LAMM Brokers & Accounts
LAMM brokers offer a specific form of multi-account management (MAM) service that can be used for a range of securities and derivatives, including spot stocks, forex and CFDs. The concept began in the Western financial world but has since spread across the globe, especially in FX markets. This article will explore some of the best LAMM brokers, outline how to compare them and discuss the pros and cons of LAMM accounts.
Top LAMM Account Brokers
#1 - IC Markets
IC Markets is a respected multi-asset broker offering premium trading technology, highly competitive pricing and 24/7 customer support. The broker provides various social trading features for beginners whilst experienced day traders can enjoy advanced charting and analysis tools. Over 180,000 clients from more than 200 countries have signed up with the heavily regulated and trustworthy brand.
"IC Markets offers a top-class environment for traders of all experience levels and strategies. Industry-leading platforms, superior pricing and flexible accounts will meet the needs of both beginners and active day traders."
- DayTrading Review Team
- Instruments: CFDs, Forex, Stocks, Indices, Commodities, Bonds, Futures, Crypto
- Regulator: ASIC, CySEC, FSA
- Platforms: MT4, MT5, cTrader, DupliTrade
- Min. Deposit: $200
- Min. Trade: 0.01 Lots
- Leverage: 1:30 (ASIC & CySEC), 1:500 (FSA), 1:1000 (Global)
Pros
- High leverage up to 1:500
- Responsive 24/7 customer support plus an extensive help centre
- Fast order execution speed of under 40ms
Cons
- Traders from the US not accepted
- No bonus deals for new traders
- Two-factor authentication not available for extra account security
#2 - RoboForex
RoboForex is a global broker launched in 2009. The firm offers more than 12,000 instruments spanning 9 asset classes with trades from 0.01 lots and spreads from 0 pips. The broker's advanced copy trading tool is also home to thousands of active day traders.
"RoboForex is a good pick for traders looking for a vast range of day trading markets with ECN accounts, powerful charting platforms and loyalty promotions. Real stocks traders will also appreciate the R Stocks Trader terminal, with automated trading capabilities."
- DayTrading Review Team
- Instruments: CFDs, Forex, Stocks, Indices, Commodities, ETFs
- Regulator: FSC
- Platforms: R StocksTrader, MT4, MT5
- Min. Deposit: $10
- Min. Trade: 0.01 Lots
- Leverage: 1:2000
Pros
- Accessible payment methods are available, including PayPal
- You can access commission-free trading on thousands of US stocks
- There's a VPS server for experienced investors looking for 24/7 uninterrupted trading
Cons
- The demo account expires after only 90 days, which is a smaller time limit than some competitors
- Based on tests, instruments and fees vary between platforms
- The broker's range of 40+ currency pairs is mediocre
#3 - FxPro
FxPro is an award-winning forex, CFD and spread betting broker with over 2 million clients worldwide. The broker is regulated in 4 jurisdictions and offers 24/5 customer support, earning it a high trust and safety score. FxPro has also picked up more than 100 industry accolades for its competitive trading conditions, including fast execution and deep liquidity.
"FxPro is best for traders looking for wide market access with thousands of instruments and reliable trading platforms, including MT4, MT5 & cTrader."
- DayTrading Review Team
- Instruments: CFDs, Forex, Stocks, Indices, Commodities, Futures
- Regulator: FCA, CySEC, FSCA, SCB, FSC
- Platforms: MT4, MT5, cTrader, AutoChartist, TradingCentral, DupliTrade
- Min. Deposit: $100
- Min. Trade: 0.01 Lots
- Leverage: 1:30 (Retail), 1:500 (Pro), 1:1000 (Via Prime Ash Capital Limited)
Pros
- No dealing desk (NDD) intervention with fast execution speeds under 13ms
- 4 superior trading platforms including MT4, MT5, cTrader and the broker's powerful proprietary solution
- Comprehensive analysis and trading tools including signals powered by Trading Central and VPS hosting
Cons
- Inactivity fee applied to dormant accounts
- Limited payment methods
- Relatively high fees on some assets
#4 - IronFX
IronFX is a multi-regulated broker offering CFD trading on forex, stocks, indices and commodities through the MetaTrader 4 platform. The broker offers various account types with competitive pricing, including spreads from zero on STP/ECN accounts. Leverage varies by regulator between 1:30 and 1:1000.
"IronFX is a good choice for beginner and intermediate forex traders looking to trade an extensive list of currencies with competitive spreads."
