The Forex for Foreign exchange market is a market for trading currencies with the exchange rate fluctuating at any time. When you want to get into Forex, it is interesting to bequeath this management to a broker through an account. There are several types, including the MAM account. Find out how the MAM account works.
The principle of the MAM account
The MAM or Multi-Account Manager account allows individuals who wish to invest, to entrust the management of their capital to a Forex broker. The broker will carry out his trading using the funds of his investors, but also his own funds. The distribution of profits will be made according to the conditions mentioned in the contract between the two parties.
The MAM account allows the broker to control the leverage effect of all of his sub-accounts, taking into account the risks that each investor is prepared to take. Opening such an account requires making contact with an account manager or broker.
As soon as an individual opts for a broker, he must invest in the MAM account. The broker must then manage all the capital invested to carry out the financial transactions. But what are the advantages of an MAM Forex account?
The advantages of the MAM account
It could be that you are interested in Forex and you plan to put money in it. But for lack of time or lack of knowledge, you do not embark on the adventure. You will then find in the placement of the MAM account a solution made for you.
This solution allows you to earn without limit and you can retract whenever you want. In order to optimize your earnings, you will need to opt for a broker offering attractive trading conditions. The MAM account offers the possibility to follow your investments thanks to customizable reports.
What are the differences between the PAMM account and the MAM account?
The PAMM account stands for Percentage Allocation Money Management, as with the MAM account, it allows the management of multiple sub-accounts through a main account without the need to set up dedicated funds. Profits and losses are distributed over all accounts in proportion to the investments made. If the two accounts seem similar, the MAM account stands out for its greater flexibility of operation on Forex, because the broker will be able to regulate the risk taking of its clients by taking into account the leverage effect.