MAM account is a great solution to manage multiple trading accounts in one go. It also has a lot of other interesting benefits. Which brokers provide it best?
Forex trading is not as simple as it sounds. It requires traders to have a different set of necessary skills to generate consistent profit from the markets. Traders should also have high perseverance and discipline to be on top. One of the hardest things to do is manage an account, much less multiple ones. This will be even harder if the traders have a full-time job. This is why some of them use account management service.
Different Types of Account Managers
At the moment, there is a lot of brokerage offering account manager features. The most popular managed accounts are MAM, PAMM, and LAMM. This might be a little bit confusing for new traders, so let's break down each account below.
1. MAM
MAM or Multi Account Manager is an innovative software integrated with MT4 trading platforms. It helps traders to manage simultaneous trades from multiple accounts in a single MT4 interface. This software was designed to combine individual trader accounts into a large pool of managed funds that comprise individual trader accounts as well as investor accounts. This is by far one of the best types of managed accounts that have several features enjoyed by both PAMM as well as LAMM accounts. MAM is also designed with keeping maximum reliability and speed of execution in mind. All processing is server-based, which allows the fastest and most reliable executions.
2. PAMM
PAMM or Percentage Allocation Management Module is another type of account manager most brokers offer. This account allows traders to allocate a percentage of trading capital to copy trades from a master account. PAMM users can follow different accounts and diversify their investments by allocating to different trading systems. It also has more flexibility that allows traders to choose multiple trading systems and hedge against any performance issues that might appear from a master trading account. More often than not, MAM accounts will be combined with PAMM in order to give traders the best trading options.
3. LAMM
The third account manager is LAMM or short for Lot Allocation Management Module. With this account, traders can choose the number of lots that can be traded in the market. The profits and losses will be determined according to the multiples of lots invested in the market. LAMM was created for large accounts with bigger capital. Although it's not as popular as broker MAM accounts and PAMM, some well-known brokers still offer this managed account.
Why Many Traders Choose MAM?
Among all three of them, the MAM account is probably one of the most popular ones. Normally, brokerages provide MAM as a part of integrated service with their MT4 platforms. Nonetheless, it's worth mentioning that there are several reasons why a MAM account is beneficial for traders.
1. Expert Advisors
This technology can be integrated with Expert Advisors (EA). Since MAM is compatible with MT4, traders can also use this software as well. EA can be used to monitor and trade in the financial markets using algorithms. It can perform prompt technical analysis of price data and manage trading activities on basis of signals received. Basically, it assists traders in their day-to-day endeavors.
2. Multiple Trading Strategies
As stated before, a MAM account is very versatile and allows traders to run multiple accounts simultaneously. Traders can do this even when those accounts use different trading strategies. They can determine strategies for multiple trading subgroups within your managed accounts. MAM also gives instant on-screen individual information of each account. This allows users to quickly review the trading history of any account as well as apply a wide choice of analytical tools and optimize trading strategies for that account.
3. Allocations and Flexibility
Another benefit of a MAM account is that it uses several allocations methods that might cover several aspects such as balance, lot, percentage, and equity. Most brokers will offer a MAM account with a relatively small spread, but this would be different according to the brokerage's policy.
4. Versatility
MAM server plugin allows traders to have fast and reliable operations. It eliminates all the risks that might occur when the internet connection is slow. The versatility of MAM doesn't only stop there, as it also perfectly integrates all executive orders from the master account. So traders can apply risk management to all trades using stop loss, take profit, and pending orders.
Brokers Offering MAM
Brokers completely understand the benefits of a MAM account. That is why many of them now offer MAM accounts to make sure their clients have the best trading conditions available. Here's a few brokers you can take into consideration:
1. IC Markets
The Multi-Account Manager software has been used by money managers at IC Markets since 2012. This broker's MAM account offers two allocation methods which are Balance Allocation and Equity Allocation. These allocation methods allow the software to act as a MAM, PAMM, or LAMM with several variations of each. Through this condition, clients can access unlimited trading accounts and deposit amounts. Traders can also apply all kinds of market orders such as stop order, limit order, trailing stop, and many more. Of course, monitoring commissions and performance in real-time is also possible.
The money manager feature in IC Market's MAM account gives clients the ability to add or remove funds without affecting trading activity. Traders will also receive professional reporting analytics. This account allows traders to enjoy deep liquidity as well as leverage up to 1:500 in addition to raw pricing connectivity and 0.0 pips spread.
