Why do you even had a big need in them? Care to explain this to me or not? I am totally want to understand your idea, people are doing all that manually basically and that's it. I am trading for a very long time without that PAAM accounts already.
If you manage your own trades or algos, then this does not apply to you. However, if you are a signal-following then this might be useful
One of the factors in choosing between a signal and PAMM comes down to how much you are investing. For small investments (or expensive signals), the signal fees can eat up the profit of an account.
Here is a crude example:
Option 1: You invest $1000 in your own account.
You pay $30/mo for a signal.
In month 1 the account makes a 4% gain, so you are +$40 but you paid $30 for the signal, so you are left +$10.
In month 2 the account loses 1%. You are -$10 and you paid $30 for the signal, = -$40.
Over 2 months, despite the account being up 3% up, because of the signal fees you are 3% DOWN!
Option 2: Instead, you invest $1000 into a PAMM account.
There is no monthly signal fee. Instead, the manager gets a commission of 25% of the profits.
In month 1 the account makes 4%, you are up $40. the manager keeps $10 so you are up $30
In month 2 the account loses 1%, you are down $10, the manager gets nothing.
Over 2 months, you are still up $20 = 2% UP.
This is a crude example, there are further factors to consider, for example:
For PAMM you do not need to run any software, such as MT4/5, so you do not need to buy any algos, or pay for a VPS.
There is no issue with signal slippage, delayed trades, or other problems you can get with trade copying.
Many traders who provide signals also have a PAMM version of their account. It's worth asking them if you can't find it.
So, it comes down to doing the math and working out the best strategy for your own needs. I trade my own PAMM accounts and invest in the PAMM accounts of other traders. I also trade standard accounts.
Hope this helps someone.