MAM is short for Multi-Account Manager. It offers several ways to sub-allocate profit and loss between the fund manager and the investors. It does so by using multiple MT4/5 trading platforms.
It is specially designed for experienced traders to handle the allocation immediately and seamlessly through a master account. It provides the necessary interspersed programming tools.
For inexperienced traders who want to trade and have a lot to learn, MAM is perfect for them. MAM will provide them a professional trader who will trade on behalf of them.
Professional traders maintain some traders’ accounts, get commissions for every successful trade. The profits and losses are allocated per clients’ investments. By witnessing the actions of the professional traders, inexperienced traders can learn and also earn at the same time.
Different Types of Allocation Methods
- Lot Allocation
- Percent Allocation
- Proportional by Balance Allocation
- Equity Percent Allocation
Multiple inexperienced traders can trade various lots under the sole master account. This method enables individuals to trade with a variety of lot sizes on the master account.
According to the lot parameter of their investments, the total volume of the master account will be distributed proportionally to the sub-accounts. The master account is owned by the experienced trader and the sub-accounts are owned by the clients.
According to the set percent (%) parameter of their investments, the total volume of the master account will be distributed proportionally to the sub-accounts in this method.
The amount of money or allotment the sub-accounts will get is calculated as a percentage of the master trade volume.
Proportional by Balance Allocation
The total volume of the master account will be distributed according to the balances of the sub-accounts in this method. No other additional settings are required for this. The trading fees of the master account are estimated automatically.
Equity Percent Allocation
The aim of this allotment method is to enable the assessment of the risk of each subaccount.
In this process, the total volume of the master account will be allocated according to a percentage basis of each individual sub-accounts. The total sum of volumes of the sub-accounts will be traded through a master account.
This method is using the percentage (%) parameter to represent the percentage of the equity of the sub-accounts.
All of the abovementioned allocation systems are available on the MT4/5 trading platform. Despite different approaches, their motive is the same: the proper allotment of the total profit and loss. Select the one you deem is the most suitable for you and begin trading.
Regardless of what kind of broker or money manager you are, the most advanced MAM tools are readily available to build up the client base to allocate the turnover of the master account to the sub-accounts on MT4/5.
What to Consider –
If you are considering getting a suitable MAM system that meets all your needs, you need to take the following factors.
Technical Application of MAM
Look at the options each MAM system is providing. Weigh out all of the merits and demerits of each feature. By knowing about the availability and efficiency of each option offered, you can easily decide which MAM system will be the best for you.
Allocated User Interface
Based on the method the individual trades, the user interface of the MAM system is designed accordingly. Brokers usually trade by A book or B book method.
The features of the MAM system are provided according to the A/B book needs. Hence, select the MAM system which supports your trading method.
There are different types of distribution systems. According to the distribution method, suitable support and coding are needed.
You can have your own way of distinguishing the distribution methods to make your decision easier & determine which delivery system is best for you, again, compare the pros and cons.
Since there are no installation fees or any other external fees, it is fortunate that you only need to pay the fees to the technology providers. The fees are charged for the regular maintenance, updates, and support for the MAM system.
It is ideal to select a MAM system that has separate management panels assigned according to the roles of admin, partner, and clients. Ensure that the MAM system you will use has a proper user interface in all essential roles.
An organized, easy to use, and interactive user interface will make all your tasks effortless and seamless.
Take your time in considering these aspects. Research the array of options and features the MAM system is providing. After assessing all the factors, decide which MAM system is ideal for you. Hopefully, this article helps you in getting the best MAM system.