InstaForex is known to have the most accomplished trading facilities among other retail brokers. A varied list of services ranging from copy trading to trading course programs is one of the reasons why. PAMM is one of InstaForex's services which contributes to that reputation, where the broker allows traders to get involved as managers or investors so that they can both make mutual profits. More importantly, InstaForex does not limit the number of investors who can register with one manager, so a PAMM manager can have many investors and earn commissions as much as they want.

FXOpen

FXOpen provides a trading system for PAMM accounts with automated profit and loss distribution. Here, the terms investor and manager are regarded as "master" and "follower".

FXOpen relies on its excellence in order execution and good customer service to guarantee the quality of PAMM trading. As such, PAMM services at this broker are divided into several accounts: PAMM ECN, PAMM Crypto, and PAMM STP. Each account has different specifications and objectives so that clients can choose the most suitable trading conditions. For example, clients who want to focus on the crypto market can register for a PAMM Crypto account, while clients who want fast execution and low spreads can choose PAMM ECN.

FIBO Group

An experienced broker that has existed since 1998, FIBO Group also has a PAMM account service that facilitates the needs of managers and investors to achieve profits together. PAMM investors can choose several PAMM managers from hundreds of professional traders who register as managers in this broker. Profit allocation for managers is calculated from successful trading positions, with commission and profit percentages previously determined by the manager themselves.

Investors have an investment time limit determined by the PAMM manager. Withdrawals made before the investment time limit expires will be subject to a certain fine. These things are regulated by the PAMM manager and can be considerations for an investor when selecting a PAMM manager.

Just like HF Markets, FIBO also allows clients to become PAMM Agents. This program is provided as a collaboration to increase promotions on a manager account.

Alpari

Talking about PAMM forex would not be complete without mentioning Alpari. The reason is, this broker is a pioneer when it comes to offering PAMM for retail traders. They even claim that the PAMM service was their own creation before it went popular and being adopted by other forex brokers.

At this broker, PAMM information is equipped with account listings and managers' portfolios which can be accessed by anyone. Alpari also has a PAMM Constructor feature to help investors diversify risks. Furthermore, PAMM manager selection is made very easy because Alpari has developed a special badge system to rate managers on their various characteristics and achievements. For example, there is a Top 5 Conservative rating to rate managers with the most conservative risk management, Super Hit which classifies managers with the highest number of investors, Super Heavyweight for the most funds managed, and many more.

Conclusion

Be it as a manager or investor, traders can benefit from PAMM if trading agreements can be reached well. In order to guarantee the quality, traders need to consider the credibility of forex brokers that provide the PAMM services. Aspects to consider include the trading platform, monitoring system, profit allocation, and broker transparency.

A trader's decision to become a PAMM investor should also be accompanied by a good knowledge of trading so they will not blindly choose a manager and let go of their funds completely. After all, not all PAMM managers are like what they say and their performance can fluctuate due to various reasons. So, don't be an investor without proper forex market knowledge who is prone to pick a bad manager or get cheated by dubious managers.