MAM and PAMM accounts provide fund managers the ability to control various accounts from only one account without the need to create an investment fund.
But how do these two differ from each other?
Let us take a closer look and see how they help investors in their trading ventures.
What is PAMM account?
PAMM stands for Percentage Allocation Management Module. This investment platform provides a skilled trader with a capacity to manage the limitless quantity of managed accounts all at the same time in one trading platform.
Investors need not worry about the security of their funds, because a manager does not have any access to their deposits. With this measure, no one, even the manager, can make any unauthorized withdrawals from a client’s account.
What is MAM account?
MAM stands for Multi-Account Manager. For investors who want to manage various accounts simultaneously, they can utilize this platform to have efficient control over these accounts.
A Forex MAM account also offers an advantage for account managers by giving them the ability to assign a higher number of leverage to certain subaccounts.
MAM accounts are specifically designed for investors with an appetite for high-risk ventures. But even with its high-risk nature, it allows investors to have a deeper level of understanding of the market.
One of the unique features that investors can utilize from MAM accounts is its user-friendly interface. It can also accept unique trading order such as close by, close all and trailing stop.
MAM accounts can connect different accounts for easy management and efficiently manages client reports. And speaking of reports, it can also provide monthly/quarterly reporting to provide investors with a managed record that they can use as a reference.
MAM investors can also monitor commissions and performance in real-time. Furthermore, MAM accounts provide traders with complete control over various trading transactions on each account connected to the MultiTerminal.
Investors these days are lucky to have these efficient tools to assist them on their various trading ventures. But with all the advantages that come with these modern tools, it is still up to an investor on how he can properly use it to bring its full potential.
As the wisdom goes, ‘Efficient tools are not efficient enough without efficient users”.
Also read: What is PAMM Account in Forex?