IC Markets is an online forex broker operating under the company of International Capital Markets Pty Ltd. Traders under the Australian jurisdiction are provided with the trading service of IC Markets AU that is headquartered in Australia and licensed by the Australian Securities and Investments Commission (ASIC).
On the other hand, non-Australian traders who open an account in this broker are registered under IC Markets SEY that is based in Seychelles, and regulated under the Seychelles Financial Services Authority (SFSA). The dual operation is a result of the relatively new rules from ASIC that prohibit their regulated broker to offer trading services outside Australia.
Classified as an ECN broker, IC Markets provide clients with MetaTrader 4, MetaTrader 5, cTrader as platform trading options. This broker also follows market trends to include Cryptocurrencies as one of its products, enriching its already wide selection of trading assets that include Currencies, Indices, Metals, Energies, Softs, Stocks, as well as Bonds.
The minimum deposit in IC Markets is in the middle range compared to other ASIC-regulated brokers, as it reaches $200 for every client. Market analysis materials are also prepared regularly for trading insights on IC Markets's official website, proving their competence to serve their traders with important contents created by market experts that work specifically for them.
For payment methods, IC Markets allows funding and withdrawal via wire transfer, credit card, PayPal, Skrill, Neteller, FasaPay, UnionPay, as well as Bitcoin via BitPay. The more interesting aspect from this broker is its multi-base currencies that include USD, AUD, EUR, GBP, SGD, NZD, JPY, CHF, HKD, and CAD.
As the trading technology in IC Markets is highly equipped with co-located servers and extremely low latency (especially on cTrader), the broker is widely known for its capability in hosting traders with the special needs for high-frequency trading as well as scalping.
To sum up, IC Markets is a fitting destination for active traders looking for a well-regulated broker. IC Markets is also flexible in terms of base currency and payment methods, signaling their commitment to welcome traders beyond their home country. As of late 2019, IC Markets provided their website in 18 international languages including English, Korean, Indonesian, French, Spanish, Italian, Malay, German, and Chinese.
2. Pepperstone
There are some benefits of MAM and PAMM accounts in Pepperstone. First of all, the program is designed with qualified and experienced fund managers with relevant licenses or industry experience. It allows traders to easily manage hundreds of sub-accounts from one centralized place with virtually no in allocation. The account integrates directly with Pepperstone MT4 and MT5 servers and enables a wide range of strategies, including expert advisors and scalping. It has customizable performance, management, and commission fees. A trader can also apply all unique order types such as trailing stop, close by, and close all.
Pepperstone was founded in 2010 by a team of experienced traders with a shared commitment to improve the world of online trading. Based in Melbourne, Australia, they grew to become one of the largest forex brokers in the world. If traders want to find a broker that provides low spreads, fast execution, and award-winning support, then the answer is Pepperstone.
Pepperstone has a strong legality guarantee because it has been licensed by the Australian regulator ASIC and FCA. Traders' funds can be deposited in segregated accounts at top Australian banks, one of which is the National Australia Bank (NAB). Therefore, the safety of funds is not a concern if a trader chooses to open an account in Pepperstone.
They succeeded in collaborating with 23 top banks to bring Bid to investors instantly via optical fiber. This allows all orders to be executed 100 percent automatically with low latency up to 0.05 milliseconds, without dealing desk intervention and requotes, as well as with super low trading costs.
Trusted by over 73,000 traders around the world, Pepperstone processes an average of USD12.55 billion of trading volumes every day. Because of that, they have many awards such as:
- The Best Global Forex ECN Broker 2019 and Best Forex Trading Support-Europe
- Best Australian Broker and Best Trading Platform 2018 by Compareforexbrokers.com
- Best Forex ECN Broker, Best Forex Trading Support, and Best Forex Trading Conditions by UK Forex Awards 2018
With the many rewards gained, Pepperstone hopes to attract more and more traders from all over the world. The rising performance of Pepperstone is not only due to the super-tight spreads and fast execution that it provides, but also because many traders are interested in trading with deposits in currencies other than US Dollars.
For this reason, Pepperstone is one of the most market-responsive brokers because it is willing to accept deposits in 10 currencies, which include AUD, USD, EUR, CAD, GBP, CHF, JPY, NZD, SGD, and HKD.
