MAM / PAAM Introduction​

What is the difference between PAMM and Mam?

A MAM account allows you to use the percentage allocation method like a PAMM account, but it provides greater flexibility to allocate the trades and adjust the risk of each sub-account based on the clients’ risk profiles.

The MAM (Multi-Account Manager) account is a type of trading account that allows a money manager to manage multiple trading accounts from a single master account.

Here’s how it works:

It works in 5 easy steps as follows :
  • The money manager opens a MAM account with a broker.
  • The money manager then creates several sub-accounts within the MAM account for their clients.
  • The clients’ funds are deposited into their respective sub-accounts.
  • The money manager places trades on the master account, and those trades are then proportionally distributed among the sub-accounts based on the lot size allocated to each account.
  • The profits or losses generated from trading are also proportionally distributed among the sub-accounts based on their share of the total equity

Understand below diagram How money manager will manage accounts under him?

MAM accounts allow money managers to manage multiple accounts at once, which saves time and effort. It also allows them to execute trades with greater efficiency and flexibility, as trades can be placed on the master account and automatically copied to the sub-accounts.

Additionally, MAM accounts offer a high level of transparency, as clients can view their accounts performance in real-time and monitor the trades placed by the money manager.

Overall, MAM accounts can be a useful tool for money managers who want to manage multiple accounts and streamline their trading activities.