PAMM / MAM Account
Also known as: PAMM account, MAM account, percentage allocation management module, multi-account manager, pooled managed account
What is it?
PAMM and MAM are the two standard broker structures that let one manager trade many client accounts from a single terminal, with every trade allocated back to each investor in proportion to their share. PAMM, the Percentage Allocation Management Module, pools the money. If two investors contribute 70,000 and 30,000 dollars to a 100,000 dollar pool, they hold 70 and 30 percent of it; the manager trades the pool as one account and each balance moves by that percentage, so a 6 percent pool gain gives the larger investor 4,200 dollars before fees.
Both investors hold the same position at a different scale, so the manager's risk per trade becomes each investor's risk per trade. A pooled PAMM has no per-client cap.
MAM, the Multi-Account Manager, keeps the accounts separate and copies each master trade into them by an allocation rule, so a 1.00-lot master trade becomes a 0.70-lot and a 0.30-lot position. The practical difference is control and visibility. In a PAMM every investor holds an identical percentage of the same positions and cannot vary risk individually.
In a MAM each account is its own, so the manager can apply a different leverage or lot ratio per client and each investor sees their own trade history. Both usually charge a performance fee against a high-water mark, and both leave every trading decision with the manager.
Why it matters: PAMM pools your money into one shared position while MAM keeps your account separate, and that structural difference decides how much risk control you retain.
Investor allocation = (investor equity / total pool equity) x the master position size
A pooled PAMM applies the manager's risk to every investor identically, so an oversized master position becomes an oversized position in your account with no per-client cap.
Real-world example
A manager running both structures took a trade risking 3 percent. Every PAMM investor absorbed exactly 3 percent, while a MAM investor who had agreed a half allocation absorbed 1.5 percent on the very same trade.
How SignalBots handles it
SignalBots does not pool capital or manage accounts. Signals are delivered to you and executed in your own account by your own connector, so allocation never leaves your control.
See /risk-warning.
Pro tip
Ask which structure an offer actually uses before funding it. A PAMM marketed with per-client risk settings is really a MAM, and the difference decides whether you can cap your exposure.
Common pitfalls
Assuming a high-water mark protects the capital. It only stops you paying a performance fee twice on the same profit; the drawdown underneath it is still entirely yours.
Frequently asked questions
What is the difference between PAMM and MAM?
PAMM pools every investor's money into one account traded as a single balance, with returns split by percentage share. MAM keeps each investor's account separate and allocates a share of each master trade into it, which allows per-client risk settings.
Can I withdraw from a PAMM at any time?
Usually not instantly. Most PAMMs settle at defined rollover points, whether daily, weekly or monthly, because the pool's value has to be struck before shares can be redeemed. Check the notice period before you fund it.
Who actually holds the money?
The broker does, inside an account structure the broker operates. The manager receives trading authority and a fee, not custody. Verify that with the broker directly rather than with the manager.
What fees apply?
A performance fee on new profit above the high-water mark is standard, often 20 to 30 percent, sometimes alongside a management fee and a broker-side markup. Ask for the total cost, not just the headline performance rate.
Is a PAMM safer than trading myself?
It is different, not safer. You remove your own execution mistakes and add manager risk, concentration risk and reduced access to your own funds. A single manager's bad month becomes your bad month. Your capital is at risk.
Trading involves substantial risk of loss. Historical and backtested results do not guarantee future performance. Read the full risk warning.
