Forex as an asset class attracts a surprisingly large amount of investment, a lot of it retail. For managers who are looking to manage a portfolio of client investments with Forex brokers, MAM accounts can be an excellent solution. If you lack the time or expertise to trade profitable, having your account managed through a MAM account could be a profitable solution.
Whether you’re an account manager or client looking for this service, we’ve created a shortlist for you of the best Forex / CFD brokers offering a MAM account service. Read on to view our shortlist and to learn more about MAM accounts and how to choose the best MAM account broker.
Best MAM Forex Brokers 2022
- FP Markets – Best ECN MAM account.
- FXTM - Best MAM account with low spread + commission.
- Eightcap – Best manager regulation.
Daily market research and Autochartist access
High floating leverage + fast execution
Trade 1,000+ financial instruments
Experience low, competitive spreads
Multiple funding and swift withdrawal options
4.5/5 in this category
ECN trading with leverage up to 1:500.
FP Markets offers MAM traders ECN trading at a low cost. Forex spreads commence from 0 pips for a commission of $6.00 per 1 standard lot, with the average for the EUR/USD and the USD/JPY at 0.1 pips or total trading fees of $7.00. International traders get maximum leverage of 1:500 with order execution of 40 milliseconds. FM Markets creates competitive trading conditions for scalpers and high-frequency traders, two of the trading strategies most used by MAM managers.
The minimum deposit is $100, making FP Markets MAM accounts very accessible. Another benefit, for algorithmic traders, is that FP Markets has no restrictions on EAs, allowing algorithmic trading across all MAM accounts. The order execution at FP Markets limits slippage, ensuring MAM portfolio managers get the prices they entered, improving cost control, and potentially enhancing profitability.
Choice of trading platforms and auxiliary trading tools
Very competitive cost structure and excellent asset selection
Low minimum deposit requirement and leverage of up to 1:500
Well-regulated and trustworthy
4.5/5 in this category
Best all-around broker with high floating leverage and fast execution
FXTM is another very competitive choice for traders looking for a Forex broker supporting a MAM account. FXTM’s MT4 Advantage Account offers one of the lowest trading costs industry-wide, ranging between $0.80 and $4.00 per 1 standard lot, which depends on monthly trading volume but requires a minimum deposit of $500. High-frequency traders and high-volume traders can set up MAM accounts at a notable cost advantage. Traders with a $25,000 portfolio qualify for commission-free trading and raw spreads of 0 pips, adding another potential benefit for MAM portfolio managers and their investors.
The FXTM contract specifications list a minimum spread of 0.1 pips on five currency pairs, confirming access to deep liquidity, a requirement for successful MAM accounts. FXTM is a transparent broker with audited performance statistics by PricewaterhouseCoopers Limited (PwC). FXTM’s slippage and requote data confirm outstanding order execution.
Excellent commission-based Forex pricing environment and transparency
Upgraded MT4/MT5 trading platforms plus proprietary mobile trading app
Quality market research and educational content for beginner traders
Proprietary copy trading platform, low minimum deposit, and high leverage
4.5/5 in this category
Competitive pricing + excellent daily videos
Eightcap features a professional MT4 MAM environment and only accepts managers with proper authorization to manage funds on behalf of clients. Eightcap invested in its MT4 trading infrastructure to ensure portfolio managers have low-latency order execution with complete flexibility to manage sub-accounts. All order processing takes place on a centralized server, and MAM account managers can execute block orders with one click from their master account with automatic allocation to sub-accounts.
Eightcap’s Raw Account, available from a minimum deposit of $100, offers raw spreads from 0 pips for a commission of $7.00 per 1 standard lot. Eightcap lists seven currency pairs with a minimum mark-up of 0 pips, confirming access to deep liquidity, a requirement for MAM strategies. Eightcap also offers 250+ cryptocurrency assets, making it an industry leader. It is therefore a suitable broker for cryptocurrency MAM accounts.
Low minimum deposit and high leverage of up to 1:500
Competitive cost structure
Excellent technology infrastructure and seasoned management team
Daily research and quality educational content
A MAM account is simply a vehicle that allows multiple accounts to be managed from one master account by an account manager. The purpose of a MAM account is to service a money manager and make it easier for the manager to serve their clients. Trades taken in the master account are copied in the sub-accounts, each of which is allocated to a different client.
- MAM is software developed for portfolio managers to manage multiple sub-accounts from one master account.
- Most MAM accounts trade with the MT4 platform, but they are also available with MT5.
- Investing with a MAM portfolio manager is usually suitable for investors with relatively high risk tolerance.
- Not all MAM accounts are managed by a professional portfolio manager or asset management firm. The caliber of the managers is dependent upon the broker and the relevant regulatory environment.
