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Some people who want to invest in Forex don’t have the time, the knowledge or the inclination to buy and sell currencies on their own. So they resort to a convenient and relatively cheap way of accessing the investment opportunities afforded by the stock market by investing in a fund managed by a professional investment manager. It is possible to invest in the foreign exchange market in a similar manner via managed accounts called PAMM or MAM accounts, where professional managers trade currencies on a client’s behalf in return for a fee.

These are the best brokers offering PAMM or MAM accounts in 2022.

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    Broker
    Overall Rating
    Official Site
    PAMM Account
    MAM Account
    FSCA Regulated
    Regulation Rating
    EUR/USD - Standard Account
    Trading Cost - Standard Account
    EUR/USD - Raw Spread
    Trading Commission
    Total CFDs
    Currency Pairs
    Compare
    FP Markets
    4.28 /5
    Read Review
    Visit Broker >
    Your capital is at risk
    111104/ 5
    0.10 pips
    USD 7
    0.10 pips
    6 USD / lot - RAW Accounts
    10099
    60
    XM
    4.25 /5
    Read Review
    Visit Broker >
    Your capital is at risk
    111104/ 5
    1.60 pips
    USD 16
    0.10 pips
    7 USD / lot - XM Zero Account
    1510
    57
    FXPRIMUS
    4.11 /5
    Read Review
    Visit Broker >
    Your capital is at risk
    1110.503.5/ 5
    1.50 pips
    USD 15
    0.30 pips
    8 - 10 USD / lot - PRO Account
    181
    43
    ACY Securities
    4.08 /5
    Read Review
    Visit Broker >
    Your capital is at risk
    111104/ 5
    1.00 pips
    USD 10
    0.30 pips
    Fees Included in Spread
    1731
    63
    MultiBank
    3.93 /5
    Read Review
    Visit Broker >
    Your capital is at risk
    111104/ 5
    1.40 pips
    USD 14
    0.80 pips
    3 USD / lot
    20093
    41
    Amana Capital
    3.83 /5
    Read Review
    Visit Broker >
    Your capital is at risk
    111104/ 5
    1.40 pips
    USD 14
    1.30 pips
    3 USD / lot
    430
    66
    IronFX
    3.74 /5
    Read Review
    Visit Broker >
    Your capital is at risk
    11110.54.5/ 5
    2.20 pips
    USD 22
    0.00 pips
    On select STP/ECN Accounts
    290
    83
    BKFX
    3.69 /5
    Read Review
    Visit Broker >
    Your capital is at risk
    111003/ 5
    0 pips
    USD 18
    1.50 pips
    Fees Included in Spread
    52
    40
    NordFX
    3.53 /5
    Read Review
    Visit Broker >
    Your capital is at risk
    1110.503.5/ 5
    2.00 pips
    USD 20
    0.30 pips
    0,007% / Trade - Zero Account
    44
    33
    FIBO Group
    3.50 /5
    Read Review
    Visit Broker >
    Your capital is at risk
    1110.503.5/ 5
    0.60 pips
    USD 6
    0.30 pips
    6 USD / lot
    8079
    48

    How Forex Managed Accounts Work

    Managed accounts in foreign-exchange markets

    There are a number of advantages for investors. First, currency trading can be a high-risk venture, and while it is possible to make large profits, the reverse is also true. The risks (and the potential rewards) are magnified by the use of leverage, where a trader puts up a small amount of money to buy a very large amount of currency (with the broker lending the trader the difference). Used correctly, leverage is a very useful tool, but in the hands of the unwary, it can prove deadly. So, unless you can dedicate considerable time and effort to learning how to trade forex successfully, it makes sense to use a managed account.

    Second, as well as offering greater potential rewards (and, of course, risks) than other investments, forex can help to diversify your portfolio, so you are not just reliant on the performance of traditional financial markets such as stocks and bonds.

    A third advantage is that the manager is only rewarded when they deliver a profit.

    The main types of managed accounts

    PAMM accounts

    Percentage allocation management module (also known as percentage allocation money management, or PAMM) accounts are the most commonly available managed accounts in the forex market. They allow investors to benefit from fluctuations in forex markets without having to trade themselves. You invest your funds in the accounts of professional traders, who receive a percentage of the profits they earn from trading your money. The traders can manage multiple PAMM accounts on a broker’s platform.

    Critically, PAMM accounts are relatively simple, with each investor allocated a set amount of any profits or losses related to their investment. Imagine a PAMM account of US$1m that has four investors: A has invested US$0.5m, B has invested US$0.3m and the remaining two investors, C and D, have each invested US$100,000. Investor A has a 50% share in the account, B has 30%, and C and D have 10% each. Trades (and any profits or losses) are allocated proportionally to each investor’s balance.

