There are many reasons why they want to delegate the management of their investment account to a third party, for example, if they want
to invest and:
- They do not know how to do it, and they do not want to learn, but to generate a passive income.
- They are learning to do it but they still don't have good returns.
- They have experience and want to diversify into other styles of operation.
- Whatever the reason, managing your MAM account is an excellent alternative.
What is a MAM account?
MAM or Multiple Account Manager is software through which a
trader operating in financial markets can manage multiple accounts at the same
time.
The operator works from a single platform, which they call
master account, this reflects as capital the sum of the money of the clients
linked to their master account. Working from an account greatly facilitates the
work and clients ensure that they are receiving all the arrangements made. The
best operators will always have their own money within the MAM, with this they also
ensure that they are making decisions for their own capital.
AMMAM software
Besides, parallel to this master platform, from which it
operates, is the Master Manager, in which they have a list with each client,
their personal details and capital in their account. Some software allow to
enter each client and set the parameters for it, such as defining the specific
position sizes, greater or less according to the risk profile of each client.
Some software is more restricted and copy operations proportionally to all
clients, according to the capital in their accounts. The operator sends the
transaction size depending on the total capital in the master account.
In order for the manager to be able to do any management on
the master account, be it opening, closing or managing operations, these
movements are instantly replicated in the clients' accounts. For this to work
in the best possible way, the MAM Software is installed on the broker's
servers, around the world.
Who controls the MAM system?
The MAM software belongs to the broker with whom they work.
Brokers are the financial entities that guard the investment accounts.
For an operator to be able to have a MAM account with a
broker, especially if it is one of the best in the world, it must pass a rigorous
registration, valuation and accreditation process.
The clients' accounts within the manager's MAM are personal,
joint or business accounts. The people or companies that invest in the managed
account are the only ones authorized to deposit or withdraw money from their accounts,
and they can do so at any time.
Normally a MAM operator will have a minimum of capital
required per client account and works either for a percentage of the income
generated or for a monthly fee.
This percentage is usually around 30% on benefits obtained
under a watermark. The watermark guarantees that if they receive benefits one
month and the following month our account loses money, they will not charge again
until they reach the previous level where the watermark was.
Quick questions and answers
What is a Mam account?
MAM or Multiple Account Manager is software through which a
trader who operates in financial markets can manage multiple accounts at the
same time
Are Mam accounts profitable in forex?
It all depends on the operator or trader that operates them,
since by themselves they are nothing more than a tool to benefit from the
experience and system of a team of traders.
How much does a Mam account cost?
Participating in a managed account in the forex market is
free. They are only going to pay a percentage on profits, which is determined
by the trader and is usually around 25% to 35%.
Is there any kind of permanence in this type of account?
It depends on the manager who is the one who sets the rules.
In general, they will not have any kind of permanence.
https://www.acorn2oak-fx.com/forex-pamm.html for more info
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