PAMM vs. MAM vs. Copy Trading
All three let you benefit from a strategy you don't trade yourself — but they differ in the thing that matters most: who holds your capital and how allocation works.
MAM
- Segregated, full ownership
- Per-account risk & allocation
- Withdraw anytime
- Usually higher minimum
PAMM
- Simple & hands-off
- Proportional returns
- Pooled, not segregated
- Less per-investor control
Copy Trading
- Easy, stay in control
- Bet on one trader's form
- Limited customisation
- Fees can stack up
| Aspect | MAM | PAMM | Copy Trading |
|---|---|---|---|
| Where your capital sits | Your own segregated account | Pooled master account | Your own account |
| Who manages it | Professional manager | Professional manager | You mirror a trader |
| Allocation | Per-account (equity/lot) | Proportional to pool | 1:1 mirror |
| Ownership & withdrawal | Full, anytime | Via pool terms | Full, anytime |
| Customisation | High | Low | Low |
| Best for | Managed + segregated | Hands-off pooled | Self-directed traders |
The short version
Want a strategy managed for you and your money to stay in your own account? A MAM account is usually the best fit. PAMM suits pooled, fully hands-off investing. Copy trading is for self-directed traders who stay in control day to day.
What to Look For in a Provider
Segregated Capital
Funds stay in your own account. The manager gets trading permission only — never the right to withdraw.
No-Code, Fully Managed
No coding, no chart-watching. Open or connect an account, choose an allocation, and it runs.
Clear Documentation
Markets traded, timeframe, entry/exit logic, and the return & drawdown profile — spelled out.
Diversification
Allocate across multiple strategies and markets, not a single system that can break.
Verifiable Results
Annualised return, max drawdown, win rate and date range — ideally verified on MyFXBook or FX Blue.
Fees You Understand
Performance fee, management fee, or free (broker spreads only). Know every cost before you allocate.
Risk Management & Drawdown
Golden rule
A managed account is still a trading account. Only allocate capital you can afford to lose, and understand the strategy's historical maximum drawdown before you commit.
Biggest peak-to-trough loss in the track record. 15% means it lost 15% at its worst point.
Gross profit ÷ gross loss. Above 1.5 is solid; higher is better with controlled risk.
A good MAM setup lets you run a strategy more conservatively than the master account.
Start with a smaller allocation. If the account performs consistently over 3–6 months, then increase. Live results never perfectly match a backtest.
Broker & Platform Compatibility
PAMM/MAM allocation runs on top of a broker's MetaTrader 5 platform. What to confirm:
- MetaTrader 5 (MT5) — the industry-standard multi-asset platform with native MAM/PAMM allocation tooling and fast automated execution. This is what Stealthy Trader runs on.
- A regulated MT5 broker — pick a well-regulated broker that offers MetaTrader 5 managed-account (MAM/PAMM) support and keeps client funds segregated.
Confirm your broker offers MetaTrader 5 with MAM/PAMM allocation — a managed MT5 account needs an MT5-compatible broker.
Evaluating Track Records
Red flags
- "Guaranteed profits" — no managed account can promise returns.
- Tiny sample size — a "perfect month" means little.
- Zero drawdown — impossible; even top managers see 10%+.
- Manager has withdrawal rights over your funds.
- No transparency on strategy or results.
Green flags
- Segregated capital in your name (MAM).
- Independent verification via MyFXBook or FX Blue.
- Consistent, realistic returns with controlled drawdown.
- Transparent methodology and documented rules.
- Multi-year track record, not a lucky streak.