Best PAMM Account Forex Brokers

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Contributor, Benzinga
April 3, 2023

Benzinga's favorite PAMM account forex broker is AvaTrade

If you’re looking for an innovative investment tool that will allow you to invest in forex markets without having to trade yourself, a Percentage Allocation Management Module (PAMM) could be the solution. A PAMM enables investors to allocate their funds to experienced traders who manage the funds on their behalf. 

If you’re a PAMM investor, your profits and losses depend on the investment decisions that your account manager makes, so you must do your research before you part with your funds. Benzinga looks at some of the best PAMM account forex brokers to help you with your PAMM investor decisions.  

Quick Look: Best PAMM Account Forex Brokers

Disclosure: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Best PAMM Account Forex Brokers

Let’s take a quick look at four of the best PAMM account forex brokers.

1. Best for Traders Who Want to Experiment with Platforms: AvaTrade

Launched in 2006, AvaTrade has headquarters in Dublin and is licensed with nine regulators. AvaTrade users can trade in more than 1,250 instruments, including 60 currency pairs. The company also offers traders access to cryptocurrencies, indices, commodities, bonds and shares. 

AvaTrade allows users to access several trading software packages, including MetaTrader MT4, MT5, WebTrade, the AvaTrade proprietary platform AvaTradeGO and third-party copy trading platforms. Beginners will enjoy the extensive library of educational resources, and advanced users will find the charting and analysis tools satisfying.

Pros & Cons of AvaTrade

Pros

  • 1,250+ financial instruments
  •  Excellent training resources
  •  Low trading fees
  •  Access to a range of trading platforms and copy trading

Cons

  •  No trading in the U.S.
  •  Charges inactivity fees after three inactive months

2. Best for Copy Traders: RoboForex

Based in Belize, RoboForex is a specialist automated trading platform. It is licensed with the Belize regulators and has civil liability insurance. The multi-award-winning broker has more than a million clients. Roboforex gives traders access to 12,000 trading instruments across eight asset classes. 

Traders can choose between several platforms, including MT4, MT5 and cTrader. Live chat supports 24/7 customer service, and copy trading is part of the deal.

Pros

  • 12,000 trading instruments
  • A range of platforms
  • No deposit or inactivity fees
  • Copy trading
  • Negative balance protection

Cons

  • Not available to traders from the U.S., Canada, Japan or Australia

3. Best for Multi-Asset Traders: Pepperstone

  • Pepperstone FX
    Best For:
    Trading Experience
    securely through Pepperstone FX's website

    Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.6% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

A world leader in forex and CFD trade, Pepperstone is an Australian broker with a presence in more than 150 countries. Pepperstone traders can trade in more than 1,200 instruments, including forex, indices, commodities, shares and cryptocurrencies. 

The company is licensed with six regulators. Pepperstone charges no commission on the Standard account, and deposits and withdrawals are free. The company has no proprietary trading platform, but it is compatible with third-party apps.

Pros

  • More than 1,200 instruments
  • No commissions on the Standard account
  • Regulated in six jurisdictions 
  • Forex and cryptocurrency leverage availability
  • No initial deposit requirements
  • 24/5 live customer service 

Cons

  • Not available to U.S. traders
  • No stocks, bonds or mutual fund trades

4. Best for Active Forex and CFD Traders: FxPro

  • FxPro International
    Best For:
    Excellent Trading Conditions
    securely through FxPro International's website

    CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

In operation since 2006, FxPro offers traders access to forex and contracts for difference (CFD). Traders have hundreds of options, including forex, metals, indices, shares and cryptocurrencies. The company is registered with four regulators. There are eight base currencies and no account or transaction costs, but you will pay an inactivity fee if your account is unused for six months.

FxPro charges no commission and tight spreads. Users can trade on MT4 or MT5 and cTrader, and FxPro promises lightning-speed transaction execution thanks to its award-winning software. Multilingual customer support 24/5 ensures excellent service. Users can use the services of more than one PAMM manager at a time.

Pros & Cons of FxPro 

Pros

  •  More than 2100 instruments
  •  Leverage of up to 500:1 
  •  Access to multiple platforms
  •  Fast transaction execution  
  •  Multilingual customer service 24/5

Cons

  •  Limited to forex and CFDs
  •  Inactivity fee

What are PAMM Account Brokers?

PAMM account brokers are professional forex traders who manage PAMM accounts on behalf of their clients. They decide when and what to buy and sell. They must use their own funds first, so they gain or lose in line with their clients. Profits and losses are shared according to the initial investment. 

Advantages of PAMM Accounts

Traders gain several advantages from having a PAMM account. These include:

  • Professionally managed accounts: Traders can entrust their funds to a skilled forex trader to manage. The PAMM manager must risk their own money first. This ensures that they carefully consider trades before they risk the funds under their control.
  • Diversification: PAMM accounts offer traders access to a broader range of investment opportunities, allowing them to diversify their portfolios
  • Transparency: PAMM account managers must regularly report on performance, including trading activities and fees. Traders can use the information to make investment decisions.
  • Accessibility: Traders have easy access to PAMM accounts through forex broker platforms.

Disadvantages of PAMM Accounts

PAMM accounts also have some disadvantages.

  • Manager dependent: Your success depends on the decisions of the manager you choose. If the account manager makes poor investment decisions, you could lose money. 
  • Fees: PAMM account managers charge fees for their services, which could affect profitability.

Become a PAMM Investor and Let Your Money Work for You

PAMM accounts are innovative products that allow forex traders to pool money and leave the trade decisions to a professional manager. Spend some time researching the best PAMM account forex manager. The quality of the investment decisions will depend on the knowledge and experience of the PAMM account manager with whom you choose to work. 

Frequently Asked Questions 

Q

Is PAMM forex legit?

A

PAMM forex is legitimate. It is, however, vital that you choose a reputable broker to trade on your behalf.

Q

Are PAMM accounts profitable?

A

PAMM accounts are often profitable, but there is always the risk of loss, so it is important not to risk more money than you can afford to lose.

Q

Are PAMM accounts legal?

A

PAMM accounts are legal in accordance with the rules of the countries that allow them. Thousands of forex traders globally entrust their funds to PAMM forex brokers.

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