Multi-account Manager (MAM) accounts offer powerful digital tools that enable professional traders to seamlessly execute trades across hundreds of client accounts at once. With MAM, traders can save time, and customise their trading strategies across client sub–groups.
In this article we will discuss seven important factors traders should consider when choosing a MAM account broker.
Essentially, forex brokers offering MAM account solutions play a supporting role to the trader.
Brokers provide the account structure and interface via which the trader tracks, manages and executes trades on behalf of clients. The scope of features and capabilities offered can vary between brokers, although some basic capabilities include customer support, account management and common trading tools.
Additionally, the broker also provides the required trading platform, and handles all trades made by the trader through the MAM account.
MAM account brokers may be retail forex brokers or multi-asset brokerage. Typically, a commission or mark-up on the spread is charged in exchange for providing MAM account services.
A MAM account consists of a master account, controlled by the trader or money manager; and linked sub-accounts, opened and controlled by individual investors.
The main benefit of MAM accounts for forex traders is that it allows automated execution of trades across multiple client accounts – seamlessly and simultaneously. A trader executes a trade on his master account, and the same trade is instantaneously applied to all eligible sub-accounts.
This enables traders to achieve massive time savings and efficiency when trading on behalf of clients, while also reducing the chances of erroneous trades.
MAM accounts also offer high flexibility, allowing traders to customise allocation percentages, categorise sub-accounts into groups, and make other adjustments so as to facilitate different trading strategies.
Traders and money managers will need to pick the right MAM account broker in order to tap into the full potential of MAM accounts. Here are seven factors to consider when choosing.
A MAM forex broker should be fully regulated and compliant with the relevant laws and regulations in the jurisdiction where it operates.
Investing with a reputable and regulated broker will help keep your funds secure with accredited credit institutions.
A forex broker that offers a wide range of currency pairs is advantageous on several levels. It can provide more opportunities for diversification, and offer better alignment with your investment objectives and trading strategies.
As currency pairs are often analysed when evaluating the forex market, having access to more currency pairs can enable comprehensive market analysis and facilitate a greater range of trading strategies.
Forex brokers that offer leverage allows traders to increase the size of their positions, thus amplifying their trading results. Leverage also allows traders to make trades with smaller capital sums.
Leveraging is a double-edged sword as it enables gains to be multiplied but also carries very high downside risk and could lead to losses greater than initial capital investment.
The fees charged on a MAM account can significantly impact investment returns, and thus should be a crucial consideration when choosing a MAM forex broker.
Traders should note the following fees when dealing with a MAM forex broker:
A well-designed, stable, and reliable trading platform with real-time monitoring capabilities is crucial in helping traders to effectively manage their MAM account and make informed investment decisions.
Additionally, MAM account capabilities may vary, depending on the platform type offered by the broker. Traders should find out what trading platforms and features are offered before committing to a forex broker.
Forex brokers that offer sophisticated payment methods and flexible commissions will prove beneficial in several ways.
For instance, automated commission payments with transparent, real-time tracking will help traders have a clear view of earnings at all times.
Meanwhile, flexible commissions structures allowing traders to set different commissions and performance fees will be helpful in optimising earnings.
Good client support is crucial for traders, as they rely on brokers to take care of customer concerns and queries, freeing them up to better focus on trading.
Additionally, having an efficient and competent support team could be of great help to traders in their day-to-day operations, should they face any technical issues which require immediate assistance.
Not all MAM account is equal and therefore it is critical to trade with the right MAM forex broker that offers great services and caters to your trading needs.
Vantage MAM Account is built to facilitate traders in expanding their investment potential with unlimited investor admission, automated onboarding, flexible performance fees, and control over trading decisions. Sign up today, or speak with us to discover the myriad advantages of being a Vantage partner today.
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