What is PAMM account?

What it means

It differs from copy trading in a way that matters legally as well as practically. Copy trading replicates trades onto accounts you still own; a PAMM moves your money into an account someone else operates. You hold a claim on a pool rather than a balance you control.

Why it matters

The practical consequences follow from that. Entry and exit usually happen only at defined rollover points rather than instantly, the manager's decisions apply to the whole pool at once, and your ability to withdraw mid-drawdown is limited by the structure. In exchange, execution is genuinely identical for every investor — there is only one account, so there is no copier delay and no slippage between provider and follower.

What this changes in practice

The counterparty question is the one to settle first. In a PAMM your funds sit inside another party's trading account under the broker's rules, so the protections that apply depend on the broker's regulator and on the specific PAMM agreement. Read both before depositing, because this is the arrangement where "the strategy performed well" and "you got your money back" are genuinely separate outcomes.