Also known as: Percentage Allocation Management Module, Percentage Allocation Money Management, PAMM Account
A PAMM Partnership is a managed-account arrangement in which multiple investors pool capital into a single master trading account run by a professional, and profits, losses, and fees are split proportionally by each investor's share of the pool. IBs promote the PAMM and earn from the volume it trades or from a slice of the manager's fees.
PAMM stands for Percentage Allocation Management Module. Because every investor's deposit becomes a percentage of one combined equity, the manager trades the pool as a single block. A 10% profit on the pool lifts every investor's share by 10% (before fees), and a loss hits every share by the same proportion — allocation is purely by percentage, so nobody is treated differently.
Suppose Client A deposits $1,000 and Client B deposits $9,000 into a $10,000 pool, giving them 10% and 90% shares. If the manager earns $1,000 (10%), Client A's gross share is $100 and Client B's is $900, before the performance fee is deducted at the high-water mark. The IB who introduced both clients earns a rebate on the total lots the pool traded to produce that result.
Because orders are executed once for the whole block rather than copied account-by-account, PAMM avoids much of the per-account slippage seen in classic copy trading, which is why it scales cleanly to large aggregate deposits.
Investors subscribe to a published PAMM offering and their deposits are combined into the manager's master account. The platform records each investor's percentage of pool equity at the moment they join and recalculates it as deposits, withdrawals, and profits change the balances.
The manager trades the whole pool as one account. After each trading interval, the system distributes profit or loss to every investor strictly by their current percentage, then applies the manager's performance fee against each investor's own high-water mark so nobody pays twice on the same recovered equity.
Multi-level IB tracking, where supported, lets a master IB earn on volume introduced by sub-IBs into the same pool, which is what makes PAMM attractive as a network product rather than a one-off referral.
A qualified manager publishes a PAMM with its risk profile, minimum deposit, fee schedule, and rollover interval.
The IB promotes the PAMM's verified stats with a tracking link so introduced deposits are attributed to them.
Each deposit is combined into the master account and assigned a percentage share of total pool equity.
Orders execute once for the whole pool; profit and loss accrue to every share by percentage.
At rollover, P/L is split by share, performance fees settle at each high-water mark, and the IB is paid on total pool volume.
Why it matters for partnership: PAMM lets an IB aggregate many small deposits into one large managed fund, earning high volume rebates plus performance-fee splits, while single-block execution keeps slippage low as the pool grows.
On an Alpari-style PAMM, an IB promotes a manager with a two-year verified record. Client A invests $1,000 and Client B invests $9,000, forming a $10,000 pool. The manager returns 10% ($1,000); Client A's gross share is $100 and Client B's is $900 before a 30% performance fee. The IB earns rebates on every lot the pool traded to generate that month's result.
| Feature | PAMM | MAM | Copy Trading |
|---|---|---|---|
| Funds | Pooled into one account | Separate sub-accounts | Each follower's own account |
| Allocation | By % of pool | By multiplier/rule | Proportional to balance/risk |
| Execution | Single block | Allocated per sub-account | Copied per follower |
| Investor control | Low (pooled) | Medium | Higher (set own risk) |
Choose brokers with multi-level IB tracking inside their PAMM system so you still get paid on volume your sub-IBs introduce into the same pool.
Not understanding the high-water-mark calculation leads to confused clients asking why no fee was deducted, and promoting high-leverage PAMMs risks a single bad trade wiping the entire pool.
PAMM pools all client funds into one trading account and allocates profit proportionally. MAM keeps client accounts separate and applies the manager's trades using multipliers, giving investors more individual control.
Usually through broker rebates on the total lot volume the pool trades, and sometimes an additional share of the manager's performance fee under a written agreement.
It depends on the rollover schedule. Many PAMMs only settle deposits and withdrawals at defined intervals so the manager's open positions are not disrupted mid-cycle.
The manager has trade-only access and cannot withdraw your funds, but the capital is fully exposed to trading risk. Losses are real and the whole pool can decline.
They join at the current pool value, so they only share in profit or loss generated after their entry. Their high-water mark starts from their own entry point.
Promotion rules vary by jurisdiction and can require registration or disclosures. Check local financial-promotion rules before marketing a PAMM, especially to retail investors.
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