The definitions and benefits of Forex PAMM and Copy trading software:
Forex PAMM accounts will help you dwell into the world of unknown foreign exchange
processes if you are a novice or a beginner.
So, what is PAMM? If PAMM is expanded, it becomes a percentage location management
module, or it is commonly known as Percentage allocation money management. This is a
simple form of pooled money forex trading.
There is another kind of trading called Social trading or Copy trading. It is one of the most
trusted and public ways of trading all over the world.
Let’s take a look at both the system below:
How does PAMM work?
The investor can allocate their money in this desired amount to the qualified traders or the
money managers. The traders choice is completely on you. The aim is to generate profit from
the amount you have given and to increase it and return it to you. To multiply your given
amount, these traders and money managers manage multiple forex trading accounts using their
own money and the pooled money they have. If the process, time and analysis of the market
are correct, you are about to become quite rich!
These are the participants in the PAMM Account setup:
● forex broker/ forex brokerage firm
● trader(s)/ money manager(s)
The investors don’t have time for paying attention to the process, so they leave this job in the
hands of professional traders or the money manager who can earn the profit for them. The forex
trading firms tie-up with these professional traders and money managers to run the profit
business. This is how exactly the trading process goes on.
What is Copy/Social Trading?
One of the most public ways to manage the trading system you are about to indulge yourself
into. Various available platforms of social trading can be utilised to earn profit with ease. This
social trading process provides you with an option to connect your copy trading solution to your
brokerage. They provide their database of verified signals which makes it easier for investors to
understand the statistics provided by these signals for better trading ideas and consequences.
How does it work?
As it is a social trading system, it relies completely on social networks. If a trader opens a
position, they broadcast the news or other traders too. If the traders think it is a wise option, they
can open the same opportunity. This can be an automated system, and this opportunity can be
opened by the system too.
Price moments are very frequent although there is little, it’s constant!
Benefits of Copy/Social Trading
● The first advantage of social trading is that you don’t have to look for a trusted trader.
● On most of the platforms, the investors can interact with the traders via chat.
● You can follow multiple providers on one single account which cannot be done in the
Benefits of PAMM
● The master or traders don’t have real money; it’s kind of an illusion. The investor’s
money is the only and a real asset.
● The PAMM system has leaderboards to check the progress of the traders. This helps the
investors make a wise choice of selecting their traders.
● When you are connected to a master in the PAMM system, you will surely achieve
similar results as being shown in the master’s account. This facility is not available for
social trading to copy trading.
Which system should you choose?
Forex PAMM and copy trading software, Both systems have their advantages and
disadvantages. The investors need to decide the type of advantage they want. The involvement
of the investor in the process is crucial, hence choosing the system completely dependent on