Been looking at different ways to follow other traders but getting confused by all these account types.
PAMM and MAM seem similar but there’s got to be some key differences. How does the regular copy trading compare to these two?
MAM’s better for control since trades go directly to your account. Copy trading you can stop anytime, but it requires more attention.
Fees differ significantly among these options. PAMM can charge 20-30% performance fees plus management fees. MAM is cheaper but you face spreads on every trade you follow. Copy trading often has the lowest cost with just spread markups. PAMM operates like a black box – you won’t see trades until they close. MAM and copy trading let you monitor positions in real-time. If you’re new, stick with copy trading. It allows you to control your lot sizes and manage your risk more effectively.
I’ve used all three over the years. Started with PAMM back in 2018.
PAMM’s biggest issue? You lose control completely. Your money gets pooled with everyone else’s and the manager calls all the shots. Great if you want totally passive investing, but way too hands-off for me.
MAM’s better since your account stays separate. You can tweak lot sizes and bail out of trades early if needed. I’ve run this with several signal providers and really liked having that flexibility.
Copy trading’s the most transparent option. You see every trade as it happens and can pause or adjust settings whenever you want. Downside is you need to babysit it more - some traders go nuts with position sizes.
If you’re just starting out, go with copy trading. You’ll actually learn what the trader’s doing instead of just watching monthly P&L numbers.
PAMM loses control fully MAM offers some flexibility copy trading is best
PAMM pools your money with other investors. A manager trades one big account, and you get profits based on your share.
MAM keeps your funds separate but scales the manager’s trades to your account size.
Copy trading simply mirrors another trader’s moves in real time, giving you less control over your risk.