MAM Account

How Multi-Account Management Works for Traders?

A Multi-Account Manager (MAM) allows a professional trader (the money manager) to place one master trade that is automatically divided across multiple investor accounts. Each investor keeps their own account, balance, and login while the MAM system calculates how much of each trade they receive and tracks performance, fees, and reporting.

In simple terms: it’s like copy trading designed for professionals, with more flexible risk controls and clearer reporting.

Who Uses MAM?

A Multi-Account Manager (MAM) allows a professional trader (the money manager) to place one master trade that is automatically divided across multiple investor accounts. Each investor keeps their own account, balance, and login while the MAM system calculates how much of each trade they receive and tracks performance, fees, and reporting.

In simple terms: it’s like copy trading designed for professionals, with more flexible risk controls and clearer reporting.

How Allocation Works

Every time the manager opens a position, the MAM system splits it across investor accounts. The way trades are divided is called the allocation method. Choosing the right method is key to making sure investor results track closely with the master account.

Common Allocation Methods

• LAMM (Lot Allocation Management Module): Investors set a fixed lot size for each trade. Simple, but results can differ a lot between large and small accounts.
• PAMM (Percent Allocation Management Module): Trades are divided based on each investor’s balance. Easy to explain, but can lag in fast-moving markets.
• Equity-Based Allocation: Uses live equity (balance plus open profit/loss) for real-time accuracy. Keeps results closest to the master.
• Hybrid Methods: Some setups combine approaches to balance fairness, execution quality, and broker rules.

Fees and Transparency

Investors should always check:

• Performance Fees: A share of profits, usually with a high-water mark (fees only charged when the account hits new highs).
• Management Fees: Sometimes a flat percentage per period.
• Crystallization Periods: How often fees are calculated (monthly, quarterly, etc.).
• Deposits & Withdrawals: Good systems ensure new deposits aren’t unfairly charged fees on old gains.
• Reporting: All trades, allocations, and fees should be visible in investor statements.

Risks to Remember

• MAM doesn’t remove market risk—losses and drawdowns are still possible.
• Results can vary depending on allocation method, execution speed, and slippage.
• Understand how leverage and fee structures work before committing funds.

FAQs

Can I withdraw anytime?
Yes, subject to broker rules. Withdrawals will change your future allocation.

Will my results match the manager’s exactly?
Not always. They should be close, but spreads, slippage, and allocations can create small differences.

Do I still control my account?
Yes. You give trading authority to the manager, but your funds remain in your own broker account.

The Bottom Line

A MAM is a professional solution for traders who want their accounts managed under one strategy without giving up control or transparency. By understanding how allocations and fees work, you can decide if a MAM fits your trading goals and risk tolerance.