    Here is our list of recommended, scored and reviewed brokers that offer PAMM accounts. This list was last updated in May 2022.

    Scroll for more detailsPreviousNext
    Broker
    Overall Rating
    Official Site
    PAMM Account
    FSCA Regulated
    Regulation Rating
    EUR/USD - Standard Account
    Trading Cost - Standard Account
    EUR/USD - Raw Spread
    Trading Commission
    Total CFDs
    Currency Pairs
    Compare
    FP Markets
    4.28 /5
    Read Review
    Visit Broker >
    Your capital is at risk
    111104/ 5
    0.10 pips
    USD 7
    0.10 pips
    6 USD / lot - RAW Accounts
    10099
    60
    XM
    4.25 /5
    Read Review
    Visit Broker >
    Your capital is at risk
    111104/ 5
    1.60 pips
    USD 16
    0.10 pips
    7 USD / lot - XM Zero Account
    1510
    57
    FXPRIMUS
    4.11 /5
    Read Review
    Visit Broker >
    Your capital is at risk
    1110.503.5/ 5
    1.50 pips
    USD 15
    0.30 pips
    8 - 10 USD / lot - PRO Account
    181
    43
    MultiBank
    3.93 /5
    Read Review
    Visit Broker >
    Your capital is at risk
    111104/ 5
    1.40 pips
    USD 14
    0.80 pips
    3 USD / lot
    20093
    41
    Amana Capital
    3.83 /5
    Read Review
    Visit Broker >
    Your capital is at risk
    111104/ 5
    1.40 pips
    USD 14
    1.30 pips
    3 USD / lot
    430
    66
    IronFX
    3.74 /5
    Read Review
    Visit Broker >
    Your capital is at risk
    11110.54.5/ 5
    2.20 pips
    USD 22
    0.00 pips
    On select STP/ECN Accounts
    290
    83
    BKFX
    3.69 /5
    Read Review
    Visit Broker >
    Your capital is at risk
    111003/ 5
    0 pips
    USD 18
    1.50 pips
    Fees Included in Spread
    52
    40
    NordFX
    3.53 /5
    Read Review
    Visit Broker >
    Your capital is at risk
    1110.503.5/ 5
    2.00 pips
    USD 20
    0.30 pips
    0,007% / Trade - Zero Account
    44
    33
    FIBO Group
    3.50 /5
    Read Review
    Visit Broker >
    Your capital is at risk
    1110.503.5/ 5
    0.60 pips
    USD 6
    0.30 pips
    6 USD / lot
    8079
    48
    Dukascopy
    3.04 /5
    Read Review
    Visit Broker >
    Your capital is at risk
    000000/ 5
    0.10 pips
    USD 10
    0.10 pips
    Fees Included in Spread
    63
    60
    InstaForex
    3.02 /5
    Read Review
    Visit Broker >
    Your capital is at risk
    1110.503.5/ 5
    3.00 pips
    USD 30
    3.00 pips
    Commission is 0.03% - 0.07%
    296
    110

    MAM accounts

    MAM stands for Multi-Account-Manager. Like PAMM accounts, MAM accounts allow managers to trade on behalf of multiple clients for a commission or percentage of any profits. This allows money managers to execute block trades for multiple clients at the same time, and easily manage risk from one account.

    MAM accounts differ from other types of managed accounts in that they allow investors to follow a number of different trader accounts and diversify their trading capital by allocating different percentages to different traders. Each investor can select the amount of risk he wants to take and the leverage he wants to have on his account. Investors can therefore tailor their risk to the level they feel comfortable in taking.

    Here is our list of recommended, scored and reviewed brokers that offer MAM accounts. This list was last updated in May 2022.

    Scroll for more detailsPreviousNext
    Broker
    Overall Rating
    Official Site
    MAM Account
    FSCA Regulated
    Regulation Rating
    EUR/USD - Standard Account
    Trading Cost - Standard Account
    EUR/USD - Raw Spread
    Trading Commission
    Total CFDs
    Currency Pairs
    Compare
    ACY Securities
    4.08 /5
    Read Review
    Visit Broker >
    Your capital is at risk
    111104/ 5
    1.00 pips
    USD 10
    0.30 pips
    Fees Included in Spread
    1731
    63

    RAMM accounts

    A relatively new type of account, Risk Allocation & Money Management (or RAMM) accounts incorporate the best features of PAMM accounts, while giving investors greater control over their investments.

    Investors earn income by following the strategies of experienced traders and copying their trades. Indeed, RAMM is also known as copy trading. The professional traders, in turn, earn a commission on any profits generated for investors.

    RAMM accounts tend to be most suitable for more experienced investors.

    How does a PAMM account work?

