Any trader can become a manager of a LAMM account. It is simple and does not require any additional investments. History of the manager’s LAMM account is displayed in the managers' rating. Individual investors, who usually are beginner traders, can study the rating and then choose the manager whose trades they would like to “copy”. The manager profits from the fee he/she sets for his/her services.
PAMM is another type of a managed account. In this case, managers also form the rating, where investors can see the account’s weekly profit and decide whether to connect to it or not. Unlike LAMM account system, PAMM account requires that both the manager and investors allocate a certain amount of funds. The manager and investors form a pool of funds, which the manager uses to place trades. The profit is then distributed proportionally, according to the amount of funds each participant put in the pool.