Multi Account Manager (MAM) is a software that allows a manager to manage more than 1 account simultaneously. MAM can be installed on trading platforms such as MT4 and MT5. This software integrates a trading account into several other accounts, enabling a manager to make the same transaction on several accounts.
Since this is a third party software, there are no account limitations from different brokers. Trading account integration can be done even if one account with another has a different broker server. And thanks to that, managers can accept a wider range of clients. Not just from the same broker.
The way it works is more or less the same as the copy trading and social trading platforms that we know. It’s just that there are no facilities to share profits automatically like copy trading provided by brokers. However, by using MAM, managers can provide their services exclusively without having to be bound or dependent on platforms provided by brokers or third parties.
Unfortunately, it is not possible to adjust the lot size of the integrated account based on the lot size used on the manager account. When the manager uses 1 lot in his transaction, all connected accounts will open transactions with the same lot size. Even if the capital used in each of these accounts is different from one another.
This is a serious problem, because the risks borne for each account are different. Some accounts with substantial capital may still be safe, but other accounts with low capital tend to be at greater risk.
As a solution, the manager can require a minimum capital that must be owned by each client. Although this also means limiting other potential clients with lower capital and reducing the profit the fund manager should get from the subscription fees they pay.
MAM is a new modern technology that gives traders the ability to effectively and efficiently manage an unlimited number of investor accounts.
The system itself globally consists of two parts:
1. the basic account called “Master”;
2. Investor account called “Slave”.
In this case, the Master has full access to the funds in the investor’s account only for carrying out trading operations. All other operations with money are not available to him. This is a way to protect investors’ funds from dishonest managers … But the investor himself has the full right to withdraw funds of any volume from his Slave account at any time without any restrictions!
To carry out trades and manage funds from the MAM system, special software is used. This allows the manager to view all investors’ accounts and carry out trading operations taking into account the total available funds or distributing them over different types of trading directions. But at the same time, each transaction opened by the manager is automatically opened on each slave account in proportion to the investor’s contribution to the overall balance of the MAM system.
If an investor does not agree to such simple copying of transactions, then under preliminary coordination with a manager, individual settings can be established on his slave accounts. For example, an investor may limit the maximum lot size for transactions in a family of metals or other instruments for trading. In addition, special conditions may include setting a maximum loss size in absolute units or a percentage of account size. This means that the investor has more opportunities in terms of risk management in his account, which is provided to the MAM structure
The main difference between the MAM system and the PAMM system is increased reliability and investment protection, as there is a strict regulatory system and contractual relationships. The MAM system does not have an anonymous manager available in PAMM. These systems operate under strict conditions requiring full disclosure of personal information. This means that a manager will not be able to open a MAM account if he or she is not verified and does not provide investors with all this information! And since in all developed countries there are relatively rigid legal norms in this regard, the attraction of investor funds is only possible using MAM technology. And PAMM mainly operates in the countries of the former USSR, offshore and similar jurisdictions …
That is why, in most cases, contracts are concluded between the MAM account manager and each investor, separately. This is the main difference from the PAMM system, where no documents are signed, and an investor only agrees to the terms of the PAMM offer. In the MAM contract, there are all conditions for trust management, rights and obligations of the parties, responsibilities, contact details and the amount of remuneration to a manager. This ensures full transparency of the process and increases the responsibility of managers for investors’ money.
Although PAMM and MAM systems are similar at first glance, MAM still has differences:
1. the investor always has full access to his account;
2. the investor may, if necessary, take any action on his account at any time, but this requires prior disconnection from the MAM system;
3. after taking any action on his account, the investor can reconnect the account to the MAM system and continue to cooperate;
4. unlike the PAMM system, there is no limit on the minimum investment amount, although they do include a sufficient amount in practice;
5. any operation to withdraw funds or close transactions on a particular slave account does not affect other accounts and the overall picture with deposits of the entire MAM system;
6. the system is completely transparent and allows the investor to monitor his slave account with the help of open access, while the accounts of other slaves are invisible;
7. technology allows investors to monitor the dynamics on their slave accounts with the help of existing trading platforms and also to disengage from the process – everything will be in the hands of a manager.