Trading in Pepperstone would allow traders to choose between 11 trading platforms: MT4 for desktop, MT4 Mac, MT4 iPhone, MT4 Android, MT4 iPad/Tablet, MT5, WebTrader, cTrader WebTrader, cTrader cAlgo, and cTrader Mobile. The choice of trading platforms may seem confusing to novice traders, but actually, it is very useful because it has fast execution.
When trading forex, traders can enjoy raw spreads from 0.0 pips on Razor accounts, over 61 currency pairs, and commission-free account funding on a wide range of deposit options. In addition to currency pairs, Pepperstone provides many types of trading instruments, including CFDs for indices and shares, commodities, and cryptocurrencies.
Instruments in commodity trading are pretty much diversified. Not only metal, gold, and silver, but traders can also trade with soft commodities such as cotton, sugar, coffee, cocoa, and orange juice. Pepperstone also provides trading on energy (oil and gas).
There are two types of accounts provided by Pepperstone, namely Razor accounts, and Standard accounts. If you area beginner, it is recommended to choose a Standard account with an average EUR/USD spread of 1.0-1.3 pips and free commission.
Those with particular trading styles such as scalpers and algorithmic traders may enjoy the lower cost setup traditionally seen in a Razor account, with a commission from AUD7 round turn of 100k traded. You can start trading with a minimum lot of 0.01 (micro) and 1:400 leverage.
As a Pepperstone client, a trader can fund and withdraw with alternative methods including Visa, Mastercard, POLi internet banking, bank transfer, BPay, PayPal, Neteller, Skrill, and Union Pay.
If you are new to trading or looking to practice your trading strategies in a risk-free environment, you can create Demo Account in Pepperstone. But if you are an experienced trader or prefer to learn by doing, Pepperstone provides a Live Account that allows you to trade with live executions and pricing.
Traders can also follow and copy strategies from popular traders using third-party services while learning how to improve their trading abilities. Pepperstone has partnered with a range of social trading platforms that traders can choose from, such as Myfxbook, ZuluTrade, Mirror Trader, MetaTrader signals, and Duplitrade.
3. AvaTrade
AvaTrade offers a MAM account as a solution for those who are seeking to fine-tune trading specifications, also for traders who want to open as many trading accounts as they want and deposit whatever amount they want. Through this technology, traders can manage their multiple accounts even when they have different strategies. Instant trading executions, broker control, and server updates are also provided, with regular client reports through the MetaTrader Manager guaranteed.
Avatrade can be called one of the most well-rounded brokers that support almost all trading styles. Not only allowing hedging, scalping, and expert advisor (EA), Avatrade also completes their service with One-cancels-the-other order (OCO) and AutoTrading in many variants of automated trading systems.
AvaTrade was founded in 2006, with the primary mission to empower people to trade with confidence. If traders are still confused about what is the best broker for supporting trader's trading, AvaTrade perchance option of traders, because it has been evaluated and honored for some of the industry's most remarkable financial and technological achievements that it provided to clients.
In 2019, the Dublin-based broker got achievement from Daytrading.com as The Best Forex Broker 2019. Besides, the company is honored as Best Forex Broker, Best Bitcoin CFD Trading Provider of the year, and Best Affiliation Programme in the European area.
Furthermore, for traders who have high mobility, AvaTrade provides many platforms that allow traders to trade using laptops and mobile phones. The availability of the free Autochartist tool in the platforms is the best support for both novice and experienced traders because it makes it easier for them to find trading opportunities without the need to glance at charts all day.
The Autochartist free signal is provided in Gold Account, Platinum Account, and AVA Select. By opening an account in AvaTrade, traders don't have to pay for getting a full Autochartist service. Autochartist itself is a market scanner tool that can detect trading signals from various technical perspectives.
Traders can access AvaTrade in many variants of platforms, such as AvaTradeGO, MetaTrader 4, MetaTrader 5, Automated Trading, Mac Trading, Web Trading, Mobile Trading, and AvaOptions.
In terms of regulation, AvaTrade is regarded as a superior broker because it has a lot of credible licenses. That way, even with deposits of up to ten thousand dollars, security can be guaranteed. Applying the Segregated Account system, AvaTrade is regulated by the Central Bank of Ireland (No.C53877), ASIC Australia (No.406684), JFSA Japan (No.1662), and South Africa (FSP 45984).
