Help CenterThe difference between MAM and Social Trader?
MAM
Multi Account Management, or MAM, is a service that some Forex companies offer that lets a trader handle multiple investment accounts at the same time. How it works is as follows:
Let's say a trader has an account where money has been put by several investors. For example, the first person to invest put in $1,000, the second person put in $100, and the third person put in $200. The trader has also put $1,000 into the account, giving him or her a total of $2,300 to trade with.
With MAM, each investor gets their own investment account so they can see how their own money is doing. The first investor can see how well their $1,000 investment is doing, the second investor can see how well their $100 investment is doing, and the third investor can see how well their $200 investment is doing.
On the other hand, the trader has access to the whole account balance and can use it to make trades. This means that the trader can open trades that are bigger than what they could do with their own money.
When using the MAM mode, an investor doesn't need to have a lot of money to make trades. This is because the trader can trade with the whole amount in the account and then share out the profits based on how much each investor put in.
For example, if an investor puts $100 into the pool of funds, even if the trader only makes a small trade, the investor can still make money. But it's important to note that if the trader uses the minimum trading volume, it's possible that some investors' trades won't be opened.
Overall, MAM is a convenient way for traders to manage multiple accounts and for investors to invest in the Forex market without having to make trades themselves. Traders and investors need to know how the MAM mode works to make sure they are making the most money and taking the least amount of risk.
Social Trader
Social Trading is a lot like MAM in a lot of ways, but there is one big difference. Investors do not give the trader their money in Social Trading. Instead, each investor has a separate account from that of the trader.
For example, let's say there are three investors, and each one has their own account. The first investor has $1,000 in his account, the second investor has $100 in his account, and the third investor has $200 in his account. The trader has their own account with $1,000 in it, and the only account they can see is their own.
In Social Trading, the trader doesn't have direct access to the investors' money like they do in MAM. This means that the trader can only trade with their own money, which limits how much they can trade.
MetaTrader has a minimum trade volume of 0.01 lot, so if the trader makes a small trade, this trade may not be able to be copied to the accounts of the second and third investors.
So, in Social Trading, it's important for investors to have at least as much money as the trader if they want to be able to copy trades well. If the investor has more money than the trader, they can copy trades with more accuracy.
Overall, Social Trading is a good option for investors who want to invest in the Forex market but don't want to make their own trades. However, it's important to know the system's limits and choose a trader with the same or more money than you do so that you can copy their trades.
Both Social Trader and MAM have separate accounts from the trader. MAM gives the funds to the trader and the investor can view them in a separate account, while with Social Trader the trades are copied from the trader without transferring the funds.