- Investors pay a performance fee to managers of MAM accounts.
- Forex MAM brokers provide the software, infrastructure, and regulatory environment under their corporate umbrella with limited power of attorney (LPOA) agreements between managers and investors.
The safety and security of any MAM account depends upon the regulatory environment and policies of the specific broker, as the portfolio manager has no ability to withdraw funds from the client sub-accounts. The MAM software handles all trading-related operations, and investors maintain complete control of their portfolios.
The primary risk to investors in a MAM account is the ability of the MAM manager, which is why investors must conduct appropriate due diligence on the manager. Forex MAM brokers usually offer in-depth statistics of their managers’ performances, assisting investors in their decision-making process.
- The MAM account manager should have three to five years of verified trading history. Any lesser period makes for a higher-risk investment.
- The maximum drawdown of the MAM account. This shows potential investors how steep the worst losses were from the account’s performance peak. As a rule of thumb, investors should avoid drawdowns greater than 20%.
- The total assets under management and total active sub-accounts controlled by a manager can be useful information, as investors will probably lower their risk by avoiding MAM accounts with few followers and low allocated capital.
- MAM accounts usually include a description of their trading strategy, which investors should pay close attention to, to ensure the approach of the portfolio manager, and the risk appetite, is compatible with their own.
This depends on the Forex broker offering the MAM account. Some require professional certifications, or at the minimum, demand MAM portfolio managers qualify for a professional account under local regulations. Some brokers ask for specific trading history and performance statistics, and only grant MAM manager status to those clearing a certain threshold. However, many Forex brokers allow anyone to manage MAM accounts.
Legally, the question of who can manage MAM accounts is a grey area, which can depend in each case on the regulation of the Forex broker and the countries of residence of the MAM account manager and investors.
MAM accounts can potentially provide investors with a range of benefits:
- Traders lacking time or expertise may be able to benefit from a profitable MAM manager.
- Portfolio diversification across numerous strategies and asset classes.
- Complete portfolio control and oversight.
- Oversight from the regulatory environment of their MAM broker.
PAMM managers usually invest in their strategy, and each sub-account participates based on their deposit size as a percentage of total assets under management. A PAMM account distributes profits and losses of the manager to all investor sub-accounts proportionately.
MAM accounts offer greater flexibility, allowing account managers to assign varying leverage to individual sub-accounts, taking investor preferences into account.
Assuming investors trade with a trustworthy and secure MAM/PAMM broker, the account risks remain primarily with the portfolio manager and their ability to navigate all market conditions while delivering consistent annualized performance within acceptable overall risk parameters. Investors can decrease their risk by diversifying across different brokers and strategies.
Traders and investors should trade only with those MAM/PAMM brokers who have maintained a clean regulatory track record for at least five years. Publicly listed brokers add another layer of security and oversight, while the availability of a third-party insurance policy securing deposits is another helpful criterion to use in broker selection. Ideally, MAM/PAMM brokers should list their auditors and provide updated, audited performance statistics.
Investors looking to invest in a MAM account will have different preferences, but all should focus on finding a MAM Forex broker offering competitive trading conditions. A list of criteria that will be suitable for most should include:
- Broker regulation and security, with a clean track record of at least five years.
- Competitive trading costs. A low-cost, commission-based pricing environment structure and a volume-based rebate program are ideal.
- Excellent order execution statistics, preferably ECN/NDD/STP execution and post-trade technology, low slippage, and no requotes.
- Flexible leverage and negative balance protection, ensuring trading loss can never exceed the total deposit.
- Access to a good trading platform like MT4, with full support for automated trading and no restrictions on the use of EAs and strategies, if the manager is not following a purely discretionary long-term trading strategy.
- VPS and API trading, allowing 24/5 Forex trading and the connection of advanced algorithmic trading solution.
- A broad choice of deposit and withdrawal methods, including third-party payment processors, and no internal fees.
- Published, transparent in-depth performance statistics on all MAM accounts.
What is a MAM account in Forex?
MAM is a software developed specifically for MT4 that allows portfolio managers to manage sub-accounts from one master account. It has expanded to include the MT5 trading platform, and some brokers also offer proprietary platform MAM solutions. A MAM account in Forex connects to a master account in an automated process, copying all trades, primarily via PAMM (Percent Allocation Management Module) or LAMM (Lot Allocation Management Module).
What is a MAM broker?
A MAM broker offers the software and infrastructure to support portfolio managers and investors.
What is MAM trading?
MAM trading refers to investors connecting their accounts to a master account managed by seasoned traders or asset management firms. They pay a performance fee under a limited power of attorney (LPOA) agreement between manager and investor, under the corporate umbrella and regulatory framework of the MAM broker.