Can traders lose more than their deposit abruptly in the event of high volatility? AvaTrade explicitly answers no, as traders have negative balance protection.
With a minimum deposit of USD100, AvaTrade offers various leverage depending on the trading instruments; whether it is forex (starts from 30:1), indices (starts from 20:1), commodities (starts from 5:1), ETFs (starts from 5:1), or cryptocurrencies (starts from 2:1).
AvaTrade has committed to a set of values in relation to customers. Therefore, the company provides the best trading experience, offering multilingual customer service and the most sophisticated and user-friendly trading platform.
New traders can also learn forex trading in the Education tab on AvaTrade's official website. Traders will find a wide collection of articles, video tutorials, and more tools that will assist them every step of the way. It is an important requirement as the forex market might be a bit overwhelming and even scary at times, so traders need to make sure that they are fully prepared to begin trading in the real account.
There are many types of account types provided by AvaTrade. There is also an Islamic Trading Account, which is uniquely provided for Muslim Traders. Islamic account type is similar to a regular one with one key difference; it is not subject to any special fees or interests (swap-free), which sits well with the finance principles of Sharia Law.
If traders have felt confident for forex trading, traders can choose AvaTrade as an ideal choice. The minimum deposit and various platforms offered to make it a suitable destination for even beginners who would like to try forex trading for the first time.
Is It Safe?
Despite all the benefits of a MAM account, some traders are still hesitant to trust it. Yes, it's understandable. But MAM is highly transparent and some might even consider it as a safe form of investment. Managed accounts are entirely safe from any form of broker manipulations. However, there is some risk when it comes to the profitability of a trader if you decide to follow one. It also has a risk of loss and is not immune to market volatility. That is why managing your trading psychology plays a bigger part here. It will help you to decide how much money you should put as the capital of each managed account.
Overall, there is nothing wrong with having multiple trading accounts. If you're interested in giving MAM account a try, one of the three brokers above can be a good place to start.
It's been mentioned that MAM is preferable for its compatibility with Expert Advisors. If you particularly look for the best service to trade with one, here are some of the best brokers for trading with EA.
6 Comments
Feb 3 2022
Can I increase profit with MAM?
Feb 11 2022
Doug Dailey:
Truthfully, I make more money trading for myself than having a managed fund do it for me.
A managed fund is a good idea for someone who just doesn't have the time or patience to trade for themselves.
Don't expect any great monthly returns from these, as I said, I make more trading for myself.
The key thing to make sure of is that you do your homework when looking for a well-managed fund. Which I can see you are currently exploring.
Also, don't push too much of your cash into a managed fund. It should only be a high-risk portion of your portfolio that should get exposed to something like that due to the risks involved.
Hope this helps
Feb 16 2022
Doug Dailey:
Why don't you trust in yourself?
No offense, I must say that I made more money by trading for myself in the past and I believe you will do so sometime. Just keep focused and work hard to learn something that relates to your purpose.
In general, remaining in control of your account and trading to gain experience, by risking small amounts and using very low leverage is usually a better idea than handing over the control of your account to a stranger.
It is difficult to predict how reliable a person is on the basis of the brief communication preceding the opening of an account or the signing of a contract. One will often need years of experience in order to feel safe about the character of such a partner, but in today’s dangerous environment, it is always possible that an unexpected misfortune that will erase his savings in a short time will remove the necessity altogether.
I do not claim that all managers are scams but it is imperative that you perform the necessary background check. Ask for the required licenses and certifications before deciding on whom you will entrust with the management of your wealth.
Feb 15 2022
Which country I should offer my Forex MAM services?
Feb 15 2022
Chan Lee: I think your main obstacle is going to be regulatory issues.
You could just end up with a big problem in many of your target countries and come under the control of their financial services authorities.
This was one of my concerns 4 years ago when starting my forex business and launching it to prospective clients. The best way around it is to use the umbrella of a licensed broker that is already certified and has all of the relevant permissions.
Feb 15 2022
Chan Lee:
I would not so much say this is a question of which country is going to be most profitable, obviously, the Europeans, Asians and North Americans, and Arab states will give you the most profit.
I don't want to state exactly the countries you can't touch but l believe, UK and USA are out and so is most of Europe. Regulation is becoming tighter, so please be very careful, particularly MAMMS or PAMMS, these give investors zero trade choice to control hence constitutes money management And therefore expensive licenses.