HomeForex Account TypesBest Forex MAM Brokers & PAMM, LAMM Accounts 2021

Best Forex MAM Brokers & PAMM, LAMM Accounts 2021

Trading financial markets successfully is a combination of money management and knowledge. Traders dedicate a lot of their time to analyse the market and set up their trading plan.

However, not everyone has the time to trade the markets actively, and wait for the prices to move. For those in this position, MAM, PAMM, or LAMM accounts offer an alternative to actively trading your own account.

1
Min. Deposit
$250
Exclusive promotion
Our score
10
Leverage
400:1
New accounts
Spreads
0.25
PIPs
Regulations
CFTC
Forex Pairs
11+
No Fee
Start trading
Pros:
Regulated by CFTC
Low fees and minimums
A good selection of educational content, including videos and webinars
Payment methods
ACH, Debit Card, Wire Transfer
Full regulations list:
CFTC
Trading on Nadex involves financial risk and may not be appropriate for all investors.
2
Min. Deposit
$10
Exclusive promotion
Our score
9.3
Leverage
500:1
New accounts
Spreads
0.8
PIPs
Regulations
Forex Pairs
55+
No Fee
Start trading
Pros:
55+ currency pairs available
Trade on a trusted platform
24/7 support via live chats, email or phone call
Payment methods
Credit Card, Debit Card, Visa, Bitcoin
Full regulations list:
LonghornFX offers high-leverage trading on a wide variety of assets. Trading with leverage carries a degree of risk which may result in losing more than your investments. Clients should practise risk management to protect themselves from losing more than they can afford when trading with leverage.
3
Min. Deposit
$200
Exclusive promotion
Our score
8.7
Leverage
500:1
New accounts
Spreads
0.5
PIPs
Regulations
FSPR, FMA New Zealand
Forex Pairs
27+
No Fee
Start trading
Pros:
BlackBull Markets’ unique feature lies in its stated goal of delivering an “institutional” trading experience to retail clients
No-Dealing Desk Broker (NDD), with Straight Through Processing (STP) all done on a true ECN
State of the art Equinix servers, based in New York (NY4), London (LD5) and Tokyo (TY3)
Payment methods
Mastercard, Visa, Bank Transfer, Neteller, Skrill, UnionPay, FasaPay
Full regulations list:
FSPR, FMA New Zealand
4
Min. Deposit
$10
Exclusive promotion
Our score
8.5
Leverage
500:1
New accounts
Spreads
0.7
PIPs
Regulations
Forex Pairs
55+
No Fee
Start trading
Pros:
0% Commission Account
Low Spreads
Eco-Account Option
Payment methods
Bitcoin, Credit Card, Debit Card
Full regulations list:
Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary seek independent advice.
5
Min. Deposit
$100
Exclusive promotion
Our score
7.9
Leverage
30:1
New accounts
Spreads
0.7
PIPs
Regulations
NFA, CFTC, FCA
Forex Pairs
No Fee
Start trading
Pros:
Open an account in less than 5 minitues with the global Market leader since 2001
Trade on one of the world's most popular trading platforms with access to dedicated support and integrated trading tools exclusive to FOREX.com
We’ve spent over a decade investing in technology and building a deep network of liquidity partners, so we can consistently quote tight spreads in most market conditions.
Payment methods
Debit Card, Bank Wire, ACH, Credit Card, PayPal
Full regulations list:
NFA, CFTC, FCA, FSA, IIROC, CIMA, FFA Japan, MAS, SFC of Hong Kong
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
6
Min. Deposit
$10
Exclusive promotion
Our score
7.8
Leverage
500:1
New accounts
Spreads
0.7
PIPs
Regulations
Forex Pairs
55+
No Fee
Start trading
Pros:
Can fund with BTC
64 global companies including Netflix and Amazon
Free deposits and withdrawals
Payment methods
Credit Card, Debit Card, Bitcoin, Wire Transfer
Full regulations list:
EagleFX offers leveraged trading on a range of assets within its platform. CFD and Spot Forex trading do carry a degree of risk which may result in you losing more than your initial investment. Please ensure you fully understand the risks involved with leveraged trading and ensure this is not detrimental to your personal or institution's financial well being.
7
Min. Deposit
$250
Exclusive promotion
Our score
7.5
Leverage
30:1
New accounts
Spreads
0.7
PIPs
Regulations
CySEC
Forex Pairs
45+
No Fee
Start trading
Pros:
No commission charged to clients
Over 250 instruments available
Regular Webinars, education and video tutorials
Payment methods
Bank Wire, Credit Card, Skrill, Neteller
Full regulations list:
CySEC
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

What Is a MAM, PAMM, LAMM Account?

MAM stands for Multi-Account Manager, and the name says it all. A money manager trades and will manage multiple accounts using software offered by the broker that distributes the trades to different accounts simultaneously. It uses different allocation methods (i.e. balance or equity allocation), and it can support unlimited trading accounts.

