PAMM (Percentage Allocation Module Management) a collective investment service in the forex market. In PAMM, traders can only trade with lot sizes according to the percentage of total equity in the master account, and profits will be shared with investors based on the percentage of their contribution in the master account.
Trading with the PAMM system can be profitable, depending on the trader you choose. To find a good trader, look at the average monthly profit percentage. Also, look at the traders who generate the highest average profits in the long term.
Brokers often release PAMM performance reports useful for investors to find the best managers, such as recently FXOpen released the top 10 PAMM in 2023 on their official blog.
PAMM itself is a money management system carried out by PAMM traders and as investors get profit sharing according to their investment portion. and investors are also charged a fee or commission to the trader.
In PAMM there are three parties involved, the first is the broker as an intermediary who provides the system, the second is the trader who manages the PAMM account and the third is the investor who invests through the PAMM system.