Copy trading, PAMM or managed account: 8 criteria compared
Investing · · 5 min
Copy trading vs a managed account is a choice between control and involvement. With copy trading the money stays in your account and a trader's deals repeat automatically; in a PAMM a manager trades a shared broker account; in a managed account, as at Sufics, you hand over capital and decisions. All three carry the risk of losing money.
By Viktor Skrin
How do copy trading, PAMM and managed accounts differ?
The main difference is where the money sits and who presses the trade button. A comparison on eight criteria:
| Criterion | Copy trading | PAMM account | Managed account |
|---|---|---|---|
| Where the money is | in your own account with a broker or exchange | in a shared account with a broker, in shares | with the manager or in an account the manager can access |
| Control | you choose whom to copy and can switch copying off | you choose the manager, the manager trades | the manager trades under an agreement |
| Transparency | trades are visible in the platform interface | the broker's account statement | depends on the manager: a report or verifiable exchange data |
| Entry threshold | set by the platform | set by the broker or manager | set by the manager |
| Fees | usually a profit share for the trader plus platform fees | usually a profit share for the manager plus broker fees | under the agreement |
| Exit | switch copying off and close positions | under the account rules, sometimes only on set days | on request, under the agreement |
| Regulation | in the EU it falls under MiFID II | under the rules of the broker's country | under the rules of the manager's country |
| "Master" risk | your positions repeat the trader's mistakes | the manager's mistakes hit the whole account | the manager's mistakes hit your capital |
In all three set-ups you can lose money, and none of them guarantees a result.
What is copy trading?
Copy trading means automatically repeating a chosen trader's deals in your own account. The trader opens a position and the same one opens for you in proportion to your balance; the trader closes it and so does your account. The money stays in your account with a broker or exchange, and you can switch copying off.
The European regulator ESMA, in a supervisory briefing dated 30 March 2023 (ESMA35-42-1428, checked 25.10.2026), set out how copy trading is treated under MiFID II. If trades execute automatically and the client does not need to confirm anything, it is portfolio management. If the client confirms each trade, the service may be investment advice or the reception and transmission of orders. For an investor the takeaway is simple: automatic copy trading in effect hands decisions to another person, even though the money stays with you.
What is a PAMM account?
PAMM (Percentage Allocation Management Module) is a shared trading account with a broker run by a single trader. Money from several investors is pooled, and the result is split in proportion to each share.
- The investor funds the chosen manager's PAMM account with the broker.
- The manager trades the whole account at once.
- Profit and loss are split by share, and the manager takes a cut under the account rules.
The difference from copy trading: positions are open in the shared account rather than yours, and sometimes you can only exit on days the broker sets.
How does a managed account work?
A managed account means handing capital to a manager who makes the trading decisions. It comes in different forms: access to your exchange account, a separate account under an agreement, or a transfer of funds to the manager. The form decides who physically controls the money and how far you can verify the manager's work.
At Sufics the model is direct: the client transfers funds into management, the manager opens and closes trades, and the client does not open trades. Deposits are made by sending USDT (TRC-20), BTC or ETH (ERC-20); withdrawals are requested in the client area from $50, and an administrator sends the transfer. In the client area the client sees every position in their account. Closed trades are pulled from the Binance API (USDⓈ-M futures) and published in the trade feed, and each trade has its own page with entry and exit prices.
Copy trading, PAMM or managed account: which to choose in 2026?
The label matters less than three questions: how involved you want to be, whether you can check the manager, and who holds the money.
- Copy trading suits people who want to keep the money in their own account, pick the trader themselves and switch copying off at any time. The price is the time spent choosing and monitoring.
- PAMM takes daily decisions off your hands, but the money sits in a shared account and the broker sets the exit terms.
- A managed account asks for the least involvement and the most trust: you hand over both the decisions and access to the money.
What should you check in any set-up?
- Where the trade history comes from. Exchange API data can be checked; a PDF report cannot.
- Whether there are losing trades. A history without a single loss is a reason to look for where the losses are hidden.
- Account drawdown. Ask for the drawdown on equity, not just on closed trades. More in the article on maximum drawdown.
- Withdrawal terms and fees. Get them in writing before you send money.
The full checklist is in the article on how to check a fund manager.
Handing money to a manager and copying trades carry the risk of losing money. None of the three set-ups guarantees a result. This article explains how they work and is not investment advice.
Key takeaways
- The key difference is where the money sits: in your account (copy trading), in a shared broker account (PAMM) or with the manager (managed account).
- ESMA treats automatic copy trading as portfolio management under MiFID II: someone else makes the decisions even though the money is yours.
- In any set-up, check the source of the trade history, losing trades, equity drawdown and withdrawal terms before sending money.
Frequently asked questions
Copy trading, PAMM or managed account: which to choose in 2026?
It depends on how much control you want to keep. Copy trading keeps the money in your account and lets you switch copying off, PAMM removes daily decisions but exits follow the broker's rules, and a managed account asks for the least involvement and the most trust. None of them guarantees a result.
What is copy trading in simple terms?
It is the automatic repetition of a chosen trader's deals in your own account in proportion to your balance. When the trader opens or closes a position, the same happens in your account while copying is on.
Can you lose more than you put in with copy trading?
With leveraged trading, positions can be closed by force, and on some venues a loss can exceed the balance. Before you start, find out whether the platform has negative balance protection and what leverage the trader uses.
How is a PAMM account different from copy trading?
In copy trading, positions open in your own account; in a PAMM, the manager trades a shared account that pools money from several investors, and the result is split by share. Exiting a PAMM is often possible only on days the broker sets.
How do you exit a managed account?
The exit is set by the agreement or the manager's rules: usually a withdrawal request carried out within an agreed time. At Sufics a withdrawal is requested in the client area from 50 dollars, and an administrator sends the transfer. Ask about timing and fees before sending money.
