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What Is a PAMM Account

A PAMM account pools investors' money into one account that a manager trades, and cuts every result in the percents each investor owns, less a share of profit as the manager's fee, paid only above a high-water mark. This paper shows the pool as a jar with layers, one real EURUSD trade split into a 10 percent share and its fee, the high-water mark on three example periods, and the offer page in the broker's portal where the fee, the mark, the period and the minimum are written. After reading it you can work out your part of a pool's trade and read a PAMM offer's four lines.

Difficulty
Intermediate
Reading time
5 min
Pages
8
Reviewed by
Saman Rahbar

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A PAMM account, in five lines

A PAMM account is one pooled account into which investors put money and which one manager trades. The letters stand for percentage allocation management module, and the percentage is the point: each investor owns a percent of the pool, and every result is cut in those percents. A 2,000-dollar share of a 20,000-dollar pool is 10 percent of every trade. The manager takes a share of profit as a fee, 20 percent in this paper's example. On the real trade of 25 August 2026, 1.00 lot, the unit a trade is sized in, of EURUSD bought at 1.16526 and closed at 1.16695, the pool made 169.00, a 10 percent share received 16.90, and after the fee 13.52. What you hold is a percent, not a set of trades.

A jar with layers

Picture one jar with many layers: a 20,000-dollar pool, in which one investor's 10,000 is half, another's 5,000 a quarter, another's 3,000 fifteen percent, and yours, 2,000, ten percent. The manager trades the whole jar as one account. When the jar gains 169.00 on a trade, each layer gains its percent of 169.00; when the jar loses, each layer loses its percent. The layers never trade separately. They only decide who gets what share of each result, and a new deposit is a new layer added at the next period.

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