Copy trading vs Pamm

Look-alike pair

Copy trading and PAMM both let one person's trades reach another person's money, but they differ in who holds the trading decision and how the money is pooled. In copy trading, you keep your own account and each trade is mirrored into it; in a PAMM, your money is pooled with others and the manager trades the combined fund. That single structural difference — mirrored orders versus a shared pool — drives every other distinction below.

Side by side

	Copy trading	Pamm
Account structure	Your own separate account; the copied trades appear as individual positions in it.	Your money is combined with other investors' money in one pooled account managed by the PAMM manager.
Who trades	You choose a trader to follow; their trades are automatically replicated in your account, but you can usually stop or override.	The PAMM manager has discretion over the pooled funds; you have no control over individual trades.
Ownership of funds	You retain legal ownership of the funds in your account at all times.	You own a share of the pool, not specific assets; the manager controls the pooled capital.
Fee model	Typically a performance fee or a fixed monthly fee to the trader you copy; specifics vary by platform.	Usually a performance fee and sometimes a management fee, deducted by the PAMM manager; details vary by broker and jurisdiction.
Field mark	Your account statement shows individual trades with your own account number.	Your statement shows a share balance or units in a pooled account, not individual trades.
Regulatory treatment	Often treated as a form of order transmission or mirror trading; rules vary by country and regulator.	Often treated as collective investment or managed accounts; rules vary by country and regulator.

Which word to use

Use copy trading when you want to keep your own account and have trades mirrored into it; use PAMM when you are allocating money to a pooled fund managed by someone else.

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