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 Brokers Comparison
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Regulators | ASIC, CySEC, FSCA | FMA, FSA | ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFID | ASIC, CySEC, FCA, SCB | ASIC, AUSTRAC, BaFin, BVIFSC, CIMA, CySEC, ESCA, FMA, MAS, TFG, VFSC |
Year Established | 2005 | 2014 | 2006 | 2009 | 2005 |
Execution Type(s) | ECN/STP | ECN/STP, No Dealing Desk | Market Maker | ECN/STP, Market Maker | ECN/STP |
Minimum Deposit | |||||
Average Trading Cost EUR/USD | 1.1 pips | 1.3 pips | 0.9 pips | 1.0 pips | 0.1 pips |
Average Trading Cost GBP/USD | 1.4 pips | 2.0 pips | 1.5 pips | 1.2 pips | 0.5 pips |
Average Trading Cost Gold | $0.21 | $0.90 | $0.29 | $0.12 | $0.02 |
Trading Platform(s) | MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Web-based | MetaTrader 4, MetaTrader 5, Trading View | Other, MetaTrader 4, MetaTrader 5, Web-based+ | MetaTrader 4, MetaTrader 5, Trading View | MetaTrader 4, MetaTrader 5, cTrader |
Islamic Account | |||||
Negative Balance Protection | N/A | ||||
| Visit Website | Visit Website | Visit Website | Visit Website | Visit Website |
FP Markets
In Summary ECN trading with leverage up to 1:500FP 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.
Pros & Cons
- 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
- Availability of Iress geographically restricted
BlackBull Markets
In Summary Best ECN trading environment, with scalping and hedgingBlackBull Markets was founded in 2014 in New Zealand. Like many antipodean Forex brokers, BlackBull Markets is an ECN broker, offering raw spreads and commissions. They are regulated in New Zealand by the Financial Services Providers Register (FSPR) and offer a maximum leverage on some Forex currency pairs as high as 500 to 1. In addition to their global headquarters in New Zealand, BlackBull Markets also has presences in the form of branch offices in New York and Malaysia. BlackBull Markets offers a relatively tight range of tradable assets: 27 Forex currency pairs and crosses, gold, silver, crude oil, natural gas, and 6 major equity indices. That should be sufficient for those traders with more focused strategies not requiring wide diversification.
Pros & Cons
- ECN/NDD execution model with deep liquidity
- Institution-grade pricing for retail traders via proprietary price aggregation
- ZuluTrade and Myfxbook for social trading
- Leverage of up to 1:500
- Limited deposit options
AvaTrade
In Summary Highly regulated, choice of fixed or floating spreadsAvaTrade is one of the largest Forex / CFD brokers and well-known for offering their clients a choice of fixed or floating spreads. They have a very high and strong level of regulation. AvaTrade is directly regulated in Ireland (and by extension, the European Union), Australia, Japan, South Africa, and the British Virgin Islands. Outside the European Union, Ava offers maximum leverage on Forex currency pairs as high as 400 to 1. AvaTrade offers trading in over 55 different Forex currency pairs, 17 commodities, 20 equity indices, 14 cryptocurrencies, plus 66 individual stocks and shares. 2 bonds and 6 ETFs are also on the menu.
Pros & Cons
- High-quality educational offering via SharpTrader
- Excellent choice of trading platforms catering to various trading needs
- Broad asset selection and cross-asset diversification opportunities
- Well-regulated and trusted broker with oversight from a central bank
- Trading costs competitive but nothing special
Eightcap
In Summary Competitive pricing + excellent daily videosEightcap 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.
Pros & Cons
- 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
- Limited leverage in some areas
MultiBank Group
In Summary Deep liquidity with no trading restrictionsMultiBankFX complies with 10 regulators and operates offices in 20 countries, ensuring clients have an unmatched global network with deep liquidity pools across major financial centers and in core emerging markets. Traders get the MT4/MT5 trading platforms, which fully support algorithmic trading, and a proprietary copy trading service. The asset selection consists of 55+ currency pairs and 20,000+ equity CFDs and ETFs, while cryptocurrency traders get eleven highly liquid coins. MAM/PAMM accounts cater to traditional retail account management, VPS hosting to algorithmic traders, and FIX API trading to advanced trading requirements featuring custom solutions. A high-paying partnership program also exists.
Pros & Cons
- 20,000 assets offering broad coverage of financial markets
- Raw spreads from 0 pips and maximum leverage of 1:500
- MAM/PAMM accounts and proprietary copy trading platform
- ECN trading with deep liquidity and no requotes
- Access to raw spreads requires a $5,000 minimum deposit on the ECN account
Managed Forex Accounts Explained
A Managed Forex 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.
How Safe are MAM Accounts?
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.
What Should Investors Look for When Evaluating Managed Forex Accounts?
- 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.
Who Can Manage MAM Accounts?
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.
The Benefits of MAM Accounts
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.
What is the Difference Between a MAM Account and a PAMM Account?
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.
What are the Account Risks of MAM/PAMM?
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.
How Can I Ensure a MAM/PAMM Broker Offers a Trusted and Established Trading Environment?
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.
Final Thoughts
Investors looking to invest in a Managed Forex Accounts 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.
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