Zachary Evans

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What are PAMM and MAM accounts?

PAMM (Percentage Allocation Management Module) and MAM (Multi-Account Manager) accounts are systems that allow investors to allocate funds to professional traders or money managers. In a PAMM account, profits and losses are distributed proportionally among investors based on their share. MAM accounts provide managers with more flexibility, including the ability to customize risk allocation for each investor. These accounts appeal to traders who prefer passive investment but still want exposure to forex markets. However, risks include reliance on the manager’s skills and the potential for mismanagement. It is critical to choose regulated brokers offering transparent PAMM/MAM services.