A PAMM (Percentage Allocation Management Module) account enables traders to invest in other accounts or to receive investments in their own account and strategy. At the end of a certain period, the eventual profits are split among the investors of the account.

The LAMM (Lot Allocation Management Module) is a variation of a PAMM account. The lot allocation principle means that each individual account trades the same volume as the manager’s account.

These accounts are widely used in the Forex market because FX offers good liquidity.

How Can You Use a MAM, PAMM, LAMM Account?

A managed account allows traders to benefit from diversification and take part in other trading strategies’ without committing time. The features of managed accounts differ from type to type, depending on how the trades are allocated and the conditions imposed by the brokerage house.

For instance, in a MAM or PAMM account, allocations to accounts are as little as 0.01 lots, and all order types are accepted. All orders executed in the main (master) account are transmitted into the rest of the accounts respecting specific parameters set by the person that manages the main account.

Typically there’s a performance fee paid to the one that handles the main account, and it varies from broker to broker. Some accounts use a watermark level, ensuring the performance fee is paid only once for a certain level.

Pros and Cons of a MAM, PAMM, LAMM Account

Pros:

  • the fund managers can’t touch the funds in the trading account
  • experience and profitable history brought in by the account’s manager

Cons:

  • you’re not in charge of the actual trading strategy – you’re just a follower
  • high fees paid for the trading services

Factors to Consider When Choosing a Broker for a MAM, PAMM, LAMM Account

Managed accounts are nothing but pooled investments. Depending on the type of the managed account (MAM, PAMM or LAMM), investors can choose the conditions, set the risk, and adjust the variables in such a way that the strategy suits the goal of growing the account.

One must also consider that the risk with a managed account depends on the profitability of the trader and the strategy used. For instance, long-term strategies may not be suitable for short-term oriented traders. Because risk-aversion differs from person to person, drawdown plays a significant role in the way to handle a managed account.

MAM

MAM stands for Multi-Account Manager and is a software that includes advanced charts and analysis tools to help managers with the allocation methods or let them trade each account with different conditions using just one platform.

Managed accounts use software that commonly operates with MT4, MT5, Currenex, Trading Station and other web trading platforms, and some of them even have a connection to better technological solutions to ensure complete functionality.

PAMM

PAMM means Percentage Allocation Management Module, with it the trading is developed as in an individual account but the benefits are divided according to the percentage of the total funds that each account represents. For example:

The total managed funds are 10,000 USD, which are divided as follows:

Account A: 2000 USD = 20% of the account
Account B: 5000 USD = 50% of the account
Account C: 3000 USD = 30% of the account

And let’s suppose the manager opens a position which gave 500 USD of net profits:

Account A will obtain 100 USD of profit or 20% of that 500 USD
Account B will obtain 250 USD of profit or 50% of that 500 USD
Account C will obtain 150 USD of profit or 30% of that 500 USD

Money managers will also charge Performance fees for their services (20-30% on average), and these fees will be deducted from the profits earned.

The same logic applies to losses and the amount of margin taken from each account to open each position.

LAMM

With the Lot Allocated Management Module, the sub-accounts have a designated fixed number of lots to be traded each time the manager opens a position, the number of lots is determined when the contract and terms are discussed. For example:

The total managed funds are 10K USD, which are divided as follows:

Account A: 2K USD with 3 lots to be traded each time
Account B: 1K USD with 2 lots to be traded each time
Account C: 1K USD with 1 lot to be traded each time
Account D: 4K USD with 0.5 lots to be traded each time
Account E: 2K USD with 4 lots to be traded each time

Let’s suppose the manager buys EUR/USD which when closed give 100 USD of profit per lot, the profits will be divided as follows:

Account A obtains 300 USD of profit. 3lots x 100 = 300 USD
Account B obtains 200 USD of profit. 2lots x 100 = 200 USD
Account C obtains 100 USD of profit. 1lot x 100 = 100 USD
Account D obtains 50 USD of profit. 0.5lots x 100 = 50 USD
Account E obtains 400 USD of profit. 4lots x 100 = 400 USD

With this allocation method, the profits, as well as the risk, are not proportional to the total funds, and for each sub-account, the owner decides how much he wants to risk regardless of the percentage of investment made.

Conclusion

With managed accounts, there’s no need to worry about what moves financial markets and why. All you have to do is to set the parameters for the account (e.g. the appropriate risk) and enjoy the ride.

That is if there’s a profitable strategy. Managed accounts do not offer a guarantee of a profit.

FAQ’s

Can I adjust the risk in a MAM account to suit my risk profile?

Yes. One can choose to trade only fractions of the volume in the main account or be more aggressive.

Are all managed accounts the same?

No. The strategy involved differs from the markets to invest in the time horizon for a trade.

What should I look for before investing in a managed account?

Historical data and investment strategy.

Do all Forex brokers offer managed accounts?

No,  but you can find a good selection in this article.