What is a MAM Account – Forex MAM and PAMM Managed Accounts

<p>One of the main questions we get asked from traders is what is a MAM account and what is a PAMM account? Today we are going to focus more on what is a <a href="https://www.acypartners.com/money-manager">MAM account</a> and how important it is to find the right forex broker to support you and your investors.</p> <p>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.</p> <p>Consider your MAM to be the Master account, and underneath your Master sit all your managed accounts, allowing you to manage multiple accounts from the click of a button.</p> <p>Using a MAM and PAMM allows you to place all your trades in your main account, and those trades are then allocated to all the subaccounts (client accounts).</p> <h2 class="wp-block-heading">Starting a Forex trading fund</h2> <p>One of the most powerful reasons for Multi Account Manager (MAM) and PAMM accounts is it simplifies the ability to start a trading fund.&nbsp;</p> <figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="900" height="600" src="https://wp.acypartners.com/wp-content/uploads/2025/04/how-to-setup-mam-account-forex-t.jpg" alt="how to setup mam account for forex" class="wp-image-678" srcset="https://wp.acypartners.com/wp-content/uploads/2025/04/how-to-setup-mam-account-forex-t.jpg 900w, https://wp.acypartners.com/wp-content/uploads/2025/04/how-to-setup-mam-account-forex-t-300x200.jpg 300w, https://wp.acypartners.com/wp-content/uploads/2025/04/how-to-setup-mam-account-forex-t-768x512.jpg 768w" sizes="auto, (max-width: 900px) 100vw, 900px" /></figure> <p>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.&nbsp;</p> <p>A MAM-managed forex accounts business allows you to execute your trading strategies and have all your trades seamlessly allocated to your sub-accounts.&nbsp;</p> <p>This allows you to simplify your day with a single master account, instead of juggling multiple accounts.&nbsp;</p> <p>You focus on your trading and the MAM allocates all your trades proportionally, allowing you to collect your performance fees.&nbsp;</p> <h2 class="wp-block-heading">MAM PAMM differences</h2> <figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="900" height="600" src="https://wp.acypartners.com/wp-content/uploads/2025/04/MAM-vs-PAMM-key-differences-900.jpg" alt="mam vs pamm: discover the key differences" class="wp-image-680" srcset="https://wp.acypartners.com/wp-content/uploads/2025/04/MAM-vs-PAMM-key-differences-900.jpg 900w, https://wp.acypartners.com/wp-content/uploads/2025/04/MAM-vs-PAMM-key-differences-900-300x200.jpg 300w, https://wp.acypartners.com/wp-content/uploads/2025/04/MAM-vs-PAMM-key-differences-900-768x512.jpg 768w" sizes="auto, (max-width: 900px) 100vw, 900px" /></figure> <p>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.&nbsp;</p> <p>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.&nbsp;</p> <p>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.&nbsp;</p> <p>MAM manager accounts provide greater flexibility to the fund manager to allocate trades according to their preferences.&nbsp;</p> <h2 class="wp-block-heading">Top 4 MAM account allocation methods&nbsp;</h2> <p>Choosing the right allocation method is crucial for effectively managing multiple accounts within a MAM system. Here are the top four MAM account allocation methods that give you the flexibility to match your trading strategy with your clients&#8217; investment goals.&nbsp;</p> <ol class="wp-block-list" start="1"> <li><h3>Proportional by Equity Allocation</h3></li> </ol> <p>This method allocates trades based on the equity of each client’s account. The proportion of the trade each account receives is directly related to its equity, ensuring that larger accounts take on a proportionally larger share of each trade.&nbsp;</p> <ol class="wp-block-list" start="2"> <li><h3>Proportional Allocation P/L</h3></li> </ol> <p>In this method, trades are allocated according to each account’s profit and loss history. Accounts with higher profitability may receive a larger portion of trades, aligning the allocation with historical performance.&nbsp;</p> <ol class="wp-block-list" start="3"> <li><h3>Proportional by Balance Allocation</h3></li> </ol> <p>This allocation method distributes trades based on the balance of each account. Similar to equity allocation, the trades are divided proportionally, but this method uses the account balance as the determining factor rather than current equity.&nbsp;</p> <ol class="wp-block-list" start="4"> <li><h3>Percent Allocation by P/L</h3></li> </ol> <p>This method allocates trades based on a set percentage of each account’s profit and loss. It allows the MAM manager to control how profits and losses are distributed across the accounts, offering a precise method to manage risk and reward.&nbsp;</p> <h2 class="wp-block-heading">How does a MAM account work?&nbsp;</h2> <p>The MAM system is designed to streamline the trading process, making it easier for fund managers to execute trades in the master account, which are then automatically allocated to all sub-accounts.