MAM Trading

A Multi-Account Manager (MAM) trading system enables experienced investors to manage several individually-owned trading accounts. The trades placed by the manager are replicated across the pool of accounts, with characteristics like trade size altered depending on the preferences and risk level set by each investor. This page will detail how MAM trading works, outlining the pros and cons as well as listing the best MAM trading brokers in 2024.

MAM Brokers

Click a broker for details
  1. 1
    Interactive Brokers

    Ratings
    4.5 / 5
    3.5 / 5
    4.5 / 5
    4.3 / 5
    3.3 / 5
    3 / 5
    4.4 / 5
    4.3 / 5
    4.3 / 5
    4.5 / 5

    $0
    $100
    1:50
    FCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB, FINMA
    Stocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, CFDs, Cryptocurrencies
    Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, eSignal, TradingCentral
    Cheque, ACH Transfer, Wire Transfer, Automated Customer Account Transfer Service, TransferWise, Debit Card
    USD, EUR, GBP, CAD, AUD, INR, JPY, SEK, NOK, DKK, CHF, AED, HUF
  2. 2
    Coinexx
    100% Deposit Welcome Bonus

    0.001 BTC
    0.01 Lots
    1:500
    Forex, Commodities, Indices, Cryptocurrencies
    MT4, MT5
    Bitcoin Payments, Ethereum Payments
    USD

Here is a short overview of each broker's pros and cons

  1. Interactive Brokers - Interactive Brokers (IBKR) is a premier brokerage, providing access to 150 markets in 33 countries, along with a suite of comprehensive investment services. With over 40 years of experience, this Nasdaq-listed firm adheres to stringent regulations by the SEC, FCA, CIRO, and SFC, amongst others, and is one of the most trusted brokers for trading around the globe.
  2. Coinexx - Coinexx is an unregulated broker that provides leverage up to 1:500 on forex, commodities, indices and cryptocurrencies with deep liquidity, pure ECN spreads and negative balance protection. The broker uses crypto as base currencies and has low minimum deposit requirements of 0.001 BTC.

Interactive Brokers

"Interactive Brokers is one of the best brokers for advanced day traders, providing powerful charting platforms, real-time data, and customizable layouts, notably through the new IBKR Desktop application. Its superb pricing and advanced order options also make it highly attractive for day traders, while its diverse range of equities is still among the best in the industry."

Christian Harris, Reviewer

Interactive Brokers Quick Facts

Demo AccountYes
InstrumentsStocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, CFDs, Cryptocurrencies
RegulatorFCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB, FINMA
PlatformsTrader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, eSignal, TradingCentral
Minimum Deposit$0
Minimum Trade$100
Leverage1:50
Account CurrenciesUSD, EUR, GBP, CAD, AUD, INR, JPY, SEK, NOK, DKK, CHF, AED, HUF

Pros

  • The new IBKR Desktop platform takes the best of TWS while adding bespoke tools like Option Lattice and Screeners with MultiSort to create a genuinely impressive trading experience for day traders at every level.
  • The TWS platform has clearly been built for intermediate and advanced traders and comes with over 100 order types and a reliable real-time market data feed that rarely goes offline.
  • IBKR continues to deliver unmatched access to global stocks with tens of thousands of equities available from 100+ market centres in 24 countries.

Cons

  • TWS’s learning curve is steep, and beginners may find it challenging to navigate the platform and understand all the features. Plus500's web platform is much better suited to new traders.
  • Support can be slow and frustrating based on tests, so you might find it challenging to reach customer service representatives promptly or encounter delays in resolving issues.
  • You can only have one active session per account, so you can’t have your desktop program and mobile app running simultaneously, making for a sometimes frustrating trading experience.

Coinexx

"Traders seeking highly leveraged CFDs with a broker that uses crypto as a base account currency will find a good match in Coinexx. The ECN model also offer tight spreads from 0 pips. On the downside, traders should note the weak regulatory oversight."

Tobias Robinson, Reviewer

Coinexx Quick Facts

Bonus Offer100% Deposit Welcome Bonus
Demo AccountYes
InstrumentsForex, Commodities, Indices, Cryptocurrencies
PlatformsMT4, MT5
Minimum Deposit0.001 BTC
Minimum Trade0.01 Lots
Leverage1:500
Account CurrenciesUSD

Pros

  • Full range of investments including cryptos
  • Demo account available to prospective traders
  • Free VPS for active traders

Cons

  • No copy trading service for aspiring investors
  • Limited educational materials for new traders
  • No regulatory oversight reduces safety

How MAM Trading Works

MAM trading, sometimes shortened to multi-account trading (MAT), entails a master trader or fund manager to carry out trades for multiple users through a single terminal. The managed trading accounts of each investor and individual trader are combined into a large pool that is managed by the master trader. Any orders executed by the MAM trading manager are split amongst the associated accounts as per the risk appetite and available capital of each user.

