4 Best MAM/PAMM Account Forex Brokers for 2024

List of Top Forex Brokers with MAM/PAMM Accounts

How do MAM and PAMM accounts work?

MAM (Multi-Account Manager) and PAMM (Percentage Allocation Management Module) accounts are types of managed forex trading accounts that allow fund managers to operate multiple client accounts from a single master account.

MAM accounts provide flexibility for fund managers to execute trades and allocate gains based on specific criteria like percentage or lot size, while PAMM accounts distribute trades and profits proportionally based on each investor’s account balance.

Both systems allow investors to benefit from the forex markets without needing to trade actively, making them ideal for those who prefer passive investment options. These accounts are popular among fund managers and investors alike, as they streamline management and can potentially enhance profitability.

How did FXEmpire select the Best MAM/PAMM Account Forex Brokers?

• We checked each broker offers MAM/PAMM accounts.
• We analyzed the MAM/PAMM account offering to ensure multiple sub-accounts are available.
• We verified there are no strategy restrictions when using a MAM/PAMM account.
• We made sure the brokers offer fast order execution with deep liquidity.
• We explored the range of platforms and tools available to ensure there are options for all types of traders.
• We verified each broker is licensed to provide investment services in the jurisdictions they operate.
• We opened live trading accounts to examine the broker’s trading fees and their competitiveness against the industry average.

Our team of experts has identified each broker’s strengths and weaknesses using FX Empire’s comprehensive methodology. Here’s how we test.

Now, let’s delve into the selected brokers.

How to Choose a Forex Broker with an MAM/PAMM Account?

Here is a quick guide on how to choose a broker with a MAM/PAMM account.

What is the difference between MAM and PAMM accounts?

Managed Account Management (MAM) and Percent Allocation Management Module (PAMM) are types of managed investment accounts with a key manager making trades. MAM accounts offer customizable trading settings per individual investor, providing flexibility and varying performance based on chosen strategies. In contrast, PAMM accounts pool all client funds into a single account, distributing profits or losses proportionally, offering simplicity and uniformity with less customization.

MAM is better suited for investors who want tailored management and understanding of risk, while PAMM is ideal for those preferring a hands-off approach where all participants uniformly share results. Both cater to different investor needs but share the goal of leveraging professional expertise in trading.

Check out our list of Best forex brokers for professionals.

How is the broker regulated?

When using a MAM/PAMM account, it is crucial to safely manage your investors’ capital. Therefore, trading with a regulated broker is essential. This ensures reliability and safety, providing peace of mind to your investors that their funds are in trustworthy hands.

Regulated brokers are obligated to adhere to strict regulations concerning fund management and trade execution. Non-compliance with these regulations can lead to penalties and the loss of their license. Consequently, trading with a regulated broker typically provides the highest level of safety.

However, not all regulated brokers maintain identical standards. In our evaluations of brokers, regulators are classified into three tiers:

• Tier-1 regulators are established financial authorities such as the UK Financial Conduct Authority (FCA), the Australian Securities and Investments Commission (ASIC), and others.
• Tier-2 regulators uphold stringent standards but may be less recognized. Examples include the Dubai Financial Services Authority (DFSA) and the Financial Markets Authority of New Zealand (FMA).
• Tier-3 regulators generally originate from offshore jurisdictions, such as the Vanuatu Financial Services Commission (VFSC) and the Securities Commission of the Bahamas (SCB).

The highest level of investor protection and fund security typically comes from Tier-1 regulators. Brokers regulated by entities like the UK FCA, IIROC, CySEC, and ASIC are legally obligated to segregate client funds from their own and provide negative balance protection to prevent accounts from going into the negative.

Find Best FCA-regulated brokers and Best CySEC-regulated brokers.

Furthermore, the UK FCA, IIROC, and CySEC mandate brokers under their supervision to participate in a compensation scheme, offering additional safeguards in case of broker insolvency. You can verify a broker’s regulatory status and authorizations by examining their legal terms and conditions and consulting the regulator’s register in their operational jurisdiction.

It’s advisable to avoid unregulated brokers as they operate without adhering to strict rules governing fund management, leaving investors, clients, and their capitals at risk. In the unfortunate event of insolvency, there are limited legal avenues for fund recovery.

Read more about Best regulated forex brokers.

What fees to consider when choosing a broker?

The impact of trading fees on your overall profitability cannot be overstated. While a broker aims to maximize fees, traders seek to minimize them. When selecting a broker, it’s essential to consider the following fees:

• Spread: The difference between the buy and sell price.
• Commission: A fee to execute a buy or sell transaction.
• Overnight or Swap Fee: An expense incurred for maintaining a leveraged or margined position overnight.
• Payments: Fees associated with depositing or withdrawing funds.
• Inactivity: A fee applied without trading activity within a specific period.

A reputable broker emphasizes fee transparency. If fee structures are unclear or difficult to locate on the broker’s website, this should raise concerns about trading with them.

Read more about Best lowest spread forex brokers and Best low swaps forex brokers.

In my experience, I have not encountered a broker who charges for the use of a MAM/PAMM account. After all, the more clients you have, the greater the trading activity and the more the broker earns from spreads and commissions.

What is leverage, and how does it work?

