What is a PAMM account?
This account is a type of pooled Forex money trading. The trader specifies a certain amount of money to invest and chooses a money manager to carry out the investment task on their behalf. Several accounts and the capital of a number of traders are then controlled by a single PAMM account manager who uses them for trading.
OW Markets, as the trading broker, carries out the regulation of this process by providing the trading instrument and supervising the contract made between the managers and the traders. The contract involves the traders’ agreement to manage their funds through the account manager and bear the trading consequences. It also states the percentage of capital to be handed over to the account manager along with the various performance fees charged by the account manager in consideration for the services provided. The account manager shall have no access to the entirety of traders’ account funds; instead, the manager only has control over the percentage specified by the trader, excluding the potential of withdrawing those funds.
The PAMM account manager is the party responsible for determining the trading method and strategies based on their experience. The profits or losses of the collected funds are distributed among the traders in accord with the percentage of contribution they made to the invested capital.