Last Updated on January 18, 2022 by Patrick Mahinge
PAMM stands for Percentage Allocation Management Module.
A PAMM account allows investors who have little knowledge about trading forex to invest in the industry where their investment is managed by fund managers. When you open a PAMM account, all your money will be handled by a dedicated funds manager.
Advantages of Using a PAMM Forex Account
- A PAMM account allows for total transparency of how your invested money is traded. Using a PAMM account, you can track the trades made on your account by the funds manager and withdraw your money at any time without restrictions. We recommend working with the HotForex PAMM accounts. Read our HotForex Review.
- No knowledge of online forex trading is required of the investors. Simply open a PAMM account and let the manager do all the transacting for you. HotForex ranks PAMM account managers according to the amount of profits they are making over time. If you choose wisely, you will be working with PAMM managers who have a proven track record of successful forex trading.
- You can diversify your forex investments by investing with different fund managers. If one fund manager has had a bad month, you can still make profits from a successful one.
The Process of Working with a PAMM Account Manager
- First, a PAMM Manager opens a PAMM account with the forex broker . The PAMM manager will be required to deposit an agreed minimum deposit into the account and allocate a certain portion of it as the account manager’s fund. The manager will be unable to withdraw the funds allocated as manager’s funds. This serves as an incentive for the trader to exercise caution when trading.
- The PAMM manager designs his portfolio including the minimum deposit he will accept from investors, terms of service and percentage of profits investors will pay the fund manager.
- The forex broker lists the PAMM account on their website where investors can search for the PAMM account manager they would like to invest with.
- The PAMM account manager starts making trades using the money invested in the account as well as his own deposits
- Profits (or losses) are shared among the manager and account investors according to the percentage of investment in the account.
Does Kenya Forex Firm offer PAMM Services?
We currently do not have a PAMM account with any forex broker, and therefore we do not manage funds for clients. The best way for you to start trading on a PAMM account is to open an account with IronFX, HotForex or any other broker out there. Alternatively, you can browse our list of top PAMM account managers and choose the one that you would like to invest with.
We also encourage PAMM account managers to list their services with us. Click here to post your listing for free.