&nbsp;</p> <p>The process begins with executing trades in the master account. These trades are then proportionally distributed across all the managed accounts, based on the parameters set by the manager.&nbsp;</p> <p>This could mean trades are allocated evenly, or they could be weighted according to the size of each client&#8217;s investment.&nbsp;</p> <p>This flexibility is a significant advantage of the MAM system, as it allows managers to tailor their approach to the specific needs and risk appetites of their clients.&nbsp;</p> <h2 class="wp-block-heading">Money Management account features&nbsp;</h2> <p>Money management is a crucial aspect of the MAM account.</p> <p>With the ability to manage multiple client accounts from a single interface, fund managers can efficiently monitor and adjust trading strategies, ensuring all investment accounts are aligned with the overarching objectives of the fund.</p> <p>This setup not only simplifies the management of client funds but also enhances the potential for achieving consistent trading results across the board.</p> <h2 class="wp-block-heading">Account type and trading solutions</h2> <p>The trading platform you choose is up to you, with the choice of MT4 or MT5 accounts available.</p> <p>Individual accounts can choose between <a href="https://acy.com.au/en/platforms/account-types/standard">standard account</a> or <a href="https://acy.com.au/en/platforms/account-types/prozero">ProZero accounts</a>, depending on the investment objectives of your clients.</p> <p>You will trade on behalf of your clients across the full range of trading instruments and <a href="https://acy.com/en/market-news/education/expert-advisors-benefits-forex">Expert Advisors EAs</a> are the preferred way for managers to trade.</p> <p>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.</p> <p>No matter if you are using fundamental analysis, technical analysis, or advanced <a href="https://acy.com/en/market-news/education/expert-advisors-benefits-forex/">algorithmic trading systems</a> to service your multiple clients, a MAM MT4 account could be the perfect solution for your expanding trading fund.</p> <h2 class="wp-block-heading">Legal documents</h2> <p>Managing a MAM account requires proper legal documentation to ensure compliance and transparency.</p> <p>We can work with you to arrange the legal documents, such as Limited Power of Attorney (LPOA) forms, as we have a legal team on hand through ACY Advisory.</p> <p>These documents are essential to formalise the relationship between the MAM account manager and the investors, ensuring all parties are protected and aligned with regulatory standards.</p> <h2 class="wp-block-heading">Benefits of MAM accounts</h2> <figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="900" height="600" src="https://wp.acypartners.com/wp-content/uploads/2025/04/MAM-Account-Benefits-top-three-9.jpg" alt="mam account benefits" class="wp-image-681" srcset="https://wp.acypartners.com/wp-content/uploads/2025/04/MAM-Account-Benefits-top-three-9.jpg 900w, https://wp.acypartners.com/wp-content/uploads/2025/04/MAM-Account-Benefits-top-three-9-300x200.jpg 300w, https://wp.acypartners.com/wp-content/uploads/2025/04/MAM-Account-Benefits-top-three-9-768x512.jpg 768w" sizes="auto, (max-width: 900px) 100vw, 900px" /></figure> <ul class="wp-block-list"> <li>You can manage multiple trading accounts from a single main account&nbsp;</li> </ul> <ul class="wp-block-list"> <li>Ideal for the professional trader who wants to move to the next level of trading success&nbsp;</li> </ul> <ul class="wp-block-list"> <li>Clients can easily deposit and withdraw funds, simplifying the funds of the investors&nbsp;</li> </ul> <ul class="wp-block-list"> <li>The master account is controlled using <a href="https://www.acypartners.com/meta-fx" target="_blank" rel="noreferrer noopener">MetaFX</a>&nbsp;</li> </ul> <ul class="wp-block-list"> <li>Clients are able to withdraw funds from their sub-accounts at a schedule you set&nbsp;</li> </ul> <ul class="wp-block-list"> <li>Your MAM account allows you to trade the Forex market, indices, commodities, precious metals, share CFDs, ETFs and crypto assets as your trading system dictates.&nbsp;</li> </ul> <ul class="wp-block-list"> <li>Trades executed by the master account get distributed to all the sub accounts at the same time&nbsp;</li> </ul> <ul class="wp-block-list"> <li>You have complete control over the allocation method&nbsp;</li> </ul> <h2 class="wp-block-heading">How can ACY Partners help you?</h2> <p>At ACY Partners, one of our core offerings is the setting up of MAM accounts for new and experienced fund managers.&nbsp;</p> <p>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.&nbsp;</p> <p>Over the years, we have helped countless traders look after their managed accounts, with complete reporting and analysis via our dynamically updating client portal.&nbsp;</p> <p>We take care of the important details, so you can get on with trading your fund.&nbsp;</p> <p>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.&nbsp;</p>