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.
Benefits of MAM
Fast Trade Sub-Allocation
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?
Managers of Multiple 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.