A PAMM account is an investment service that offers investors the opportunity to make money without actually engaging themselves in trading. PAMM account managers gain more income for managing investor funds.
Note: PAMM accounts are only available for MT4
How it works:
A manager opens a Pamm Account, allocates a certain amount of his initial investment as the Manager’s Capital. The manager may not withdraw from this amount. He then designs a proposal where he lists his terms for investors, such as what percentages he is charging.
The manager starts trading on the account using both personal capital and funds from his investors. Profits and losses are divided between manager and investors based on each one’s share in the account.
Interested investors can look through the PAMM Account Ratings to find which account to invest in. The higher the rating the more successful trader a Pamm Account Manager is.