MAM Account

What MAM Account means

A MAM, or multi-account manager, keeps client funds in individually owned sub-accounts rather than a single pool. The manager trades from a master terminal, and every order is allocated across the linked sub-accounts according to a chosen method: by equity, by lot proportion, by a fixed ratio or by a percentage the manager assigns. Each client therefore holds real positions in their own account, can see their own trade history, and can usually deposit or withdraw without waiting for a pool valuation cycle.

The important difference from a PAMM is control at the account level. Because the sub-accounts are separate, a MAM allows different leverage, different risk multipliers and in some setups different stop-out treatment for each client, so a conservative investor can be allocated half the exposure of an aggressive one from the same signal. Allocation happens at execution, and the mechanics matter: sub-accounts may receive marginally different fills, and lot rounding on small balances can cause visible tracking error against the master.

MAM structures are common where a manager runs money for a handful of clients under a discretionary mandate, and they are often paired with a limited power of attorney rather than a fund structure. The caveats mirror PAMM. Individual leverage settings change the risk each client carries but do nothing to change the underlying strategy, performance fees still create asymmetric incentives, and managing other people's money for reward is a regulated activity in most jurisdictions regardless of the technical structure used.