PAMM/MAM Plugin for Forex Brokers: The Complete Guide to Multi-Account Money Management
PAMM and MAM plugins let a money manager trade many investor accounts from one place. For a broker they can open a managed-money line of business, with its own technology, fee and regulatory demands. This guide covers how the models work, what to specify and what to check before you launch.
PAMM and MAM in plain terms
PAMM pools investor funds into one master account. The manager trades that account, and profit and loss are shared in proportion to each investor’s share.
MAM keeps investor accounts separate. The manager’s orders are allocated across them by a rule, such as equity or lot size. Choose by the relationship you want: pooled for simplicity, separate accounts for transparency and flexibility.
Allocation and fee rules
Specify the allocation method, the rounding rule and how partial fills are handled. Specify the fee model: management fees, performance fees, high-water mark, calculation periods and payout timing.
Write the rules in plain language for investors and in precise terms for developers, then test with worked examples, including awkward ones.
Investor controls and transparency
Investors should be able to see their share, performance, fees and open positions, and to join or leave under clear conditions. Consider investor-side limits such as a maximum drawdown that pauses participation.
Transparency reduces disputes more reliably than any clause in an agreement.
Integration with CRM and the platform
The plugin relies on platform access and usually integrates with the CRM, investor portal and payment flows. Connect through the Manager API where your setup allows, and make sure balances, fees and statements reconcile.
See multi-account terminal and manager tools for monitoring.
Regulation and risk
Managing other people’s money is regulated in many jurisdictions, and some rules also apply to the broker hosting the service. Take advice before launching, publish clear risk warnings and vet managers carefully. Compare the model with copy trading before deciding.
Launching the service
Start with a few vetted managers and a small investor group. Publish the rules, review results monthly and treat the service as a product with its own support, compliance and communication needs. Keep records of approvals and changes.
PAMM and MAM compared in a table
The two models are often confused. The table shows the main differences.
| Aspect | PAMM | MAM |
|---|---|---|
| Account structure | One pooled account, investors hold shares | Separate accounts under one manager |
| Visibility for investors | Pool results by share | Own account trades and balances |
| Allocation | Pro rata by share | Rules per account |
| Deposits and withdrawals | Adjust shares in the pool | Direct on the investor account |
| Fee calculation | On the pool, per investor | Per account |
| Complexity | Accounting of shares | Allocation and exceptions |
Choose based on what your investors expect and what your team can run reliably.
A worked fee example
Illustrative numbers only. An investor holds a share of a pool. At the start of a period the investor’s share is worth 10,000. At the end it is worth 11,000. A performance fee applies to profit above a previously reached high-water mark. If the high-water mark was 10,500, the fee applies only to the 500 above it, not to the whole 1,000 gain.
The calculation illustrates why fee rules must be written down precisely: the base, the percentage, the high-water mark, the timing and how deposits and withdrawals in the period are treated. Put an example like this on the investor-facing page.
Investor transparency
Investors need statements that show their balance, deposits, withdrawals, performance, fees and the manager’s activity at a level appropriate to the model. Clear statements reduce disputes and support questions.
Provide a dashboard or regular reports. Explain terms in plain language, and have a route for investors to ask questions. A transparent service builds confidence, which is the main asset of a managed-money offer.
Technical checks before launch
- Test deposits and withdrawals in the middle of a period.
- Test partial fills and rejected orders.
- Test fee calculation against a hand-worked example.
- Test statements against the trading server.
- Test permissions for managers, investors and staff.
Keep the test records. See our plugin page and the terminal guide for the surrounding tools.
Regulation and responsibility
Operating managed-money services can involve licensing, disclosure and conduct requirements that differ by country. Take legal advice before launch and document your policies for manager vetting, conflicts of interest and client communication.
This article is general information and not legal advice.
Mistakes in managed-money services
- Vague fee rules that lead to disputes.
- Statements that investors cannot understand.
- No process for handling a manager’s bad period.
- Treating regulation as an afterthought.
- Launching without testing mid-period deposits and withdrawals.
Because investors hand over decisions, trust is the product. Clarity and consistency protect it.
Manager vetting and onboarding
Define criteria for managers: track record, identity checks, risk limits and acceptance of your rules. Interview candidates, explain the fee and reporting rules and agree communication standards. Review managers regularly and have a documented process for suspension and removal.
Give managers dashboards that show their performance, investor numbers and fees, so they can focus on trading rather than administration.
Investor communication calendar
Plan regular communications: a welcome message, monthly statements, performance commentary and notices of changes to rules. Use plain language, avoid promises and include clear risk warnings. A predictable rhythm builds confidence and reduces ad hoc questions.
A simple launch checklist for managed money
- Fee rules written and reviewed.
- Allocation rules tested with partial fills.
- Statements checked against the server.
- Managers vetted and trained.
- Investor disclosures approved by an adviser.
- Support route ready.
Tick every item before accepting the first investor.
Frequently asked questions
What is the difference between PAMM and MAM?
PAMM pools investor money in one account with shares, while MAM keeps separate investor accounts under one manager with allocation rules.
How are PAMM performance fees calculated?
It depends on your rules. Typically a percentage of profit above a high-water mark over a period. Write the rules precisely and give examples.
Can investors withdraw at any time?
It depends on your terms. Some services allow it at set times to protect the pool.
Do I need a licence to run PAMM or MAM?
It may be required depending on your jurisdiction and structure. Take professional advice.