Leverage allows traders to control larger positions with a relatively small deposit. For example, if a broker provides a leverage ratio of 1:30, it means that only $1 of your capital is needed to control a position size thirty times larger. Essentially, you can manage a position valued at $30 with just $1.

Top-tier regulatory bodies such as the UK’s FCA, CySEC, ASIC, FSA Japan, and IIROC restrict retail trading leverage for forex pairs to 1:30. Conversely, numerous offshore and unregulated brokers may offer higher leverage, sometimes reaching up to 1:3000. When using a MAM/PAMM account, you should be cautious about high leverage.

Check out our guide on Best high leverage forex brokers.

This is because leverage has the potential to magnify both profits and losses. Your profit or loss is calculated based on the total trade value, not just the margin you put up. If your account lacks sufficient capital to manage your trade value, the broker may issue a margin call and automatically close your trades, leading to unforeseen losses.

If your MAM master account has significantly more capital than some of your investors’ sub-accounts, it can lead to issues. While your account may have enough margin for a position, a smaller investor might not. Consequently, your trade may be unaffected, but the trades in your investors’ accounts might be closed due to insufficient margin.

You should consider your trading style and the number of positions you are likely to hold at any one time to ensure that your investors in a MAM/PAMM account have sufficient capital to avoid a margin call.

How to choose a suitable trading platform?

A trading platform serves as your gateway to the world’s financial markets. It should facilitate real-time price monitoring, offer analytical tools, and provide fast trade execution.

Some popular trading platforms include:

• MetaTrader 4: Renowned for its charting capabilities, drawing tools, and a comprehensive range of technical analysis indicators, making it the preferred choice for forex traders globally. Read more about best MT4 brokers.
• MetaTrader 5: Building upon MT4, this updated version offers more indicators, timeframes, and market options. Read more about best MT5 brokers.
• cTrader: Tailored for high-frequency traders and scalpers, cTrader provides a responsive platform for quick decision-making. Read more about best cTrader brokers.
• TradingView: Operating as a browser-based social trading platform, it offers advanced research tools and access to global markets. Read more about best TradingView brokers.
• In-House Proprietary Software: Some brokers develop their own unique trading software to cater to the specific needs of their clients.

Personally, I prefer trading with brokers offering platforms accessible across multiple devices. This ensures flexibility; even if I can’t access the web platform, I can still use the mobile app to check positions and execute trades.

Read more about Best forex trading apps.

The technology for using MAM/PAMM accounts is only available on MetaTrader 4 or MetaTrader 5. While a broker may offer other platforms, trading investor subaccounts may not be possible. As MT4/MT5 are the world’s most popular platforms, there is a wealth of resources available online to help extract the most value from their features.

Are MAM and PAMM accounts safe?

Fundamentally, MAM and PAMM accounts are safe as they utilize standardized technology systems offered by most brokers through MetaTrader 4 and MetaTrader 5. However, the safety of any trading account depends on the quality of the broker.

Trading with an unregulated or offshore broker is less safe than trading with a Tier-1 regulated broker. Tier-1 regulated brokers are required to adhere to strict regulatory standards that ensure the safety of your capital and guarantee conflict-free trade execution. In contrast, unregulated or offshore brokers may follow different, less stringent standards.

What are the potential risks of MAM/PAMM accounts?

Most of the risks of a MAM/PAMM account are the same as those of a standard account. There is always the risk of loss on a trade, slippage in price during high-impact news announcements, and issues with the broker.

However, one issue with MAM/PAMM accounts is whether sub-accounts have different account balances. A sub-account with a large sum of capital can participate in more trades. An account with a small sum of money may not be able to participate in all the transactions the trader makes. This is due to the leverage set by the regulator.

This may lead to different performance results for each sub-account. It is wise to consider your trading frequency and allocation of capital to ensure the sub-accounts have sufficient capital to cover margin requirements.

Our Methodology

At FX Empire, we use our proprietary rating system to assess brokers, analyzing 250 data points across nine key categories:

• Trustworthiness: We verify the broker’s licenses and regulatory status with the regulator in their jurisdiction.
• Fees: We test how competitive a broker’s trading fees are by opening a live account and comparing them to the industry average.
• Trading platform and tools: We assess the broker’s trading platform usability, features, and tools.
• Tradable instruments: We examine the number of tradable instruments offered by each broker to ensure a broad range of instruments are available to trade on.
• Customer support: We engage with the customer support team through different channels to test the ease of access, knowledge, and helpfulness.
• Payment methods: We explored the different payment methods to check their fees and processing times.
• Account types: We examine each account type to identify the execution method, minimum deposits, and any additional features.
• Research and education: We explore the quality and depth of each broker’s research and educational materials.

Here you can learn more about our review process.

For this guide, we also confirmed that each broker offers a high-volume trading account with additional trading features such as cash rebates, lower fees, dedicated customer support, invitations to different events, and more. We also ensured each broker provides a good range of tradable instruments and a feature-rich trading platform that can handle high-volume trading.

Meet Our Writers

The team of forex and CFD writers and editors at FX Empire is composed of trading industry professionals and seasoned financial journalists. Our writers have been published on leading financial websites such as Investopedia and Forbes. In addition, they all have extensive trading experience.

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