A MAM account is a type of trading account whereby a Money Manager simultaneously manages multiple individual CFD trading accounts, or sub-accounts, on behalf of their clients. The MAM account is referred to as the single master account. The master account is controlled by the Money Manager who is fully responsible for trading and managing risk. Any trade executed on the master account is automatically replicated on the individual sub-accounts. In this way, the Money Manager can place trades for all their clients without having to manually enter orders for each sub-account.
With MAM accounts, Money Managers can also manually adjust allocation percentages, designate different volumes to sub-accounts, or even group sub-accounts together for various trading strategies.
The Money Manager can view the performance of all sub-accounts they manage in real-time and set custom performance fees for each; fees are then automatically calculated and deducted from the profits generated by the account. The manager’s clients can also view their sub-accounts in real time but cannot intervene or close trades placed. They can however deposit/withdraw funds at any time from their sub-accounts.
