In the trading industry, especially for clients or fund managers handling multiple investors, effective account management tools are essential. Two popular systems that support this need are PAMM (Percentage Allocation Management Module) and MAM (Multi-Account Manager). Both systems allow a single trader to manage multiple client accounts efficiently, but they differ in structure, flexibility, and control.
PAMM – Percentage Allocation Management Module
How it works:
PAMM allows a trader (fund manager) to execute trades using a master account. Investor funds are pooled together, and profits or losses are distributed proportionally based on each client’s share of the total investment.
Example:
If Investor A contributes 25% of the pool, they receive 25% of profits or bear 25% of losses from the manager's trading activity.
Advantages:
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Automated and proportional allocation
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Transparent system
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Ideal for investors with similar risk appetite
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No manual trade replication needed
MAM – Multi-Account Manager
How it works:
MAM allows the manager to trade from one master account, but each investor’s funds remain in their individual trading account. Trades are copied into each account, often proportionally based on balance or pre-set risk preferences.
Advantages:
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Flexible allocation per client
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Supports different risk levels
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Allows for manual lot adjustments
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Better control and customization for sophisticated clients
PAMM and MAM systems offer powerful tools for centralized trading and account management. While PAMM is great for passive investors looking for simple proportional gains, MAM is better suited for clients who need customization and control over risk exposure. At Lirunex, we are equipped to support both, helping our clients grow through smart, scalable trading solutions.