5 Offshore Forex Brokers with PAMM Accounts 2024

Percentage Allocation Management Module (PAMM) is a system of using pooled funds to trade forex. Three parties are involved in PAMM accounts; the forex broker, investor, and manager. A fund manager is an expert forex trader who trades forex and CFDs with funds contributed by investors to generate profits.

Investors are clients who allocate part or all their funds to a selected fund manager who trades on their behalf. Forex brokers are investment firms that provide software and hardware infrastructures that enable their clients to participate in forex trading and PAMM account management. Profits are shared according to the percentage contribution of the investors after the manager’s commission has been deducted. 

In this article, we will focus on offshore brokers that offer PAMM accounts for investors from the United States. 

Best Offshore Forex Brokers for PAMM Accounts (Reviewed and Compared)

What is an Offshore Forex Broker?

An offshore forex broker is a brokerage firm that operates outside of a trader’s home country, typically in jurisdictions with lenient financial regulations and lower tax obligations. These brokers provide access to various trading instruments, including forex, CFDs, commodities, and cryptocurrencies. The regulatory environment for offshore brokers is often less stringent compared to major financial centers like the United States, the United Kingdom, or Europe, which can lead to both advantages and risks for traders.

Offshore forex brokers generally offer higher leverage options, allowing traders to control larger positions with smaller amounts of capital. They also tend to have lower spreads and commissions, making trading more cost-effective. However, the level of client protection varies significantly among offshore brokers, as some may lack adequate investor safeguards, such as fund segregation and dispute resolution mechanisms. So you should take care when choosing an offshore forex broker. 

What is a PAMM Account?

A PAMM account, or Percentage Allocation Management Module account, is an investment tool that allows you to participate in forex trading without directly managing your own trading account. In a PAMM account, a skilled trader, known as the money manager, trades on behalf of you and other investors who contribute funds to the account. The profits and losses are then distributed among all investors based on the proportionate investment each person has made. This structure enables you to benefit from the expertise of experienced traders while diversifying your investments across different strategies and assets.

PAMM accounts typically offer transparency in performance, as investors can monitor the account’s trading activity and results. The money manager usually charges a performance fee based on the profits generated, aligning their interests with those of the investors. This model allows both parties to benefit: investors gain access to professional trading strategies, while money managers can attract capital and earn a fee for their services. However, as with any investment, there are risks involved, and the performance of a PAMM account is subject to the trading skills of the manager and market conditions.

Do Offshore Forex Brokers Offer PAMM Accounts

Yes, Many offshore forex brokers offer PAMM accounts. A PAMM account, or Percentage Allocation Management Module, allows a professional trader (the money manager) to manage multiple investors’ funds in a single trading account. This setup enables investors to profit from the expertise of seasoned traders without having to trade themselves.

Based on our research, XChief, PlexyTrade, Fyntura, HankoTrade, and AZAForex are among the leading offshore forex brokers providing PAMM accounts. These brokers offer a range of features suitable for PAMM trading, including access to popular platforms like MT4 and MT5. For example, PlexyTrade provides leverage up to 2000:1 and raw spreads starting from 0.0 pips, while HankoTrade offers high leverage and low spreads, enhancing profit potential for investors. XChief and AZAForex also deliver competitive trading conditions, making them appealing to both money managers and investors. With these advantages, offshore brokers offering PAMM accounts can be a viable option for investors looking for higher returns in flexible trading environments.

Why Offshore Brokers for PAMM Accounts?

Traders from the USA who trade with offshore brokers do so because they offer generous trading conditions when compared to US-regulated brokers. Below are some reasons why US traders consider offshore brokers for PAMM accounts:

In the US, investments are subjected to capital gains tax, so commissions or profits from PAMM accounts are taxed. But, offshore traders do not tax traders’ accounts.

US-regulated brokers charge higher trading fees and higher minimum deposits. But, offshore brokers only need a paltry sum to register for a PAMM or MAM account. Furthermore, the trading fees incurred by a PAMM investor will be much less with offshore brokers. 

How to choose the best offshore brokers for PAMM accounts

Choosing the right PAMM account broker as well as the PAMM manager is important for a US investor. Below are some ways to choose offshore PAMM brokers:

Reading reviews

A good place to start your search for offshore PAMM brokers is the Internet. There are many sites that review brokers including offshore brokers. You can make a list and note important points listed about each broker. Later, you can visit the brokers’ websites to check out the available services as well as their terms and conditions.

Accessing the leaderboard

Some offshore brokers include the “Managers’ leaderboard” on their website or personal area. This is a list of PAMM managers, their profiles, trading statistics, and ratings. If you are an intending investor, you can check the existing managers and their performances. This will inform you about the number of managers, their trading capitals, the number of investors, and what payouts and trading performance look like.

A list of Top Offshore Forex Brokers for PAMM Accounts

Here is the list of best offshore brokers for PAMM Accounts

• XChief: PAMM account for fund managers
• PlexyTrade: PAMM account for Fund Managers
• FynTura: PAMM/MAM account for Fund Managers
• HankoTrade: PAMM/MAM account for Fund Managers
• AZA Forex: PAMM accounts and Copy trading

Final Verdict:

PAMM brokers are online forex and CFD brokers that offer special trading software which can be used by managers to trade the accounts of other traders who are registered as investors. Offshore brokers are unregulated or loosely regulated forex brokers that are majorly located in offshore countries but they accept clients from foreign countries including the USA.

The most popular offshore forex brokers that offer PAMM accounts include XChief, PlexyTrade, Fyntura, HankoTrade, and AZAForex. These brokers offer higher leverage, lower minimum deposits, and lower spreads. Some of these offshore brokers even offer the MT4 platform. For example, PlexyTrade offers both MT4 and MT5 trading platforms.

To choose a PAMM broker, first check for online reviews, identify some brokers, and check their PAMM account leaderboards. You can then check the trading conditions before making your final decision.

Though trading with offshore PAMM brokers may seem convenient, always remember that trading with unregulated brokers comes with higher risks when compared with regulated brokers.  

Our Methodology:

Our team developed over 170 data points grouped into 6 macro areas for assessing the performance of forex brokers. They are as follows:

• Regulation and Security
• Fees and Commissions
• Trading
• Trading tools
• Customer Support
• Trading Education

Our team collated information from various sources and verified them before assessment and rating. We tested the services offered by the brokers using various devices, software, and strategies. Final fact-checking, evaluation, and editing were done and the best brokers were selected. To find out more, read our methodology.