Choosing how to allocate your capital matters as much as choosing what to trade. Two popular, hands-off approaches at FXGlobe are PAMM and Copy Trading. Both let you follow experienced traders (“masters”), but they work differently and suit different goals. Here’s a clear, no-nonsense guide.
What Is a PAMM Account?
PAMM (Percentage Allocation Money Management) is a pooled-funds system. You choose a PAMM Master—an experienced trader (money manager)—and your capital is combined with other investors in a single pool that the master trades from their master account.
- How returns are shared: The master charges a fee. The remaining profit or loss is distributed pro-rata based on each investor’s percentage of the pool.
- Why traders like it: Professional trade management and streamlined execution; you don’t have to place any orders yourself.
What Is Copy Trading?
Copy Trading mirrors another trader’s actions directly in your account. You pick a Social Copy Trading Master, and their trades are copied proportionally to your current equity.
- How it plays out: If the master opens or closes a position, your account does the same at your chosen allocation.
- Why traders like it: Greater per-account control—you can adjust allocation and place orders if needed.
Key Differences at a Glance
| Feature | PAMM | Copy Trading |
|---|---|---|
| Structure | Pooled funds traded from a master account | Your account copies trades proportionally |
| P&L Distribution | Pro-rata, as a % of your investment | Account-level P&L, no pooling |
| Control | Master runs the pool, you can request withdrawals from the fund at any time, and transfers are executed daily | You can adjust allocation, pause/stop subscription at any time, manage trades and request withdrawals directly from your own account |
| Transparency | Full account history available on your Client Portal | See trades mirrored on your account in real time |
| Execution | Single pool execution | Individual account execution |
Which Approach is the Best?
- PAMM: If you want a hands-off, professionally managed approach with performance shared across a pool.
- Copy Trading: If you want to retain more control, scale allocation up/down easily, see trades mirrored in your own account and place orders yourself.
How Fees Work?
Performance fees apply to both PAMM and Copy Trading services and are assessed on a monthly or weekly basis, in accordance with the terms set by each Social Master. No subscription fees apply — you only pay performance fees on the profits generated.
What to Evaluate Before You Choose?
Before choosing a Social Copy Trading or PAMM master, take the time to thoroughly research and review their performance statistics. Evaluate all potential risks and ensure they align with your personal risk tolerance before making your selection.
You can review all associated risks in the Social Trading Service and PAMM Services T&Cs.
Getting Started
Explore the following step-by-step guides for comprehensive instructions on how to subscribe to Social Trading services:
Important Notices
- Independence of Masters: Both Social Copy Trading and PAMM services involve masters who are independent clients of FXGlobe and not affiliated with the Company in any other way.
- No Liability: The Company is not responsible for masters’ trading strategies or results and is not liable for any losses.
- Your Account, Your Responsibility: Accounts subscribed to a Social Copy Trading or PAMM master remain your own. Always review the trading activity and adjust your subscriptions according to your needs.
