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Percentage Allocation Money Management (PAMM) System
Partner with Vantage and leverage our Percentage Allocation Money Management (PAMM) system, a solution increasingly favoured by traders in global markets.
Understanding PAMM Account
Percentage Allocation Money Management (PAMM) is a solution where a professional account manager executes trades on behalf of a diverse range of clients. In this setup, the account manager acts as the Fund Manager, while the clients are the Investors. The PAMM account allows investors to pool their funds together, providing them with access to professional fund managers and their trading strategies.
How Does PAMM Work?
Investors often face capital limitations when trading independently. To overcome this challenge, a PAMM account allows the Fund Manager to pool funds from multiple investors into a single trading strategy. This approach may benefit a diverse range of participants seeking access to sophisticated trading opportunities. Investors receive a share of the profits proportionate to their contribution to the PAMM account's capital.
For Fund Managers, a PAMM account provides access to significant funds and an opportunity to earn a performance fee. It serves as an effective means for investors to access high-capital trading strategies. Typically, the returns are shared based on the investors' contributed amount as a percentage of the total PAMM account's capital.
PAMM Account Example
To understand the setup and participants involved in a PAMM account, let's walk through an example.
The key participants are:
1 The Forex Broker (Vantage)
2 Investors
3 Money Managers (Fund Managers)
Now, let's consider three investors: Investor A, Investor B, and Investor C.
They aspire to trade the forex market using a PAMM solution and decide to collaborate. To make this possible, they each open individual PAMM accounts with Vantage, the CFD broker. An experienced forex trader takes on the role of the Money Manager and becomes a Vantage PAMM Fund Manager. By doing so, the Money Manager aims to optimize their earnings through successful trades and earn a performance fee. Investors A, B, and C select this Money Manager as their Vantage PAMM Fund Manager to trade on their behalf.
Pooling Your Funds
In this example, Investors A, B and C pool their funds together where they invest $50,000, $35,000, and $15,000 respectively.
The total investment amounts to $100,000. The Money Manager charges a 20% performance fee on the earnings.
1 Investors A - $50,000
2 Investors B - $35,000
3 Investors C - $15,000
4 Money Manager - Charges 20%
Let's assume that during the investment period, there is a 12.5% gain, resulting in earnings of $12,500. After deducting the performance fee of $2,500 (20% of $12,500), the remaining $10,000 is distributed among the participants based on their share of the pool.
Distribute Earnings based on
Contributions
1 Investors A - 50% ($5,000) of the net earnings
2 Investors B - 35% ($3,500) of the net earnings
3 Investors C - 15% ($1,500) of the net earnings
This example demonstrates the potential advantages of using a PAMM account. By pooling their funds, enabling participation from a broad spectrum of investors, they can leverage the expertise of professional traders and distribute earnings based on their respective contributions.
Why Choose a PAMM
Account?
PAMM accounts provide investors from diverse markets with an opportunity to leverage on the expertise of other investors, and pools funds together for potentially larger returns. Vantage facilitates this by offering unlimited investor admission into each of the funds. Moreover, the Fund Manager retains complete control over all trading decisions, ensuring efficient execution and management of the fund's trading strategy.
3 Simple Step to become a PAMM Master with Vantage
9 Reasons to Open a
Vantage PAMM Account
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Control Over Trading Decisions for the Fund Manager
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Flexibility in Performance Fees and Commissions
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Automated Payment with High Watermark Level Accounting
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Automated Onboarding Process
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No Rounding Problems for Investor Accounts
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Available on MT4/MT5
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Unlimited Investor Admission into Funds
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Access to Web-Based Interface
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Account Management with EAs
Trade with Our
PAMM System
Sign Up
Join one of the trusted multi-asset CFD brokers and select a PAMM program.
Fund into PAMM Account
Add your capital to the pooled investment account (PAMM account).
Share in Profits
Receive a share of the profits proportionate to their contribution to the PAMM account's capital.
PAMM Account Blogs
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Money ManagementPAMM vs Copy Trade: Which is Better for YouExplore the differences between PAMM and copy trading. Understand their advantages, drawbacks, and determine which is the best fit for your trading style.
26 October 2023 -
Money ManagementWhat is the Difference between PAMM and MAM?
Discover the key differences between PAMM and MAM financial investment solutions. Learn how each of these solutions works and their advantages for investors.
16 October 2023 -
Money ManagementPAMM Accounts – How do They Work, and How to Choose the Best Ones in 2025
PAMM accounts can benefit investors looking for expert help, and traders who want to trade on their client’s behalf. Here’s how to choose the best PAMM accounts in 2025, and why it matters.
2 April 2025
PAMM Account
FAQs
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1
What is a PAMM account?
Percentage Allocation Money Management (PAMM) accounts, also referred to as Percentage Allocation Management Modules, are investment accounts offered by forex or CFD brokers. These accounts allow investors to pool their funds and have them managed by experienced traders and trade on their behalf. This system is popular among global traders, including those from rapidly growing markets seeking diversified investment opportunities.
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2
Are PAMM accounts legit?
Yes, investing in PAMM accounts is a legitimate option for investors globally. PAMM accounts are offered by forex or CFD brokers. It is essential to choose a broker with a solid reputation and proper regulatory oversight to ensure the security and transparency of your investments.
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3
What are the benefits of a PAMM account?
For partners, including global traders, managing accounts on behalf of their clients is streamlined with a PAMM account. It enables simultaneous management of all client accounts from a single platform, automatically distributing profits or losses proportionally, eliminating the need for individual account management.
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4
How do I withdraw money from my PAMM account?
The performance fee will be calculated based on each trading interval (monthly, weekly, etc.). Once a trading interval is completed, the performance fee will be credited to the Fund Manager's Vantage IB wallet. The Fund Manager can then submit a withdrawal request through the Vantage portal to initiate the withdrawal process.
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5
What is the difference between a PAMM and MAM account?
MAM and PAMM accounts differ in terms of fund allocation and management. In a PAMM account, a trader makes investment decisions for a pooled fund, with profits and losses distributed among investors based on their allocated percentages. In a MAM account, a manager trades proportionally across individual accounts, allowing investors to maintain control and customise their risk preferences.
Learn more about the differences between PAMM and MAM accounts.
Have a Question?
Get in Touch
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