What is the difference between PAMM and MAM?
What is the difference between PAMM and MAM?
PAMM stands for Percentage Allocation Management Module, also known as percentage allocation money management or PAMM, is a form of pooled money forex trading. An investor gets to allocate their money in the desired proportion to the qualified trader(s)/money manager(s) of their choice. These traders/managers may manage multiple forex trading accounts using their capital and such pooled money, with an aim to generate profits.
What is MAM?
A MAM account allows professional traders to manage multiple client accounts from a single master account. The trader controls the master account and links it to individual sub-accounts, pooling funds and managing risk. Trades are replicated on sub-accounts based on allocation percentages. Investors can view their sub-accounts in real-time but cannot alter or close trades. They can deposit and withdraw funds at any time.
| Feature | MAM (Multi-Account Manager) | PAMM (Percentage Allocation Management Module) |
| Functionality | Allows traders to execute trades across multiple client accounts seamlessly. | Allows investors to benefit from professional traders’ expertise. |
| Capital Pooling | Funds in client sub-accounts are pooled together for trading. | Investors and traders pool their funds together for collective trading. |
| Trade Execution | Trades planned and executed via a master account, automatically replicated across client sub-accounts. | Investors and traders share profits or losses based on their contribution. |
| Investor Control | Investors can view real-time open trades but cannot open or close trades initiated by the MAM Master. | Investors decide on investments at the start of each round, after previous profits or losses are settled. |
Conclusion
PAMM and MAM are specialized accounts designed for pooling and managing funds from multiple investors. Both MAM and PAMM accounts offer sophisticated trading tools and comprehensive account management. They simplify the process for fund managers to consolidate investments, manage multiple client funds, and implement customized trading strategies.