PAMM Accounts (Percentage Allocation Management Module)

How Your Share of a PAMM Account Works

PAMM stands for Percentage Allocation Management Module. It allows multiple investors to participate in a managed strategy, with trading results allocated according to their respective shares.

For investors, the amount allocated determines their share of the results. In a simplified example, a 10% share would receive $100 of a $1,000 trading profit or absorb $100 of a $1,000 trading loss. This assumes unchanged allocations and excludes applicable fees. The manager places the trades, while investors remain responsible for deciding how much to allocate and monitoring their participation.

For money managers, PAMM offers a way to manage capital allocated by several investors through one trading strategy. Managers handle trading decisions and execution, with each investor’s participation accounted for through the allocation structure. Experienced traders interested in offering a strategy can contact zForex to discuss the setup and requirements.

Access PAMM directly from your zForex client panel.
Assess the trading approach, including the markets traded, position sizes and history of drawdowns.
Review participation terms, including fees, funding requirements and withdrawal arrangements.
Monitor your allocation as the strategy develops, including open losses as well as closed results.

FAQs About PAMM Accounts at zForex

Is a PAMM account the same as copy trading?

They are related, but usually work differently. Classic copy trading replicates a provider’s trades into a follower’s account. PAMM generally involves allocating capital to a managed strategy, with profits and losses distributed according to each investor’s share. The exact account structure depends on the service.

Why might my return differ from the manager’s reported performance?

Your joining date, allocation changes and applicable fees can affect your result. A strategy’s return over its full history may also cover a different period from your own participation, so compare figures for the same timeframe.

What should I check if I join while the manager has open positions?

Confirm when your allocation becomes active and how existing positions are treated. Ask how any floating profit or loss is accounted for, so you understand which trading results will affect your funds.

Does a high win rate mean a PAMM strategy carries less risk?

Not necessarily. A strategy can have many small winning trades and a few large losses. Consider the size of losses, open positions and drawdowns alongside the percentage of winning trades.

What is the difference between balance and equity when reviewing performance?

Balance reflects deposits, withdrawals and booked results, including closed trades. Equity also includes the floating profit or loss on open positions. A rising balance can therefore coexist with significant open losses, which is why both figures matter.

How can I offer my trading strategy as a PAMM manager?

Contact the zForex team to discuss manager participation. Ask about the required trading history, account setup, agreements and fee arrangements before making the strategy available to investors.

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