Did you know that in addition to regular trading accounts, FP Markets also offers managed accounts such as MAM and PAMM？Here's what you should know about them。

Despite the many functions of Forex trading, no single security strategy can guarantee profitability in any way。Trading results can be influenced by many factors, some of which are sometimes unpredictable。Some traders are reluctant to trade on their own given the risks and other factors。

One option is to use a managed account service that can follow a specific strategy at a certain level of risk。It basically refers to a system that allows money managers (usually experts) to manage your account and trade on your behalf。If you are a money manager, you can manage multiple accounts at the same time and trade all these "sub-accounts" as if they are a "main account," which is very convenient and efficient。

Now, in order to perform this type of money management, you need a technique called MAM and PAMM。In this article, we will focus on MAM and PAMM accounts provided by FP Markets。

What are MAM and PAMM?？

PAMM for Percent Allocation Management Module Manager。It is a managed account that distributes profits, losses and expenses proportionally to each investor, and is basically a form of pooled funds in foreign exchange trading, where investors deposit funds in pools and money managers use pooled funds to trade on behalf of participants.。As the name implies, the allocation amount and transaction size are based on the investor's allocation percentage。

The money manager's PAMM account is a "master account" whose value represents the sum of all sub-accounts。However, the client's funds remain in their own trading account。As a result, money managers can trade with funds, but they cannot access sub-accounts and withdraw funds from them。It is also worth mentioning that investors must first sign a limited power of attorney (LPOA) before they can participate, which indicates that they accept the trading risk of a PAMM account.。

Meanwhile, MAM stands for Multi Account Manager。It is similar to PAMM, but the sub-allocation of transactions can be done in a series of customizable ways, not just percentage methods。As a result, each investor can decide their own level of risk and the amount of leverage they wish to have on their account。This option is more suitable for traders who like to define their own risks and gain more flexibility in managing their funds。

One thing to note is that money managers play an important role in managing accounts such as PAMM or MAM。These accounts do not allow traders to trade on their own, so they must trust money managers to trade and put their own money at risk。So, it's important to choose a reliable money manager with a strong background。They usually provide a resume to advertise their services, pay careful attention before investing。

FP Markets Money Manager Program

Founded in 2005, FP Markets is a prestigious Australian CFD and Forex broker with clients from more than 80 countries around the world.。The broker is regulated by ASIC Australia, CySEC Cyprus and registered in Saint Vincent and the Grenadines。Over the years, FP Markets has proven its worth by providing customers with a great trading experience, winning at least 40 awards in the areas of customer service and deal execution.。

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Maintaining an overnight position will not result in overnight / rollover fees reducing your income, so you don't have to worry about。FP Markets offers the most competitive swap rates in the industry by introducing swap points in the form of real-time swap rate listings on the MT4 and MT5 platforms。For example:

ACWI: long position is -5.00, the short position is -2.50。
ADAUSD: long position at -20.00, with a short position of -20.00。
AGG: long position is -5.00, the short position is -2.50。

The FP Markets MAM and PAMM distribution systems are available on the MT4 platform and the software is particularly suitable for traders using Expert Advisors (EA)。Thousands of professional fund managers have partnered with the broker for years, thanks to impressive customization features。

To open a MAM / PAMM account in FP Markets, all you need to do is visit the broker's website and contact customer support, the fastest way is to contact them through the live chat service。Click on the chat icon in the lower right corner and explain your business, the broker's support team will help you throughout the process。

Advantages of MAM and PAMM

As a money manager, you can gain several benefits by using your MAM / PAMM account in FP Markets:

• Unlimited trading accounts and deposit levels: the money manager is free to manage any number of sub-accounts。There is no limit to the amount you can deposit, so you can trade at any position size。
  Customizable trading conditions: FP Markets understands that money managers need freedom to maximize returns。As a result, you can get a full-service solution and choose your preferred trading conditions, such as commission rate, spread mark-up, account currency, performance fee and margin call notice。
  Low commission structure: combined with tight spreads and minimal slippage, fund managers can make greater profits through their hard work。
  Fast deposit and withdrawal: users can easily deposit or withdraw money in MAM / PAMM accounts without interrupting trading activities。
  Transparent fees and commissions: The system can track the market in real time, so it can also quickly calculate the total commission in your real account。In addition to this, fund managers can immediately calculate performance charges for all clients。

Are MAM and PAMM accounts secure?？

As with any other trading strategy, MAM and PAMM accounts are not completely risk-free。You still need to calculate risk wisely and consider market conditions before you start trading。

FP Markets is fully regulated and has a track record of complying with strict regulations set by trusted financial institutions。FP Markets keeps clients' funds in separate accounts and uses reliable technology to automatically distribute profits and losses。Best of all, the broker has an award-winning customer support team ready to help you find a solution to any problem you have with the broker。

Conclusion

All in all, trading with a MAM / PAMM account can be a good solution for those who don't like trading on their own。It's also a great opportunity for money managers as they can easily manage multiple client accounts using a single master account。At FP Markets, you can use your MAM / PAMM account in a secure and transparent trading environment。

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FP Markets is a trusted global broker offering over 10,000 CFDs products covering Forex, Stocks, Indices, Commodities and Cryptocurrencies。The broker offers low commissions and as low as 0% through partnerships with leading banks and non-bank financial institutions..Original spread of 0 points。