MAM/PAMM

Designed for money managers looking to automate trade allocation.

The MAM and PAMM systems are readily available for money managers that use the MetaTrader 4 platform. The MAM account is designed for money managers who are interested in a flexible system while being able to sub-allocate trades that are placed on the master account. The PAMM accounts are in place for those that want to be part of a group of separate accounts which are then traded by a single money manager. Both Multi Account Manager (MAM) and Percentage Allocation Module Management (PAMM) accounts are available for Global Prime clients. Utilising these systems is a great way for traders to manage a large amount of different accounts from one location.

What Is a MAM Account?

A Multi Account Manager (MAM) is designed for money managers who are looking for extensive flexibility when they are sub-allocating their trades on a single master account. With this tool, money managers are able to quickly execute block orders with just one click while being under one master account. When comparing this to PAMM which allocates trades based on the percentage of total equity, MAM accounts simply give money managers more flexibility when they are sub-allocating trades. This flexibility is the one feature that has made MAM accounts so popular for money managers that want to trade on the forex market from one master account.

For example, the money manager can allocate trades on a fixed lot basis. This means he or she can set the amount of lots to be traded, tweak the account size, and manage the risk profile of their accounts. Fixed allocation can also be achieved with a Lot Allocation Management Module (LAMM) which allows portfolio managers to manually control the lot size within sub-accounts. This depends on their clients risk tolerance and whether or not they are willing to take the extra risk. Since MAM accounts are so flexible and easy to use, money managers generally prefer to use this type of account.

Who Benefits From MAM Accounts

If you are a trader that manages multiple accounts, considering a MAM system is recommended. This is especially true if you are using EAs as you will need the flexibility to manage the various accounts. By using MAM, you are able to extend the functions of the MetaTrader 4 platform. MAM is an add-on to the MT4 program and is completely integrated. You will not need multiple MT4 interfaces as you can control multiple accounts from just one. This ease of functionality allows money managers to have better control of their trades while working from one interface.

Every account that you manage can be conducting trades from a single MetaTrader 4 client. With centralized processing and a server based system, you can have hundreds of different accounts which can all be trading with one click. There is also no delay between each trade. This ensures that consistent speed is efficacious between managed accounts.

It is important to note that as with any forex trading, investing in a MAM comes with a high level of risk which should be considered prior to participation.

What Is a PAMM Account? 

A Percentage Allocation Module Management (PAMM) account is the solution for clients who are looking to have separate accounts traded under one money manager. To start things off the manager contributes part of his investment as manager’s capital. The manager’s capital cannot be taken out and acts as insurance for potential investors.

The manager then needs to advertise based on the performance of the account so that other investors will want to have their trading conducted by the manager. There will also be a set of conditions for these investors, detailing how much profit they will keep and how much the manager will make as well. Typically this is done through an intermediary forex broker who ensures the security of the PAMM but is not responsible for any losses.

Once the manager acquires interested investors, they can begin investing on the market. For example, when using a PAMM account, the manager could open a 100 lot long position. The position is broken up between each sub-accounts based on the percentage equity of each account. This ensures that each account is contributing its share to the trade.

Advantages of a PAMM Account

Managers benefit from PAMM accounts simply by being able to make money not just from their own investment, but from other investors. Since there is a set of conditions that the investors must agree upon, there is a degree of structure and control for both the manager and investors.

Investors benefit from PAMM accounts that are operated by experienced traders. If you put your money with someone that has experience and is proven to be successful, you have a better chance of a profitable opportunity. Investors can also diversify their funds with multiple PAMMs which can reduce risk.

It is important to note that as with any forex trading, investing in a MAM comes with a high level of risk which should be considered prior to participation.

If you need more information or have any enquiries, please don’t hesitate to contact either by phone at +612 8277 6611 or email us at forex@globalprime.com.au or feel free to start a live chat session right here on the website.

Let’s have a conversation.

For further information please phone us on +612 8277 6611 or complete the following form and a Global Prime representative will be in contact with you as soon as possible.




Customer Notice

The information on this website is not intended to be an inducement, offer or solicitation to anyone outside of Australia. Global Prime Pty Ltd, ABN 74 146 086 017, (Global Prime) holds an Australian Financial Services Licence (AFSL) to carry on financial services business in Australia, limited to the financial services covered by its AFSL no.385620.

 

Any Information or advice contained on this website is general in nature and has been prepared without taking into account your objectives, financial situation or needs. Before acting on any information or advice on this website, you should consider the appropriateness of it (and any relevant product) having regard to your circumstances and strongly recommend you to seek independent financial advice. Please read our Financial Services Guide and current offer document which is available to be downloaded from this website or hard copies may be sent by contacting us on the details provided on this website.

 

All financial products involves risk and you should ensure you understand the risks involved as certain financial products may not be suitable to everyone. Trading in margin foreign exchange and derivatives carries a high level of risk and you may incur a loss that is far greater than the amount you invested. Past performance of any product described on this website is not a reliable indication of future performance.