Percentage Allocation Management Module or more commonly known as PAMM used to be the medium that fulfils the needs of investors and trading managers looking for additional sources of income. However, all things go through evolution and innovation and get better over time, and it is the same for PAMM.
cTrader Copy takes the PAMM and brings the overall quality and features up a notch while maintaining the fundamental concept of PAMM which is copy trading.
Let us compare cTrader Copy and PAMM in various aspects.
1.Find a broker that provides PAMM services
2. Sign up as a trading manager
3. Set up Limited Power of Attorney (LPOA)
4. Wait for the broker to set up the PAMM
5. Investors sign up for an account and sign LPOA
6. Investors deposit funds to the PAMM allocation account
For cTrader Copy
- Publish your strategy by clicking “Become a Strategy Provider”
- Choose from a list of strategies and click “Start Copying”
For PAMMs, the whole process of setting up for both the investors and the trading manager just takes a whole lot longer and it is more complicated.
With cTrader Copy, the process is as simple as clicking a few buttons. No agreements are required. Moreover, it is not tied to a specific broker so a strategy provider can get more investors from everywhere and investors have more options to choose from.
To be a PAMM manager, you are required to sign certain agreements and meet certain criteria before you are eligible such as high minimum deposits and number of clients, total funds etc.
Meanwhile, anyone can be a strategy provider in cTrader Copy, without agreements and minimal requirements;
- Positive balance on the strategy account
- More than -90.00% of ROI for all time
- At least 1 executed deal within the last 30 days
PAMM managers manage pooled funds with one specific broker. And when the pool fund is big enough, the execution will not be as good due to lack of liquidity and slippage.
On cTrader Copy, strategy providers only trade their own funds, which means all the orders (both the provider and the investors) are executed cross-broker thus the execution will not get affected due to the huge amount of funds traded.
Control over funds
PAMM investors cannot simply increase or decrease their funds whenever they want as their capital is being invested in a PAMM account controlled by the money manager who trades the pooled funds.
With cTrader Copy, investors can adjust the amount of funds allocated to a strategy at any given time. Moreover, investors can withdraw their profits, either wholly or partially, anytime.
Trading managers charge a fee for the services they provide to their investors.
In PAMMs, there are only performance fees available while money managers have the option to charge either performance fees, management fees, volume fees or whichever suits their objectives with cTrader Copy. This provides versatility for both the strategy providers and investors with their business/ investment goals.
To sum it up, cTrader Copy builds on the traditional PAMM and provides better accessibility, flexibility and reduces the required steps to a bare minimum.
If you want to take action now and invest in a cTrader Copy strategy or even strategies, click on the ‘Copy’ tab on the left side in cTrader platform & choose from a list of strategies to copy from.
If you are interested in becoming a strategy provider with cTrader Copy, click here.