    A number of parties are involved in PAMM accounts. A forex broker provides the platform that allows investors and traders (also known as fund managers or money managers) to meet and interact. The traders also use the platform to conduct their trading activities. Investors choose which managers to allocate their money to by considering factors such as performance history and the size of the commissions charged. The manager, sometimes known as the master, also invests their own money in the PAMM account and is a client of the broker.

    Investors should consider the variety of strategies on offer from managers, and choose the one best suited to their risk appetite. In general, there is a trade-off between risk and reward: the less risk you are prepared to take, the lower the potential reward. You should establish the level of risk you are happy taking before investing.

    Managers publish their trading strategies on the brokers’ platforms so that investors can easily review and compare them before deciding to invest in a particular strategy.

    The investor signs a Limited Power of Attorney before investing their money. This is a contract under which the investor agrees to take the risk of losing money on forex trades by giving their capital to their chosen manager, who uses the pooled money (from all the investors) to trade the forex markets. The agreement also details the investment manager’s commission.

    Critically, the manager can only use the money the investor allocates to the pooled fund. If an investor has a separate account with a broker, the manager cannot draw funds from that account to use in the pooled fund.

    Investors sign up for a specified term, normally a month.

    To illustrate how a PAMM account works, we can use the example above, where A has invested US$0.5m, B has invested US$0.3m and the remaining two investors, C and D, have each invested US$100,000. In this case, Investor D is also the money manager.

    The manager proves to be very successful and generates a 10 per cent return of US$100,000. The manager deducts his commission of US$10,000, leaving US$90,000, which is then allocated to the four investors in the same proportions as their original investments. So, Investor A (who put up 50 per cent of the funds) gets US$45,000, B gets US$27,000, and C and D get US$9,000 each. The investors then decide whether to remain invested for another term or not.

    Now imagine that the four investors sign up for another month and reinvest their combined US$100,000 profit, for a total investment of US$1.1m. But this time the manager loses 10 per cent, or US$110,000. No commission is deducted because there has been a loss. Instead, just the loss is deducted from the investors’ stake, again on a proportional basis. So, this time around, Investor A loses US$55,000, B loses US$33,000, and C and D lose US$11,000 each.

    A PAMM master account balance contains details of the complete amount of all clients’ deposits. To ensure clients’ deposits are secure, the manager cannot make deposits to or withdrawals from managed accounts; investors alone are allowed to do so. The performance fees claimed by account managers are automatically withdrawn from the managed accounts in line with the contract terms.

    There is no limit on the number of investors in a single PAMM account, but there is always just one manager. The manager invests in trades from his own account, and investors’ funds are proportionally added to this trade.

    Differences between PAMM, MAM and RAMM accounts

    The biggest advantage of the PAMM is that profits and losses are allocated proportionally, according to the investor balances in the account. All investor balances are copied to a master account. Then, when the manager or master executes a trade, it is allocated instantly and proportionally to investor accounts at exactly the same prices as on the master account – something that is not guaranteed in MAM or RAMM accounts. Money managers in PAMMs are usually rewarded by charging so-called management and incentive fees. Management fees are charged from investor balances (usually on a monthly basis), while incentive fees are strictly dependent on the profits obtained by the money manager.

    A key difference with MAM accounts is that the allocation of trades between master and investor accounts can be made other than proportionally. Each investor can select the risk they want to take by varying factors such as leverage and trade size. MAM accounts are thus more suitable for more experienced forex investors, while PAMM accounts are best for beginners.

    The main difference and advantage for an investor using RAMM or copy trading instead of a PAMM or MAM account is that trading takes place in their own account; they do not have to deposit money in their manager’s account. This gives them complete control over their money and means they may be eligible for additional bonus programmes, such as cashback and rebates.

    Main features of PAMM forex brokers

    Forex PAMM brokers are companies that, in addition to direct trading, allow traders to invest in other traders.

    The role of the broker is to provide a secure, reliable platform that allows money managers and investors to interact. You should be able to review the published strategies of various managers, as well as their experience, performance history, amount of money managed, commission levels and investor reviews, so that you are well placed to choose the manager that best suits your needs.

    The systems of modern forex PAMM brokers are automated, so that an investor can simply select a manager and invest with them. The system independently and automatically distributes the investor’s money and any profits or losses.

    When choosing a broker, you should take account of factors such as how well regulated they are. The best regulators include the likes of the UK’s Financial Conduct Authority (FCA), the European Union’s European Securities and Markets Authority (ESMA), and the Australian Securities and Investments Commission (ASIC).

    You should also consider how long the broker has been established: the longer, the better.

    Forex brokers will require a minimum deposit for a PAMM account. It is best for a beginner not to choose one with a minimum deposit of more than US$500, as it is not wise to risk too much money when starting in the forex market.

    Overall, it is best to choose a well-established broker that is licensed by a well-respected authority, offers a wide variety of trading instruments, has responsive 24-hour support, and can deal with you in your own language.