Master traders utilise software from a MAM trading group or corporation that allows them to execute trades on behalf of their clients and investors. Some of the best MAM software and tools are compatible with industry-recognised platforms, such as MetaTrader 4 (MT4).

MAM Trading Software

Deposits & Withdrawals

Deposits and withdrawals for the individual sub-accounts within a MAM trading pool are handled by the investors and traders themselves; the fund manager cannot request deposits or withdrawals from their clients, they solely manage the trades.

Fees

MAM trading often has associated fees and stipulations, such as minimum deposits. Minimum deposits can vary from low and accessible to up to tens of thousands for premium packages and more experienced master traders.

MAM trading users pay a fee to the master trader based on their performance, often by way of a percentage of returns. This incentivises the fund manager to be careful with your money and make the best trades. Some master traders also charge management fees to the brokers themselves in the form of an ongoing fixed percentage fee, though this is uncommon.

MAM Trading Example

The best way to conceptualise and understand MAM trading is to run through an example.

Suppose you invest $20,000 into a MAM forex trading account and you are allocated or have selected an experienced trader with a swing trading strategy.

If the first week’s investments earn you 30% gains, by the end of that week your balance will sit at $26,000 ($20,000 x 30% = $6,000).

However, the MAM trading manager will take a commission from these profits, for example, 20%. As a result, the fund manager would take $1,200 ($6,000 x 20% = $1,200) from your profits, leaving you with a final balance of $24,800 after the week’s trading, giving you a net profit of $4,800.

MAM Trading Strategies

Master traders execute trades either by equity size or lot allocation.

Equity Size

An example of equity size MAM trading management is as follows. Consider a multi-account manager that has five investors with a range of investment sizes totalling $50,000.

The MAM trading manager could execute a 10-lot position on EUR/USD in the master terminal. The respective trades of each investor would then be:

What is MAM trading

Lot Allocation

For lot allocation, the trades are split by the proportion of lots each trader makes available. For example, consider two active sub-accounts within a MAM trading pool that have lot allocations of 2 and 3 lots, respectively.

If the master trader again makes a 10-lot trade, the trading volume for each sub-account would be:

As you can see, it is a very similar approach to equity size MAM trading, only the investors put forward relative trade sizes rather than specific equity amounts.

MAM Vs PAM Vs LAM

There are some key differences between Multi-Account Manager (MAM) trading, Percentage Allocation Management (PAM) and Lot Allocation Management (LAM) solutions.

PAM terminals enable investors to allocate a portion (as a percentage) of their total trading capital to copy trades from a master. PAM solutions also allow you to follow multiple traders and diversify your portfolio by allocating different percentages to different investors.

On the other hand, LAM trading gives the power to the investor to choose the number of lots that can be traded by various master investors. LAM trading is essentially a more basic version of PAM solutions that aim to lower the risk of trading losses.

Pros Of MAM Trading

There are several advantages to MAM trading:

Cons Of MAM Trading

Despite the benefits, there are a few disadvantages to MAM trading:

How To Start MAM Trading

To start MAM trading you first need to find a suitable MAM trading broker. When choosing a provider, there are a few important factors to consider:

MAM Trading International

Final Word On MAM Trading

MAM trading offers several benefits to both new and experienced traders. Primarily, the fact that your trades are managed for you means that beginners may earn solid profits from the markets without needing to overcome a large learning curve. Similarly, MAM trading requires very little active management, perfect for traders with little extra time on their hands. But while MAM trading also offers several levels of control for both traders and investors, there are still risks involved and you should always ensure that the company is fully regulated with transparent trading history.

FAQs

What Is MAM Trading?

Multi-Account Manager (MAM) trading allows an experienced investor to perform trades for several users through a single terminal. Individual traders put forward capital and the master trader carries out trades that are replicated for all accounts in the pool.

What Is The Difference Between MAM Trading And PAM Trading?

Multi-Account Manager (MAM) trading gives the master trader flexibility in the position size allocated to sub-accounts. Percentage Allocation Management (PAM) trading allocates positions to sub-accounts based on the size of their investment relative to the total pooled equity.

How Does MAM Trading Work?

Multi-Account Manager (MAM) trading merges individual accounts and investor accounts into a large pool that essentially becomes a managed fund. Any trades the master trader makes will be replicated across the sub-accounts based on the risk level and preferences set by each investor.

Do You Need A License To Become A MAM Master Trader?

Forex traders do not require licenses but MAM forex brokers do. This means established investors can become master traders with reputable providers if they can demonstrate strong trading history.

What Does MAM Trading Stand For?

MAM stands for Multi-Account Management. MAM software enables a master trader, or fund manager, to manage a large number of individual accounts through one terminal.