Best Brokers With LAMM Accounts
Lot Allocation Management Module (LAMM) brokers allow you to give part of your capital to fund managers who will invest on your behalf.
They differ from other popular managed trading accounts like PAMM and MAM in their method of allocation. Capital is denominated in lots, hence lot allocation.
LAMM accounts will suit hands-off forex traders who want a degree of control over risk – you can decide the number of lots to invest.
Best LAMM Account Brokers In 2024
Following our tests, we gave these 4 brokers the highest overall ratings. They all offer some form of lot allocation through their managed account solutions.
Best Brokers With LAMM Accounts Comparison
| Broker | LAMM Account | Minimum Deposit | Platforms | Regulators | Visit |
|---|---|---|---|---|---|
|
✔ | $10 | R StocksTrader, MT4, MT5, TradingView | IFSC | Visit |
|
✔ | $200 | WebTrader, FXDD Mobile App, MT4, MT5 | MFSA, FSC, LFSA, SBS | Visit |
|
✔ | $10 | MT4, MT5 | FinaCom | Visit |
|
✔ | $100 | MT4, AutoChartist, TradingCentral | CySEC, FCA, FSCA, BMA / Bermuda | Visit |
#1 - RoboForex
Why We Chose RoboForex
RoboForex is an online broker, established in 2009 and registered with the IFSC in Belize. Traders can choose from five accounts (Prime, ECN, R StocksTrader, ProCent, Pro) catering to different needs with trades from 0.01 lots and spreads from 0 pips. RoboForex has also enhanced its offering over the years, adding CFD instruments and launching its stock trading platform, plus the CopyFX system.
"RoboForex is great if you want a vast range of 12,000+ day trading markets with ECN accounts, powerful charting and loyalty promotions. It also stands out for stock traders with its user-friendly R StocksTrader platform, featuring 3,000+ shares, fees from $0.01 and sophisticated watchlists."
- DayTrading Review Team
- Instruments: CFDs, Forex, Stocks, Indices, Commodities, ETFs, Futures
- Regulator: IFSC
- Platforms: R StocksTrader, MT4, MT5, TradingView
- Minimum Deposit: $10
- Minimum Trade: 0.01 Lots
- Leverage: 1:2000
Pros
- The broker offers leverage up to 1:2000 for certain account types, which is among the highest in the industry. This high leverage allows day traders to maximize their trading potential, albeit with a corresponding increase in risk.
- The broker offers two commission-free withdrawals each month in the Free Funds Withdrawal program, helping day traders to minimize transaction costs.
- RoboForex is known for its tight spreads starting from 0 pips and low minimum deposits from $10, making it accessible to those on a budget. The ability to trade with micro lots further lowers the barrier to entry for new traders.
Cons
- Despite offering a range of platforms, RoboForex still doesn't support the increasingly popular cTrader. This might deter traders who prefer this specific platform for their day trading activities and is available at firms like Fusion Markets.
- Despite 15+ years in the industry and registering with the Financial Commission, RoboForex is authorized by one ‘Red-Tier’ regulator – the IFSC in Belize, lowering the level of regulatory protections for traders.
- RoboForex now restricts base currency options to USD and EUR. This limitation may inconvenience day traders preferring to manage their accounts in other currencies, while potentially leading to conversion fees.
#2 - FXDD
Why We Chose FXDD
FXDD is an established forex and CFD broker founded in 2002. Regulated in Malta, Mauritius, Peru and Malaysia, the broker provides secure trading platforms, competitive ECN spreads and reliable 24/7 customer support. Competitive pricing and ultra-low latency is also offered via the broker's Direct Market Access execution model and tier 1 aggregated liquidity.
"FXDD remains a popular choice for experienced traders looking for reliable VPS hosting and automated trading tools. It will also serve any traders familiar with the MetaQuotes software, with both MT4 and MT5 on offer."
- DayTrading Review Team
- Instruments: Forex, CFDs, Indices, Stocks, Commodities
- Regulator: MFSA, FSC, LFSA, SBS
- Platforms: WebTrader, FXDD Mobile App, MT4, MT5
- Minimum Deposit: $200
- Minimum Trade: 0.01 Lots
- Leverage: 1:500* Leverage varies depending on the region
Pros
- MAM and PAMM accounts are available for those who want to manage trader portfolios and earn commissions
- The broker offers VPS accounts for algo traders and experienced traders looking to run complex automated strategies
- FXDD is highly accessible for beginners with just a $1 minimum deposit to get started, plus cent, mini, micro and demo accounts
Cons
- There's a $25 withdrawal fee for payments under $100, which is steep and will impact beginners and casual traders
- The broker's market insights section is outdated and trails leading competitors
- FXDD offers around 150 instruments - a narrow range compared to the hundreds offered at most top brokers
#3 - Grand Capital
Why We Chose Grand Capital
Grand Capital is a MetaTrader broker with welcome bonuses, trading competitions and an intuitive copy trading service. Several account types and 400+ assets provide trading opportunities for various types of investors and strategies. New users can also open an account and start trading in a matter of minutes.
"Grand Capital is a good broker for traders familiar with MetaTrader plus passive investors interested in copy trading and LAMM solutions. On the downside, the broker's regulatory credentials lag behind competitors."