    You should also check that your broker has the ability to process deposits and withdrawals quickly, i.e. within 2 to 3 days.

    While choosing a good broker is important, you should remember that it does not mitigate the inherent risk of investing in the forex market via a PAMM, MAM or RAMM account. Success or failure will depend on the abilities of the account manager or managers that you select. They may be subject to human error or simply the vagaries of the market. The FX market, like all financial markets, does not always behave as expected.

    Pay attention to those managers who use stop-losses. If there is no limit on the level of loss, there is a risk of losing the entire deposit in one deal, even when investing in PAMMs. It is better to forget about using martingales altogether. (Martingale is the name given to a strategy of increasing transaction volumes in the hope of covering previous losses.)

    Does a PAMM broker help you find a fund manager?

    A PAMM broker should publish, on its platform, information that helps you to compare brokers and decide which is best for you. This information should include indicators such as the manager’s performance record, showing how profitable a particular strategy has been over time. You should also be able to find data on the account age and the number of trades undertaken.

    Advantages of a PAMM accounts

    • PAMM accounts can be used by beginners with no experience in Forex trading.
    • They are convenient and easy to use. The investor chooses an account, invests their funds and leaves the trading to the manager. Investing in a PAMM account can involve no more than a few hours of your time each month, whereas trading on your own not only requires considerable expertise and experience but also requires a large amount of time.
    • A good broker will publish transparent data on traders, allowing you to pre-select a manager based on personal preferences such as the level of profitability you are seeking, balanced by the level of risk you are willing to take.
    • A good broker will offer tens of thousands of different PAMM accounts, so there is plenty of choice. This should help you to find a manager who fully meets your requirements.
    • You are in constant control and can limit possible losses on each open account.
    • Some brokers allow you to invest from one dollar upwards, so you can stake a small amount to begin with and increase your investment if you wish.
    • The manager invests their own money alongside investors’ money in a PAMM account, so there is clearly a huge incentive for the manager to trade wisely.
    • Investors can spread their money across various managers, so hopefully if one of the traders loses money, the profit from other, more successful, traders will provide a counterbalance.
    • You can withdraw and deposit money in a variety of ways, e.g. through bank payments or electronic currency.
    • Only the investor can deposit or withdraw their funds from a PAMM account. It is not possible for a manager or a broker to do so, eliminating possible abuse or accidental errors.

    Disadvantages of a PAMM accounts

    • There is no guarantee that you will make any profit. You may even lose your money. The main risk is that the manager’s strategies on the forex market do not work out as planned. You are also at risk if you use an unregulated broker.
    • You should not use a broker that doesn’t allow you to set a maximum loss limit for a PAMM account, as you could lose all your money.
    • MAM and RAMM accounts offer greater control over your money and greater ability to reduce risk.

    How can I become a fund manager?

    If you are a successful forex trader with extensive experience in the forex market, you might consider supplementing your income by becoming a PAMM account manager.

    Every broker has its own criteria, but in general, any trader who wishes to set up as a manager will be required to meet some or all of the following requirements:

    • Have at least 3 years experience of trading
    • Be a licensed fund manager
    • Have worked with other institutional bodies (brokers, banks, etc.)
    • Be a qualified professional trader, according to the requirements of a particular jurisdiction.

    If you meet most or all of these requirements, then there is a good chance that you may be accepted as a fund manager.

    Forex Risk Disclaimer

    Trading Forex and CFDs is not suitable for all investors as it carries a high degree of risk to your capital: 75-90% of retail investors lose money trading these products. 

    Forex and CFD transactions involve high risk due to the following factors: Over-leveraging, unpredictable market volatility, slippage arising from a lack of liquidity, inadequate trading knowledge or experience, and a lack of regulatory protection for clients.

    Traders should not deposit any money that is not disposable. Regardless of how much research you have done, or how confident you are in your trade, there is always a substantial risk of loss. (Learn more from the FCA or from ASIC)

    Our Rating & Review Methodology

    Our State of the Market Report and directory of CFD Brokers to Avoid are the results of extensive research on over 200 Forex brokers. The explicit goal of these resources is to help traders find the best Forex brokers – and steer them away from the worst ones – with the benefit of accurate and up-to-date information.

    With over 150 data points on each broker and over 3000 hours of research and review writing, we believe we have succeeded in our goal. 

    In a world where trading conditions and customer support can vary based on where you live, our broker reviews focus on the local trader and give you information about these brokers from your perspective.

    All research has been conducted by our in-house team of researchers and writers, gathering information from various company representatives, websites and sifting through the fine print. Learn more about how we rank brokers

  • Jacquae Hoffman says:

    Very informative, I m also very interested in a managed forex accounts,please let me know how to get started, also the minimum amount to be invested.

  • Lauren says:

    Iron fx does not do managed accounts when i checked…

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