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

#1 - AvaTrade

Why We Chose AvaTrade

AvaTrade is a leading forex and CFD broker, established in 2006 and regulated across 9 jurisdictions. Over 400,000 users have signed up with the broker which processes over 2 million trades each month. The firm offers multiple trading platforms, including MT4, MT5, and a proprietary WebTrader. 1250+ financial instruments are available for day trading, alongside a comprehensive education center and multilingual customer support.

"AvaTrade offers the full package for short-term traders. There is powerful charting software, reliable execution, transparent fees, and fast account opening with a low minimum deposit."

- DayTrading Review Team
  • Instruments: CFDs, Forex, Stocks, Indices, Commodities, ETFs, Bonds, Crypto, Spread Betting
  • Regulator: ASIC, CySEC, FSCA, ISA, CBol, FSA, FSRA, BVI, ADGM
  • Platforms: WebTrader, AvaTradeGO, AvaOptions, MT4, MT5, AlgoTrader, TradingCentral, DupliTrade
  • Minimum Trade: 0.01 Lots
  • Leverage: 1:30 (Retail) 1:400 (Pro)

Pros

  • WebTrader is well-suited to beginners and features a strong suite of technical analysis tools and market research for day traders
  • Day traders can access stable spreads and zero commissions with no hidden fees
  • AvaTrade is a heavily regulated and trustworthy broker with licenses from the ASIC, CySEC and more

Cons

  • It’s a shame that there are no rebate schemes for serious traders looking for additional perks - CMC Markets would be a better choice here
  • Traders from the US are not accepted
  • There is no ECN account with raw spreads

#2 - Pepperstone

Why We Chose Pepperstone

Established in Australia in 2010, Pepperstone is a top-rated forex and CFD broker with over 400,000 clients worldwide. It offers access to 1,300+ instruments on leading platforms MT4, MT5, cTrader and TradingView, maintaining low, transparent fees. Pepperstone is also regulated by trusted authorities like the FCA, ASIC, and CySEC, ensuring a secure environment for day traders at all levels.

"Pepperstone stands out as a top choice for day trading, offering razor-sharp spreads, ultra-fast execution, and advanced charting platforms for experienced traders. New traders are also welcomed with no minimum deposit, extensive educational resources, and exceptional 24/7 support."

- DayTrading Review Team
  • Instruments: CFDs, Forex, Currency Indices, Stocks, Indices, Commodities, ETFs, Crypto, Spread Betting
  • Regulator: FCA, ASIC, CySEC, DFSA, CMA, BaFin, SCB
  • Platforms: MT4, MT5, cTrader, TradingView, AutoChartist, DupliTrade
  • Minimum Deposit: $0
  • Minimum Trade: 0.01 Lots
  • Leverage: 1:30 (Retail), 1:500 (Pro)

Pros

  • There’s support for a range of industry-leading charting platforms including MT4, MT5, TradingView, and cTrader, catering to various short-term trading styles, including algo trading.
  • Now offering spread betting through TradingView, Pepperstone provides a seamless, tax-efficient trading experience with advanced analysis tools.
  • Pepperstone emerges as a low-cost broker, especially for serious day traders with spreads from 0.0 in the Razor account and rebates of 25%+ through the Active Trader program.

Cons

  • Pepperstone does not support cTrader Copy, a popular copy trading feature built into the excellent cTrader platform and available at alternatives like IC Markets.
  • Pepperstone’s demo accounts are active for only 30 days, which may not be not long enough to familiarize yourself with the different platforms and test trading strategies.
  • There’s no simplified proprietary trading platform, nor are there any social trading features, which could be a disadvantage if you are new to day trading.

#3 - IC Markets

Why We Chose IC Markets

IC Markets is a globally recognized forex and CFD broker known for its excellent pricing, comprehensive range of trading instruments, and premium trading technology. Founded in 2007 and headquartered in Australia, the brokerage is regulated by the ASIC, CySEC and FSA, and has attracted more than 180,000 clients from over 200 countries.

"IC Markets offers superior pricing, exceptionally fast execution and seamless deposits. The introduction of advanced charting platforms, notably TradingView, and the Raw Trader Plus account, ensures it remains a top choice for intermediate to advanced day traders."

- DayTrading Review Team
  • Instruments: CFDs, Forex, Stocks, Indices, Commodities, Bonds, Futures, Crypto
  • Regulator: ASIC, CySEC, FSA
  • Platforms: MT4, MT5, cTrader, TradingView, TradingCentral, DupliTrade
  • Minimum Deposit: $200
  • Minimum Trade: 0.01 Lots
  • Leverage: 1:30 (ASIC & CySEC), 1:500 (FSA), 1:1000 (Global)

Pros

  • IC Markets offers fast and dependable 24/5 support based on firsthand experience, particularly when it comes to accounts and funding issues.
  • As a tightly regulated and widely respected broker, IC Markets prioritizes client security and transparency, helping to ensure a reliable trading experience globally.
  • With ultra-fast execution speeds averaging 35 milliseconds and deep liquidity, IC Markets provides an optimal trading environment for scalpers, hedgers, and algorithmic traders.

Cons

  • While IC Markets offers a selection of metals and cryptos for trading via CFDs, the range is not as extensive as brokers like eToro, limiting opportunities for traders interested in these asset classes.
  • The breadth and depth of tutorials, webinars and educational resources still need work, trailing alternatives like CMC Markets and reducing its suitability for beginners.
  • There are fees for certain withdrawal methods, including a $20 wire charge, which can eat into profits, especially for frequent withdrawals.

#4 - Eightcap

Why We Chose Eightcap

"Eightcap is great for day traders familiar with MT4 and MT5 and looking to trade forex and CFDs in a secure environment. The brand is also a great pick for crypto traders with 100+ derivatives, a sophisticated market scanner, plus Bitcoin and Tether deposits."

- DayTrading Review Team
  • Instruments: CFDs, Forex, Stocks, Indices, Commodities
  • Regulator: FCA, ASIC, CySEC, SCB
  • Platforms: MT4, MT5, TradingView
  • Minimum Deposit: $100
  • Minimum Trade: 0.01 Lots

Pros

  • Strong trading education and analysis including forex guides and online webinars
  • 100+ crypto derivatives are available for global clients, which is more than most brokers, including crypto crosses and indices
  • Crypto Crusher market scanner with sentiment indicators, news and short term trading signals for global clients

Cons

  • The demo account can only be extended upon request
  • There are several frustrating jurisdictional restrictions - for example, the Crypto Crusher tool is not available for UK or Australian clients
  • There are only four commodities available, which may disappoint experienced day traders looking to diversify their portfolios

#5 - RoboForex

Why We Chose RoboForex

RoboForex is a global broker launched in 2009 and regulated by the Belize FSC. 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
  • Minimum Deposit: $10
  • Minimum Trade: 0.01 Lots
  • Leverage: 1:2000

Pros

  • Traders can get two free withdrawals each month, among other promotional deals
  • The proprietary R Stocks Trader terminal rivals leading platforms like MT4, with netting and hedging capabilities, comprehensive backtesting, and Level II pricing
  • You can access commission-free trading on thousands of US stocks

Cons

  • The demo account expires after only 90 days, which is more restricting than some competitors - OANDA's demo, for example, does not have a time limit
  • The broker's range of 40+ currency pairs is mediocre - one of our top award-winners, Pepperstone, offers 90+
  • The broker's offering varies between accounts, especially in regard to market access, leverage and additional perks

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.