PAMM account

A PAMM account (Percentage Allocation Management Module) is a shared pool of capital that one manager trades on behalf of many investors; profit and loss are split in proportion to each person's share. You place no orders and cannot see the individual trades — control passes to the manager, who charges a performance fee (typically 20–50%) on profit only, while the loss is entirely yours. The catch: discretionary management of other people's money requires a licence (in the EU under MiFID II), and many advertised managers hold none.