PAMM and MAM Accounts
Brokers & RegulationAccount structures that let a manager trade once and allocate the result across many investor accounts by percentage share or lot ratio.
PAMM (percentage allocation management module) and MAM (multi-account manager) accounts are structures that let one trader or money manager place trades that are allocated automatically across many investor accounts. In a PAMM setup investors contribute to a pool and each one's result is calculated as a percentage share of it. In a MAM setup the manager sends a block order that is split across linked sub-accounts by lot size or equity ratio, so each investor keeps an individual account. Investors normally pay the manager a performance fee, often measured against a high-water mark.
Operating such an account is usually treated as discretionary management, so licensing requirements, fee disclosure and reporting rules differ by jurisdiction.