Managed accounts are segregated accounts, owned by investors, but with the trading decision-making
function delegated to a fund manager. Managed accounts differ from mutual funds as in a mutual fund,
contributions from traders are pooled together in a corpus, which is managed by the fund manager:
the trader holds a portion of the portfolio and has no practical ownership of the underlying
Two of the major modes in which managed accounts operate are Percentage Allocation Money Management
and Multi- Account Manager (MAM).
PAMM and MAM both allow fund managers to manage multiple segregated accounts through a
single account, without the need to create a trading fund. Client managed accounts are all connected to
the manager’s main
account and all trades made by the manager are distributed proportionally among account holders.
Similarly, the gains or losses arising out of a fund manager’s performance get proportionally
among the segregated account holders.
To ensure the security of investors funds, client deposits remain in their own trading accounts,
the manager does not have access to these accounts and therefore cannot make any withdrawals.
The individual investors are the only ones who are able to make deposits & withdrawals to/from
these managed accounts. However, the performance fees that are earned by account managers are
automatically withdrawn from clients' accounts, in accordance with the terms of the contract.
Benefits of using PAMM and MAM
** Being fully computerised and automated, the PAMM platform reduces the risk of fraud in the
Multi-Account Manager (MAM)
MAM accounts provide more complex and sophisticated managed account services by allowing the fund
manager to assign higher leverage for particular sub-accounts. MAM also allows the fund manager to
regulate and adjust other risk management features across sub-accounts based on the individual
trader’s risk profiles, thereby giving them the flexibility to execute complex trading strategies.
Although the basis of distribution continues to be a percentage allocation, by using a MAM, the
fund manager can take advantage of greater flexibility to allocate trades on the basis of risk
allowed by each sub-account. If a particular sub-account holder is considered by the manager
to have a higher risk appetite, then they can assign greater leverage for the account, thereby
increasing the risk of individual trades. If the higher risks pay off, there could be greater rewards.
However, this flexibility could be a double edged sword and could bring exceptional losses if markets
go against the fund manager but the good news is that Eagles negative balance prevents initial
** Allows better representation of individual trader’s risk appetite in fund manager’s trading strategy.
** Regulated brokers providing PAMM/MAM services.
Eagles Finance – Key Features:
Allows trading subgroups for variety of strategies
Client allocations starting from .01 lot
Provides for MT4 order types stops, limits, trailing stops, close all, etc.
Leverage up to 400:1
Prompt monthly payments
Managed accounts have allowed traders to benefit from sophisticated trading strategies provided
by professional fund managers for their individual accounts. They also allow traders to harness
the benefits of diversification based of varied trading strategies. These instruments provide
an alternative to traditional pooled asset trading funds.
What you need for your PAMM and MAM account
1. Forex brokerage firm (Eagles trades and investment)
2. Trader(s)/ Money manager(s)
Eagles trades and investments employs the services of professional traders and use of algorithms
with an interesting system of risk management and its negative balance system protects loss of
investors initial capital.
If you don’t have enough knowledge to trade on the financial market or if you don’t have enough
time for it, choose a PAMM account and invest your funds. Your potential profit is unrestricted
and you can track the progress on your account using your smart-phone or pc and withdraw your funds
Click the sign up button and get a PAMM account today!
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