Many investors want exposure to financial markets but do not have the time, experience, or discipline to trade on their own. Today, brokers offer several managed trading solutions that allow clients to participate in the markets in different ways.
The most popular models are Copy Trading, PAMM, MAM, and Funded Accounts. Although they may seem similar, they work very differently. Below, you will find a clear explanation and comparison to help you choose the right solution.
Copy Trading allows investors to automatically copy the trades of an experienced trader. Once you choose a trader to follow, every trade they open or close is copied in your account in real time, based on your investment size. You keep full control of your funds and can stop copying or change traders at any time. This service is popular with beginners and investors who want a hands-off approach.
A PAMM (Percentage Allocation Management Module) account pools money from multiple investors into one managed account. A professional manager trades the combined funds, and profits or losses are shared between investors based on their contribution. Investors do not place trades themselves and pay the manager a performance fee only if profits are made. PAMM accounts are suitable for investors looking for long-term, professionally managed trading.
A MAM (Multi-Account Manager) account allows a professional trader to manage multiple individual accounts at the same time. Each investor’s funds stay in their own account, but trades are executed simultaneously across all linked accounts using allocation rules. Investors have limited involvement, while the manager controls trading decisions. MAM accounts are commonly used by experienced traders and larger investors.
Funded accounts are designed for experienced traders and are mainly offered through proprietary trading firms rather than traditional brokers. Traders use the firm’s capital instead of their own and receive a share of the profits. However, they must follow strict risk rules and performance requirements.
👉Explore our list of top prop trading firms by pressing here - Companies which offer funded accounts
The table below highlights the main features and differences between these models, making it easier to compare how each service works in practice.
If you would like to know which brokers from our network offer Copy Trading, PAMM, MAM, or Funded Accounts, feel free to contact us.