What is PAMM Account?
Quick answer
A PAMM (Percentage Allocation Management Module) account is a managed-account structure where investors pool money that a manager trades on their behalf, and profits or losses are allocated by each investor’s share. It differs from copy trading: in a PAMM the manager has discretion over pooled funds, while in copy trading you keep your own account and control.
PAMM accounts come up often when people research copy trading, because both let you benefit from a skilled trader. But they are structurally different, and the difference matters for who controls your money.
How a PAMM account works
In a PAMM structure, investors allocate money that a manager trades in a pooled account. Each investor holds a percentage of the pool, and profits or losses are distributed according to that percentage, often with a performance fee to the manager. The defining feature is discretion: the manager decides the trades, and the investor is largely hands-off.
PAMM accounts vs copy trading
Copy trading keeps you in your own account. Instead of pooling money under a manager, copied trades are routed into the brokerage account you already own, sized to your own settings, and you can pause, adjust, or stop at any time. You keep custody and self-direct, rather than delegating discretion over pooled funds. That control, and keeping your money in your own regulated broker, is the main practical difference for most people choosing between the two.
Frequently asked questions
Back to the full copy trading glossary, or read the complete guide to copy trading.