What is a PAMM account and a MAM account
A PAMM (Percentage Allocation Management Module) or MAM (Multi-Account Manager) account is a set-up in which one manager trades from a master account on behalf of several investors, and each investor's profit or loss is shared in proportion to their stake.
The manager makes the trading decisions. The investor's money takes the result. Gains and losses come from the market, not from a fixed return.
Ready to try it on a real or demo account?
Partner link · trading carries a high risk of loss
PAMM vs MAM: the formal difference
| Point | PAMM | MAM |
|---|---|---|
| Structure | Investor money is pooled into one managed account | Each investor keeps a separate sub-account linked to the master |
| Allocation | By each investor's percentage share of pool equity | By a chosen method: equity-proportional, percentage or fixed lot |
| Investor settings | Same for everyone in the pool | Leverage and allocation can differ per sub-account |
| Reporting | Share of pool, often in units | Separate account statement per sub-account |
A related variant, LAMM (Lot Allocation Management Module), copies a fixed lot size to each account regardless of equity.
Edge cases experienced traders check
- Lot rounding. In a MAM, the manager's block order is split, then rounded to the minimum lot. A small sub-account may get no trade, or a trade that is proportionally larger than intended. That changes its exposure.
- Mid-period deposits and withdrawals. These change each investor's share. The rules for when the change takes effect matter.
- Performance fees. A fee is often charged only on profit above a high-water mark (the previous peak). Check whether it is calculated per period or per investor.
- Slippage and swaps. Block orders can fill at worse prices. Overnight swaps are allocated like profit and loss.
- Manager control. The manager usually cannot withdraw investor funds, but can lose them through trading.
Worked example (hypothetical)
Investor A supplies most of the pool. Investor B supplies a smaller part. The manager opens a leveraged position on the master account, and the market moves against it.
Both investors lose the same percentage of their stake. Investor A loses more in rupees because A's stake is larger. If the next trade recovers only part of the loss, no performance fee is due, because equity is still below the high-water mark.
To put your own amounts into this, use the tools on Calculators. Leveraged forex and CFD trading can lose money fast, and in a pooled account one manager's mistake hits every investor at once.
Where the term appears
- Platforms. Broker add-ons on MetaTrader servers that offer "investor" and "manager" roles.
- Reports. Manager pages showing an equity curve, drawdown and fees.
- News and warnings. Regulator warnings often mention managed-account offers promoted on social media. The SECP has issued SECP warnings by press release naming platforms (Quotex 09.04.2025; IBKR look-alikes, IGIL Securities, BMA Capital No.108 etc. 22.05.2025; Hillhouse Capital, S-169 Wharton 13.01.2026), none of which names Exness.
Rules in Pakistan
- On offshore platforms: per the SECP, offshore platforms have no Pakistani licence or oversight and offer no legal protection or recourse.
- On residents' purchases: per the SBP, the purchase of offshore forex/margin/CFD products by Pakistani residents violates section 4(1) of FERA 1947.
- Also, per the SBP, remitting foreign exchange to overseas forex/margin/CFD platforms is not allowed through any payment channel (FERA s.5(1)).
- Managing or advising on futures without a licence is restricted: under the Futures Market Act 2016, s.47(1), no one may carry on a regulated activity (futures broker, adviser, representative) without an SECP licence.
For more on this, see Regulation and Safety.
Related terms
Counterparty · Custodian · A-book and B-book · Front running · Compliance · Risk management · Trading glossary
Frequent questions
What is a PAMM account in simple words?
It is a pooled account. One manager trades it, and each investor gets their percentage share of the result, whether that is a profit or a loss.
What is a MAM account?
Each investor has their own sub-account. The manager's trades are copied into each sub-account according to an allocation rule.
Is a PAMM or MAM account safer than trading myself?
Not by design. Market risk, leverage risk and the manager's decisions all pass to you. In a pooled account, you also depend on the platform's records.
Can the manager take my money?
Normally the manager can only trade the account, not withdraw from it. Trading losses can still reduce your balance.
Are offshore managed accounts protected in Pakistan?
Per the SECP, offshore platforms have no Pakistani licence or oversight and offer no legal protection or recourse.