MAM is the abbreviation of multi-Account Manager. It is an integrated plug-in into MT4/5 which allows the fund manager and its investors to sub-assess profit and loss using multiple trading platforms. It is specifically designed to provide the experienced trader with the necessary interspersed programming tools to handle the assigning processes instantly and easily via a master account. The Master Account is the only original and principal trading account. The results of businesses and other activities are forwarded to the sub-accounts through the Master Account. No matter what type of broker or cash manager you are, it is important that you create the most advanced MAM tools to assign your master account to your MT4/5 sub-accounts. Take into account the following factors when you consider using an appropriate MAM system that will meet your needs. 

• Mechanical performance of the MAM: Keep in mind the options offered by each MAM system. Weigh all the merits and demerits of each characteristic. Knowing the availability and efficiency of each offered option, you can choose easily which MAM system is best for you.

• Configuration of the MAM system: It is ideal to select a MAM system with different management panels assigned to administrative, partner, and customer roles. Make sure you have a proper user interface on the MAM system in all the essential functions. An organized, easy to use and interactive configuration makes all tasks simple and straightforward.

• Using procedure: MAM can usually be used in two ways: 1. A-Book (Private FX Funds, STP FOREX Brokers) 2. B-Book (Retail FX Brokers). As trades remain on the MT4/MT5 server, B-Book is considered relatively genuine. On the other hand, because of its complexity, A-Book is relatively less used.

• Allocation process of profit and loss: Different types of allocation processes exist. Adequate support and coding are needed according to the distribution method. You can distinguish your distribution methods to simplify your decision. The distribution system usually consists of two kinds: regular and cash. Compare the merits and demerits to find out which delivery system is best for you again. The regular distribution method may be used by investors with equal deposits. Small investors or fund managers who wish to retain their trades and outcomes in private receive cash-based distributions.

• Maintenance fee of the platform: Since there are no installation charges or other external charges, it is fortunate that only technology suppliers are required to pay the charges. Regular maintenance charges, updates, and support for the MAM system are charged. Some technology providers charge a monthly fixed fee while others charge a million per million from your account.

• Fund manager’s fee: Fund managers charge for their efficiency, performance, and successful trading. Managers charge a certain amount of fees, management fees and have an important watermark based on their expertise.

MAM is perfect for inexperienced traders wishing to do business, but who are not interested in making efforts. MAM will supply them with a trading professional who will deal on their behalf. Professional traders hold accounts of certain traders and receive charges for every successful trade. Profits and losses are allocated according to the investments of the client. 

Allocation Methods: 

Around ten allocation methods are designed for MAM on MT4 and MT5. They are: 

Allocations by Volume: 

• Lot Allocation Method: 

In this method, many inexperienced traders are allowed to trade various lots under an expanded trader's master account. In proportion to the parameters of a lot of their investments in the clients' subaccounts, the total volume of the master account will be allocated. 

• Percent Allocation Method: 

In this method, the master account's total volume is allocated according to the percentage (percent) of the investments in the sub-accounts. 

• Proportional by Balance Allocation: 

In this method, the total volume of the master account will be allocated according to the balances of the sub-accounts. This requires no additional settings. The main account's trading fees are axiomatically estimated.

• Proportional by Equity Allocation:

This method is similar to the balance allocation proportional approach. Instead of the equilibrium, the difference is used here. That is, the total master account volume is allocated to the sub-accounts equity. This requires no additional settings. The main account's trading fees are axiomatically estimated.  

• Equity Percent Allocation: 

In this method, the master account's total volume will be allocated to each sub-count on a percentage basis. A master account will deal with the total volume of the sub-accounts. This method uses the percentage parameter (percentage) to represent the share of the sub-accounts.

• Allocation by Equal Risk

Equal Risk allocation is introduced to deal with the problem of sub-account margin control. The sub-accounts are sometimes discontinued due to low margins. No other method for allocating the individual sub-accounts takes into account the margin level. However, with equal risk allocation, the minimum level of the percentage margin for each sub-account is possible. If the minimum percentage margin limit has been achieved, such sub-accounts shall not be allocated.

Allocations by P/L:

• Percent Allocation by P/L: 

This is one of the two methods of profit/loss allocation. The P/L allotment shall be made on sub-accounts with no opening positions. When the main position is closed, a deposit/withdrawal transaction is applied to the sub-accounts. The P/L methods of allocation are generally more accurate. They are always 1 centimeter-accurate, independent of the minimum volume. These methods function with the assignment parameters differently. The assignment parameters are read and the allocations are calculated when the business on the master account is closed.

• Proportional Allocation by P/L

The assignment method is similar to the P/L percent allocation in such a way that no business on the accounts is opened up. When the master trade is closed, the deposit/withdrawal is paid into the subaccounts. Proportional P/L allocation is used where the user requires that sub-accounts be allocated proportionally to their balance. 

The methods are referred to as MAM. All are on the commercial platform MT4/5. Their reason is identical: to allocate the total profit and loss appropriately. You must choose the one that is appropriate for you and commence trading. Take time to consider these aspects. Find out the range of options and functions provided by the MAM system. Decide which MAM system is ideal for you after evaluating all the factors.