Overall, there are two ways to use PAMM accounts - directly or through a third-party provider. Let's explore each option in more detail. 

Direct broker accounts

There are tons of licensed forex brokers that can offer PAMM accounts. The first thing you need to do is register for a trading account by signing up and making a deposit. Next, you need to look for the PAMM account section of the broker's platform. Here you will find a comprehensive list of all available PAMM traders.

Crucially, you will need to spend some time evaluating the results of the trader in question. In addition, you need to look at what assets they trade. When you find a PAMM trader, you usually agree on a commission framework. At this point, you would need to transfer some money to the PAMM account trader so that they can trade on your behalf.

One of the main advantages of trading directly with a broker is access to the best performing trading sites. It is important that any platform you choose has a license from the FCA (Financial Conduct Authority) or the appropriate body for your location. Other well-known regulatory bodies include CySEC (Cyprus Securities and Exchange Commission) and ASIC (Australian Securities and Investments Commission).

Third-party accounts

Now onto third-party providers for PAMMs. Simply put, the provider https://exnesscom.com/how-to-trade-cryptocurrency/ is the intermediary between you and the brokerage firm. In the name of comparison, we will briefly explain how a third-party PAMM account provider works.

•     Third-party PAMM accounts offer less flexibility, but are ideal if you want to earn a fully automated passive income from forex trading.
•     When you fund your account through a third-party provider, you usually don't have to choose your own PAMM trader. In this case, you would not have to negotiate a commission fee either. The third-party platform usually takes care of everything in this case.
•     With a third-party account option, you can also use independent merchants. These traders often do not use a traditional PAMM broker.

To reiterate, always make sure that a PAMM provider, third-party or not, uses a licensed brokerage. If the broker is not regulated, you are essentially putting your money and personal information at risk.

Other managed money systems

When searching for managed PAMM accounts, you may have also seen LAMMs and MAMs. Although they sound similar, there are noticeable differences between them. We've put together a brief explanation of each of the Forex managed trading systems to highlight the differences. As always, research is key before you commit to an account.

PAMM account

As you know by now, PAMM stands for "Percent Allocation Management Module." If you want, you can simply allocate a portion of your money to a PAMM, which means you can continue to copy financial transactions from your main account. With managed PAMM accounts, traders can use more than one account. This means that you can allocate a separate percentage of your capital to each trading system. This, of course, can potentially diversify your portfolio.

The trading structure on PAMM accounts is considered attractive for money managers due to the variety of options available. Investors can choose the trading time frame and rollover time in advance and agree on a commission rate. You can monitor your PAMM trades live.