What is a MAM Account – Multi Account Managers

One of the main questions we get asked from Forex traders is what is a MAM account and what is a PAMM account?

Today we are going to focus more on what is a MAM account and how important it is to find the right forex broker to support you.

MAM stands for multi-account manager and is ideal for the more sophisticated fund manager who wants to manage many different trading accounts at the click of a button.

Consider your MAM account to be the Master account, and underneath your Master account sit all your managed forex accounts.

Using a MAM, allows you to place all your trades in your master account, and those trades are then allocated to all the subaccounts.

Starting a Forex trading fund

One of the most powerful reasons for MAM and PAMM accounts is it simplifies the ability to start a forex trading fund.

The traditional method of starting a fund is extremely expensive, with many suggesting a hedge fund might need to raise over $7 million just to get started.

A MAM-managed forex accounts business allows you to execute your trading strategies and have all your trades seamlessly allocated to your sub-accounts.

You focus on your trading and the MAM allocates all your trades proportionally.

MAM PAMM differences

PAMM stands for Percent Allocation Management Model and allows a fund manager to allocate traders to all subaccounts as a percentage of the total pool.

For example, if the fund had $1million and placed a 10 lot EURUSD trade, then the allocation of those 10 lots would be split up based on the percent of all capital.

If one investor had $100,000 in the fund (representing 10% of the total fund), then their trading account would be allocated 1 lot of EURUSD.

MAM manager accounts provide greater flexibility to the fund manager to allocate trades according to their preferences.

Account type and trading solutions

The trading platform you choose is up to you, with the choice of MT4 or MT5 accounts available.

Individual accounts can choose between standard accounts or ProZero accounts, depending on the investment objectives of your clients.

You will trade on behalf of your clients across the full range of trading instruments and Expert Advisors EAs are the preferred way for managers to trade.

Copy-trading has been continuing to grow over the years but MT4 brokers and MT5 brokers have the flexibility of using a Forex MAM to service their clients.

No matter if you are using fundamental analysis, technical analysis, or advanced algorithmic trading systems to service your multiple clients, a MAM MT4 account could be the perfect solution for your expanding trading fund.

We can work with you to arrange the legal documents, such as Limited Power of Attorney (LPOA) forms as well.

How can ACY Partners help you?

At ACY Partners, one of our core offerings is the setting up of MAM accounts for new and experienced fund managers.

Our seamless setup allows you to focus on the business of trading and acquiring clients, while our back-end solutions allow for easy onboarding and client deposits.

Over the years, we have helped countless traders look after their managed forex accounts, with complete reporting and analysis via our client portal.

We take care of the important details, so you can get on with your fund.

If you are looking to set up a new MAM account or would like to know how we can help you, then let’s open the conversation and find out more about your business and goals.