- DayTrading Review Team
- Instruments: CFDs, Forex, Indices, Shares, Energies, Metals, Cryptocurrencies, Binary Options
- Regulator: FinaCom
- Platforms: MT4, MT5
- Minimum Deposit: $10
- Minimum Trade: 0.01 Lots
- Leverage: 1:500
Pros
- Accessible minimum deposit starting from $10
- Wide selection of payment methods and account currencies
- GC Invest platform for copy trading
Cons
- Limited regulatory oversight
- High spreads on some assets
- Basic education and market research
#4 - IronFX
Why We Chose IronFX
IronFX is a multi-regulated forex and CFD broker founded in 2010. This award-winning firm offers 500+ markets to over 1.5 million clients across 180 countries. Traders can access various account types with competitive pricing on the MT4 platform, as well as 24/5 customer support in 30 languages.
"IronFX remains a good choice for experienced forex traders looking to trade with fixed or floating spreads. The range of 80+ currencies is more than many competitors and there are some excellent forex market research tools on offer."
- DayTrading Review Team
- Instruments: Forex, Indices, Shares, Futures, Commodities, Metals (all CFDs)
- Regulator: CySEC, FCA, FSCA, BMA / Bermuda
- Platforms: MT4, AutoChartist, TradingCentral
- Minimum Deposit: $100
- Minimum Trade: 0.01 Lots
- Leverage: 1:30 (FCA), 1:30 (CySEC), 1:500 (FSCA), 1:1000 (BM)
Pros
- Alongside MT4, the broker continues to offer several additional services, including copy trading, a VPS solution, and PAMM/MAM accounts
- Fixed and floating spread accounts are available, making IronFX a good choice for both beginners and experienced traders
- The broker frequently offers trading competitions with cash prizes, as well as welcome bonuses for new clients
Cons
- It’s a shame that the broker doesn’t offer any additional software such as MT5 or TradingView to give experienced traders more choice
- Compared to the leading brokers, IronFX offers a relatively small selection of share CFDs
- Commissions start from $13.50 per lot in the zero-spread accounts, nearly double the industry average
How Did DayTrading.com Choose The Best LAMM Account Brokers?
To compile a list of the best LAMM accounts, we looked at several key factors:
- We checked brokers offer a form of LAMM account. They are no longer supported by many brokers, who increasingly offer copy trading, PAMM and MAM accounts instead.
- We prioritized brokers we trust. Safety and security are key when you are trading, but even more so if you’re trusting someone else to manage your funds. IronFX stands out as one of the few heavily regulated brokers to offer LAMM accounts.
- We investigated the fund manager reports available. This is important because the top firms provide access to skilled fund managers with reports that detail past performance, approach to risk and other key metrics, helping you decide who to invest your capital with.
- We selected brokers with a low minimum investment, that makes LAMM accounts accessible to beginners. Grand Capital offers one of the lowest account minimums among LAMM brokers, starting from $10.
- We evaluated the fees you will pay to invest using a LAMM account, as they partly determine your chances of making a profit and limit the amount you can make. RoboForex offers a form of lot allocation with competitive spreads and a 25% management fee that is charged on profitable positions.
- We chose brokers with customer service you can rely on following our tests that considered the coverage, speed and professionalism of support in dealing with our questions about LAMM account conditions.
What Is A LAMM Account?
A LAMM, or Lot Allocation Management Module, allows you to partition capital for a fund manager to execute your orders.
This allocation is done by a set lot size, so the manager cannot access your whole account.
Profits or losses are calculated in line with the lot size you select.
You can see exactly how it works in IronFX’s solution below.
How Are LAMM Accounts Different To Other Managed Accounts?
Other popular managed trading accounts include Percentage Allocation Management Module (PAMM) and Multi-Account Manager (MAM).
LAMM is very similar to PAMM, the difference being that in a LAMM account, you specify the number of lots to allocate, whereas in PAMM accounts you specify a percentage of your capital.
In MAM, a single master trader executes trades that are mirrored by all the MAM account holders, though these investors also have the option to set their own parameters and have some control over the account.
Bottom Line
LAMM brokers offer a form of managed account that allows you to provide a set number of lots for a fund manager to carry out trades on your behalf.
LAMM accounts take much of the work and required knowledge out of trading, as you can simply select a manager and let them do the work.
However, there is no guarantee that you will make money and finding a trusted broker with a strong pool of fund managers can be challenging.
That’s why we recommend using one of our highest-rated brokers with LAMM accounts that have been reviewed by our testing team.
FAQ
What Are The Advantages Of LAMM Accounts?
The main benefits of LAMM accounts are that you can spend less time trading and you can leverage the experience of seasoned forex traders, for example.
You also retain a degree of control because you can normally choose how many lots to invest and you can use multiple fund managers to spread risk.
What Are The Risks Of LAMM Accounts?
There is no guarantee you will make money using a LAMM account. This will depend on the skill of the fund manager you entrust your capital with, and the fees you pay.
Also, LAMM accounts are less popular than PAMM and MAM solutions, which are provided more frequently by regulated brokers.