The PLUGIT MAM (Multi-Account Manager) plugin offers eight allocation methods that help forex brokers manage multiple accounts and distribute trades among their clients. We designed these allocation methods to provide flexibility and convenience while catering to the specific needs and preferences of both brokers and their clients. Let’s analyze each method in detail and discuss its application to forex brokers.
PLUGIT MAM Allocation Methods
ELS – Equity Lot Share: Any open positions in the ‘Master Account’ will automatically open in the ‘Slave Accounts’ at the same price according to their Equity Ratio.
ECS – Equity Cash Share: Any open Positions in the ‘Master Account’ will not automatically open in the ‘Slave Accounts,’ but the Profit/Loss will be distributed to the ‘Slave Accounts’ once the ‘Master Account’ closes their positions according to their Equity Share.
BLS – Balance Lot Share: Any open positions in the ‘Master Account’ will automatically open in the ‘Slave Accounts’ at the same price according to their Balance Ratio.
Percentage: Any open positions in the ‘Master Account’ will automatically be opened on the ‘Slave Accounts’ according to the defined percentage set for each Slave Account by the Money Manager. The total of the defined percentages must be equal to 100% for the configuration to be in effect. Therefore, whenever a Slave Account is excluded or frozen, the total percentage across the remaining ‘Slave Accounts’ must be updated to ensure that the total percentage equals 100%.
EV – Equal Volume: Whenever the ‘Master Account’ opens/closes a trade, the same trade will automatically open/close in the ‘Slave Accounts.’ Like the percentage allocation strategy above, this strategy supports defining a percentage for each Slave Account by the Money Manager. However, in this case, the total of the defined percentages does not have to equal 100%, so that you can set a percentage for each ‘Slave Account’ (i.e., 50%, 100%, 200%).
Multiplier: Using the Multiplier option, the Money Manager can set a multiplier on each of the ‘Slave Accounts.’ Using this multiplier, any position opened by the ‘Master Account’ will open a trade according to the formula: (Slave Multiplier / Total Multiplier ) x Volume
Fixed Lot: With the Fixed Lot allocation, any open positions on the ‘Master Account’ will automatically open in the ‘Slave Accounts,’ according to a volume amount you can specify individually on each of the ‘Slave Accounts.’
% of equity: With the % of Equity allocation, whenever a trade is opened on the ‘Master Account,’ the ‘Slave Accounts’ will open a trade according to the formula: (Slave Equity / Master Equity) x Volume.
How MAM Helps Brokers Attract More Clients:
The MAM plugin plays a crucial role in helping forex brokers attract more clients. By offering MAM accounts, brokers can cater to a broader range of traders, including money managers, fund managers, and individual investors. The MAM structure allows these clients to manage multiple accounts through a single master account, providing them with efficiency, control, and ease of management.
MAM accounts attract money managers and traders who handle multiple investor accounts, as they can execute trades simultaneously across multiple accounts from a single platform. This streamlined process saves time, reduces complexity, and enhances the overall trading experience.
Furthermore, the MAM plugin enables brokers to offer customized allocation methods, allowing them to accommodate various client preferences. This flexibility and ability to adapt to individual needs increase the attractiveness of brokers’ services, making them more competitive in the market.
How Brokers Derive More Revenue:
MAM accounts can generate significant brokers’ revenue through increased trading volume. As money and fund managers handle multiple accounts, their trading activities result in higher trading volumes. The more trades executed, the more revenue brokers can generate through spreads, commissions, or fees.
Additionally, MAM accounts often attract professional traders who actively manage investor funds. These traders tend to engage in frequent trading to capitalize on market opportunities. As a result, the increased trading volume from MAM accounts leads to higher transaction volumes and, consequently, more revenue for brokers.
By offering MAM accounts, brokers can charge performance or management fees to money managers or traders using the MAM structure. These fees can be based on a percentage of profits generated or a fixed fee structure. Such additional fees enhance brokers’ revenue streams beyond standard spreads or commissions.
The PLUGIT MAM plugin provides forex brokers with eight allocation methods that facilitate efficient trade distribution among multiple accounts. MAM accounts attract clients, such as money and fund managers, who benefit from streamlined management capabilities. Increased trading volume from MAM accounts and other performance or management fees enable brokers to derive more revenue, making MAM a practical solution for brokers and their clients.
MAM (Multi-Account Manager) accounts have become increasingly sought after by retail traders in the forex market. These specialized trading accounts offer unique benefits and features that cater to the needs of retail traders who seek more efficient and effective ways to manage their trading activities. Let’s explore why retail traders actively look for forex brokers offering MAM accounts and how these accounts benefit their trading.
Professional Money Management: MAM accounts allow retail traders to access professional money management services typically reserved for institutional investors. By linking their trading accounts to a master account managed by experienced money managers or traders, retail traders can benefit from the expertise and strategies employed by these professionals. This enables retail traders to achieve better trading results through skillful funds management.
Diversification and Risk Management: MAM accounts enable retail traders to diversify their investments across multiple strategies and trading styles. By allocating their funds to different money managers or trading strategies within the MAM structure, traders can spread their risk and potentially reduce the impact of any individual trading strategy’s performance. Diversifying helps safeguard the trader’s capital and promotes more balanced risk management.
Efficiency and Convenience: MAM accounts provide retail traders a more efficient and convenient way to manage multiple trading accounts simultaneously. Instead of manually executing trades across various accounts, traders can manage all their investments from a single master account. This centralized approach streamlines trade execution, order management, and monitoring, saving time and effort for traders.
Trade Replication and Scaling: MAM accounts allow for trade replication, where trades executed in the master account are automatically copied and executed in the linked client accounts. This feature ensures that all clients receive the same trades, minimizing delays and discrepancies. Furthermore, MAM accounts facilitate trade scaling, where the trade size is adjusted based on the individual client’s account size or allocated percentage, allowing traders to maintain proportionality in their trading activities.
Transparency and Control: MAM accounts provide transparency and control to retail traders. Traders can monitor their account activity in real-time, view trade history, track performance metrics, and access comprehensive reports. This transparency helps traders make informed decisions and evaluate the effectiveness of money managers or trading strategies employed within the MAM structure. Additionally, traders retain control over their capital, including the ability to deposit or withdraw funds from their accounts at any time.
Access to Advanced Tools and Resources: Forex brokers offering MAM accounts often provide traders access to advanced trading tools, research resources, and educational materials. This additional support equips retail traders with valuable insights, analysis, and trading resources, empowering them to make more informed trading decisions and enhance their trading skills.
Retail traders actively seek forex brokers that offer MAM accounts due to the numerous benefits these accounts provide. MAM accounts grant access to professional money management, diversification, risk management, efficiency, convenience, trade replication, scaling, transparency, control, and access to advanced tools and resources.
By utilizing MAM accounts, retail traders can optimize their trading activities, improve their trading results, and enjoy a more streamlined and effective trading experience.
Providing MAM accounts is a win/win situation for both broker and client. Brokers benefit from the increased number of FTDs and higher trading volumes, while traders see a MAM account as a convenient entry into the trading world.
We first released our MAM plugin in 2017, and ever since then, it’s become a firm favorite with brokers worldwide. Now in its third generation, our MAM module forms part of our multi Award-Winning YOONIT suite of intelligent broker solutions.
If you’re considering adding MAM accounts to your brokerage, drop us a line, and we’ll show you how we can optimize your results.