- DayTrading Review Team
- Instruments: Forex, Indices, Shares, Futures, Commodities, Metals (all CFDs)
- Regulator: CySEC, FCA, FSCA, BMA / Bermuda
- Platforms: MT4, AutoChartist, TradingCentral
- Min. Deposit: $100
- Min. Trade: 0.01 Lots
- Leverage: 1:30 (FCA), 1:30 (CySEC), 1:500 (FSCA), 1:1000 (BM)
Pros
- Fixed and floating spread trading accounts are available
- A choice of welcome bonuses is available to new users
- High leverage up to 1:1000 is offered (location dependent)
Cons
- Relatively poor selection of non-forex assets
- No support for MetaTrader 5 platform
- Sizable fees charged to inactive accounts
How Do LAMM Brokers Work
Lot Allocation Management module (LAMM) accounts let investors give a section of their capital to fund managers who will make trades and investments on their behalf. The amount given is selected by the investor and defined as a number of lots, hence lot allocation. While similar to copy trading, LAMM distinguishes itself as the manager will action your investments, rather than you setting your account to copy someone.
How To Compare LAMM Brokers & Accounts
Minimum Deposit
Minimum deposits determine the accessibility of a LAMM broker, as you may need to invest a lot of capital before you can begin using the broker’s services. These limits vary from platform to platform and can be an important factor when choosing the right one for you. For example, Grand Capital requires a deposit of at least $10, whereas Scandinavian Capital Markets have a minimum deposit requirement of $10,000 for their cheapest account option.
Fee Structure
Broker fees can take on many forms, from transaction charges (deposits and withdrawals) to investment commissions and inactivity fees. This is a vital consideration as they can constantly eat away at your profit margins and end up aggregating to a significant amount.
Spreads, being the difference between an asset’s bid and ask price, are also important, though they may be taken into consideration by the account managers when implementing their investments.
Platform & Interface
Every broker will support different market access platforms and account management interfaces. Popular platforms include MetaTrader 4 (MT4), MetaTrader 5 (MT5) and cTrader, although bespoke software can also be effective, efficient and user friendly. The platform can make all the difference between success and failure in the financial markets, with different analysis tools, indicators and charting options supporting different strategies and approaches.
Some of the top LAMM brokers will also support mobile access to their platforms, ideally on both iOS and Android devices. This is great for clients without much free time or who are constantly on the move as there is no need to be tied to a desk.
Customer Support
Customer service is important for any goods or services you may purchase, but it is especially so in the financial markets, where any lost time is lost opportunity. If you have any issues, you will want a responsive customer support team with a range of contact methods and active hours. Most LAMM brokers can be contacted via phone, email or live chat on their website.
Security
When risking your capital on the financial markets, safety and security are key. The best LAMM brokers will be regulated by local or international financial agencies, which impose certain security standards. Communication encryption, bank account segregation, a range of payment methods and financial compensation schemes are all things to look out for.
A regulated broker should display this information on the footer of its website, along with its license number. If in doubt, you can check the database of the regulatory agency to ensure the broker is listed.
Market Access
One of the easiest ways to distinguish between LAMM brokers is by the financial assets they provide access to. For example, if you wish to invest in commodity CFDs, then you should ensure the broker you are considering offers these assets.
Final Word On LAMM Brokers
LAMM brokers are a form of multi-account management brokerage that allow investors to provide a set number of lots for a fund manager to carry out trades on their behalf. LAMM accounts take much of the work and required knowledge out of investing, as you can simply select a manager and let them do the work. Finding the right broker can be tricky, but focusing on fee structures, platforms, market access and regulation provides a good starting point.
FAQs
How Do LAMM Brokers Work?
LAMMs, or Lot Allocation Management Modules, allow investors to do business in their own accounts, but also to partition capital for a fund manager to execute their own orders. This allocation is done by a set lot size, so the manager cannot access your whole account.
Are Managed Accounts Safe?
Managed accounts offer the same safety and security standards as other brokerage services, though there is the uncertainty around the fund manager making the trades for you. Some investors may see this as less risky, as managers can be selected and often have more experience, while others prefer to have more manual control.
Who Are Managed Accounts Designed For?
Managed accounts are designed to cater for several investors at a time, depending on their specific needs. This could be those new to the financial markets who want to pass on the analysis and order execution to someone more experienced, or simply those without enough time to sufficiently monitor the markets.
What Are The Advantages Of LAMM Accounts?
The main benefits associated with LAMM accounts are that investors can spend much less time on their trades and they can leverage the experience of more successful investors.
Which Brokers Offer LAMM Accounts?
There are multiple brokers with LAMM accounts, which can be easily checked on the provider’s website. However, it is worth noting that PAMM accounts are more popular these days and are offered more frequently by brokers.