What is MAM and Why Brokers Need It
PAMM and MAM accounts are financial management services through which investors transfer funds to an experienced trader (manager) for trust management.
Investment specifics
A PAMM account means that:
● investors' and manager's funds are placed in one master account;
● trading takes place in a unified, consolidated volume;
● investors do not influence the course of trading;
● the trading income is distributed among the participants in proportion to the deposits;
A MAM account is different in that investors place their funds in personal accounts, transactions are opened in the client's terminal as a lot, in proportion to the deposit amount, and trading can be stopped at any time.
Investment services attract more customers
Practice shows that the use of PAMM/MAM services distinguishes a forex broker from competitors and increases the influx of customers.
The PAMM investment technology, proprietary to the Alpari brand, has attracted over 100,000 users to the company. Clients of popular forex brokers such as InstaForex, ICEFX, TICKMILL and others actively use MAM account services.
Traders are attracted by the low entry threshold, available trading statistics and the possibility of quick earnings. PAMM and MAM are a good choice for both novice traders and professionals seeking to promote their career as a manager.
MAM Multi Account Manager application combines the advantages of PAMM and MAM accounts. It allows the organization of a mini-hedge fund based on the MT4 and MT5 platforms.
Service functionality:
● investors choose a manager and place funds in his account;
● the manager conducts transactions based on the total volume of the fund;
● profits and losses are distributed among investors based on the deposit size;
● investors can follow trading in real time in sub-accounts;
● Investors can deposit and withdraw funds from their accounts at any time.
What to look for when choosing an application?
As you browse through the market of IT solutions for brokers, the following criteria should help you make the right choice:
● ease of product setup and quality of technical support;
● compatibility with other applications used by the broker;
● the cost of the initial package and subscription services;
● convenience of the software interface for the trader;
● speed and accuracy of trade copying;
To sum up
MAM applications are a way to increase a broker’s attractiveness for most categories of traders who are interested in self-realization as managers or who are looking for a source of additional passive income.
